commercemine.com

12th | Tools of Analysis of Financial Statement– Comparative Statement And Common Size Statement | Question No.  21 To 25 | Ts Grewal Solution 2022-2023

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

 

 

 

 

 

 

 

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%

 

 

 

 (Delhi 2019 C)

Answer:


Common-Size Statement of Profit and Loss as at 31st March, 2019

Particulars

Note No.

Absolute Amounts

Percentage of Revenue from Operation (Net Sales)

 

31st March,

2018 (`)

31st March,

2019 (`)

% 31st March,

2018 (`)

% 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

Less: Tax 50%

 

2,60,000

5,59,000

26

27.95

Profit after Tax

 

2,60,000

5,59,000

26

27.95

 

 

 

Question 23:


From the following information, prepare a Common-size Balance Sheet:

Particulars

31st March, 2022 (`)

31st March, 2021 (`)

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

 

 Answer:


Common-Size Statement of Balance Sheet as at 31st March, 2022

Particulars

Note No.

Absolute Amounts

Percentage of Revenue from Operation (Net Sales)

31st March,

2021 (`)

31st March,

2022 (`)

% 31st March,

2021 (`)

% 31st March,

2022(`)

I.Equity and Liabilities

 

 

 

 

 

Shareholders' Funds

 

3,60,000

5,40,000

60

60

Non-current Liabilities

 

1,80,000

1,80,000

30

20

Current Liabilities

 

60,000

1,80,000

10

20

Total

 

6,00,000

9,00,000

100

100

II.Assets

 

 

 

 

 

Non-current Assets

 

4,20,000

6,30,000

70

70

Current Assets

 

1,80,000

2,70,000

30

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

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, 2022

Particulars

Absolute Amount

(`)

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. 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 as at 31st March, 2022

Particulars

Note No.

March, 31st 2022 (`)

31st March,

2021 (`)

I. EQUITY AND LIABILITIES

 

 

 

1. Shareholders' Funds

 

 

 

(a) Share Capital

 

32,00,000

18,00,000

(b) Reserves and Surplus

 

8,00,000

6,00,000

2. Non-Current Liabilities

 

 

 

Long-term Borrowings

 

16,00,000

12,00,000

3. Current Liabilities

 

 

 

Short-term Borrowings

 

8,00,000

12,00,000

Total

 

64,00,000

48,00,000

Il. ASSETS

 

 

 

1. Non-Current Assets

 

 

 

(a) Property, Plant and Equipment (Fixed Assets):

 

 

 

Tangible Assets

 

18,00,000

16,00,000

(b) Non-current Investments

 

8,00,000

6,00,000

2. Current Assets

 

 

 

(a) Inventories

 

10,00,000

8,00,000

(b) Trade Receivables

 

16,00,000

12,00,000

(c) Cash and Cash Equivalents

 

12,00,000

6,00,000

Total

 

64,00,000

48,00,000

 

Answer:


Common-Size Statement of Balance Sheet as at 31st March, 2022

Particulars

Note No.

Absolute Amounts

Percentage of Revenue from Operation (Net Sales)

31st March,

2021 (`)

31st March,

2022 (`)

% 31st March,

2021 (`)

% 31st March,

2022 (`)

I. EQUITY AND LIABILITIES

 

 

 

 

 

1. Shareholders' Funds

 

 

 

 

 

(a) Share Capital

 

18,00,000

32,00,000

37.5

50

(b) Reserves and Surplus

 

6,00,000

8,00,000

12.5

12.5

2. Non-Current Liabilities

 

 

 

 

 

Long-term Borrowings

 

12,00,000

16,00,000

25

25

3. Current Liabilities

 

 

 

 

 

Short-term Borrowings

 

12,00,000

8,00,000

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

 

16,00,000

18,00,000

33.33

28.13

(b) Non-current Investments

 

6,00,000

8,00,000

12.5

12.5

2. Current Assets

 

 

 

 

 

(a) Inventories

 

8,00,000

10,00,000

16.67

15.62

(b) Trade Receivables

 

12,00,000

16,00,000

25

25

(c) Cash and Cash Equivalents

 

6,00,000

12,00,000

12.5

18.75

Total

 

48,00,000

64,00,000

100

100

 

Click below for more Questions

Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

Chapter 3 – Tools of Analysis of Financial Statements- Comparative And Common Size Statement

Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 25

Click on below links for 

12th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021