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Question
Following is the Balance Sheet of Param Company Ltd. as on 31st March, 2019 and 31st March, 2020:
| Liabilities | 31.3.2019 (₹) |
31.3.2020 (₹) |
Assets | 31.3.2019 (₹) |
31.3.2020 (₹) |
| Share Capital | 2,50,000 | 3,70,000 | Fixed assets | 2,80,000 | 4,40,000 |
| Reserve and Surplus | 60,000 | 1,00,000 | Current Assets | 1,30,000 | 1,20,000 |
| Current Liabilities | 1,00,000 | 90,000 | |||
| 4,10,000 | 5,60,000 | 4,10,000 | 5,60,000 |
You are required to prepare Comparative Balance Sheet of Param Company Ltd. as on 31st March. 2019 and 31st March. 2020.
Solution
| Comparative Balance Sheet of Pa ram Company Ltd. as on 31st March, 2019 and 31st March, 2020 |
||||
| Particulars | 31.3.2019 (₹) |
31.3.2020 (₹) |
Absolute change (₹) | Percentage change (%) |
| (I) Source of Funds | ||||
| (a) Share Capital | 2,50,000 | 3,70,000 | 1,20,000 | 48% Increase |
| (b) Reserves and Surplus | 60,000 | 1,00,000 | 40,000 | 66.67% Increase |
| Total Funds Available | 3,10,000 | 4,70,000 | 1,60,000 | 51.61% increase |
| (II) Application of Funds | ||||
| (a) Fixed Assets | 2,80,000 | 4,40,000 | 1,60,000 | 57.14% Increase |
| (b) Working capital: | ||||
| Current Assets | 1,30,000 | 1,20,000 | (10,000) | (7.69%) Decrease |
| Less: Current liabilities | 1,00,000 | 90,000 | (10,000) | (10%) Decrease |
| 30,000 | 30,000 | Nil | Nil | |
| Total Funds Applied | 3,10,000 | 4,70,000 | 1,60,000 | 51.61% Increase |
Working Notes:
Formula = `("Increase"//"Decrease")/"Base Year" xx 100`
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