Tools Of Financial Statement Analysis Comparative Statements And Common Size Statements Ts grewal solution volume-3(2023-2024)
Page No 3.30:
Question 1:
From the following Balance Sheet, prepare Comparative Balance Sheet of Sun Ltd.:
|
Particulars | Note
No. | 31st March, 2019
( `) | 31st March, 2018
( `) |
I. EQUITY AND LIABILITIES 1. Shareholder's Funds | | | |
(a) Share Capital | | 3,50,000 | 3,00,000 |
2. Non-Current Liabilities | | | |
Long-term Borrowings | | 1,00,000 | 2,00,000 |
3. Current Liabilities : | | | |
Trade Payables | | 1,50,000 | 1,00,000 |
Total | | 6,00,000 | 6,00,000 |
II. ASSETS | | | |
1. Non-Current Assets | | | |
Fixed Assets (Tangible) | | 4,00,000 | 3,00,000 |
2. Current Assets | | | |
Trade Receivables | | 2,00,000 | 3,00,000 |
Total | | 6,00,000 | 6,00,000 |
Answer:
In the books of Sun Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019 ( `) | Absolute Change ( `) | 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:
Question 2:
Following is the Balance Sheet of Radha Ltd. as at 31st March, 2019:
|
Particulars | Note No. | 31st March, 2019, ( `) | 31st March, 2018, ( `) |
I. EQUITY AND LIABILITIES 1. Shareholders' Funds | | | |
(a) Share Capital | | 15,00,000 | 10,00,000 |
(b) Reserves and Surplus | | 10,00,000 | 10,00,000 |
2. Non-Current Liabilities | | | |
Long-term Borrowings | | 8,00,000 | 2,00,000 |
3. Current Liabilities | | | |
(a) Trade Payables | | 5,00,000 | 3,00,000 |
Total | | 38,00,000 | 25,00,000 |
II. ASSETS | | | |
1. Non-Current Assets | | | |
Fixed Assets: | | | |
(i) Tangible Assets | | 25,00,000 | 15,00,000 |
(ii) Intangible Assets | | 5,00,000 | 5,00,000 |
2. Current Assets | | | |
(a) Trade Receivables | | 6,00,000 | 3,50,000 |
(b) Cash and Cash Equivalents | | 2,00,000 | 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 books of Radha Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019 ( `) | Absolute Change ( `) | 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:
Question 3:
Balance Sheet of Blue Bell Ltd. as at 31st March, 2019 is given below:
BALANCE SHEET
as at 31st March, 2019 |
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. EQUITY AND LIABILITIES 1. Shareholder's Funds | | | |
(a) Share Capital | | 3,26,000 | 2,44,000 |
(b) Reserves and Surplus | | 1,00,000 | 1,00,000 |
2. Non-Current Liabilities | | | |
Long-term Borrowings | | 6,96,000 | 4,38,000 |
3. Current Liabilities | | | |
Trade Payables | | 2,98,000 | 78,000 |
Total | | 14,20,000 | 8,60,000 |
II. ASSETS | | | |
1. Non-Current Assets | | | |
(a) Fixed Assets | | 5,68,000 | 4,30,000 |
(b) Non-Current Investments | | 6,000 | 4,000 |
2. Current Assets | | | |
(a) Trade Receivables | | 6,46,000 | 3,76,000 |
(b) Cash and Cash Equivalents | | 2,00,000 | 50,000 |
Total | | 14,20,000 | 8,60,000 |
| | | |
Prepare Comparative Balance Sheet showing percentage changes from 2018 to 2019.
