Common Size Financial Statements format for INTER

FIRM A Ltd
Particulars

Common Size Financial Statements format for INTER

Particulars YEAR 1

Common Size Statements

Common Size Statements - expressing various components of the Balance Sheet as
of Balance Sheet and various Components of Profit & Loss A/c or Income Stateme
Sales.
format for INTER-FIRM COMPARISONS
Percentage to Percentage to
FIRM B Ltd Total (%) for Total (%) for
FIRM A Ltd FIRM B Ltd

format for INTER-FIRM COMPARISONS

Percentage to Percentage to
Total (%) for Total (%) for
YEAR 2 Year 1 Year 2

the Balance Sheet as a Percentage of Total

/c or Income Statement as a percentage of
Question No:- 1
Balance Sheet of Star Paints Ltd as on 31st March 2017 and 31st March 2016 are
Particulars
I EQUITY & LIABILITIES
1 Shareholders Funds
a. Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

Long Term Borrowings

3 Current Liabilities
a. Short-Term Borrowings (Secured Bank Overdraft)
b. Trade Payables
c. Other Current Liabilities
d. Short-Term Provisions

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets - Tangible Assets (NET)
b. Non - Current Investments

2 Current Assets
a. Inventories
b. Trade Receivables
c. Cash & Cash Equivalents
d. Other Current Assets

TOTAL

Solution No :- 1
Common Size Statements of Star Paints Ltd as on 31st March, 2016

Particulars

I EQUITY & LIABILITIES

1 Shareholders Funds
a. Share Capital
b. Reserves & Surplus
2 Non - Current Liabilities
Long Term Borrowings

3 Current Liabilities
a. Short-Term Borrowings (Secured Bank Overdraft)
b. Trade Payables
c. Other Current Liabilities
d. Short-Term Provisions

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets - Tangible Assets (NET)
b. Non - Current Investments

2 Current Assets
a. Inventories
b. Trade Receivables
c. Cash & Cash Equivalents
d. Other Current Assets

TOTAL
17 and 31st March 2016 are as given below:-
3/31/2017 3/31/2016

₹ 274,000 ₹ 274,000
₹ 70,000 ₹ 152,000

₹ 438,000 ₹ 696,000

₹ 50,000 ₹ 125,000
₹ 20,000 ₹ 100,000
₹ 3,000 ₹ 50,000
₹ 5,000 ₹ 23,000

₹ 860,000 ₹ 1,420,000 ₹ -560,000

₹ 430,000 ₹ 568,000
₹ 4,000 ₹ 6,000

₹ 216,000 ₹ 426,000
₹ 140,000 ₹ 330,000
₹ 65,000 ₹ 80,000
₹ 5,000 ₹ 10,000

₹ 860,000 ₹ 1,420,000

Ltd as on 31st March, 2016 & 2017

Percentage of Balance Sheet
Absolute Amounts Total
3/31/2016 3/31/2017 3/31/2016 3/31/2017

₹ 274,000 ₹ 274,000 19.30% 31.86%

₹ 152,000 ₹ 70,000 10.70% 8.14%
₹ 696,000 ₹ 438,000 49.01% 50.93%

₹ 125,000 ₹ 50,000 8.80% 5.81%

₹ 100,000 ₹ 20,000 7.04% 2.33%
₹ 50,000 ₹ 3,000 3.52% 0.35%
₹ 23,000 ₹ 5,000 1.62% 0.58%

₹ 1,420,000 ₹ 860,000 100.00% 100.00%

₹ 568,000 ₹ 430,000 40.00% 50.00%

₹ 6,000 ₹ 4,000 0.42% 0.47%

₹ 426,000 ₹ 216,000 30.00% 25.12%

₹ 330,000 ₹ 140,000 23.24% 16.28%
₹ 80,000 ₹ 65,000 5.63% 7.56%
₹ 10,000 ₹ 5,000 0.70% 0.58%

₹ 1,420,000 ₹ 860,000 100.00% 100.00%

 Remarks

₹ - If increase then write there is a issue of share

₹ -82,000 There is a possibility of loss during the year
₹ -258,000 Repayment of borrowin 258 0.3707

₹ -75,000
₹ -80,000
₹ -47,000
₹ -18,000 220 0.7383

₹ -560,000

₹ -138,000 Possibility of depreciation/sale of asset

₹ -2,000

₹ -210,000
₹ -190,000 420
₹ -15,000
₹ -5,000 2.8389

₹ -560,000
468 0.4708

5.4615
Question No:- 2
Balance Sheet of ABC Ltd as on 31st March 2017 and 31st March 2016 are as give
Particulars
I EQUITY & LIABILITIES
1 Shareholders Funds
a. Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

Long Term Borrowings

3 Current Liabilities
a. Short-Term Borrowings
b. Trade Payables

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets - Tangible Assets (NET)
b. Non - Current Investments

2 Current Assets
a. Inventories
b. Trade Receivables
c. Cash & Cash Equivalents

TOTAL

Solution No :- 1
Common Size Statements of Star Paints Ltd as on 31st March, 2016

