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Chapters
2: Accounts of not–for–profit organisation
3: Accounts of partnership firms–fundamentals
4: Goodwill in partnership accounts
5: Admission of a partner
6: Retirement and death of a partner
7: Company accounts
▶ 8: Financial Statement Analysis
9: Ratio Analysis
10: Computerised Accounting system-Tally
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Solutions for Chapter 8: Financial Statement Analysis
Below listed, you can find solutions for Chapter 8 of Tamil Nadu Board of Secondary Education Samacheer Kalvi for Accountancy [English] Class 12 TN Board.
Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board 8 Financial Statement Analysis Multiple choice questions [Pages 285 - 286]
Choose the correct answer
Which of the following statements is not true?
Notes and schedules also form part of financial statements.
The tools of financial statement analysis include common-size statement
Trend analysis refers to the study of movement of figures for one years
The common-size statements show the relationship of various items with some common base, expressed as percentage of the common base.
Balance sheet provides information about the financial position of a business concern
Over a period of time
As on a particular date
For a period of time
For the accounting period
Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?
Cash flow statement
Common size statement
Comparative statement
Trend analysis
The financial statements do not exhibit
Non-monetary data
Past data
Comparative statement
Standard costing
Which of the following is not a tool of financial statement analysis?
Trend analysis
Common size statement
Comparative statement
Standard costing
The term fund’ refers to
Current liabilities
Working capital
Fixed assets
Non-current assets
Which of the following statement is not true?
All the limitations of financial statements are applicable to financial statement analysis also.
Financial statement analysis is only the means and not an end.
Expert knowledge is not required in analyzing the financial statements
Interpretation of the analysed data involves personal judgment.
A limited company’s sales have increased from ‘ 1,25,000 to 1,50,000. How does this appear in the comparative income statement?
+20%
+120%
-120%
-20%
In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?
175
125
25
100
Expenses for a business for the first year were ₹ 80,000. In the second year, it was increased to ₹ 88,000. What is the trend percentage in the second year?
10%
110%
90%
11%
Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board 8 Financial Statement Analysis Very short answer questions [Page 286]
Short Answer Question
State the meaning of financial statements?
List the tools of financial statement analysis.
What is working capital?
When is trend analysis preferred to other tools?
Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board 8 Financial Statement Analysis Short answer questions [Page 286]
‘Financial statements are prepared based on past data’. Explain how this is a limitation.
Write a short note on cash flow analysis?
Briefly explain any three limitations of financial statements.
Explain the steps involved in preparing comparative statements?
Explain the procedure for preparing a common- size statement.
Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board 8 Financial Statement Analysis Exercises [Pages 286 - 291]
Comparative statement analysis
From the following particulars, prepare a comparative income statement of Arul Ltd.
| Particulars | 2015-16 (₹) | 2016-17 (₹) |
| Revenue from operations | 50,000 | 60,000 |
| Other income | 10,000 | 30,000 |
| Expenses | 40,000 | 50,000 |
From the following particulars, prepare a comparative income statement of Barani Ltd.
| Particulars | 2016-17 ₹ | 2017-18 ₹ |
| Revenue from operations | 30,000 | 45,000 |
| Other income | 4,000 | 6,000 |
| Expenses | 10,000 | 15,000 |
| Income tax | 30% | 30% |
From the following Particulars, prepare a comparative income ‘statement of Daniel Ltd.
| Particulars | 2015 -16 ₹ |
2016-17 ₹ |
| Revenue from operations | 40,000 | 50,000 |
| Operating expenses | 25,000 | 27,500 |
| Income tax (% of the profit before tax) |
30% | 30% |
From the following particulars, prepare a comparative .statement of the financial position of Muthu Ltd.
| Particulars | 31st March 2017 (₹) | 31st March 2018 (₹) |
| I. Equity and Liabilities | ||
| Shareholders’ Fund | 4,00,000 | 4,40,000 |
| Non-current liabilities | 1,50,000 | 1,65,000 |
| Current liabilities | 75,000 | 82,500 |
| Total | 6,25,000 | 6,87,500 |
| II. Assets | ||
| Non-Current assets | 5,00,000 | 6,00,000 |
| Current assets | 1,25,000 | 87,500 |
| Total | 6,25,000 | 6,87,500 |
From the following particulars, prepare a comparative statement of the financial position of Kala Ltd.
