Tools F
or Financial Statement Analysis
comparative &
Common size Statement
TS Solutions
Comparative COMMON SIZE |
Comparative Balance Sheet
Question
1: From the following information, prepare Comparative
Balance Sheet of Sunrise ta.
Particulars | 31st March, | 31st March, |
Shareholders’ Funds | 15,00,000 | 22,50,000 |
Non-current Liabilities | 7,50,000 | 7,50,000 |
Current Liabilities | 2,50,000 | 7,50,000 |
Non-current Assets | 17,50,000 | 26,25,000 |
Current Assets | 7,50,000 | 11,25,000 |
Answer:
Comparative
Balance sheet as at 31" March, 2021
Note No. | 31st March, 2020 (₹ ) | 31st March, 2021 ₹ (₹ ) | Absolute Change (Increase/Decrease)(₹) | Percentage Change (Increase/Decrease)(%) | |
(A) | (B) | (C = A-B) | (D = C/A×100)<
/b> | ||
I. Equity and Liabilities        1. Sharehold 2. Non-current Current 3. Current liabilities | 15,00,000 7,50,000 2,50,000 | 22,50,000 7,50,000 7,50,000 | 7,50,000 – 5,00,000 | 50.00 200.00 | |
Total | 25,00,000 | 37,50,000 | 12,50,000 | 50 | |
II. Assets 1. Non-current Assets 2. Current Assets |
7,50,000 |
11,25,000 |
3,75,000 |
50.00 | |
Total | 25,00,000 | 37,50,000 | 12,50,000 | 50 |
Question
2: From the following Balance Sheet, prepare Comparative Balance
Sheet of Sun Ltd:
Balance As At | |||
Particulars | Note | 31st March, 2022 ( ₹) | 31st March, 2021 ( ₹) |
I. EQUITY AND LIABILITIES 1. Shareholder’s (a) Share Capital 2. Non-Current Liabilities Long-term Borrowings 3. Current Liabilities : Trade Payables | |
3,50,000 1,00,000 1,50,000 |
3,00,000 2,00,000 1,00,000 |
Total | | 6,00,000 | 6,00,000 |
II. ASSETS 1. Non-Current Assets Fixed Assets (Tangible) 2. Current Assets Trade Receivables | | 4,00,000 2,00,000 | 3,00,000 3,00,000 |
Total | | 6,00,000 | 6,00,000 |
Solution-:
In the Comparative as at March 31, 2021 and 2022 | ||||
Particulars | 2021 ( ₹ ) | 2022 ( ₹ ) | Absolute Change ( ₹ ) | Percentage Change (%) |
I. Equity and Liabilities 1. ShareholdersÂ’ Funds a. Share Capital ShareholdersÂ’ Fund 2. Non-Current Liabilities a. Long-term Borrowings 3. Current Liabilities a. Trade Payables | 3,00,000 3,00,000 2,00,000 1,00,000 | 3,50,000 3,50,000 1,00,000 1,50,000 | 50,000 50,000 (1,00,000) 50,000 | 16.67 16.67 (50.00) 50.00 |
Total | 6,00,000 | 6,00,000 | – | – |
II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 2. Current Assets a. Trade Receivables | 3,00,000 3,00,000 | 4,00,000 2,00,000 | 1,00,000 (1,00,000) | 33.33 (33.33) |
Total | 6,00,000 | 6,00,000 | – | – |
Question
-3: Following is the Balance Shect
of Radha Ltd. as at 31st March, 2022:
Balance As At | |||
| Note | 31st March, | 31st March, |
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities Long Term Borrowings 3. Current Liabilities (a) Trade Payables | 15,00,000 10,00,000
| 10,00,000 10,00,000
| |
Total | 38,00,000 | 25,00,000 | |
II. ASSETS 1. Non-Current Assets Fixed Asscts: (i) Tangible Assets (ii) Intangible Assets 2. Current Assets (a) Trade Receivables (b) Cash and Cash Equivalents |
25,00,000 5,00,000
2,00,000 |
15,00,000 5,00,tJ J0
1,50,000 | |
Total | 38,00,000 | 25,00,000 | |
You are required to prepare Comparative Balance
Sheet on the basis of the information
given in the above Balance Sheet.