Particulars

I EQUITY & LIABILITIES

1 Shareholders Funds
a. Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

Long Term Borrowings
3 Current Liabilities
a. Short-Term Borrowings
b. Trade Payables

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets - Tangible Assets (NET)
b. Non - Current Investments

2 Current Assets
a. Inventories
b. Trade Receivables
c. Cash & Cash Equivalents

TOTAL
1st March 2016 are as given below:-
3/31/2017 3/31/2016

Sources of Funds
₹ 750,000 ₹ 500,000 ₹ 250,000 New Shares have been issued
₹ 500,000 ₹ 300,000 ₹ 200,000 Profits during the Year

₹ - ₹ -

₹ 100,000 ₹ - ₹ 100,000 NET Rs 50,000/-

₹ 150,000 ₹ 200,000 ₹ -50,000

₹ 1,500,000 ₹ 1,000,000 ₹ 500,000

Application of Funds
₹ 900,000 ₹ 500,000 ₹ -400,000 100000
₹ 300,000 ₹ 100,000 ₹ -200,000

₹ 100,000 ₹ 100,000
₹ - ₹ 200,000 ₹ 200,000
₹ 200,000 ₹ 100,000 ₹ -100,000

₹ 1,500,000 ₹ 1,000,000

Ltd as on 31st March, 2016 & 2017

Percentage of Balance Sheet
Absolute Amounts Total
3/31/2016 3/31/2017 3/31/2016 3/31/2017

₹ 500,000 ₹ 750,000 50.00% 50.00%

₹ 300,000 ₹ 500,000 30.00% 33.33%

₹ - ₹ - 0.00% 0.00%
₹ - ₹ 100,000 0.00% 6.67%
₹ 200,000 ₹ 150,000 20.00% 10.00%

₹ 1,000,000 ₹ 1,500,000 100.00% 100.00%

₹ 500,000 ₹ 900,000 50.00% 60.00%

₹ 100,000 ₹ 300,000 10.00% 20.00%

₹ 100,000 ₹ 100,000 10.00% 6.67%

₹ 200,000 ₹ - 20.00% 0.00%
₹ 100,000 ₹ 200,000 10.00% 13.33%

₹ 1,000,000 ₹ 1,500,000 100.00% 100.00%

s have been issued
uring the Year
Question No:- 3
Balance Sheet of Blue Bell Ltd as on 31st March 2018 and 31st March 2017 are a
Particulars
I EQUITY & LIABILITIES
1 Shareholders Funds
a. Share Capital
i. Equity Share Capital
ii Preference Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

a. Long Term Borrowings
i. Bank
ii. Others
b. Long Term Provisions
3 Current Liabilities
Trade Payables (Creditors)

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets (Tangible)
b. Non - Current Investments

2 Current Assets
a. Trade Receivables
b. Cash & Cash Equivalents

TOTAL

Solution No :- 3
Comparative Statements of Blue Bell Ltd as on 31st March, 2017 &

Particulars

I EQUITY & LIABILITIES

1 Shareholders Funds
a. Share Capital
i. Equity Share Capital
ii Preference Share Capital
b. Reserves & Surplus
2 Non - Current Liabilities
a. Long Term Borrowings
i. Bank
ii. Others
b. Long Term Provisions
3 Current Liabilities
Trade Payables (Creditors)

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets (Tangible)
b. Non - Current Investments

2 Current Assets
a. Trade Receivables
b. Cash & Cash Equivalents
Current Assets
TOTAL

Working Capital
 (Rs in Lakhs)
and 31st March 2017 are as given below:-
3/31/2018 3/31/2017

Sources

₹ 60.00 ₹ 60.00 ₹ -
₹ 15.00 ₹ 15.00 ₹ -
₹ 18.00 ₹ 15.00 ₹ 3.00 Increase in Profits

₹ 27.00 ₹ 30.00 ₹ -3.00 Nullified

₹ 18.00 ₹ 15.00 ₹ 3.00 Nullified
₹ 2.30 ₹ 2.00 ₹ 0.30

₹ 14.20 ₹ 13.00 ₹ 1.20

₹ 154.50 ₹ 150.00 ₹ 4.50

Application
₹ 123.00 ₹ 105.00 ₹ 18.00
₹ - ₹ - ₹ -
₹ -
₹ -
₹ 29.50 ₹ 40.00 ₹ -10.50
₹ 2.00 ₹ 5.00 ₹ -3.00

₹ 154.50 ₹ 150.00 ₹ 4.50

td as on 31st March, 2017 & 2018 (Rs in Lakhs)

Percentage of Balance Sheet
Absolute Amounts Total
3/31/2017 3/31/2018 3/31/2017 3/31/2018

₹ 60.00 ₹ 60.00 40.00% 38.83%

₹ 15.00 ₹ 15.00 10.00% 9.71%
₹ 15.00 ₹ 18.00 10.00% 11.65%
₹ 30.00 ₹ 27.00 20.00% 17.48%
₹ 15.00 ₹ 18.00 10.00% 11.65%
₹ 2.00 ₹ 2.30 1.33% 1.49%

