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Page No 3.30:

Answer:

In the books of D Ltd.
Comparative Balance Sheet
as at March 31, 2016 and 2017
Particulars
2016
(Rs)
2017
(Rs)
Absolute
Change
(Rs)
Percentage
Change
(%)
I. Equity and Liabilities
 
 
 
 
1. Shareholders’ Funds
 
 
 
 
a. Share Capital
3,00,000
3,50,000
50,000
16.67
Shareholders’ Fund
3,00,000
3,50,000
50,000
16.67
2. Non-Current Liabilities
 
 
 
 
a. Long-term Borrowings
2,00,000
1,00,000
(1,00,000)
(50.00)
3. Current Liabilities
 
 
 
 
a. Trade Payables
1,00,000
1,50,000
50,000
50.00
Total
6,00,000
6,00,000
 
 
 
 
 
II. Assets
 
 
 
 
1. Non-Current Assets
 
 
 
 
a. Fixed Assets (Tangible)
3,00,000
4,00,000
1,00,000
33.33
2. Current Assets
 
 
 
 
a. Trade Receivables
3,00,000
2,00,000
(1,00,000)
(33.33)
Total
6,00,000
6,00,000
 
 
 
 
 

Page No 3.30:

Answer:

In the books of Radha Ltd.
Comparative Balance Sheet
as at March 31, 2016 and 2017
Particulars
2016
(Rs)
2017
(Rs)
Absolute
Change
(Rs)
Percentage
Change
(%)
I. Equity and Liabilities
 
 
 
 
1. Shareholders’ Funds
 
 
 
 
a. Equity Share Capital
10,00,000
15,00,000
5,00,000
50.00
b. Reserve and Surplus
10,00,000
10,00,000
Shareholders’ Fund
20,00,000
25,00,000
5,00,000
25.00
2. Non-Current Liabilities
 
 
 
 
a. Long-term Borrowings
2,00,000
8,00,000
6,00,000
300.00
3. Current Liabilities
3,00,000
5,00,000
2,00,000
66.67
Total
25,00,000
38,00,000
13,00,000
52.00
II. Assets
 
 
 
 
1. Non-Current Assets
 
 
 
 
a. Fixed Assets (Tangible)
15,00,000
25,00,000
10,00,000
66.67
b. Intangible Assets
5,00,000 5,00,000 - -
 
20,00,000
30,00,000
10,00,000
50.00
     2. Current Assets        
a. Trade Receivables  
3,50,000 6,00,000 2,50,000 71.43
b. Cash and Cash Equivalents
1,50,000 2,00,000 50,000 33.33
 
5,00,000
8,00,000
3,00,000
60.00
Total 25,00,000 38,00,000 13,00,000 52.00
 
 
 
 
 



Page No 3.31:

Answer:

In the books of Blue Bell Ltd.
Comparative Balance Sheet
as at March 31, 2016 and 2017
Particulars
2016
(Rs)
2017
(Rs)
Absolute
Change
(Rs)
Percentage
Change
(%)
I. Equity and Liabilities
 
 
 
 
1. Shareholders’ Funds
 
 
 
 
a. Equity Share Capital
2,44,000
3,26,000
82,000
33.61
b. Reserves and Surplus
1,00,000 1,00,000 - -
Shareholder's Funds
3,44,000
4,26,000
82,000
23.84
     2. Non-Current Liabilities        
a. Long-term Borrowings
4,38,000
6,96,000
2,58,000
58.90
3. Current Liabilities
78,000
2,98,000
2,20,000
282.05
Total
8,60,000
14,20,000
5,60,000
65.12
         
II. Assets
 
 
 
 
1. Non-Current Assets
 
 
 
 
a. Fixed Assets (Tangible)
4,30,000
5,68,000
1,38,000
32.09
b. Non-Current Investments
4,000
6,000
2,000
50.00
  4,34,000 5,74,000 1,40,000 32.26
2. Current Assets
 
 
 
 
          a. Trade Receivables 3,76,000 6,46,000 2,70,000 71.81
          b. Cash and Cash Equivalents 50,000 2,00,000 1,50,000 300.00
  4,26,000 8,46,000 4,20,000 98.59
Total
8,60,000
14,20,000
5,60,000
65.12
 
 
 
 
 



Page No 3.32:

Answer:

In the books of Wye Ltd.

