{"id":562,"date":"2020-12-28T13:10:29","date_gmt":"2020-12-28T07:40:29","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=562"},"modified":"2025-10-04T12:54:09","modified_gmt":"2025-10-04T07:24:09","slug":"analysis-of-financial-statements-class-12","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/analysis-of-financial-statements-class-12\/","title":{"rendered":"Analysis of Financial Statements Class 12 | Vertical Balance Sheet | New Syllabus"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e496bb2dec2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e496bb2dec2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/analysis-of-financial-statements-class-12\/#Analysis_of_Financial_Statements_Class_12\" >Analysis of Financial Statements Class 12<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/analysis-of-financial-statements-class-12\/#Meaning\" >Meaning<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/analysis-of-financial-statements-class-12\/#There_are_two_important_Financial_Statements\" >There are two important Financial Statements.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/analysis-of-financial-statements-class-12\/#Analysis_of_Financial_Statements\" >Analysis of Financial Statements<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Analysis_of_Financial_Statements_Class_12\"><\/span>Analysis of Financial Statements Class 12<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning\"><\/span>Meaning<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Financial Statements are prepared periodically i.e. at the end of the financial year, all the information recorded in the books of business accounts is summarized in the financial statement.<\/p>\n\n\n\n<p>\u201cThe statements prepared by the business to find out profitability, efficiency, solvency, and growth of the business to judge the financial strength and status are called financial statements.\u201d<\/p>\n\n\n\n<p>These statements give a complete picture of financial positions and managerial performance. Financial Statements are prepared for presenting the Annual Report and prepared by the profit concern as well as Non-Profit concern organizations.<\/p>\n\n\n\n<p><strong>You can understand the <\/strong><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><strong>vertical balance sheet&#8217;s complete format from the <a href=\"https:\/\/www.youtube.com\/playlist?list=PLGiOLU46prNf8Gx-1cZF1inKqDLnM1IaU\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLGiOLU46prNf8Gx-1cZF1inKqDLnM1IaU\" target=\"_blank\" rel=\"noopener\">video<\/a> below<\/strong><\/span><strong>.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"There_are_two_important_Financial_Statements\"><\/span>There are two important Financial Statements.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>(1) Balance Sheet \/ A Position Statement<br>(2) Profit and Loss A\/c \/ An Income Statement<\/p>\n\n\n\n<p><strong>Financial Statement analysis includes two aspects<br><\/strong>(a) Analysis of Data: It provides a methodical classification of financial statement<br>(b) Interpretation of Data: It means an explanation of the meaning and significance of data.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Analysis_of_Financial_Statements\"><\/span>Analysis of Financial Statements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>The balance sheet<\/strong> needs to be arranged in a vertical format which is suitable for further analysis. <\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>\u2026\u2026\u2026\u2026.. Company Ltd.<br> Balance Sheet as on \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"975\" height=\"866\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS1.png\" alt=\"\" class=\"wp-image-568 lazyload\" style=\"--smush-placeholder-width: 975px; --smush-placeholder-aspect-ratio: 975\/866;aspect-ratio:1.1260744985673352;width:719px;height:auto\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS1.png 975w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS1-300x266.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS1-768x682.png 768w\" data-sizes=\"(max-width: 975px) 100vw, 975px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full is-resized is-style-default\"><img decoding=\"async\" width=\"971\" height=\"622\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS-2.png\" alt=\"\" class=\"wp-image-569 lazyload\" style=\"--smush-placeholder-width: 971px; --smush-placeholder-aspect-ratio: 971\/622;aspect-ratio:1.564;width:720px;height:auto\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS-2.png 971w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS-2-300x192.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2020\/12\/VBS-2-768x492.png 768w\" data-sizes=\"(max-width: 971px) 100vw, 971px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.youtube.com\/@Scholarszilla\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/@Scholarszilla\" target=\"_blank\" rel=\"noopener\">12th Commerce Video Lectures<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\">Textbook Solutions of 12th Commerce (All Subjects)<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\"> Free PDF of 12th Commerce Textbooks <\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\">12th Commerce IT MCQ Preparation (Online Test)<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\"> Free PDF of 12th Commerce Textbooks <\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\">Sample Paper of 12th Commerce for Practice PDF<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\">PDF of Solved Sample papers of 12th Commerce to improve Paper Presentation<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\">Old Question Papers of 12th Commerce with solution (All Subjects)<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":570,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[236],"class_list":["post-562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hsc-maharashtra-board","tag-analysis-of-financial-statements-class-12"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=562"}],"version-history":[{"count":10,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/562\/revisions"}],"predecessor-version":[{"id":38111,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/562\/revisions\/38111"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/570"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}