₹ 13.00 ₹ 14.20 8.67% 9.19%

₹ 150.00 ₹ 154.50 100.00% 100.00%

₹ 105.00 ₹ 123.00 70.00% 79.61%

₹ - ₹ - 0.00% 0.00%

₹ 40.00 ₹ 29.50 26.67% 19.09%

₹ 5.00 ₹ 2.00 3.33% 1.29%

₹ 150.00 ₹ 154.50 100.00% 100.00%

₹ -13.00 ₹ -14.20 ₹ 1.20

in Profits

3
 -3
3
0.3

1.2

4.5

18 (10.5(Receivable's)+3 (Cash) + 3 (Current Year's Profits) + 1.2 (Trade

-10.5
-3

4.5
) + 1.2 (Trade Payable's) +0.3 (Long Term Provisions))
Question No:- 4
From the following Information Prepare Common Size Statement of Profit

Particulars
Costs of Material Consumed
Revenue from Operations (% of Materials Consumed)
Other Expenses (% of Operating Revenue)
Tax Rate

Solution No:- 4

Particulars

1 Revenue from Operations

Other Income
2 TOTAL REVENUE

3 EXPENSES
a Cost of Material Consumed
b Other Expenses
3 TOTAL EXPENSES

4 NET PROFIT BEFORE TAX (EBIT) [4 = 2 - 3]

Less :- Tax Expenses @ 50 %

5 NET PROFIT AFTER TAX

Working Note:-
atement of Profit & Loss showing Increase,Decrease & Percentages.

3/31/2018 3/31/2017
₹ 1,344,000 ₹ 600,000
125% 200%
10% 10%
50% 50%

Absolute Amounts Percenatge of Income Statement

3/31/2017 3/31/2018 3/31/2017 3/31/2018
₹ 1,200,000 ₹ 1,680,000 100.00% 100.00%
₹ - ₹ - 0.00% 0.00%
₹ 1,200,000 ₹ 1,680,000 100.00% 100.00%

₹ 600,000 ₹ 1,344,000 50.00% 80.00%

₹ 120,000 ₹ 168,000 10.00% 10.00%
₹ 720,000 ₹ 1,512,000 60.00% 90.00%

₹ 480,000 ₹ 168,000 40.00% 10.00%

₹ 240,000 ₹ 84,000 20.00% 5.00%

₹ 240,000 ₹ 84,000 20.00% 5.00%

2017 2018

600000 - 100%
? - 200%
1,680,000.00

-840,000.00 Gone up by 30%

-168,000.00
672,000.00

504,000.00 30%
From the Balance Sheet of RT Ltd. As on 31st December 2006 and 2007, you are r
Comparative Balance Sheet
Summarised Balance Sheets
Liabilities 2006 2007
Preference Share Capital ₹ - ₹ 400,000
Equity Share Capital ₹ 500,000 ₹ 500,000
Reserves & Surplus ₹ 135,000 ₹ 171,500
12 % Debentures ₹ 200,000 ₹ -
Bank Overdraft ₹ 50,000 ₹ 80,000
Sundry Creditors ₹ 150,000 ₹ 125,000
Provision for Taxation ₹ 75,000 ₹ 120,000
Proposed Dividend ₹ 100,000 ₹ 150,000

₹ 1,210,000 ₹ 1,546,500
 2006 and 2007, you are required to Prepare a

sed Balance Sheets

Assets 2006 2007
Fixed Assets ₹ 700,000 ₹ 1,000,000
Investments (At Cost) ₹ 100,000 ₹ 120,000
Stock ₹ 150,000 ₹ 180,000
Debtors ₹ 236,000 ₹ 244,000
Cash ₹ 24,000 ₹ 2,500

₹ 1,210,000 ₹ 1,546,500
Solution No:- 5 (Page No 397)
Common Size Balance Sheet of RT Ltd

Particulars

I EQUITY & LIABILITIES

1 Shareholders Funds
a. Share Capital
i. Equity Share Capital
ii Preference Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

a. Long Term Borrowings
i. Bank
ii. Others (12 % Debentures)
b. Long Term Provisions
3 Current Liabilities
a. Trade Payables (Creditors)
b. Bank Overdraft
c. Provision for Taxation
d. Proposed Dividend

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets (Tangible)
b. Non - Current Investments (At Cost)

2 Current Assets
a. Stock
b. Trade Receivables (Debtors)
c. Cash & Cash Equivalents

TOTAL
eet of RT Ltd as on ____________
Percentage of Balance Sheet
Absolute Amounts Total
2006 2007 2006 2007

