Advertisements
Advertisements
Question
Following are the balance sheets of Beta Ltd. at March 31st, 2016 and 2017:
| Particulars | 2016 Rs. |
2017 Rs. |
| I. Equity and Liabilities |
|
|
|
1. Shareholders' Funds |
||
|
(a) Share capital |
4,00,000 | 3,00,000 |
|
(b) Reserves and surplus |
1,50,000 | 1,00,000 |
|
2. Non-Current Liabilities |
||
|
(a) Loan from IDBI |
3,00,000 | 1,00,000 |
|
3. Current Liabilities |
||
|
(a) Short-term borrowings |
70,000 | 50,000 |
|
(b) Trade payables |
60,000 | 30,000 |
|
(c) Other current liabilities |
1,10,000 | 1,00,000 |
|
(d) Short-term provisions |
10,000 | 20,000 |
| Total | 11,00,000 | 7,00,000 |
| II. Assets |
|
|
|
1. Non-Current Liabilities |
||
|
(a) Fixed assets |
4,00,000 | 2,20,000 |
|
(b) Non-current investments |
2,25,000 | 1,00,000 |
|
2. Current Assets |
||
|
(a) Current investments |
80,000 | 60,000 |
|
(b) Stock |
1,05,000 | 90,000 |
|
(c) Trade receivables |
90,000 | 60,000 |
|
(d) Cash and cash equivalents |
1,00,000 | 85,000 |
|
(e) Short term loans and advances |
1,00,000 | 85,000 |
| Total | 11,00,000 | 7,00,000 |
You are required to prepare a Comparative Balance Sheet.
Solution
| Comparative Balance Sheet as on March 31, 2016 and 2017 |
||||
|
Particulars |
2016 (Rs) |
2017 (Rs) |
Absolute Change |
Percentage Change |
|
I. Equity and Liabilities |
|
|
|
|
|
1. Shareholder’s Fund |
|
|
|
|
|
a. Equity Share Capital |
3,00,000 |
4,00,000 |
(1,00,000) |
(25) |
|
b. Reserves and Surplus |
1,00,000 |
1,50,000 |
(50,000) |
(33.33) |
|
2. Non-Current Liabilities |
|
|
|
|
|
a. Long Term Borrowings |
1,00,000 |
3,00,000 |
(2,00,000) |
(66.67) |
|
3. Current Liabilities |
|
|
|
|
|
a. Short Term Borrowings |
50,000 |
70,000 |
(20,000) |
(28.57) |
|
b. Trade Payables |
30,000 |
60,000 |
(30,000) |
(50) |
|
c. Short Term Provisions |
20,000 |
10,000 |
(10,000) |
(9.09) |
|
d. Other Current Liabilities |
1,00,000 |
1,10,000 |
10,000 |
100 |
|
Total |
7,00,000 |
11,00,000 |
(4,00,000) |
36.36 |
|
II. Assets |
|
|
|
|
|
1. Non-Current Assets |
|
|
|
|
|
a. Fixed Assets |
4,00,000 |
2,20,000 |
(1,80,000) |
(45) |
|
b. Non Current Investments |
2,25,000 |
1,00,000 |
(1,25,000) |
(55.55) |
|
2. Current Assets |
|
|
||
|
a. Current Investments |
80,000 |
60,000 |
(20,000) |
(25) |
|
b. Inventories (Stock) |
1,05,000 |
90,000 |
(15,000) |
(14.29) |
|
c. Trade Receivables |
90,000 |
60,000 |
(30,000) |
(33.33) |
|
d. Short Term Loans and |
1,00,000 |
85,000 |
(15,000) |
(15) |
|
e. Cash and Cash Equivalents |
1,00,000 |
85,000 |
(15,000) |
(15) |
|
Total |
11,00,000 |
7,00,000 |
(4,00,000) |
(36.36) |
APPEARS IN
RELATED QUESTIONS
What do you mean by Common Size Statements?
Explain the usefulness of trend percentages in interpretation of financial performance of a company.
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 |
Following is the summarised Balance Sheet of Wye Ltd. as at 31st March, 2019:
|
Particulars |
Note No. |
31st March, (₹) |
31st March, (₹) |
| 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, (₹) |
31st March, (₹) |
| 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.
Which of the following are the tools of Vertical Analysis?
- Ratio Analysis
- Comparative Statements
- Common Size Statements
What are the most commonly used techniques of financial analysis?
Consider the following statements.
Statement 1 - "Comparative statements are the form of horizontal analysis."
Statement 2 - Comparative statements shows the profitability and fin~cial position of a firm for different periods"
______ is a tool for analyzing the financial statements of any enterprise.
What is the procedure for calculating trend percentage?
Consider the following statements.
Statement 1 - "Cash Flow Statement is a tool of financial statement analysis".
Statement 2 - Cash flow statement is usually prepared by companies which comes as a tool in the hands of users of financial information to know about the sources and uses of cash.
In cash flows, when a firm invests in Fixed Assets and Short-term Financial Investments results in:
Pick the odd one out:
Ratios provide a ______ measure of a company's performance and condition.
Main objective of the Common Size Balance Sheet is:
In the Common Size Balance Sheet figure of _______ is assumed to be 100.
Main objective of Common Size Statement of Profit and Loss is ______.