Answer:
In the Comparative as at March 31, 2021 and 2022 | ||||
Particulars | 2021 ( ₹Â ) | 2022 ( ₹Â ) | Absolute Change ( ₹Â ) | Percentage Change (%) |
I. Equity and Liabilities 1. Shareholders’ Funds a. Equity Share Capital b. Reserve and Surplus Shareholders’ Fund 2. Non-Current Liabilities a. Long-term Borrowings 3. Current Liabilities | 10,00,000 10,00,000 20,00,000 2,00,000 3,00,000 | 15,00,000 10,00,000 25,00,000 8,00,000 5,00,000 | 5,00,000 – 5,00,000 6,00,000 2,00,000 | 50.00 – 25.00 300.00 66.67 |
Total | 25,00,000 | 38,00,000 | 13,00,000 | 52.00 |
II. Assets     1. Non-Current Assets a. Fixed Assets (Tangible) b. Intangible Assets | 15,00,000 5,00,000 | 25,00,000 5,00,000 | 10,00,000 – | 66.67 – |
| 20,00,000 | 30,00,000 | 10,00,000 | 50.00 |
a. Trade Receivables b. Cash and Cash Equivalents | 3,50,000 1,50,000 | 6,00,000 2,00,000 | 2,50,000 50,000 | 71.43 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 |
Question 4: Balance
Sheet of Blue Bell Ltd. as at 31st March, 2022 is
given below:
BALANCE | |||
Particulars | Note | 31st March, 2022 ( ₹Â ) | 31st March, 2021 ( ₹Â ) |
I. EQUITY AND 1. Shareholder’s (a) Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings 3. Current Liabilities Trade Payables | |
3,26,000 1,00,000 6,96,000 2,98,000 |
2,44,000 1,00,000 4,38,000 78,000 |
Total | | 14,20,000 | 8,60,000 |
II. ASSETS 1. Non-Current Assets (a) Fixed Assets (b) Non-Current Investments 2. Current Assets (a) Trade Receivables (b) Cash and Cash Equivalents | | 5,68,000 6,000 6,46,000 2,00,000 | 4,30,000 4,000 3,76,000 50,000 |
Total | | 14,20,000 | 8,60,000 |
Prepare
Comparative Balance Sheet showing percentage changes from 2021 to 2022.
Solution-:
In the Comparative as at March 31, 2021 and 2022 | ||||
Particulars | 2021 ( ₹Â ) | 2022 | Absolute Change ( ₹Â ) | Percentage Change (%) |
I. Equity and Liabilities 1. ShareholdersÂ’ Funds a. Equity Share Capital b. Reserves and Surplus Shareholder’s Funds     2. Non-Current Liabiliti a. Long-term Borrowings 3. Current Liabilities | 2,44,000 1,00,000 3,44,000 4,38,000 78,000 | 3,26,000 1,00,000 4,26,000 6,96,000 2,98,000 | 82,000 – 82,000 2,58,000 2,20,000 | 33.61 – 23.84 58.90 282.05 |
Total | 8,60,000 | 14,20,000 | 5,60,000 | 65.12 |
II. Assets 1. Non-Current a. Fixed Assets (Tangible) b. Non-Current Investments | 4,30,000 4,000 | 5,68,000 6,000 | 1,38,000 2,000 | 32.09 50.00 |
| 4,34,000 | 5,74,000 | 1,40,000 | 32.26 |
2. Current Assets | 3,76,000 50,000 | 6,46,000 2,00,000 | 2,70,000 1,50,000 | 71.81 300.00 |
| 4,26,000 | 8,46,000 | 4,20,000 | 98.59 |
Total | 8,60,000 | 14,20,000 | 5,60,000 | 65.12 |
Question
5: From the Following Balance Sheet of Royal Industries
Ltd. as at 31st March, 2022,
prepare
Comparative Balance Sheet:
BALANCE | |||
Particulars | Note No. | 31st March, 2022 ( ₹Â ) | 31st March, 2021 ( ₹Â ) |
I. EQUITY AND LIABILITIES 1. Shareholder’s (a) Share Capital Equity Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings 3. Current Liabilities Trade Payables | |
10,00,000 1,00,000 2,00,000 2,00,000 |
5,00,000 1,00,000 3,00,000 1,00,000 |
Total | | 15,00,000 | 10,00,000 |
| | | |
II. ASSETS 1. Non-Current Assets (a) Fixed Assets: (i) Tangible Assets (ii) Intangible Assets (b) Non-Current Investments 2. Current Assets (a) Inventories (b) Cash and Cash Equivalents | | 8,00,000 2,00,000 2,00,000 2,50,000 50,000 | 4,00,000 2,00,000 2,00,000 1,50,000 50,000 |
Total | | 15,00,000 | 10,00,000 |
Answer:
In the Comparative as at March 31, 2021 and 2022 | ||||
Particulars | 2021 ( ₹Â ) | 2022 ( ₹Â ) | Absolute Change ( ₹Â ) | Percentage Change (%) |
I. Equity and Liabilities 1. Shareholders’ Funds a. Equity Share Capital b. Reserve and Surplus Shareholders’ Fund 2. Non-Current Liabilities      a. Long-term Bor 3. Current Liabilities a. Trade Payables | 5,00,000 1,00,000 6,00,000 3,00,000 1,00,000 | 10,00,000 1,00,000 11,00,000 2,00,000 2,00,000 | 5,00,000 – 5,00,000 (1,00,000) 1,00,000 | 100.00 – 83.33 (33.33) 100.00 |
Total | 10,00,000 | 15,00,000 | 5,00,000 | 50.00 |
II. Assets 1. Non-Current a. Fixed Assets (Tangible) b. Intangible Assets c. Non-Current Investments 2. Current Assets      a. Inventories       b. Cash and Cash Equivalent | 4,00,000 2,00,000 2,00,000 1,50,000 50,000 | 8,00,000 2,00,000 2,00,000 2,50,000 50,000 | 4,00,000 – – 1,00,000 | 100.00 – – 66.67 |
| 2,00,000 | 3,00,000 | 1,00,000 | 50.00 |
Total | 10,00,000 | 15,00,000 | 5,00,000 | 50.00 |
Question
6: Following is the summarised
Balance Sheet of Wye Ltd.
