CLASS XII ACCOUNTANCY

COMMON SIZE
STATEMENTS 1
By CS Chandan Gupta
BCOM(St. Xavier’s Calcutta),B.Ed, MCOM, MA (Eco), PGDIBO, NET, Company Secretaries, CA (Finalist)

COMMON SIZE STATEMENTS

MEANING
When various figures of financial statements are converted into percentage to some common base
(Revenue from Operation in case of Profit & Loss and Total Assets in case of Balance Sheet is
taken as 100), these are called Common Size Statements.

UTILITY or PURPOSE OF COMMON SIZE STATEMENTS

i)To present the change in various items in relation to revenue from operations, total assets or total
liabilities
ii) To provide a common base for comparison
iii) To make the data simpler and more understandable
iv) To establish a relationship
v) To indicate the strong points and weak points of the concern
vi)To compare the firm’s performance with the average performance of the industry
vii) To help in forecasting

FORMAT OF COMMONSIZE BALANCE SHEET

COMMON SIZE BALANCE SHEET
As at 31st march _____ and _____
PARTICULARS NOTE
NO
PREVIOUS
YEAR
CURRENT
YEAR
PREVIOUS
YEAR
CURRENT
YEAR
AMOUNT AMOUNT % OF B/S % OF B/S
(A) (B) TOTAL TOTAL
=A X 100% =B X 100%
TOTAL TOTAL
I. EQUITY AND LIABILITIES:
1. Shareholder’s Funds:
(a) Share Capital
(b) Reserve and Surplus
2. Non Current Liabilities:
(a) Long term Borrowings
(b) Long term Provisions
3. Current Liabilities:
(a) Short term Borrowings
(b) Trade Payables
(c) Other Current Liabilities
(d) Short term Provisions
TOTAL
II. ASSETS:
1. Noncurrent Assets:
(a) Fixed Assets:
(i) Tangible Assets
(ii) Intangible Assets
(b) Non-Current Investments
(c) Long term Loans and
Advances
2. Current Assets:
(a) Current Investment

Little Difference for Better Tomorrow. For Free Video Lectures: Click Here
 CLASS XII ACCOUNTANCY
COMMON SIZE
STATEMENTS 2
By CS Chandan Gupta
BCOM(St. Xavier’s Calcutta),B.Ed, MCOM, MA (Eco), PGDIBO, NET, Company Secretaries, CA (Finalist)

(b) Inventories
(c) Trade Receivables
(d) Cash & Cash Equivalents
(e) Short –term Loans and
Advances
(f) Other Current Assets
TOTAL

FORMAT OF COMMON SIZE STATEMENT OF PROFIT & LOSS

COOMMON SIZE STATEMENT OF PROFIT & LOSS
For the years ended 31st march ____ and ____
PARTICULARS NOTE
NO
PREVIOUS
YEAR
CURRENT
YEAR
PREVIOUS
YEAR
CURRENT
YEAR
AMOUNT AMOUNT % OF REV % OF REV
(A) (B) FROM OPN FROM OPN
=A X 100% =B X 100%
I I
I. Revenue from Operation
II. Add: Other Income
III. TOTAL REVENUE (I+ II)
IV. Less: Expenses
a)Cost of Materials Consumed
b)Purchase of stock in Trade
c)Changes in Inventories of
Finished Goods, Work –in-
Progress and Stock in Trade
d)Employee Benefit Expenses
e)Finance Costs
f)Depreciation and Amortization
Expenses
g)Other Expenses
TOTAL EXPENSES
V. Profit before Tax (III-IV)
VI. Less: Tax
VII. Profit After Tax (V-VI)

Little Difference for Better Tomorrow. For Free Video Lectures: Click Here
 CLASS XII ACCOUNTANCY
COMMON SIZE
STATEMENTS 3
By CS Chandan Gupta
BCOM(St. Xavier’s Calcutta),B.Ed, MCOM, MA (Eco), PGDIBO, NET, Company Secretaries, CA (Finalist)

QUESTION BANK
Question: 1
From the following information, prepare Common Size Balance Sheet of A Ltd. and C Ltd. as at
31.03.2017 and comment on the financial position:
PARTICULARS NOTE
NO
A LTD C LTD
I. EQUITY AND LIABILITIES:
1. Shareholder’s Funds 3,00,000 4,00,000
2. Non-Current Liabilities 2,00,000 3,00,000
3. Current Liabilities 1,00,000 50,000
TOTAL 6,00,000 7,50,000
II. ASSETS:
1. Noncurrent Assets
(a) Fixed Assets:
(i) Tangible Assets
2,50,000 3,00,000
(ii) Intangible Assets 1,50,000 1,00,000
2. Current Assets 2,00,000 3,50,000

TOTAL 6,00,000 7,50,000

Question: 2
From the following information given below, prepare a Common size Statement of Profit & Loss of
Relay Ltd.
PARTICULARS 31st March, 2020 31st March, 2019
Revenue from operations 51,73,000 49,70,000
Other Income 35,000 40,000
Purchase of Stock-in Trade 40,50,000 33,20,000
Change in Inventories (90,000) 1,00,000
Other Expenses 1,70,000 1,50,000

Question: 3
You are given the following information:
PARTICULARS 31st March, 2019 31st March, 2020
Revenue from operations 48,00,000 30,00,000
Purchase of Stock-in-Trade 32,64,000 21,00,000
Change in Inventories (1,92,000) (90,000)
Other Expenses 3,36,000 1,50,000
Other Income 72,000 60,000
Income Tax (50%)

THE END

Little Difference for Better Tomorrow. For Free Video Lectures: Click Here