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
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12th TS Grewal’s Accountancy Solutions