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Page No 3.30:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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
 
 
 
 
 

Page No 3.34:

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

₹ 60,00,000

₹ 45,00,000

Employee Benefit Expenses

₹ 30,00,000

₹ 22,50,000

Depreciation

₹ 7,50,000

₹ 6,00,000

Other Expenses

₹ 15,50,000

₹ 10,00,000

Tax Rate

30%

30%

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, 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:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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:

Answer:

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

 

 

 

 

 



Page No 3.38:

Question 16:

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

 

 

 

Particulars Note No. 31st March,
2013 (₹)

31st March,
2012, (₹)

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%.

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, 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

 

 

 

 

 



Page No 3.39:

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   ₹ 25,00,000 ₹ 20,00,000
Employee Benefit Expenses   ₹ 10,00,000 ₹ 7,00,000
Other Expenses   ₹ 2,00,000 ₹ 3,00,000
Tax Rate
  40%
40%

Answer:

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
         

Page No 3.39:

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

(₹)

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

Answer:

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:

Answer:

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

 

 

 

 

 



Page No 3.40:

Question 21:

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

Particulars

Note No.

Year I

(₹)

Year II

(₹)

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

       

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, 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

 

 

 

 

 

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, 2017 and 2018

Particulars

Absolute Amount

(Rs)

Percentage of Balance Sheet Total

(%)

March 31, 2017

March 31,
2018

March 31,
2017

March 31, 2018

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