NCERT Solutions for Class 12 Accountancy Chapter 3 - Financial Statements of a Company

Accounting for Share Capital, Financial Statements of a Company, Accounting Ratios, Issue and Redemption of Debentures, and Analysis of Financial Statements are the main topics covered in Part 2 of Accountancy in 12th standard.

There are 18 questions in total including those explaining the concepts as well as pertinent balance sheets and mathematical problems.

The preparation of the Financial Statements is done from Trial Balance. They are responsible for depicting the true financial position of the business and they may provide valuable financial information to the users.

Trading and Profit and Loss A/c or Income Statement

This shows the financial performance by determining the profit or loss made by a business during an accounting year.

Balance Sheet

This showcases the financial position of the business by telling about the assets, liabilities and the capital as of a particular date.

Cash Flow Statement

This is responsible for showcasing the inflow and outflow of the cash during a particular accounting period.

Financial Statements provide valuable information to stakeholders and aid them in making informed decisions.

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In ch 3 of Accounts Class 12 Part 2 of NCERT Solutions of Accountancy Class 12 Part 2 Chapter 3, you will come across the difficult concepts of the objective, importance and limitations as well as the nature and significance of Financial Statements. You will also be asked to prepare the profit and loss statements as a part of the miscellaneous exercises at the end of the chapter. These questions often appear in exams and are all explained in great detail.

All other questions are also based on how the Financial Statements ease the path for stakeholders and other personnel involved in the business in making informed financial decisions. Practicing all these questions will indefinitely make you an expert on the topic of Financial Statements of a Company. Avail your copy of the Vedantu’s Ncert Solutions for Class 12 Accountancy Part 2 Chapter 3 now and start on your journey towards a 100 % in Accountancy.