IGCSE Accounting Paper-1: Specimen Questions with Answers 327 - 327 of 338

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Question 327

Describe in Detail

Essay▾

Followings are the items of balance sheet. Indicate with a tick under which heading each item would appear in the balance sheet: (Marks 3)

Followings Are the Items of Balance Sheet
Reserves & SurplusNon- Current AssetsCurrent LiabilitiesSecured Loans
Profit & Loss A/c
Debentures
Securities Premium
Outstanding Expenses
Goodwill
Loans from bank

Explanation

Heading Each Item Would Appear in the Balance Sheet
Reserves & SurplusNon- Current AssetsCurrent LiabilitiesSecured Loans
Profit & Loss A/c
The Profit and Loss a/C
Debentures
The Debentures Secured Loans
Securities Premium
The Securities Premium
Outstanding Expenses
The Outstanding Expenses
Goodwill
The Goodwill Non Current Assets
Loans from bank
The Loans from Bank
  • Reserves and Surplus- Reserves includes all kinds of reserves such as general reserve, capital reserves, etc. Capital profits such as securities premium are also treated as reserves. Surplus is the balance of profits after payment of dividend, transfer to reserves etc.
  • Non-Current Assets: All assets other than current assets are categorized under this. Goodwill is a non-current intangible asset. Fixed assets are also non-current assets.
  • Current Liabilities are those which can be paid off within a year. Outstanding expenses are current liabilities.
  • Secured Loans are those which are backed by any security. Debentures are generally secured by the assets of the company.

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