Answer:
In the books of Blue Bell Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019
( `) | Absolute Change ( `) | 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:
Question 4:
Following is the summarised Balance Sheet of Wye Ltd. as at 31st March, 2019:
Particulars | Note No. | 31st March,
2019 ( `) | 31st March,
2018 ( `) |
I. EQUITY AND LIABILITIES | | | |
1. Shareholders' Funds | | | |
(a) Share Capital: | | | |
(i) Equity Share Capital | | 4,00,000 | 4,00,000 |
(ii) Preference Share Capital | | 1,00,000 | 1,00,000 |
(b) Reserves and Surplus | | 1,20,000 | 1,10,000 |
2. Non-Current Liabilities | | | |
(a) Long-term Borrowings | 1. | 4,50,000 | 4,50,000 |
(b) Long-term Provisions | | 50,000 | 1,00,000 |
3. Current Liabilities | | | |
(a) Trade Payables (Creditors) | | 5,30,000 | 3,30,000 |
(b) Short-term Provisions | | 50,000 | 50,000 |
Total | | 17,00,000 | 15,40,000 |
II. ASSETS | | | |
1. Non-Current Assets | | | |
(a) Fixed Assets (Tangible) | | 9,90,000 | 10,40,000 |
(b) Non-Current Investments | | 1,00,000 | 1,00,000 |
2. Current Assets | | | |
(a) Trade Receivables | | 5,00,000 | 3,00,000 |
(b) Cash and Cash Equivalents | 2 | 1,10,000 | 1,00,000 |
Total | | 17,00,000 | 15,40,000 |
| | | |
Notes to Accounts
Particulars | 31st March,
2019 ( `) | 31st March,
2018 ( `) |
I. Long-term Borrowings | | |
Bank Loan | 3,50,000 | 4,50,000 |
8% Debentures | 1,00,000 | ... |
| 4,50,000 | 4,50,000 |
2. Cash and Cash Equivalents | | |
Bank Balance | 1,00,000 | 90,000 |
Cash in Hand | 10,000 | 10,000 |
| 1,10,000 | 1,00,000 |
| | |
You are required to comment upon the changes in absolute figures from one period to another.
Answer:
In the books of Wye Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019 ( `) | Absolute Change ( `) | 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:
Question 5:
From the Following Balance Sheet of Royal Industries Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. EQUITY AND LIABILITIES 1. Shareholder's Funds | | | |
(a) Share Capital | | | |
Equity Share Capital | | 10,00,000 | 5,00,000 |
(b) Reserves and Surplus | | 1,00,000 | 1,00,000 |
| | | |
2. Non-Current Liabilities | | | |
Long-term Borrowings | | 2,00,000 | 3,00,000 |
| | | |
3. Current Liabilities | | | |
Trade Payables | | 2,00,000 | 1,00,000 |
| | | |
Total | | 15,00,000 | 10,00,000 |
| | | |
II. ASSETS | | | |
1. Non-Current Assets | | | |
(a) Fixed Assets: | | | |
(i) Tangible Assets | | 8,00,000 | 4,00,000 |
(ii) Intangible Assets | | 2,00,000 | 2,00,000 |
(b) Non-Current Investments | | 2,00,000 | 2,00,000 |
| | | |
2. Current Assets | | | |
(a) Inventories | | 2,50,000 | 1,50,000 |
(b) Cash and Cash Equivalents | | 50,000 | 50,000 |
Total | | 15,00,000 | 10,00,000 |
| | | |
Answer:
In the books of Royal Industries Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019 ( `) | Absolute Change ( `) | 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:
Question 6:
From the following Balance Sheet of Depth Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. EQUITY AND LIABILITIES | | | |
1. Shareholders' Funds | | | |
(a) Share Capital | | 2,80,000 | 1,80,000 |
(b) Reserves and Surplus | | 1,00,000 | 1,00,000 |
2. Non-Current Liabilities | | | |
Long-term Borrowings | | 80,000 | 20,000 |
3. Current Liabilities | | | |
Trade Payables | | 50,000 | 30,000 |
Total | | 5,10,000 | 3,30,000 |
II. ASSETS | | | |
1. Non-Current Assets | | | |
(a) Fixed Assets: | | | |
(i) Tangible Assets | | 2,80,000 | 1,80,000 |
(ii) Intangible Assets | | 50,000 | 30,000 |
(b) Non-Current Investments | | 80,000 | 50,000 |
2. Current Assets | | | |
(a) Inventories | | 70,000 | 30,000 |
(b) Cash and Cash Equivalents | | 30,000 | 40,000 |
Total | | 5,10,000 | 3,30,000 |
| | | |
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 7:
From the following Balance Sheet of H.P. Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. EQUITY AND LIABILITIES | | | |
