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Question
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.
Solution
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 |
|
APPEARS IN
RELATED QUESTIONS
What are Comparative Financial Statements?
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.
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% |
Which of the following is not a tool of financial analysis?
Answer the following question:
X Ltd. redeemed ₹ 1,00,000, 9% debentures at 10% premium. What will be the amount of 'Cash Flows from financing activities'?
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"
Common size analysis is also known as _____ analysis.
Comparative analysis is also known as ______ analysis.
Consider the following statements.
Statement 1 - "Ratio analysis establishes relationship between two financial statements."
Statement 2 - "Ratio analysis is a tool of financial analysis
Consider the following statements.
Statement 1 - Ratio analysis helps in assessing the strengths and weaknesses in the performance of a business enterprise.
Statement 2 - "Ratio analysis is a tool for analyzing the financial statements of any enterprise."
What is the procedure for calculating trend percentage?
Techniques which are used to identify financial statements trends include:
Consider the following statements given below:
- In Common-size Balance Sheet, each item is converted into the percentage of share capital.
- In Common-size Statement of Profit and Loss, each item is converted into the percentage of total expenses.
- In Comparative Statement of Profit and Loss, absolute and percentage change in the items during two periods of time are calculated.
Choose the correct option:
Ratios provide a ______ measure of a company's performance and condition.
In a Common Size Balance Sheet, Total Liabilities are assumed to be equal to ______.
In the Common Size Balance Sheet figure of _______ is assumed to be 100.
Main objective of Common Size Statement of Profit and Loss is ______.
