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#### Page No 3.30:

 In the books of D Ltd. Comparative Balance Sheet as at March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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:

 In the books of Radha Ltd. Comparative Balance Sheet as at March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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:

 In the books of Blue Bell Ltd. Comparative Balance Sheet as at March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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:

 In the books of Wye Ltd. Comparative Balance Sheet as at March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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 8% 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:

 In the books of Royal Industries Ltd. Comparative Balance Sheet as at March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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:

 Comparative Balance Sheet as at March 31, 2017  and March 31, 2018 Particulars 2018 (Rs) 2017 (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:

 Comparative Balance Sheet of Depth Ltd. as at March 31, 2017  and March 31, 2018 Particulars 2018 (Rs) 2017 (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

#### Question 8:

Following information is extracted from the Statement of Profit and Loss of Gold Coin Ltd. for the year ended 31st March, 2015:

 Particulars 31st March, 2015 31st March, 2014 Revenue from Operations â‚ą 60,00,000 â‚ą 45,00,000 Employee Benefit Expenses â‚ą 30,00,000 â‚ą 22,50,000 Depreciation â‚ą 7,50,000 â‚ą 6,00,000 Other Expenses â‚ą 15,50,000 â‚ą 10,00,000 Tax Rate 30% 30%

 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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars 2017 2018 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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars March 31, 2017 (Rs) March 31, 2018 (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 2017 (Rs) 2018 (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 2017 (Rs) 2018 (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:

 Comparative Income Statement for the year ended 31st March, 2017 and 2018 Particulars March 31, 2017 (Rs) March 31, 2018 (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 2017 (Rs) 2018 (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 2017 (Rs) 2018 (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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars 2017 (Rs) 2018 (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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars March 31, 2017 (Rs) March 31, 2018 (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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars March 31, 2017 (Rs) March 31, 2018 (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

#### Question 16:

From the following Statement of Profit and Loss of Antriksh Ltd. for the year ended 31st March, 2012 and 2013, â€‹â€‹Prepare Comparative Statement of Profit and Loss:

 Particulars Note No. 31st March, 2013 (â‚ą) 31st March, 2012, (â‚ą) Revenue from Operations 14,00,000 8,00,000 Other Incomes 6,00,000 4,00,000 Expenses 17,00,000 11,00,000

Rate of Income Tax was 40%.

 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:

 Comparative Income Statement for the year ended March 31, 2017 and 2018 Particulars March 31, 2017 (Rs) March 31, 2018 (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

#### Question 18:

From the following Statement of Profit and Loss of Star Ltd., for the year ended 31st March, 2015 and 2016, prepare a Common-size statement:

 Particulars Note No. 2015-16 2014-15 Revenue from Operations â‚ą 25,00,000 â‚ą 20,00,000 Employee Benefit Expenses â‚ą 10,00,000 â‚ą 7,00,000 Other Expenses â‚ą 2,00,000 â‚ą 3,00,000 Tax Rate 40% 40%

 Common Size Statement of Profit and Loss for the year ended March 31, 2015 and 2016 Particulars Absolute Amount Percentage of Revenue from Operations 2014-15 (Rs) 2015-16 (Rs) 2014-15 (%) 2015-16 (%) I. Revenue from Operations 20,00,000 25,00,000 100 100 II. Other Income Total Revenue (I + II) 20,00,000 25,00,000 100 100 Less: Expenses: Employees Benefit cost 7,00,000 10,00,000 35 40 Other Expenses 3,00,000 2,00,000 15 8 Profit before Tax 10,00,000 13,00,000 50 52 Less: Tax @ 40% 4,00,000 5,20,000 20 20.80 Profit after Tax 6,00,000 7,80,000 30 31.20

#### Question 19:

Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:

 Particulars ulars Note No. 31st March, 2018 (â‚ą) I. Income Revenue from Operations 15,00,000 Other Income 60,000 Total Revenue 15,60,000 II. Expenses Purchases of Stock-in-Trade 7,50,000 Change in Inventories of Stock-in-Trade 50,000 Other Expenses 2,10,000 Total 10,10,000 III. Net Profit before Tax (I-II) 5,50,000

 Common Size Income Statement for the year ended March 31, 2018 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:

 Common Size Income Statement for the year ended March 31, 2017 and 2018 Particulars Absolute Amount (Rs) Percentage of Revenue (%) 2017 2018 2017 2018 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

#### Question 21:

Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:

 Particulars Note No. Year I (â‚ą) Year II (â‚ą) I. Income Revenue from Operations (Net Sales) 14,00,000 16,00,000 II. Expenses Purchases of Stock-in-Trade 9,00,000 10,00,000 Change in Inventories of Stock-in-Trade 1,00,000 1,80,000 Finance Costs 80,000 80,000 Other Expenses 90,000 1,30,000 Total 11,70,000 13,90,000 III. Net Profit (I-II) 2,30,000 2,10,000 IV.  Less: Tax 40,000 36,000 V. Net Profit After Tax (III-IV) 1,90,000 1,74,000

 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:

 Common Size Balance Sheet as at March 31, 2018 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

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.