₹ 500,000 ₹ 500,000 41.32% 32.33%

₹ - ₹ 400,000 0.00% 25.86%
₹ 135,000 ₹ 171,500 11.16% 11.09%

₹ - ₹ - 0.00% 0.00%
₹ 200,000 ₹ - 16.53% 0.00%
₹ - ₹ - 0.00% 0.00%

₹ 150,000 ₹ 125,000 12.40% 8.08%

₹ 50,000 ₹ 80,000 4.13% 5.17%
₹ 75,000 ₹ 120,000 6.20% 7.76%
₹ 100,000 ₹ 150,000 8.26% 9.70%

₹ 1,210,000 ₹ 1,546,500 100.00% 100.00%

₹ 700,000 ₹ 1,000,000 57.85% 64.66%

₹ 100,000 ₹ 120,000 8.26% 7.76%

₹ 150,000 ₹ 180,000 12.40% 11.64%

₹ 236,000 ₹ 244,000 19.50% 15.78%
₹ 24,000 ₹ 2,500 1.98% 0.16%

₹ 1,210,000 ₹ 1,546,500 100.00% 100.00%

Absolute Diff

400,000.00
36,500.00

-200,000.00

-25,000.00
30,000.00
45,000.00
50,000.00

336,500.00

300,000.00
20,000.00

30,000.00
8,000.00
-21,500.00

336,500.00
Question No:- 6

Particulars
1 Revenue from Operations (Sales)
Other Income
TOTAL REVENUE

2 Cost of Material Consumed

Opening Stock
Purchases
Wages
Less:- Closing Stock
2 Cost of Goods Sold
3 GROSS PROFIT [3 = 1 - 2]

4 Operating Expenses
a. Administrative Expenses
b. Selling & Distribution Expenses
c. Finance Costs
4 TOTAL OF OPERATING EXPENSES

5 NET OPERATING PROFIT [5 = 3 -4]

6 Non - Operating Income / Expenses

Add:- Non - Operating Income

7 NET PROFIT BEFORE TAX

Less:- Provision for Tax

8 NET PROFIT AFTER TAX

Solution No :- 6

Particulars
1 Revenue from Operations (Sales)
Other Income
TOTAL REVENUE
 2 Cost of Material Consumed
Opening Stock
Purchases
Wages
Less:- Closing Stock
2 Cost of Goods Sold
3 GROSS PROFIT [3 = 1 - 2]

4 Operating Expenses
a. Administrative Expenses
b. Selling & Distribution Expenses
c. Finance Costs
4 TOTAL OF OPERATING EXPENSES

5 NET OPERATING PROFIT [5 = 3 -4]

6 Non - Operating Income / Expenses

Add:- Non - Operating Income

7 NET PROFIT BEFORE TAX

Less:- Provision for Tax

8 NET PROFIT AFTER TAX

 Absolute Change Percentage
31-03-2017 31-03-2018 [C = B - Change (%) [D=
(A) (B) A] C/A x 100]
? ? ₹ 400,000 25.00%
₹ - ₹ - ₹ - 0.00%
₹ - ₹ - ₹ - #DIV/0!

₹ 80,000 ₹ 120,000 ? ?
? ? ₹ 200,000 20.00%
₹ 240,000 ₹ 440,000 ? ?
? ₹ 160,000 ₹ 40,000 ?
? ? ? ?
? ? ? ?

? ? ₹ 20,000 20.00%
₹ 50,000 ₹ 60,000 ? ?
? ? ₹ 4,500 22.50%
? ? ? ?

? ? ? ?

₹ 20,000 ₹ 100,000 ? ?

? ? ? ?
? ? ? ?

₹ 210,000 ₹ 235,500 ? ?

Absolute Change Percentage

31-03-2017 31-03-2018 [C = B - Change (%) [D=
(A) (B) A] C/A x 100]
₹ 1,600,000 ₹ 2,000,000 ₹ 400,000 25.00%
₹ - ₹ - ₹ - 0.00%
₹ 1,600,000 ₹ 2,000,000 ₹ 400,000 25.00%
₹ 80,000 ₹ 120,000 ₹ 40,000 50.00%
₹ 1,000,000 ₹ 1,200,000 ₹ 200,000 20.00%
₹ 240,000 ₹ 440,000 ₹ 200,000 83.33%
₹ 120,000 ₹ 160,000 ₹ 40,000 33.33%
₹ 1,200,000 ₹ 1,600,000 ₹ 400,000 33.33%
₹ 400,000 ₹ 400,000 ₹ - 0.00%

₹ 100,000 ₹ 120,000 ₹ 20,000 20.00%

₹ 50,000 ₹ 60,000 ₹ 10,000 20.00%
₹ 20,000 ₹ 24,500 ₹ 4,500 22.50%
₹ 170,000 ₹ 204,500 ₹ 34,500 20.29%

