Chapter 6 of 13
Revision Notes
Company Final Accounts — Revision Notes
Gujarat Board · Class 12 · Elements of Accounts
Company Final Accounts revision notes for Gujarat Board Class 12 Elements of Accounts: 4 topics in quick points.
6 formulas & key relations5 concepts
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Key Topics to Revise
1
Meaning and Components of Financial Statements
- Financial statements are accounting statements prepared at the end of an accounting period, presenting financial results in a structured form.
- As per Section 2(40) of the Companies Act, 2013, financial statements include: Balance Sheet, Profit and Loss Account, Cash Flow Statement, Statement of Changes in Equity (if applicable), and Notes to
- Balance Sheet shows the financial POSITION at a specific point in time — titled 'Balance Sheet as at...'
2
Financial Year
- As per Section 2(41) of the Companies Act, 2013, the financial year ends on 31st March every year.
- The general financial year runs from 1st April to 31st March (12 months).
- If a company is incorporated on or after 1st January of a year, its financial year ends on 31st March of the FOLLOWING year.
3
Characteristics and Objectives of Financial Statements
- CHARACTERISTICS: (1) Historical — related to past period. (2) Monetary — expressed in terms of money. (3) Based on recorded facts only — self-generated goodwill not recorded. (4) Profit and Loss shows
- OBJECTIVES: (1) To show true and fair view of financial performance. (2) To show true and fair view of financial position. (3) To comply with legal requirements under Companies Act, 2013. (4) To commu
- Financial statements do NOT include significant facts that are not recorded — e.g., internally generated goodwill has no cost and is not recorded.
4
Balance Sheet — Structure and Classification
- Balance Sheet is prescribed in Part I of Schedule III of the Companies Act, 2013 — only VERTICAL format is used.
- Balance Sheet has TWO main sections: (I) Equity and Liabilities, (II) Assets.
- EQUITY AND LIABILITIES has 3 sub-sections: (1) Shareholders' Funds, (2) Non-Current Liabilities, (3) Current Liabilities.
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Full NotesKey Concepts
As per Section 2(40) ofAs per Section 2(41) ofFinancial statements have the following characteristicsThe main objectivesAs per Part I of Schedule
Frequently Asked Questions
What are the important topics in Company Final Accounts for Gujarat Board Class 12 Elements of Accounts?
Key topics in Company Final Accounts include Meaning and Components of Financial Statements, Financial Year, Characteristics and Objectives of Financial Statements, Balance Sheet — Structure and Classification. Study these first, then practise questions on each for the Gujarat Board Class 12 board exam.
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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