Comparative Balance Sheet

as at March 31, 2016 and 2017

Particulars

2016

(Rs)

2017

(Rs)

Absolute

Change

(Rs)

Comments

I. Equity and Liabilities

 

 

 

 

1. Shareholders’ Funds

 

 

 

 

        a. Equity Share Capital

4,00,000

4,00,000

-

No Change

        b. Preference Share Capital 1,00,000 1,00,000 - No Change

ii. Reserve and Surplus

1,10,000

1,20,000

10,000

Increase

 Shareholders’ Fund

6,10,000

6,20,000

10,000

 

2. Non-Current Liabilities

 

 

 

 

a. Long-term Borrowings

 

 

 

 

Bank Loan

4,50,000

3,50,000

1,00,000

Decrease

Debentures

-

1,00,000

1,00,000

Increase

          b. Long-Term Provision 1,00,000 50,000 50,000 Decrease

3. Current Liabilities

 

 

 

 

         a. Trade Payables 3,30,000 5,30,000 2,00,000 Increase

         b. Short-Term Provisions

50,000

50,000

-

No Change

Total

15,40,000

17,00,000

1,60,000

 

 

 

 

 

 

II. Assets

 

 

 

 

1. Non-Current Assets

 

 

 

 

a. Fixed Assets (Tangible)

10,40,000

9,90,000

50,000

Decrease

          b. Non-Current Investments 1,00,000 1,00,000 - No Change

2. Current Assets

 

 

 

 

b. Trade Receivables

3,00,000

5,00,000

2,00,000

Increase

c. Cash and Cash Equivalents

1,00,000

1,10,000

10,000

Increase

Total

15,40,000

17,00,000

1,60,000

 

 

 

 

 

 



Page No 3.33:

Answer:

In the books of Royal Industries Ltd.

Comparative Balance Sheet

as at March 31, 2016 and 2017

Particulars

2016

(Rs)

2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Equity and Liabilities

 

 

 

 

1. Shareholders’ Funds

 

 

 

 

a. Equity Share Capital

5,00,000

10,00,000

5,00,000

100.00

b. Reserve and Surplus

1,00,000

1,00,000

Shareholders’ Fund

6,00,000

11,00,000

5,00,000

83.33

2. Non-Current Liabilities

 

 

 

 

a. Long-term Borrowings

3,00,000

2,00,000

(1,00,000)

(33.33)

3. Current Liabilities

 

 

 

 

a. Trade Payables

1,00,000

2,00,000

1,00,000

100.00

Total

10,00,000

15,00,000

5,00,000

50.00

         

II. Assets

 

 

 

 

1. Non-Current Assets

 

 

 

 

a. Fixed Assets (Tangible)

4,00,000

8,00,000

4,00,000

100.00

         b. Intangible Assets 2,00,000 2,00,000 - -
         c. Non-Current Investments 2,00,000 2,00,000 - -

2. Current Assets

 

 

 

 

a. Inventories

1,50,000

2,50,000

1,00,000

66.67

b. Cash and Cash Equivalents
50,000 50,000    

 

2,00,000
3,00,000
1,00,000
50.00

Total

10,00,000

15,00,000

5,00,000

50.00

 

 

 

 

 

Page No 3.33:

Answer:

Comparative Balance Sheet

as at March 31, 2016  and March 31, 2017

Particulars

2017
(Rs)

2016
(Rs)

Absolute
Change
(Rs)

Percentage
Change
(%)

I. Equity and Liabilities

       

1. Shareholders’ Funds

       

a. Share Capital

       

1. Equity Share Capital

12,50,000

5,00,000

7,50,000

150.00

2. Preference Share Capital

2,50,000

2,50,000

Total

15,00,000

7,50,000

7,50,000

100.00

b. Reserve and Surplus

3,00,000

4,50,000

(1,50,000)

(33.33)

 

18,00,000

12,00,000

6,00,000

50.00

2. Non-Current Liabilities

       

a. Long-term Borrowings

       

12% Secured Debentures

9,50,000

5,50,000

4,00,000

72.73

12% Unsecured Debentures

2,50,000

2,00,000

50,000

25.00

 

12,00,000

7,50,000

4,50,000

60.00

3. Current Liabilities

       

a. Short-Term Borrowings

3,50,000

1,75,000

1,75,000

100.0

b. Trade Payables

2,00,000

1,00,000

1,00,000

100.00

c. Short-Term Provisions

50,000

25,000

25,000

100.00

Total

36,00,000

22,50,000

13,50,000

60.00

II. Assets

       

1. Non-Current Assets

       

a. Fixed Assets (Tangible)