as
at 31st March, 2022:
BALANCE | |||
Particulars | Note No. | 31st March, | 31st March, |
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital: Â Â Â Â Â Â (i) Â Â Â Â Â Â (ii) Preferenc (b) Reserves and Surplus 2. Non-Current Liabilities (a) Long-term Borrowings (b) Long-term Provisions 3. Current Liabilities (a) Trade Payables (Creditors) (b) Short-term Provisions | 1. | 4,00,000 1,00,000 1,20,000 4,50,000 50,000 5,30,000 50,000 | 4,00,000 1,00,000 1,10,000 4,50,000 1,00,000 3,30,000 50,000 |
Total | | 17,00,000 | 15,40,000 |
II. ASSETS 1. Non-Current Assets (a) Fixed Assets (Tangible) (b) Non-Current Investments 2. Current Assets (a) Trade Receivables (b) Cash and Cash Equivalents | 2 | 9,90,000 1,00,000 5,00,000 1,10,000 | 10,40,000 1,00,000 3,00,000 1,00,000 |
Total | | 17,00,000 | 15,40,000 |
Notes to Accounts
Particulars | 31st March, | 31st March, |
I. Long-term Borrowings Bank Loan 8% Debentures | 3,50,000 1,00,000 | 4,50,000 … |
| 4,50,000 | 4,50,000 |
2. Cash and Cash Equivalents Bank Balance Cash in Hand | 1,00,000 10,000 | 90,000 10,000 |
| 1,10,000 | 1,00,000 |
You are required to comment upon the changes in absolute figures from one
period to
 another.< o:p>
Answer:
In the Comparative as at March 31, 2021 and 2022 | ||||
Particulars | 2021 ( ₹ ) | 2022 ( ₹ ) | Absolute Change ( ₹ ) | Comments |
I. Equity and 1. ShareholdersÂ’ Funds a. Equity    b. Preference Share Capital ii. Reserve and Surplus ShareholdersÂ’ Fund 2. Non-Current Liabilities a. Long-term Borrowings Bank Loan 8% Debentures 3. Current Liabilities a. b. | 4,00,000 1,00,000 1,10,000 6,10,000 4,50,000 – 1,00,000 3,30,000 50,000 | 4,00,000 1,00,000 1,20,000 6,20,000 3,50,000 1,00,000 50,000 5,30,000 50,000 | – – 10,000 10,000 1,00,000 1,00,000 50,000 2,00,000 – | No Change No Change Increase Decrease Increase Decrease Increase No Change |
Total | 15,40,000 | 17,00,000 | 1,60,000 | |
II. Assets      1. Non-Current Assets a. Fixed Assets (Tangible)      2. Current Assets a. Trade Receivables b. Cash and Cash Equivalents | 10,40,000 1,00,000 3,00,000 1,00,000 | 9,90,000 1,00,000 5,00,000 1,10,000 | 50,000 – 2,00,000 10,000 | Decrease No Change Increase Increase |
Total | 15,40,000 | 17,00,000 | 1,60,000 | |
Question 7: From the
following Balance Sheet of H.P. Ltd. as at 31st March,
2022, prepare
Comparative
Balance Sheet:
BALANCE | |||
Particulars | Note No. | 31st March, 2022 ( ₹ | 31st March, 2021 ( ₹ |
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital: Â Â Â Â Â Â Â Â (i) Â Â Â Â Â Â Â Â (ii) Prefe (b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings: 12% Debentures Loan from Directors 3. Current Liabilities (a)Short-term Borrowings (b) Trade Payables (c) Short-term Provisions | | 12,50,000 2,50,000 3,00,000 9,50,000 2,50,000 3,50,000 2,00,000 50,000 | 5,00,000 2,50,000 4,50,000 5,50,000 2,00,000 1,75,000 1,00,000 25,000 |
Total | | 36,00,000 | 22,50,000 |
II. ASSETS 1. Non-Current Assets (a) Fixed Assets (Tangible) 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents | | 22,50,000 4,50,000 8,00,000 1,00,000 | 15,00,000 2,50,000 4,50,000 50,000 |
Total | | 36,00,000 | 22,50,000 |
Answer:
Comparative as at | ||||
Particulars | 2021 | 2022 | Absolute | Percentage |
I. Equity and Liabilities     1. Shareholders’ Funds a. Share Capital     1. Equity Share Ca     2. Preference Shar | 12,50,000 2,50,000 | 5,00,000 2,50,000 | 7,50,000 – | 150.00 – |
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 a. Long-term Borrowings 12% Secured Debentures 12% Unsecured Debentures | 9,50,000 2,50,000 | 5,50,000 2,00,000 | 4,00,000 50,000 | 72.73 25.00 |
| 12,00,000 | 7,50,000 | 4,50,000 | 60.00 |
3. Current a. Short-Term Borrowings b. Trade Payables c. Short-Term Provisions | 3,50,000 2,00,000 50,000 | 1,75,000 1,00,000 25,000 | 1,75,000 1,00,000 25,000 | 100.0 100.00 100.00 |
Total | 36,00,000 | 22,50,000 | 13,50,000 | 60.00 |