1. Shareholders' Funds | | | |
(a) Share Capital: | | | |
(i) Equity Share Capital | | 12,50,000 | 5,00,000 |
(ii) Preference Share Capital | | 2,50,000 | 2,50,000 |
(b) Reserves and Surplus | | 3,00,000 | 4,50,000 |
2. Non-Current Liabilities | | | |
Long-term Borrowings: 12% Debentures | | 9,50,000 | 5,50,000 |
Loan from Directors | | 2,50,000 | 2,00,000 |
3. Current Liabilities | | | |
(a)Short-term Borrowings | | 3,50,000 | 1,75,000 |
(b) Trade Payables | | 2,00,000 | 1,00,000 |
(c) Short-term Provisions | | 50,000 | 25,000 |
Total | | 36,00,000 | 22,50,000 |
II. ASSETS | | | |
1. Non-Current Assets | | | |
(a) Fixed Assets (Tangible) | | 22,50,000 | 15,00,000 |
2. Current Assets | | | |
(a) Inventories | | 4,50,000 | 2,50,000 |
(b) Trade Receivables | | 8,00,000 | 4,50,000 |
(c) Cash and Cash Equivalents | | 1,00,000 | 50,000 |
Total | | 36,00,000 | 22,50,000 |
| | | |
Answer:
Comparative Balance Sheet of H.P. Ltd. as at March 31, 2018 and March 31, 2019 |
Particulars | 2018
( `) | 2019
( `) | Absolute
Change
( `) | 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:
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:
Question 9:
Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. Income | | | |
Revenue from Operations (Net Sales) | | 3,50,000 | 3,00,000 |
II. Expenses | | | |
Purchases of Stock-in-Trade | | 2,10,000 | 1,80,000 |
Change in Inventories of Stock-in-Trade | | 15,000 | 20,000 |
Employees Benefits Expenses | | 17,500 | 15,000 |
Other Expenses | | 7,500 | 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 |
| | | |
Answer:
Comparative Income Statement for the year ended March 31, 2018 and 2019 |
Particulars | 2018
( `) | 2019
( `) | Absolute Change ( `) | 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:
Question 10:
Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. Income | | | |
Revenue from Operations (Net Sales) | | 3,00,000 | 2,50,000 |
II. Expenses | | | |
Cost of Materials Consumed | | 1,20,000 | 1,00,000 |
Changes in Inventories of WIP and Finished Goods | | (2,000) | 5,000 |
Employees Benefits Expenses (Wages) | | 30,000 | 25,000 |
Other Expenses | | 22,000 | 20,000 |
Total | | 1,70,000 | 1,50,000 |
III. Net Profit (I-II) | | 1,30,000 | 1,00,000 |
Answer:
Comparative Income Statement for the year ended March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019 ( `) | Absolute Change ( `) | 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:
Question 11:
From the following Information, prepare Comparative Statement of Profit and Loss:
Particulars | 31st March, 2019 | 31st March, 2018 |
Revenue from Operations | ` 30,00,000 | ` 20,00,000 |
Other Income (% of Revenue from Operations) | 12% | 20% |
Expenses (% of Operating Revenue) | 70% | 60% |
Tax Rate | 40% | 40% |
Answer:
Comparative Income Statement for the year ended March 31, 2018 and 2019 |
Particulars | March 31, 2018 ( `) | March 31, 2019 ( `) | Absolute Change ( `) | 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 | 2018 ( `) | 2019 ( `) |
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 | 2018 ( `) | 2019 ( `) |
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:
Question 12:
From the following information, prepare Comparative Statement of Profit and Loss showing increase, decrease and percentage:
| | |
Particulars | 31st March, 2019 | 31st March, 2018 |
Cost of Materials Consumed | ` 13,44,000 | ` 6,00,000 |
Revenue from Operations (% of Materials Consumed) | 125% | 200% |
Other Expenses (% of Operating Revenue) | 10% | 10% |
Tax Rate | 50% | 50% |
|
|
|
|
|
Answer:
Comparative Income Statement for the year ended 31st March, 2018 and 2019 |
Particulars | March 31, 2018 ( `) | March 31, 2019 ( `) | Absolute Change ( `) | 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 | 2018 ( `) | 2019 ( `) |
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 | 2018 ( `) | 2019 ( `) |
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:
Question 13:
