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Question
From the following Balance Sheet of Rohit Ltd., prepare a Common Size Balance Sheet:
| Balance Sheet of Rohit Ltd. as at 31st Mach, 2021 |
|||
| Particulars | Note No. | 31st March 2021 (₹) |
31st March 2020 (₹) |
| I. Equity and Liabilities | |||
| 1. Shareholders' Funds | 3,20,000 | 1,60,000 | |
| 2. Current Liabilities | 80,000 | 40,000 | |
| Total | 4,00,000 | 2,00,000 | |
| II. Assets | |||
| 1. Non-Current Assets | 3,00,000 | 1,50,000 | |
| 2. Current Assets | 1,00,000 | 50,000 | |
| Total | 4,00,000 | 2,00,000 | |
Solution
| In the books of Rohit Ltd. Common Size Balance Sheet as at 31st March, 2021 |
|||||
| Particulars | Note No. | Absolute Amounts (₹) | Percentage of Balance Sheet Total (%) |
||
| 31.03.2020 | 31.03.2021 | 31.03.2020 | 31.03.2021 | ||
| I. Equity and Liabilities | |||||
| 1. Shareholders' Funds | 1,60,000 | 3,20,000 | 80 | 80 | |
| 2. Current Liabilities | 40,000 | 80,000 | 20 | 20 | |
| Total | 2,00,000 | 4,00,000 | 100 | 100 | |
| II. Assets | |||||
| 1. Non-Current Assets | 1,50,000 | 3,00,000 | 75 | 75 | |
| 2. Current Assets | 50,000 | 1,00,000 | 25, | 25 | |
| Total | 2,00,000 | 4,00,000 | 100 | 100 | |
RELATED QUESTIONS
What is meant by a 'Common Size Statement'?
Following is the Income statements, prepare a Common Size Income Statements of Jayant
Ltd. For the year ended 31-3-2011:
Income Statement of Jayant Ltd.
for the year ended 31.3.2011
| Particulars |
Amount Rs |
| Income: | |
| Sales | 25,38,000 |
| Other Incomes | 38,000 |
| Total Income | 25,76,000 |
| Expenses: | |
| Cost of goods sold | 14,00,000 |
| Operating expenses | 5,00,000 |
| Total Expenses | 19,00,000 |
| Tax | 3,38,000 |
Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.
Select the appropriate answer from the alternatives given below & rewrite the completed statement :
The common size statement requires _____________.
Give one word/term/ phrase for the following statement
The tool for analysis of financial statement where, individual figures of balance sheet is converted into percentage.
Explain the following :
Common size balance sheet.
Solve the following:
In common size balance sheet fixed assets are Rs 50,000 and balance sheet total as Rs 1,50,000. Find out percentage of fixed assets to total assets.
Prepare a Common size statement of profit and loss of Shefali Ltd. with the help of following information:
| Particulars | 2015-16 (Rs) |
2016-17 (Rs) |
| Revenue from operations | 6,00,000 | 8,00,000 |
| Indirect expense | 25% of gross profit | 25% of gross profit |
| Cost of revenue from operations | 4,28,000 | 7,28,000 |
| Other incomes | 10,000 | 12,000 |
| Income tax | 30% | 30% |
Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:
| Particulars | Aditya Ltd. Rs. |
Anjali Ltd. Rs. |
| I. Equity and Liabilities | ||
|
a) Equity share capital |
6,00,000 | 8,00,000 |
|
b) Reserves and surplus |
3,00,000 | 2,50,000 |
|
c) Current liabilities |
1,00,000 | 1,50,000 |
| Total | 10,00,000 | 12,00,000 |
| II. Assets | ||
|
a) Fixed assets |
4,00,000 | 7,00,000 |
|
b) Current assets |
6,00,000 | 5,00,000 |
| Total | 1,00,0000* | 12,00,000 |
*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.
From the following Statement of Profit and Loss of Star Ltd., for the year ended 31st March, 2015 and 2016, prepare a Common-size statement:
| Particulars | Note No. | 2015-16 |
2014-15 |
||
| Revenue from Operations | ₹ 25,00,000 | ₹ 20,00,000 | |||
| Employee Benefit Expenses | ₹ 10,00,000 | ₹ 7,00,000 | |||
| Other Expenses | ₹ 2,00,000 | ₹ 3,00,000 | |||
|
Tax Rate |
40% |
40% |
|||
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 |
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, 2019 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 |
Prepare common size statement of profit and loss from the following information:
| Particulars | Note No. | 2017-18 | 2016-17 |
| Revenue from operations | ₹ 16,00,000 | ₹ 8,00,000 | |
| Cost of material consumed | |||
| (% of revenue from operations) | 60% | 50% | |
| Operating expenses | ₹ 80,000 | ₹ 40,000 | |
| Income tax rate | 40% | 30% |
Consider the following statements.
Statement 1 - "Common size statements and financial ratios are the two tools employed in vertical analysis."
Statement 2 - "Common size statements are also as a component percentage statement
Common Size Statements are prepared ______.
The objective of the Common Size Statement of Profit and Loss is not to:
Prabhu wants to know the main objective of Common Size Statement, help him to choose one:
From the following information, prepare a 'Common Size Statement of Profit and Loss' of K K Ltd. for the year ended 31.3.2021 and 31.3.2022:
| Particulars | 31.3.2022 Amount (₹) |
31.3.2022 Amount (₹) |
| Revenue from operations | 20,00,000 | 15,00,000 |
| Other Income | 2,00,000 | 1,50,000 |
| Expenses | 4,00,000 | 3,00,000 |
| Tax Rate 50% |
From the following information, prepare a 'Common Size Statement of Profit and Loss' of GG Ltd. for the year ended 31.3.2021 and 31.3.2022:
| 31.3.2022 | 31.3.2021 | |
| Revenue from operations | 20,00,000 | 10,00,000 |
| Other Income | 2,00,000 | 1,00,000 |
| Expenses | 15,00,000 | 8,00,000 |
| Tax @ 50% |
From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31st March 2022 and 31st March 2023, prepare a common size statement of profit & loss:
| Particulars | Note No. | 2022-23 (₹) | 2021-22 (₹) |
| Revenue from operations |
8,00,000 | 10,00,000 | |
| Gross Profit | 60% | 70% | |
| Other Expenses | 2,20,000 | 2,60,000 | |
| Tax Rate | 50% | 50% |