II. Assets     1. Non-Current Assets a. Fixed Assets (Tangible)    2. Current Assets a. Inventories b. Trade Receivables c. Cash and Cash Equivalents | 22,50,000 4,50,000 8,00,000 1,00,000 | 15,00,000 2,50,000 4,50,000 50,000 | 7,50,000 2,00,000 3,50,000 50,000 | 50.00 80.00 77.78 100.00 |
Total | 36,00,000 | 22,50,000 | 13,50,000 | 60.00 |
Comparative Statement of Profit & Loss (Income
Statement)
Question 8: Prepare Comparative
Statement of Profit and Loss from the following
information:
Particulars | 31st March, 2021 (₹) | 31st 2020 Â (<
b>₹) |
Revenue from Operations | 30,00,000 | 20,00,000 |
Other Income | 3,60,000 | 4,00,000 |
Expenses | 21,00,000 | 12,00,000 |
Particulars | Note | 31st | 31st | Absolute | Percentage |
Revenue from Operations | 30,00,000 | 20,00,000 | 10,00,000 | 50.00 | |
Total Revenue (I+II) | 33,60,000 | 24,00,000 | 9,60,000 | 40.00 | |
Expenses | 21,00,000 | 12,00,000 | 9,00,000 | 75.00 | |
Profit before Tax | 12,60,000 | 12,00,000 | 60,000 | 5.00 |
Question
9: From the following Statement of Profit and Loss of
Skills India Ltd. for the year
 ended 31st March,
2021 and 2022, prepare a Comparative Statement of Profit and Loss:
Particulars | 31st March, 2022 (₹) | 31st March, 2021 (₹) |
Revenue from Operations | 45,00,000 | 20,00,000 |
Employee Benefit Expenses | 10,00,000 | 8,00,000 |
Other Expenses | 5,00,000 | 2,00,000 |
Tax Rate 30% | ||
Answer:
Particulars | Note No. | 31st March, 2021 (₹ ) | 31st March, 2022(₹ ) | Absolute Change Decrease)(₹ ) | Percentage Change Decrease)(%) |
Revenue from Operations | | 20,00,000 | 45,00,000 | 25,00,000 | 125 |
Employee Benefit Expenses Other Expenses | | 8,00,000 2,00,000 | 10,00,000 5,00,000 | 2,00,000 3,00,000 | 25 150 |
Total Expenses | | 10,00,000 | 15,00,000 | 5,00,000 | 50 |
Profit before Tax | | 10,00,000 | 30,00,000 | 20,00,000 | 200 |
Less: Tax 30% | | 3,00,000 | 9,00,000 | 6,00,000 | 200 |
Profit after Tax | | 7,00,000 | 21,00,000 | 14,00,000 | 200 |
Question
10:Â Followin
information is extracted from the Statement of Profit and Loss of
 Gold Coin Ltd. for the year ended 31st <
span
class=GramE>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 for the | ||||
Particulars | 2014 (Rs) | 2015 (Rs) | Absolute Change (Rs) | Percentage Change (%) |
(A) | (B) | (C | (D | |
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 | 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 |
Question 11: Prepare comparative Statement of Profit and Loss from
following:
Particulars | 2019 | 2020 |
Revenue from Operations | 20,00,000 | 25,00,000 |
Cost of material consumed | 10,00,00o | 13,00,000 |
Other Expenses | Nil | 1,20,000 |
Tax rate | 50% | 50% |
(CBSE
Sample paper 2020)
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2019 (₹ ) | 31st March, 2020 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
Revenue | | 20,00,000 | 25,00,000 | 5,00,000 | 25 |
Cost | | 10,00,00o | 13,00,000 | 3,00,000 | 30 |
Other | | – | 1,20,000 | 1,20,000 | – |
Total | | 10,00,000 | 14,20,000 | 4,20,000 | 42 |
Profit | | 10,00,000 | 10,80,000 | 80,000 | 8 |
Less: Tax | | 5,00,000 | 5,40,000 | 40,000 | 8 |
Profit | | 5,00,000 | 5,40,000 | 40,000 | 8 |
Question 12: Prepare a Comparative
Income Statement of Bikul Ltd. with the
help of
the
following information:
Particulars | 2016-17 (₹ | 2017-18 (₹ |
Revenue from Operations | 10,00,000 | 16,00,000 |
Cost of Materials Consumed | 5,00,000 | 10,00,000 |
Employee Benefit Expenses | 80,000 | 40,000 |
Other Indirect Expenses | 60,000 | 80,000 |
Tax Rate 40% | ||
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2017 (₹ ) | 31st March, 2018 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
Revenue | | 10,00,000 | 16,00,000 | 6,00,000 | 60.00 |
Expenses Cost Employee Other | | 5,00,000 80,000 60,000 | 10,00,000 40,000 80,000 | 5,00,000 (40,000) 20,000 | 100.00 (50.00) 33.33 |
Total Expenses | | 6,40,000 | 11,20,000 | 4,80,000 | 75.00 |
Profit before Tax | | 3,60,000 | 4,80,000 | 1,20,000 | 33.33 |
Less: Tax | | 1,44,000 | 1,92,000 | 48,000 | 33.33 |