From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. Income | | | |
Revenue from Operations (Net Sales) | | 50,00,000 | 40,00,000 |
II. Expenses | | | |
Purchases of Stock-in-Trade | | 34,00,000 | 28,50,000 |
Change in Inventories of Stock-in-Trade | 1 | 1,00,000 | 1,50,000 |
Employees Benefits Expenses | | 1,00,000 | 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, 2019 ( `) | 31st March, 2018 ( `) |
I. Change in Inventory of stock-in-Trade | | |
Opening Inventory | 2,00,000 | 3,50,000 |
Less: Closing Inventory | 1,00,000 | 2,00,000 |
| 1,00,000 | 1,50,000 |
2. Other Expenses | | |
Administrative Expenses | 50,000 | 50,000 |
Selling and Distribution Expenses | 1,50,000 | 1,00,000 |
| 2,00,000 | 1,50,000 |
| | |
Answer:
Comparative Income Statement for the year ended March 31, 2018 and 2019 |
Particulars | 2018 ( `) | 2019 ( `) | Absolute Change ( `) | 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:
Question 14:
Prepare Comparative Statement of Profit and Loss from the following information:
Particulars | 31st March,
2019 | 31st March, 2018 |
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 Income Statement for the year ended March 31, 2018 and 2019 |
Particulars | March 31, 2018 ( `) | March 31, 2019 ( `) | 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 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 3.37:
Question 15:
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 3.37:
Question 16:
From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:
Particulars | Note No. | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. Income | | | |
Revenue from Operations (Net Sales) | | 20,00,000 | 17,50,000 |
Other Income | | 75,000 | 50,000 |
Total | | 20,75,000 | 18,00,000 |
II. Expenses | | | |
Purchases of Stock-in-Trade | | 11,60,000 | 10,00,000 |
Change in Inventories of Stock-in-Trade | | 10,000 | (25,000) |
Employees Benefits Expenses | 1 | 3,00,000 | 3,00,000 |
Depreciation and Amortisation Expenses | | 50,000 | 50,000 |
Other Expenses | 2 | 90,000 | 75,000 |
Total | | 16,10,000 | 14,00,000 |
III. Net Profit (I-II) | | 4,65,000 | 4,00,000 |
Notes to Accounts
Particulars | 31st March, 2019 ( `) | 31st March, 2018 ( `) |
I. Employees Benefit Expenses | | |
Wages | 3,00,000 | 3,00,000 |
2. Other Expenses | | |
Administrative and General Expenses | 70,000 | 50,000 |
Miscellaneous Expenses | 20,000 | 25,000 |
| 90,000 | 75,000 |
| | |
Answer:
Comparative Income Statement for the year ended March 31, 2018 and 2019 |
Particulars | March 31, 2018 ( `) | March 31, 2019 ( `) | Absolute Change ( `) | 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 3.38:
Question 17:
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 3.38:
Question 18:
Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:
Particulars | 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:
Question 19:
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 3.39:
Question 20:
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, 2019 are:
Particulars | Sun Ltd. ( `) | Star Ltd. ( `) |
I. EQUITY AND LIABILITIES | | |
1. Shareholders' Funds | | |
(a) Share Capital | 9,00,000 | 12,00,000 |
(b) Reserves and Surplus | 4,00,000 | 3,50,000 |
2. Current Liabilities | | |
Trade Payables (Creditors) | 2,00,000 | 2,50,000 |
Total | 15,00,000 | 18,00,000 |
II. ASSETS | | |
1. Non-Current Assets | | |
Fixed Assets (Tangible) | 10,00,000 | 16,00,000 |
2. Current Assets | | |
Trade Receivables (Debtors) | 5,00,000 | 2,00,000 |
Total | 15,00,000 | 18,00,000 |
| | |
Answer:
Common Size Balance Sheet as at March 31, 2019 |
Particulars | Absolute Amount (Rs) | Percentage of Balance Sheet Total (%) |
Sun Ltd. | Star Ltd. | Sun Ltd. | Star 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. 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. emphasises more on Current Assets as these are 33.33% of the total applications of funds in comparison to 11.11% of Star Ltd.