₹ 230,000 ₹ 195,500 ₹ -34,500 -15.00%

₹ 20,000 ₹ 100,000 ₹ 80,000 400.00%

₹ 250,000 ₹ 295,500 ₹ 45,500 18.20%

₹ 40,000 ₹ 60,000 ₹ 20,000 50.00%

₹ 210,000 ₹ 235,500 ₹ 25,500 12.14%

Question No:- 7
The Summarised Balance Sheets of the Two Compa
Summarised Balance Sheets as on 31
Liabilities Top Ltd Ten Ltd
Equity Share Capital ₹ 120,000 ₹ 350,000
10% Preference Share Capital ₹ 100,000 ₹ 50,000
Reserves & Surplus ₹ 140,000 ₹ 56,000
15 % Debentures ₹ 50,000 ₹ 50,000
Current Liabilities ₹ 135,500 ₹ 242,800

₹ 545,500 ₹ 748,800

Summarised Income Statements for the year

Particulars
Sales
Less:- Cost of Sales
GROSS MARGIN
Less:- OPERATING EXPENSES (Including Interest)
Less:- Non-Cash Operating Expenses (Depreciation)
NET PROFIT BEFORE TAX
Less:- Taxes
Less:- Dividend
RETAINED EARNINGS

You are required to Prepare the following:-

a. Common Size Balance Sheets of both the Companies in Vertical Format.
b. Common Size Income Statement of both the Companies in Vertical Format.
c. Comments in Brief.
ts of the Two Companies are as follows:-
Sheets as on 31st March 2006
Assets Top Ltd Ten Ltd
Fixed Assets ₹ 245,000 ₹ 410,000
Trade Receivables ₹ 290,500 ₹ 332,800
Cash in Hand ₹ 10,000 ₹ 6,000

₹ 545,500 ₹ 748,800

ts for the year ended 31st March 2006

Top Ltd Ten Ltd
₹ 1,000,000 ₹ 1,200,000
₹ -600,000 ₹ -800,000
₹ 400,000 ₹ 400,000
₹ -140,000 ₹ -205,000
₹ -10,000 ₹ -20,000
₹ 250,000 ₹ 175,000
₹ -100,000 ₹ -70,000
₹ -70,000 ₹ -75,000
₹ 80,000 ₹ 30,000

ertical Format.
Vertical Format.
Solution No:- 7
Common Size Income Statement for the Peri

Particulars

1 Revenue from Operations (Sales)

Other Income
2 TOTAL REVENUE
3 EXPENSES
a Cost of Material Consumed (Cost of Sales)
b Operating Expenses (Including Interest)
c Non-Cash Operating Expenses (Depreciation)
3 OPERATING PROFIT(BEFORE INTEREST & TAX)
Less :- Interest on Debentures
4 NET PROFIT BEFORE TAX (EBIT)
Less :- Tax Expenses
5 NET PROFIT AFTER TAX (EAT)
Less :- Dividend
6 RETAINED EARNINGS

Common Size Balance Sheet of Top Ltd & Ten

Particulars

I EQUITY & LIABILITIES

1 Shareholders Funds
a. Share Capital
i. Equity Share Capital (Owners Funds)
ii Preference Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

a. Long Term Borrowings
i. Bank
ii. Others (Loan Funds)
b. Long Term Provisions
3 Current Liabilities
a. Trade Payables (Creditors)

TOTAL
 II ASSETS
1 Non - Current Assets
a. Fixed Assets (Tangible)
b. Non - Current Investments

2 Current Assets
a. Trade Receivables
b. Cash in Hand

TOTAL

a. Out of the Total Funds of Rs 100, Shareholders have Contributed to the

Ten Ltd.

b. Borrowed Funds form 9.17% of the Total Funds available in Top Ltd and
Ltd.Both the Companies have not taken advantage of Trading on Equity.

c. Top Ltd has invested 44.91 % of the Total Resources in Fixed Assets, w
Total Funds in Fixed Assets.

d. 55.09% of the Total Funds are Blocked in the Current Assets of Top Ltd
Blocked in the Current Assets of Ten Ltd.
Working Capital
Current Assets
Less:- Current Liabilities
NET WORKING CAPITAL
Ten Ltd is utilising Zero Cost Funds(i.e. Current Liabilities) very ef
has invested Maximum of Long Term Funds to finance its Long Term Asset
Funds to Finance its Short Term Assets.

e. 30.25 % of the Total Funds of Top Ltd are blocked in Working Capital w
are Blocked in Working Capital.

f. Both the Companies are Financially Stable from Long Term Perspective.
for the Period Ended 31st March 2006
Percenatge of Revenue From
Absolute Amounts Operations
Top Ltd Ten Ltd Top Ltd Ten Ltd
₹ 1,000,000 ₹ 1,200,000 100.00% 100.00%
₹ - ₹ - ₹ - ₹ -
₹ 1,000,000 ₹ 1,200,000 100.00% 100.00%

₹ -600,000 ₹ -800,000 60.00% 66.67%

₹ -132,500 ₹ -197,500 13.25% 16.46%
₹ -10,000 ₹ -20,000 1.00% 1.67%
₹ 257,500 ₹ 182,500 25.75% 15.21%
₹ -7,500 ₹ -7,500 -0.75% -0.63%
₹ 250,000 ₹ 175,000 25.00% 14.58%
₹ -100,000 ₹ -70,000 -10.00% -5.83%
₹ 150,000 ₹ 105,000 15.00% 8.75%
₹ -70,000 ₹ -75,000 -7.00% -6.25%
₹ 80,000 ₹ 30,000 8.00% 2.50%

op Ltd & Ten Ltd as on 31st March 2006

Percenatge of Balance Sheet
Absolute Amounts Total
Top Ltd Ten Ltd Top Ltd Ten Ltd