Profit after Tax | | 2,16,000 | 2,88,000 | 72,000 | 33.33 |
Question 13: Prepare
Comparative Statement of Profit and Loss from the following information:
Particulars | 31st March, 2022 | 31st March, 2021 |
Revenue from Operations | ₹ 37,50,000 | ₹ 25,00,000 |
Other Income | ₹ 4,50,000 | ₹ 5,00,000 |
Cost of Materials Consumed | ₹ 22,50,000 | ₹ 12,50,000 |
Other Expenses | ₹ 3,75,000 | ₹ 2,50,000 |
Tax Rate | 50% | 50% |
Answer:
Comparative for the year ended March 31, 2021 and | ||||
Particulars | March 31, 2021 ( ₹ ) | March 31, 2022 ( ₹ ) | Absolute Change ( ₹ ) | 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 b. Other Expenses | 12,50,000 2,50,000 | 22,50,000 3,75,000 | 10,00,000 1,25,000 | 80.00 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 14: Prepare a
Comparative Statement of Profit and Loss from the information
extracted
from the Statement of Profit and Loss for the year ended 31st March, 2017 and 2018.
Particulars | 2017-18 (₹ ) | 2016-17 (₹ ) |
Revenue from Operations | 15,00,000 | 10,00,000 |
Other Income (% of Revenue from Operations) | 60% | 50% |
Employee Benefit Expenses (% of total revenue) | 40% | 30% |
Tax Rate | 40% | 40% |
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2017 (₹ ) | 31st March, 2018 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
Revenue from Operations | | 10,00,000 | 15,00,000 | 5,00,000 | 50.00 |
Other Income (% of Revenue from | | 5,00,000 | 9,00,000 | 4,00,000 | 80.00 |
Total Revenue | | 15,00,000 | 24,00,000 | 9,00,000 | 60.00 |
Employee Benefit Expenses (% of total revenue) | | 4,50,000 | 9,60,000 | 5,10,000 | 113.33 |
Profit before Tax | | 10,50,000 | 14,40,000 | 3,90,000 | 37.14 |
Less: Tax 40% | | 4,20,000 | 5,76,000 | 1,56,000 | 37.14 |
Profit after Tax | | 6,30,000 | 8,64,000 | 2,34,000 | 37.14 |
Question
15: From the following particulars obtained from the books
of Mark, prepare a
Comparative
Statement of Profit and Loss:
Particulars | 31st March, | 31st March, |
Revenue from Operations | 50,00,000 | 40,00,000 |
Purchase of Stock-in-Trade | 40,00,000 | 30,00,000 |
Changes in Inventory | 10,00,000 | 8,00,000 |
Other Expenses | 5,00,000 | 4,00,000 |
Other Incomes | 2,50,000 | 2,00,000 |
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2017 (₹ ) | 31st March, 2018 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
Revenue from Operations | | 40,00,000 | 50,00,000 | 10,00,000 | 25 |
Other Incomes | | 2,00,000 | 2,50,000 | 50,000 | 25 |
Total Revenue | | 42,00,000 | 52,50,000 | 10,50,000 | 25 |
Expenses | | | | | |
Purchase of Stock-in-Trade | | 30,00,000 | 40,00,000 | 10,00,000 | 33.3 |
Changes in Inventory | | 8,00,000 | 10,00,000 | 2,00,000 | 25 |
Other Expenses | | 4,00,000 | 5,00,000 | 13,00,000 | 25 |
Total Expenses | | 42,00,000 | 55,00,000 | 13,00,000 | 30.95 |
Profit before Tax | | . . . | (2,50,000) | (2,50,000) | Â… |
Less: Tax  | | . . . | . . . | . . . | … |
Profit after Tax | | 42,00,000 | 55,00,000 | 13,00,000 | 30.95 |
Question 16: From the following
information, prepare Comparative Statement of Profit and Loss:
Particulars | 31st March, 2022 (₹ ) | 31st March, 2021(₹ ) |
Revenue from Operations | 20,00,000 | 16,00,000 |
Other Income | 4,40,000 | 3,00,000 |
Cost of Materials Consumed | 8,00,000 | 6,00,000 |
Changes in Inventories of Finished Goods and | 4,00,000 | 2,00,000 |
Other Expenses (% of Cost of Revenue from | 15% | 10% |
Tax Rate | 30% | 30% |
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2017 (₹ ) | 31st March, 2018 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
Revenue from Operations | | 16,00,000 | 20,00,000 | 4,00,000 | 25 |
Other Incomes | | 3,00,000 | 4,40,000 | 1,40,000 | 46.67 |
Total Revenue | | 19,00,000 | 24,40,000 | 5,40,000 | |
Expenses Cost of Materials Consumed Changes in Inventories of Finished Goods and Other Expenses (% of Cost of Revenue from Operations) | |
2,00,000 80,000 |
4,00,000 1,80,000 |
2,00,000 1,00,000 |