22,50,000

15,00,000

7,50,000

50.00

2. Current Assets

       

a. Inventories

4,50,000

2,50,000

2,00,000

80.00

b. Trade Receivables

8,00,000

4,50,000

3,50,000

77.78

c. Cash and Cash Equivalents

1,00,000

50,000

50,000

100.00

Total

36,00,000

22,50,000

13,50,000

60.00

 

 

 

 

 

 



Page No 3.34:

Answer:

Comparative Balance Sheet of Depth Ltd.
as at March 31, 2016  and March 31, 2017

Particulars

2017

(Rs)

2016

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Equity and Liabilities

       

1. Shareholders’ Funds

       

a. Share Capital

2,80,000

1,80,000

1,00,000

55.56

b. Reserve and Surplus

1,00,000

1,00,000

Total

3,80,000

2,80,000

1,00,000

35.71

2. Non-Current Liabilities

       

Long-term Borrowings

80,000

20,000

60,000

300.00

3. Current Liabilities

       

Trade Payables

50,000

30,000

20,000

66.67

Total

5,10,000

3,30,000

1,80,000

54.55

II. Assets

       

1. Non-Current Assets

       

a. Fixed Assets

       

i. Tangible Assets

2,80,000

1,80,000

1,00,000

55.56

ii. Intangible Assets

50,000

30,000

20,000

66.67

 b. Non-Current Investments

80,000

50,000

30,000

60.00

Total

4,10,000

2,60,000

1,50,000

57.69

2. Current Assets

       

a. Inventories

70,000

30,000

40,000

133.33

b. Cash and Cash Equivalents  

30,000

40,000

(10,000)

(25.00)

 

1,00,000

70,000

30,000

42.86

Total

5,10,000

3,30,000

1,80,000

54.55

 

 

 

 

 

Page No 3.34:

Answer:

Comparative Income Statement

for the year ended March 31, 2014 and 2015

Particulars

2014

(Rs)

2015

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

45,00,000

60,00,000

15,00,000

33.33

II. Expenses

 

 

 

 

a. Depreciation

6,00,000

7,50,000

1,50,000

25.0

b. Employees Benefit Expenses

22,50,000

30,00,000

7,50,000

33.33

c. Other Expenses

10,00,000

15,50,000

5,50,000

55.0

     

38,50,000

53,00,000

14,50,000

37.66

Profit before Income Tax

6,50,000

7,00,000

50,000

7.69

Less: Income Tax

1,95,000

2,10,000

15,000

7.69

Profit after Income Tax

4,55,000

4,90,000

35,000

7.69

 

 

 

 

 



Page No 3.35:

Answer:

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

2016

2017

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

3,00,000

3,50,000

50,000

16.67

II. Expenses

 

 

 

 

a. Purchase of Stock-in-Trade

1,80,000

2,10,000

30,000

16.67

b. Changes in Inventories of Stock-in-Trade

20,000

15,000

(5,000)

(25.00)

c. Employees Benefit cost

15,000

17,500

2,500

16.67

d. Other Expenses

5,000

7,500

2,500

50.00

 

2,20,000

2,50,000

30,000

13.67

Profit before Income Tax (I-II) 80,000 1,00,000 20,000 25.00

Less: Income Tax

24,000

30,000

6,000

25.00

Profit after Income Tax

56,000

70,000

14,000

25.00

 

 

 

 

 

Page No 3.35:

Answer:

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

2016

(Rs)

2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

2,50,000

3,00,000

50,000

20.00

II. Expenses:

 

 

 

 

a. Cost of Materials Consumed

1,00,000

1,20,000

20,000

20.00

b. Changes in Inventories of WIP and Finished Goods

5,000

(2,000)

(7,000)

(140.00)

c. Employees Benefit Expenses (Wages)

25,000

30,000

5,000

20.00

d. Other Expenses

20,000

22,000

2,000

10.00

 

1,50,000

1,70,000

20,000

13.33

Profit before Income Tax (I-II) 1,00,000 1,30,000 30,000 30.00

Less: Income Tax

Profit after Income Tax

1,00,000

1,30,000

30,000

30.00

 

 

 

 

 



Page No 3.36:

Answer:

Comparative Income Statement
for the year ended March 31, 2016 and 2017
Particulars
March 31, 2016
(Rs)
March 31, 2017
(Rs)
Absolute
Change
(Rs)
Percentage
Change
(%)
I. Revenue from operations
20,00,000
30,00,000
10,00,000
50.00
II. Other Income
4,00,000
3,60,000
(40,000)
(10.00)
III. Total Revenue (I + II)
24,00,000
33,60,000
9,60,000
40.00
IV. Expenses
12,00,000
21,00,000
9,00,000
75.00
Profit before Income Tax
12,00,000
12,60,000
60,000
5.00
Less: Income Tax @ 40%
4,80,000
5,04,000
24,000
5.00
Profit after Income Tax
7,20,000
7,56,000
36,000
5.00
 
 
 
 
 
 
Working Notes:
 
WN1 Computation of Other Income
 
Particulars
2016
(Rs)
2017
(Rs)
Revenue From Operations
20,00,000
30,00,000
% of Revenue From Operations
20%
12%
Other Income
4,00,000
3,60,000
 
WN1 Computation of Expenses
 
Particulars
2016
(Rs)
2017
(Rs)
Revenue From Operations
20,00,000
30,00,000
% of Revenue From Operations
60%
70%
Expenses
12,00,000
21,00,000

Page No 3.36:

Answer:

Comparative Income Statement
for the year ended 31st March, 2016 and 2017
Particulars
March 31, 2016
(Rs)
March 31, 2017
(Rs)
Absolute
Change
(Rs)
Percentage
Change
(%)
I. Revenue from Operations (WN1)
12,00,000
16,80,000
4,80,000
40.00
II. Expenses
 
 
 
 
a. Cost of Material Consumed
6,00,000
13,44,000
7,44,000
124.00
b. Other Expenses (WN2)
1,20,000
1,68,000
48,000
40.00
 
7,20,000
15,12,000
7,92,000
110.00
         
Profit before Income Tax (I-II) 4,80,000 1,68,000 (3,12,000) (65.00)
Less: Income Tax @ 50%
2,40,000
84,000
(1,56,000)
(65.00)
Profit after Income Tax
2,40,000
84,000
1,56,000
(65.00)
 
 
 
 
 

Working Notes:
 
WN1 Computation of Revenue from Operations
 
Particulars
2016
(Rs)
2017
(Rs)
Cost of Materials Consumed
6,00,000
13,44,000
% of Materials Consumed
200%
125%
Revenue from Operations
12,00,000
16,80,000
 
WN2 Computation of Other Expenses
 
Particulars
2016
(Rs)
2017
(Rs)
Revenue From Operations
12,00,000
16,80,000
% of Operating Revenue
10%
10%
Other Expenses
1,20,000
1,68,000

Page No 3.36:

Answer:

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

2016

(Rs)

2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

40,00,000

50,00,000

10,00,000

25.00

II. Expenses:

 

 

 

 

a. Purchases of Stock-in-Trade

28,50,000

34,00,000

5,50,000

19.30

b. Changes in Inventories of Stock-in-Trade

1,50,000

1,00,000

(50,000)

(33.33)

c. Employees Benefit Expenses

1,00,000

1,00,000

d. Other Expenses

1,50,000

2,00,000

50,000

33.33

 

32,50,000

38,00,000

5,50,000

16.92


Profit before Income Tax (I-II)

7,50,000

12,00,000

4,50,000

60.00

Less: Income Tax

Profit after Income Tax

7,50,000

12,00,000

4,50,000

60.00

 

 

 

 

 



Page No 3.37:

Answer:

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

March 31, 2016

(Rs)

March 31, 2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

40,00,000

50,00,000

10,00,000

25.00

II. Other Income

2,00,000

3,00,000

1,00,000

50.00

III. Total Revenue (I + II) 42,00,000 53,00,000 11,00,000 26.19

IV. Expenses

 

 

 

 

a. Purchases of Stock-in-Trade

32,00,000

34,00,000

2,00,000

6.25

b. Changes in Inventory of Stock-in-Trade

(2,00,000)

1,00,000

3,00,000

150.00

c. Employee Benefit Expenses

1,00,000

1,00,000

d. Finance Cost

50,000

45,000

(5,000)

(10.00)

e. Depreciation

25,000

30,000

5,000

20.00

f. Other Expenses

3,00,000

3,25,000

25,000

8.33

  34,75,000 40,00,000 5,25,000 15.10


Profit before Income Tax


7,25,000


13,00,000


5,75,000


79.31

Less: Income Tax

Profit after Income Tax

7,25,000

13,00,000

5,75,000

79.31

 

 

 

 

 

Page No 3.37:

Answer:

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

March 31, 2016

(Rs)

March 31, 2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from operations

25,00,000

37,50,000

12,50,000

50.00

II. Other Income

5,00,000

4,50,000

(50,000)