₹ 120,000 ₹ 350,000 22.00% 46.74%

₹ 100,000 ₹ 50,000 18.33% 6.68%
₹ 140,000 ₹ 56,000 25.66% 7.48%

₹ 50,000 ₹ 50,000 9.17% 6.68%

₹ - ₹ - 0.00% 0.00%

₹ 135,500 ₹ 242,800 24.84% 32.43%

₹ 545,500 ₹ 748,800 100.00% 100.00%

 ₹ 245,000 ₹ 410,000 44.91% 54.75%
₹ - ₹ - 0.00% 0.00%

₹ 290,500 ₹ 332,800 53.25% 44.44%

₹ 10,000 ₹ 6,000 1.83% 0.80%

₹ 545,500 ₹ 748,800 100.00% 100.00%

ntributed to the tune of 65.99% in Top Ltd versus 60.90% in

in Top Ltd and 6.68% of the Total Funds available in Ten

ding on Equity.

Fixed Assets, whereas Ten Ltd has invested 54.75% of the

ssets of Top Ltd whereas 45.2% of the Total Funds are

₹ 300,500 ₹ 338,800 55.09% 45.25%

₹ -135,500 ₹ -242,800 -24.84% -32.43%
₹ 165,000 ₹ 96,000 30.25% 12.82%
ilities) very efficiently compared to Top Ltd as Ten Ltd
Long Term Assets whereas Top Ltd has utilised Long Term

orking Capital whereas 12.82% of the Total Funds of Ten Ltd

rm Perspective.
Remarks

Top Ltd is more efficient in material management as only 60% of total s

Top Ltd is more efficient in Finance management
Top Ltd has minimum machine but has more efficiency

Usually donot comment as tax rate will be same

60% of total sales is apportioned towards procurement of material
The Following are the Balance Sheets of Parekh Cables Ltd as on 31st December
Prepare a Comparative Balance Sheet and Study the Position of the Company.
Summarised Balance Shee
Liabilities 2006 2007
Equity Share Capital ₹ 350,000 ₹ 350,000
8% Preference Share Capital ₹ 200,000 ₹ 250,000
Reserves & Surplus ₹ 100,000 ₹ 145,000
10 % Debentures ₹ 280,000 ₹ 200,000
Sundry Creditors ₹ 180,000 ₹ 180,000
Bills Payable ₹ 120,000 ₹ 85,000
Taxes Payable ₹ 90,000 ₹ 78,000

₹ 1,320,000 ₹ 1,288,000
d as on 31st December 2006 and 2007.
on of the Company.
sed Balance Sheets
Assets 2006 2007
Land & Building ₹ 300,000 ₹ 270,000
Plant & Machinery ₹ 200,000 ₹ 250,000
Furniture & Fittings ₹ 50,000 ₹ 45,000
Investments ₹ 200,000 ₹ 165,000
Stock ₹ 300,000 ₹ 300,000
Debtors ₹ 200,000 ₹ 180,000
Bank ₹ 50,000 ₹ 60,000
Cash ₹ 20,000 ₹ 18,000

₹ 1,320,000 ₹ 1,288,000
Solution No:- 8 (Page No 821)
Comparative Balance Sheet of Parekh Cable

Particulars
I EQUITY & LIABILITIES
1 Shareholders Funds
a. Share Capital
i. Equity Share Capital
ii 8 % Preference Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

a. Long Term Borrowings
i. Bank
ii. Others (10 % Debentures)
b. Long Term Provisions
3 Current Liabilities
a. Trade Payables (Creditors)
b. Bills Payable
c. Taxes Payable

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets (Tangible)
i. Land & Building
ii. Plant & Machinery
iii. Furniture & Fittings
b. Non - Current Investments (At Cost)

2 Current Assets
a. Stock
b. Trade Receivables (Debtors)
c. Bank Balance
d. Cash & Cash Equivalents

TOTAL
Parekh Cables Ltd as on ____________
Absolute Change Percentage
[C = B - Change (%) [D=
2006 (A) 2007 (B) A] C/A x 100]

₹ 350,000 ₹ 350,000 ₹ - 0.00%

₹ 200,000 ₹ 250,000 ₹ 50,000 25.00%
₹ 100,000 ₹ 145,000 ₹ 45,000 45.00%

₹ - ₹ - ₹ - #DIV/0!
₹ 280,000 ₹ 200,000 ₹ -80,000 -28.57%
₹ - ₹ - ₹ - #DIV/0!