100 125 |
Total Expenses | | 8,80,000 | 13,80,000 | 5,00,000 | 56.82 |
Profit before Tax | | 10,20,000 | 10,60,000 | 40,000 | 3.92 |
Less: Tax | | 3,06,000 | 3,18,000 | 12,000 | 3.92 |
Profit after Tax | | 7,14,000 | 7,42,000 | 28,000 | 3.92 |
Revenue from Operations | | 16,00,000 | 20,00,000 | 4,00,000 | 25 |
Working Note:
Calculation
of cost of material Consumed and Other Expenses
Items | 2021 | 2022 |
Cost of Materials Consumed | 6,00,000 | 8,00,000 |
Changes in Inventories of Finished Goods and | 2,00,000 | 4,00,000 |
Cost of Revenue from Operations | 8,00,000 | 12,00,000 |
Other Expenses (2020: 10% and 2021:15% of Cost of Revenue | 80,000 | 1,80,000 |
Question 17: Prepare
Comparative Statement of Profit and Loss from the following Statement
of Profit
and Loss:
Particulars | Note No. | 31st March, 2022 ( ₹ | 31st March, 2021 ( ₹ |
I. Income | | | |
Revenue from Operations (Net Sales) | | 3,50,000 | 3,00,000 |
II. Expenses Purchases of Stock-in-Trade Change in Inventories of Stock-in-Trade Employees Benefits Expenses Other Expenses | | 2,10,000 15,000 17,500 7,500 | 1,80,000 20,000 15,000 5,000 |
Total | | 2,50,000 | 2,20,000 |
III. Profit before Tax (I-II) | | 1,00,000 | 80,000 |
IV. Less: Tax | | 30,000 | 24,000 |
V. Profit after Tax (III-IV) | | 70,000 | 56,000 |
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2022 (₹ ) | 31st March, 2021 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
I. Revenue from Operations | 3,00,000 | 3,50,000 | 50,000 | 16.67 | |
II. Expenses a. Purchase of Stock-in-Trade b. Changes in Inventories of Stock-in-Trade c. Employees Benefit cost d. Other Expenses | 1,80,000 20,000
5,000 | 2,10,000 15,000
7,500 | 30,000 (5,000)
2,500 | 16.67 (25.00)
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 | |
Question 18: From the
following Statement of Profit and Loss, prepare Comparative
Statement
of Profit and Loss:
Statement | |||
Particulars | Note | 31st March, 2022 ( ₹ | 31st March, 2021 ( ₹ |
I. Income | | | |
Revenue from Operations | | 50,00,000 | 40,00,000 |
II. Expenses Purchases of Stock-in-Trade Change in Inventories of Employees Benefits Expenses | 1 | 34,00,000 1,00,000 1,00,000 | 28,50,000 1,50,000 1,00,000 |
Other Expenses | 2 | 2,00,000 | 1,50,000 |
Total | | 38,00,000 | 32,50,000 |
III. Net Profit (I-II) | | 12,00,000 | 7,50,000 |
Notes to Accounts
Particulars | 31st March, 2022Â ( ₹ ) | 31st March, 2021 ( ₹ |
I. Change in Inventory of stock-in-Trade Opening Inventory Less: Closing Inventory | 2,00,000 1,00,000 | 3,50,000 2,00,000 |
| 1,00,000 | 1,50,000 |
2. Other Expenses Administrative Expenses Selling and Distribution | 50,000 1,50,000 | 50,000 1,00,000 |
| 2,00,000 | 1,50,000 |
Solution-:
Comparative for the | |||||
Particulars | Note No. | 31st March, 2022 (₹ ) | 31st March, 2021 (₹ | Absolute Change (Increase/ Decrease) (₹ ) | Percentage Change (Increase/ Decrease) (%) |
(A) | (B) | (C = A-B) | (D = C/A×100) | ||
I. Revenue from Operations | 40,00,000 | 50,00,000 | 10,00,000 | 25.00 | |
II. Expenses: a. Purchases of Stock-in-Trade b. Changes in Inventories of Stock-in-Trade c. Employees Benefit Expenses d. Other Expenses | 28,50,000
| 34,00,000
| 5,50,000
| 19.30
| |
| 32,50,000 | 38,00,000 | 5,50,000 | 16.92 | |
Profit before Income Tax (I-II) |
|
|
|
| |
Less: Income Tax | – | – | – | – | |
Profit after Income Tax | 7,50,000 | 12,00,000 | 4,50,000 | 60.00 | |
COMMON SIZE STATEMENT OF PROFIT
& LOSS (INCOME STATEMENT)
Question
19:
From the following Statement of Profit and Loss of
Star Ltd., for the years
ended
31st March, 2015 and 2016, prepare a Common-size
statement:
Particulars | 2015-16 | 2014-15 |
Revenue from Operations | 25,00,000 | 20,00,000 |
Employee Benefit Expenses | 10,00,00o | 7,00,000 |
Other Expenses | 2,00,000 | 3,00,000 |
Tax rate | 40% | 40% |
Solution-:
Common Size Statement of Profit | |||||
Particulars | Note No. | Absolute Amounts | Percentage of Revenue From Operation (Net Sales) | ||