(10.00)

III. Total Revenue (I + II)

30,00,000

42,00,000

12,00,000

40.00

IV. Expenses

 

 

 

 

a. Cost of Materials Consumed

12,50,000

22,50,000

10,00,000

80.00

b. Other Expenses

2,50,000

3,75,000

1,25,000

50.00

  15,00,000 26,25,000 11,25,000 75.00
         

Profit before Income Tax

15,00,000

15,75,000

75,000

5.00

Less: Income Tax @ 50%

7,50,000

7,87,500

37,500

5.00

Profit after Income Tax

7,50,000

7,87,500

37,500

5.00

 

 

 

 

 



Page No 3.38:

Answer:

Comparative Income Statement

for the year ending March 31, 2012 and 2013

 

Particulars

Note

 No.

2012

(Rs)

2013

(Rs)

Absolute 

Change 

(Rs)

Percentage

Change 

1. Revenue from Operations

 

8,00,000

14,00,000

6,00,000

75

2. Other Income

 

4,00,000

6,00,000

2,00,000

50

3. Total Revenue (1 + 2)

 

12,00,000

20,00,000

8,00,000

66.67

4. Expenses

 

 

 

 

 

    a. Other Expenses
 
11,00,000
17,00,000
6,00,000
54.55

 Total Expenses

 

11,00,000

17,00,000

6,00,000

54.55

5. Profit before Tax ( 3- 4)

 

1,00,000

3,00,000

2,00,000

200

     Less: Income Tax (40%)

 

40,000

1,20,000

80,000

200

6. Profit After Tax

 

60,000

1,80,000

1,20,000

200

 

 

 

 

 

 

Page No 3.38:

Answer:

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

March 31, 2016

(Rs)

March 31, 2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

17,50,000

20,00,000

2,50,000

14.29

II. Other Income

50,000

75,000

25,000

50.00

III. Total Revenue (I + II)

18,00,000

20,75,000

2,75,000

15.28

IV. Expenses

 

 

 

 

a. Purchases of Stock-in-Trade

10,00,000

11,60,000

1,60,000

16.00

b. Changes in Inventory of Stock-in-Trade

(25,000)

10,000

35,000

140.00

c. Employee Benefit Expenses

3,00,000

3,00,000

d. Depreciation

50,000

50,000

e. Other Expenses

75,000

90,000

15,000

20.00

  14,00,000 16,10,000 2,10,000 15.00

Profit before Income Tax

4,00,000

4,65,000

65,000

16.25

Less: Income Tax

Profit after Income Tax

4,00,000

4,65,000

65,000

16.25

 

 

 

 

 



Page No 3.39:

Answer:

In the Books of Shyam Ltd.

Comparative Income Statement

for the year ended March 31, 2016 and 2017

Particulars

March 31, 2016

(Rs)

March 31, 2017

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

I. Revenue from Operations

17,50,000

20,00,000

2,50,000

14.29

II. Expenses

 

 

 

 

a. Purchases of Stock-in-Trade

8,25,000

10,00,000

1,75,000

21.21

b. Changes in Inventory of Stock-in-Trade

1,50,000

1,70,000

20,000

13.33

c. Expenses

7,700

11,500

3,800

49.35

Total Expenses 9,82,700 11,81,500 1,98,800 20.23

Profit before Income Tax

7,67,300

8,18,500

51,200

6.67

Less: Income Tax @ 40%

3,06,920

3,27,400

20,480

6.67

Profit after Income Tax

4,60,380

4,91,100

30,720

6.67

 

 

 

 

 

Page No 3.39:

Answer:

Common Size Income Statement

for the year ended March 31, 2017

Particulars

Absolute Amount

(Rs)

Percentage of Revenue of Revenue from Operations

(%)

I. Revenue from Operations

15,00,000

100.00

II. Other Incomes

60,000

4.00

Total Revenue (I +II)

15,60,000

104.00

IV. Expenses

 

 

a. Purchases of Stock-in-Trade

7,50,000

50.00

b. Change in Inventories of Stock-in-Trade

50,000

3.33

c. Other Expenses

2,10,000

14.00

Profit before Income Tax

5,50,000

36.67

Less: Income Tax

Profit after Income Tax

5,50,000

36.67

 

 

 

Page No 3.39:

Answer:

Common Size Income Statement

for the year ended March 31, 2016 and 2017

Particulars

Absolute Amount

(Rs)

Percentage of Revenue

(%)