₹ 180,000 ₹ 180,000 ₹ - 0.00%

₹ 120,000 ₹ 85,000 ₹ -35,000 -29.17%
₹ 90,000 ₹ 78,000 ₹ -12,000 -13.33%

₹ 1,320,000 ₹ 1,288,000 ₹ -32,000 -2.42%

₹ 300,000 ₹ 270,000 ₹ -30,000 -10.00%

₹ 200,000 ₹ 250,000 ₹ 50,000 25.00%
₹ 50,000 ₹ 45,000 ₹ -5,000 -10.00%
₹ 200,000 ₹ 165,000 ₹ -35,000 -17.50%

₹ 300,000 ₹ 300,000 ₹ - 0.00%

₹ 200,000 ₹ 180,000 ₹ -20,000 -10.00%
₹ 50,000 ₹ 60,000 ₹ 10,000 20.00%
₹ 20,000 ₹ 18,000 ₹ -2,000 -10.00%

₹ 1,320,000 ₹ 1,288,000 ₹ -32,000 -2.42%

Question No:- 9 (Page No 825)
Particulars
1 Sales
Less:- Sales Returns and Discount
TOTAL REVENUE (SALES)

2 Cost of Material Consumed

Opening Stock
Purchases (NET)
Wages
Less:- Closing Stock
2 Cost of Goods Sold
3 GROSS PROFIT [3 = 1 - 2]

4 Operating Expenses
a. Administrative Expenses
b. Selling & Distribution Expenses
c. Finance Costs
4 TOTAL OF OPERATING EXPENSES

5 NET OPERATING PROFIT [5 = 3 -4]

6 Non - Operating Income / Expenses

Add:- Non - Operating Income

Less:- Non- Operating Expenses

7 NET PROFIT BEFORE TAX

Solution No :- 9

Particulars
1 Sales
Less:- Sales Returns and Discount
TOTAL REVENUE (SALES)

2 Cost of Material Consumed

Opening Stock
 Purchases (NET)
Wages
Less:- Closing Stock
2 Cost of Goods Sold
3 GROSS PROFIT [3 = 1 - 2]

4 Operating Expenses
a. Administrative Expenses
b. Selling & Distribution Expenses
c. Finance Costs
4 TOTAL OF OPERATING EXPENSES

5 NET OPERATING PROFIT [5 = 3 -4]

6 Non - Operating Income / Expenses

Add:- Non - Operating Income

Less:- Non- Operating Expenses

7 NET PROFIT BEFORE TAX

2007 (A) 2008 (B)
₹ 122,400 ₹ 146,880
₹ 2,400 ₹ 2,800
₹ 120,000 ₹ 144,080

₹ 16,000 ₹ 16,800
₹ 73,600 ₹ 80,400
₹ - ₹ -
₹ 16,800 ₹ 16,200
₹ 72,800 ₹ 81,000
₹ 47,200 ₹ 63,080

₹ 12,000 ₹ 13,600
₹ 24,000 ₹ 26,400
₹ - ₹ -
₹ 36,000 ₹ 40,000

₹ 11,200 ₹ 23,080

₹ 1,200 ₹ 1,600

₹ 12,400 ₹ 24,680
₹ 1,600 ₹ 2,400

₹ 10,800 ₹ 22,280

Absolute Change Percentage

[C = B - Change (%) [D=
2007 (A) 2008 (B) A] C/A x 100]
₹ 122,400 ₹ 146,880 ₹ 24,480 20.00%
₹ 2,400 ₹ 2,800 ₹ 400 16.67%
₹ 120,000 ₹ 144,080 ₹ 24,080 20.07%

₹ 16,000 ₹ 16,800 ₹ 800 5.00%

₹ 73,600 ₹ 80,400 ₹ 6,800 9.24%
₹ - ₹ - ₹ - #DIV/0!
₹ 16,800 ₹ 16,200 ₹ -600 -3.57%
₹ 72,800 ₹ 81,000 ₹ 8,200 11.26%
₹ 47,200 ₹ 63,080 ₹ 15,880 33.64%

₹ 12,000 ₹ 13,600 ₹ 1,600 13.33%

₹ 24,000 ₹ 26,400 ₹ 2,400 10.00%
₹ - ₹ - ₹ - ₹ -
₹ 36,000 ₹ 40,000 ₹ 4,000 11.11%

₹ 11,200 ₹ 23,080 ₹ 11,880 106.07%

₹ 1,200 ₹ 1,600 ₹ 400 33.33%

₹ 12,400 ₹ 24,680 ₹ 12,280 99.03%

₹ 1,600 ₹ 2,400 ₹ 800 50.00%

₹ 10,800 ₹ 22,280 ₹ 11,480 106.30%

Question No:- 1
Balance Sheet of Star Paints Ltd as on 31st March 2017 and 31st March 2016 are
Particulars
I EQUITY & LIABILITIES
1 Shareholders Funds
a. Share Capital
b. Reserves & Surplus

2 Non - Current Liabilities

Long Term Borrowings

3 Current Liabilities
a. Short-Term Borrowings (Secured Bank Overdraft)
b. Trade Payables
c. Other Current Liabilities
d. Short-Term Provisions