31ST March 2015 | 31st March 2016 | 31ST March 2015 | 31st March 2016 (%) | ||
Revenue from Operations | | 20,00,000 | 25,00,000 | 100 | 100 |
Expenses | | | | | |
Employee Benefit Expenses | | 7,00,000 | 10,00,00o | 35 | 40 |
Other Expenses | | 3,00,000 | 2,00,000 | 15 | 8 |
Total Expenses | | 10,00,000 | 12,00,000 | 50 | 48 |
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 20: Prepare
Common-size Statement of Profit and Loss from the following
Statement
of Profit and Loss:
| Note No. | 31st March, 2022 (₹ |
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. Profit before Tax (I-II) | | 5,50,000 |
Solution-:
Common Size Statement of Profit | |||
Particulars | Note No. | Absolute Amounts | Percentage of Revenue from (Net Sales) |
31st | % 31st March, 2022 (₹ | ||
I. Income Revenue from Operations Other Income | | 15,00,000 60,000 | 100 4 |
Total Revenue | | 15,60,000 | 104 |
II. Expenses Purchases of Stock-in-Trade Change in Inventories of Stock-in-Trade Other Expenses | | 7,50,000 50,000 2,10,000 | 50 3.33 14 |
Total Expenses | | 10,10,000 | 67.33 |
III. Profit before Tax (I-II) | | 5,50,000 | 36.63 |
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 | | 14,00,000 | 16,00,000 |
II. Expenses Purchases of Stock-in-Trade Change in Inventories of Finance Costs Other Expenses | | 9,00,000 1,00,000 80,000 90,000 | 10,00,000 1,80,000 80,000 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 | | 1,90,000 | 1,74,000 |
Solution-:
Common for the year endedÂ….. | ||||
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 b. Change in Inventories of c. Finance Cost d. Other Expenses | 9,00,000 1,00,000
80,000 90,000 | 10,00,000 1,80,000
80,000 1,30,000 | 64.28 7.14
5.71 6.43 | 62.5 11.25
5.00 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 |
Question 22: Prepare a
Common-size Statement of Profit and Loss of Hari Darshan
Ltd’ from
the following information:
Particulars | Note No. | 2018-19 | 2017-18 |
Revenue from Operations | | 20,00,000 | 10,00,000 |
Purchase of Stock-in-Trade | | 7,70,000 | 4,20,000 |
Changes in Inventories | | 1,20,000 | 80,000 |
Other Expenses | | 52,000 | 30,000 |
Other Incomes | | 60,000 | 50,000 |
Tax Rate 50% | |||
Solution-:
Common-Size as | |||||
Particulars | Note No. | Absolute Amounts | Percentage of Revenue | ||
1st March, 2018 (₹ | 31st March, 2019 (₹ | % 31st March, 2018Â (₹ ) | % 31st March, 2019 | ||
Revenue from Operations | | 10,00,000 | 20,00,000 | 100 | 100 |
Other Incomes | | 50,000 | 60,000 | 5 | 3 |
Total Revenue | | 10,50,000 | 20,60,000 | 105 | 103 |
Expenses | | | | | |
Purchase of Stock-in-Trade | | 4,20,000 | 7,70,000 | 42 | 38.5 |
Changes in Inventories | | 80,000 | 1,20,000 | 8 | 6 |
Other Expenses | | 30,000 | 52,000 | 3 | 2.6 |
Total Expenses | | 5,30,000 | 9,42,000 | 53 | 47.1 |
Profit before Tax | | 5,20,000 | 11,18,000 | 52 | 55.9 |
COMMON SIZE BALANCE SHEET
Question 23: From the
following information, prepare a Common-size Balance Sheet:
Particulars | 31st March, | 31st March, |
Shareholders’ Funds | 5,40,000 | 3,60,000 |
Non-current Liabilities | 1,80,000 | 1,80,000 |
Current Liabilities | 1,80,000 | 60,000 |
Non-current Assets | 6,30,000 | 4,20,000 |
Current Assets | 2,70,000 | 1,80,000 |
Solution-:
Common-Size as | |||||
Particulars | Note No. | Absolute Amounts | Percentage of Revenue | ||
31st March, 2021 (₹ | 31st March, 2022 (₹ | % 31st March, 2021Â (₹ ) | % 31st March, 2022 | ||
I.Equity and Liabilities Shareholders’ Funds Non-current Liabilities Current Liabilities | | 3,60,000 1,80,000 60,000 | 5,40,000 1,80,000 1,80,000 | 60 30 10 | 60 20 20 |
Total | | 6,00,000 | 9,00,000 | 100 | 100 |
II.Assets Non-current Assets Current Assets | | 4,20,000 1,80,000 | 6,30,000 2,70,000 | 70 30 | 70 30 |
Total | | 6,00,000 | 9,00,000 | 100 | 100 |
Question 24: Prepare
Common-size Balance Sheet and comment on the financial
position
of Sun Ltd. and Star Ltd. The Balance Sheet of Sun Ltd. and Star Ltd.