2016

2017

2016

2017

I. Revenue from Operations

15,00,000

18,01,000

100

100

II. Other Incomes

15,000

20,000

1

1.11

Total Revenues (I + II)

15,15,000

18,21,000

101

101.11

IV. Expenses

 

 

 

 

a. Purchase of Stock-in-Trade

9,00,000

10,22,500

60.00 56.77

b. Change in Inventories of Stock-in-Trade

10,000

(10,000)

0.67 (0.55)

c. Employees Benefit Expenses

3,00,000

3,30,000

20.00 18.32

d. Other Expenses

1,70,000

2,00,000

11.33 11.10
  13,80,000 15,42,500 92 85.65

Profit before Income Tax

1,35,000

2,78,500

9.00 15.46

Less: Income Tax

- -

Profit after Income Tax

1,35,000

2,78,500

9.00 15.46

 

 

 

 

 



Page No 3.40:

Answer:

Common Size Income Statement

for the year ended…..

Particulars

Absolute Amount

(Rs)

Percentage of Revenue

(%)

Year 1

Year II

Year 1

Year II

I. Revenue from Operations

14,00,000

16,00,000

100.00

100.00

II. Expenses

 

 

 

 

a. Purchases of Stock-in-Trade

9,00,000

10,00,000

64.28

62.5

b. Change in Inventories of Stock-in-Trade

1,00,000

1,80,000

7.14

11.25

c. Finance Cost

80,000

80,000

5.71

5.00

d. Other Expenses

90,000

1,30,000

6.43

8.12

Profit before Income Tax

2,30,000

2,10,000

16.43

13.13

Less: Income Tax

40,000

36,000

2.84

2.25

Profit after Income Tax

1,90,000

1,74,000

13.57

10.88

 

 

 

 

 

Page No 3.40:

Answer:

Common Size Balance Sheet

as at March 31, 2017

Particulars

Absolute Amount

(Rs)

Percentage of Balance Sheet Total

(%)

X Ltd.

Y Ltd.

X Ltd.

Y Ltd.

I. Equity and Liabilities

 

 

 

 

1. Shareholders’ Funds

 

 

 

 

a. Share Capital

9,00,000

12,00,000

60.00

66.67

b. Reserve and Surplus

4,00,000

3,50,000

26.67

19.44

2. Current Liabilities

 

 

 

 

a. Trade Payables

2,00,000

2,50,000

13.33

13.89

Total

15,00,000

18,00,000

100.00

100.00

II. Assets

 

 

 

 

1. Non-Current Assets

 

 

 

 

a. Fixed Assets

10,00,000

16,00,000

66.67

88.89

2. Current Assets

 

 

 

 

a. Trade Receivables

5,00,000

2,00,000

33.33

11.11

Total

15,00,000

18,00,000

100.00

100.00

 

 

 

 

 

Comments:

1. Y Ltd. has a greater share of Capital in the total sources of funds i.e. 66.67% in comparison to 60% of X Ltd.

2. X Ltd. retains 26.67% of their earnings as a part of Reserves and Surplus. Whereas, Y Ltd. retains only 19.44% of their earnings.

3. Y Ltd. has invested major portion of its funds on acquiring the Fixed Assets as these are 88.89% of the total application of funds in comparison to 66.67% of X Ltd. On the other hand, X Ltd. emphasises more on Current Assets as these are 33.33% of the total applications of funds in comparison to 11.11% of Y Ltd.



Page No 3.41:

Answer:

Common Size Balance Sheet

as at March 31, 2016 and 2017

Particulars

Absolute Amount

(Rs)

Percentage of Balance Sheet Total

(%)

March 31, 2016

March 31,
2017

March 31,
2016

March 31, 2017

I. Equity and Liabilities

 

 

 

 

1. Shareholders’ Funds

 

 

 

 

a. Share Capital

 

 

 

 

(i) Equity Share Capital

8,00,000

6,00,000

42.11

42.55

(ii) Preference Share Capital

4,00,000

2,00,000

21.05

14.18

b. Reserves and Surplus

2,00,000

2,00,000

10.53

14.18

2. Non-Current Liabilities

 

 

 

 

a. Long-Term Borrowings

2,00,000

2,00,000

10.53

14.18

3. Current Liabilities

 

 

 

 

a. Short-Term Borrowings

1,50,000

90,000

7.89

6.38

b. Trade Payables

1,25,000

1,00,000

6.58

7.09

c. Short-Term Provisions

25,000

20,000

1.31

1.42

Total

19,00,000