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets - Tangible Assets (NET)
b. Non - Current Investments

2 Current Assets
a. Inventories
b. Trade Receivables
c. Cash & Cash Equivalents
d. Other Current Assets

TOTAL

Solution No :- 1
Common Size Statements of Star Paints Ltd as on 31st March, 2016

Particulars

I EQUITY & LIABILITIES

1 Shareholders Funds
a. Share Capital
b. Reserves & Surplus
2 Non - Current Liabilities
Long Term Borrowings

3 Current Liabilities
a. Short-Term Borrowings (Secured Bank Overdraft)
b. Trade Payables
c. Other Current Liabilities
d. Short-Term Provisions

TOTAL

II ASSETS
1 Non - Current Assets
a. Fixed Assets - Tangible Assets (NET)
b. Non - Current Investments

2 Current Assets
a. Inventories
b. Trade Receivables
c. Cash & Cash Equivalents
d. Other Current Assets

TOTAL
17 and 31st March 2016 are as given below:-
3/31/2017 3/31/2016

₹ 274,000 ₹ 274,000
₹ 70,000 ₹ 152,000

₹ 438,000 ₹ 696,000

₹ 50,000 ₹ 125,000
₹ 20,000 ₹ 100,000
₹ 3,000 ₹ 50,000
₹ 5,000 ₹ 23,000

₹ 860,000 ₹ 1,420,000 ₹ -560,000

₹ 430,000 ₹ 568,000
₹ 4,000 ₹ 6,000

₹ 216,000 ₹ 426,000
₹ 140,000 ₹ 330,000
₹ 65,000 ₹ 80,000
₹ 5,000 ₹ 10,000

₹ 860,000 ₹ 1,420,000

Ltd as on 31st March, 2016 & 2017

Percentage of Balance Sheet
Absolute Amounts Total
3/31/2016 3/31/2017 3/31/2016 3/31/2017

₹ 274,000 ₹ 274,000 19.30 31.86%

₹ 152,000 ₹ 70,000 10.70 8.14%
₹ 696,000 ₹ 438,000 49.01 50.93%

₹ 125,000 ₹ 50,000 8.80 5.81%

₹ 100,000 ₹ 20,000 7.04 2.33%
₹ 50,000 ₹ 3,000 3.52 0.35%
₹ 23,000 ₹ 5,000 1.62 0.58%

₹ 1,420,000 ₹ 860,000 100 100.00%

₹ 568,000 ₹ 430,000 40.00% 50.00%

₹ 6,000 ₹ 4,000 0.42% 0.47%

₹ 426,000 ₹ 216,000 30.00% 25.12%

₹ 330,000 ₹ 140,000 23.24% 16.28%
₹ 80,000 ₹ 65,000 5.63% 7.56%
₹ 10,000 ₹ 5,000 0.70% 0.58%

₹ 1,420,000 ₹ 860,000 100.00% 100.00%

₹ -
₹ -82,000
₹ -258,000 258 0.3707

₹ -75,000
₹ -80,000
₹ -47,000
₹ -18,000 220 0.7383

₹ -560,000

₹ -138,000
₹ -2,000

₹ -210,000
₹ -190,000 420
₹ -15,000
₹ -5,000 2.8389

₹ -560,000
468 0.4708

5.4615
TREND ANALYSIS

Particulars 2007 (A)

1 Sales ₹ 122,400
Less:- Sales Returns and Discount ₹ 2,400
TOTAL REVENUE (SALES) ₹ 120,000

2 Cost of Material Consumed

Opening Stock ₹ 16,000
Purchases (NET) ₹ 73,600
Wages ₹ -
Less:- Closing Stock ₹ 16,800
2 Cost of Goods Sold ₹ 72,800
3 GROSS PROFIT [3 = 1 - 2] ₹ 47,200

4 Operating Expenses
a. Administrative Expenses ₹ 12,000
b. Selling & Distribution Expenses ₹ 24,000
c. Finance Costs ₹ -
4 TOTAL OF OPERATING EXPENSES ₹ 36,000

5 NET OPERATING PROFIT [5 = 3 -4] ₹ 11,200

6 Non - Operating Income / Expenses

Add:- Non - Operating Income ₹ 1,200

₹ 12,400
Less:- Non- Operating Expenses ₹ 1,600

7 NET PROFIT BEFORE TAX ₹ 10,800

2008 (B)
₹ 146,880 100% 120%
₹ 2,800 100% 117%
₹ 144,080 100% 120%

₹ 16,800 100% 105%

₹ 80,400 100% 109%
₹ -
₹ 16,200 100% 96%
₹ 81,000 100% 111%
₹ 63,080 100% 134%

₹ 13,600 100% 113%

₹ 26,400 100% 110%
₹ -
₹ 40,000 100% 111%

₹ 23,080 100% 206%

₹ 1,600 100% 133%

₹ 24,680 100% 199%

₹ 2,400 100% 150%

₹ 22,280 100% 206%