as at 31st March, 2022 are:
Particulars | Sun Ltd. ( `) | Star Ltd. ( `) |
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital (b) Reserves and Surplus 2. Current Liabilities Trade Payables (Creditors) | 9,00,000 4,00,000 2,00,000 | 12,00,000 3,50,000 2,50,000 |
Total | 15,00,000 | 18,00,000 |
II. ASSETS 1. Non-Current Assets Fixed Assets (Tangible) 2. Current Assets Trade Receivables (Debtors) | 10,00,000 5,00,000 | 16,00,000 2,00,000 |
Total | 15,00,000 | 18,00,000 |
Solution-:
Common Size Balance Sheet as at | ||||
Particulars | Absolute Amount (`) | Percentage of Balance Sheet Total (%) | ||
Sun Ltd. | Star Ltd. | Sun Ltd. | Star Ltd. | |
I. Equity and Liabilities 1. Shareholders a. b. 2. Current Liabilities a. | 9,00,000 4,00,000 2,00,000 | 12,00,000 3,50,000 2,50,000 | 60.00 26.67 13.33 | 66.67 19.44 13.89 |
Total | 15,00,000 | 18,00,000 | 100.00 | 100.00 |
II. Assets 1. Non-Current Assets a. 2. Current Assets a. | 10,00,000 5,00,000 | 16,00,000 2,00,000 | 66.67 33.33 | 88.89 11.11 |
Total | 15,00,000 | 18,00,000 | 100.00 | 100.00 |
Comments:
1.
Star
Ltd. has a greater share of Capital in the total sources of funds i.e. 66.67%
in
comparison
to 60% of Sun Ltd.
2.
Sun
Ltd. retains 26.67% of their earnings as a part of Reserves and Surplus.
Whereas,
Star
Ltd. retains only 19.44% of their earnings.
3.
Star
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 Sun Ltd.
On
the other hand, Sun Ltd. emphasizes more on Current Assets as these
are
33.33% of the total applications of funds in comparison to 11.11% of Star Ltd.
Question 25: From the
following information, prepare a Common-size Balance Sheet:
BALANCE SHEET Â as at 31st | |||
Particulars | Note No. | March, 31st 2022 (`) | 31st March, 2021 (`) |
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share (b) 2. Non-Current Liabilities Long-term 3. Current Liabilities Short-term | | 32,00,000 8,00,000 16,00,000 8,00,000 | 18,00,000 6,00,000 12,00,000 12,00,000 |
Total | | 64,00,000 | 48,00,000 |
Il. ASSETS 1. Non-Current Assets (a) Tangible (b) 2. Current Assets (a) (b) Trade (c) Cash | | 18,00,000
8,00,000 10,00,000 16,00,000
12,00,000 | 16,00,000
6,00,000 8,00,000 12,00,000
6,00,000 |
Total | | 64,00,000 | 48,00,000 |
Solution-:
Common-Size as | |||||
Particulars | Note No. | Absolute Amounts | Percentage of Revenue | ||
31st March, 2021 (₹ | 31st March, 2022 (₹ | % 31st March, 2021Â (₹ ) | % 31st March, 2022 | ||
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings 3. Current Liabilities Short-term Borrowings | | 18,00,000 6,00,000 12,00,000 12,00,000 | 32,00,000 8,00,000 16,00,000 8,00,000 | 37.5 12.5 25 25 | 50 12.5 25 12.5 |
Total | | 48,00,000 | 64,00,000 | 100 | 100 |
Il. ASSETS 1. Non-Current Assets (a) Property, Plant and Equipment (Fixed Assets): Tangible Assets (b) Non-current Investments 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents | | 16,00,000
6,00,000
8,00,000 12,00,000 6,00,000 | 18,00,000
8,00,000
10,00,000 16,00,000 12,00,000 | 33.33
12.5
16.67 25 12.5 | 28.13
12.5
15.62 25 18.75 |
Total | | 48,00,000 | 64,00,000 | 100 | 100 |