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# Text book Solutions CBSE Class-12 Ultimate Book of Accountancy

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Download solutions for class-12 Accountancy text book (Ultimate Book of Accountancy) Part-B authored by Dr. Vinod Kumar and published by Viswas Publications. Each and every question given in the textbook along with brilliant problems are now available in myCBSEguide.com for free download. We are thankful to Mr. Vinod Kumar for providing the solutions and guiding the team to upload them in time.

The solutions to Part-A are in pipeline. These will be uploaded soon. Please subscribe our news letter below and like us on facebook to get latest updates from myCBSEguide.

The topics covered in Part-B are

Unit 3: Analysis of Financial Statements

Financial statements of a company: Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and sub headings (as per Schedule VI to the Companies Act, 1956).

Scope: Exceptional Items, Extraordinary Items and Profit (loss) from Discontinued Operations are excluded.

Financial Statement Analysis: Objectives and limitations.

Tools for Financial Statement Analysis: Comparative statements, common size statements, cash flow analysis, ratio analysis.

Accounting Ratios: Objectives, classification and computation.

Liquidity Ratios: Current ratio and Quick ratio.

Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio.

Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio and Working Capital Turnover Ratio.

Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

Scope: As ratio analysis is a managerial tool, for the computation of profitability ratios, relevant information should be specified whether it is a part of Statement of Profit and Loss as per Schedule VI or not.

Unit 4: Cash Flow Statement

Meaning, objectives and preparation (as per AS 3 (Revised) (Indirect Method only)

Scope:

(i) Adjustments relating to depreciation and amortisation, profit or loss on sale of assets including investments, dividend (both final and interim) and tax.

(ii) Bank overdraft and cash credit to be treated as short term borrwings.

(iii) Current Investments to be taken as Marketable securities unless otherwise specified.