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

Question number: 327

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Essay Question▾

Describe in Detail

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 sheetFollowings are the items of balance sheet

Reserves & Surplus

Non- Current Assets

Current Liabilities

Secured Loans

Profit & Loss A/c

Debentures

Securities Premium

Outstanding Expenses

Goodwill

Loans from bank

Explanation

Heading each item would appear in the balance sheetHeading each item would appear in the balance sheet

Reserves & Surplus

Non- Current Assets

Current Liabilities

Secured Loans

Profit & Loss A/c

The Profit and Loss A/c

The Profit and Loss a/C

Debentures

The Debentures Secured loans

The Debentures Secured Loans

Securities Premium

The Securities Premium

The Securities Premium

Outstanding Expenses

The Outstanding Expenses

The Outstanding Expenses

Goodwill

The Goodwill Non current assets

The Goodwill Non Current Assets

Loans from bank

The 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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