| Particulars | 31st March, 2017 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholders' Fund | ||
| a) Share capital | 3,00,000 | 3,60,000 |
| b) Reserves and surplus | 50,000 | 50,000 |
| 2. Non-current liabilities | ||
| Long-term borrowings | 50,000 | 40,000 |
| 3. Current liabilities | ||
| Trade payables | 20,000 | 12,000 |
| Total | 4,20,000 | 4,62,000 |
| II. ASSETS | ||
| 1. Non - Current assets | ||
| a) Fixed assets | 2,50,000 | 2,90,000 |
| b) Non - Current investments | 50,000 | 40,000 |
| 2. Current assets | ||
| Inventories | 80,000 | 1,00,000 |
| Cash and Cash equivalents | 40,000 | 32,000 |
| Total | 4,20,000 | 4,62,000 |
Common-size statement
Prepare a common-size income statement for the following particulars Raja Ltd. for the year ended 31st March 2017.
| Particulars | 2016-17 ₹ |
| Revenue from operations | 4,50,000 |
| Other income | 67,500 |
| Expenses | 1,35,000 |
From the following particulars of Maria ltd and Kala Ltd. Prepare a common-Size income statement for the year ended 31st March 2019.
| Particulars | Maria Ltd ₹ | Kala Ltd ₹ |
| Revenue from operations | 1,00,000 | 2,00,000 |
| Other income | 10,000 | 30,000 |
| Expenses | 70,000 | 1,20,000 |
Prepare a common-size income statement for the following particulars of Sam Ltd. table.
| Particulars | 2015-16 ₹ | 2016-17 ₹ |
| Revenue from operations | 4,00,000 | 5,00,000 |
| Other income | 80,000 | 50,000 |
| Expenses | 2,40,000 | 2,50,000 |
| Income Tax | 30% | 30% |
Prepare Common-size balance sheet of Meena Ltd. as of 31st March 2018.
| Particulars | 31st March 2018 |
| I. EQUITY AND LIABILITIES | |
| Shareholder’s Funds | 2,00,000 |
| Non-Current liabilities | 1,60,000 |
| Current liabilities | 40,000 |
| Total | 4,00,000 |
| II. ASSETS | |
| Non- Current assets | 3,00,000 |
| Current assets | 1,00,000 |
| Total | 4,00,000 |
Prepare a common-size statement of financial position for the following particulars of Rani Ltd.
| Particulars | 31st March 2016 | 31st March 2017 |
| I. EQUITY AND LIABILITIES | ||
| Shareholder’s funds | 5,40,000 | 6,00,000 |
| Non-Current liabilities | 2,70,000 | 2,50,000 |
| Current liabilities | 90,000 | 1,50,000 |
| Total | 9,00,000 | 10,00,000 |
| II. ASSETS | ||
| Non- Current assets | 7,20,000 | 8,00,000 |
| Current assets | 1,80,000 | 2,00,000 |
| Total | 9,00,000 | 10,00,000 |
Prepare a common-size statement of financial position for the following particulars of Yasmin Ltd. and Sakthi Ltd.
| Particulars | Yasmin Ltd |
Sakthi Ltd. |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholder's Fund | ||
| a) Share capital | 2,00,000 | 3,00,000 |
| b) Reserves and surplus | 50,000 | 60,000 |
| 2. Non-current liabilities | ||
| Long-term borrowings | 1,50,000 | 1,80,000 |
| 3. Current liabilities | ||
| Trade payables | 1,00,000 | 60,000 |
| Total | 5,00,000 | 6,00,000 |
| II ASSETS | ||
| 1. Non-Current assets | ||
| a) Fixed assets | 2,00,000 | 3,00,000 |
| b) Non-current investments | 50,000 | 1,20,000 |
| 2. Current assets | ||
| Inventories | 2,00,000 | 90,000 |
| Cash and cash equivalents | 50,000 | 90,000 |
| Total | 5,00,000 | 6,00,000 |
Trend analysis
From the following particulars, calculate the trend percentages of Kala Ltd.
| Particulars | ₹ in thousands | ||
| 2015-16 | 2016-17 | 2017-18 | |
| Revenue from operations | 400 | 500 | 600 |
| Other income | 100 | 150 | 200 |
| Expenses | 200 | 290 | 350 |
From the following particulars, calculate the Trend percentages of Kavitha Ltd.
| Particulars | ₹ in thousands | ||
| 2015-16 | 2016-17 | 2017-18 | |
| Revenue from operations | 100 | 125 | 150 |
| Other income | 20 | 25 | 30 |
| Expenses | 200 | 290 | 350 |
From the following particulars, calculate the trend percentage of Kumar Ltd.
| Particulars | ₹ in thousands | ||
| 2015-16 | 2016-17 | 2017-18 | |
| Revenue from operations | 300 | 270 | 150 |
| Other income | 50 | 80 | 60 |
| Expenses | 250 | 200 | 125 |
| Income Tax % | 40 | 40 | 40 |
From the following particulars, calculate the trend percentages of Anu Ltd.
| Particulars | ₹ in thousands | ||
| Year 1 | Year 2 | Year 3 | |
| I. EQUITY AND LIABILITIES | |||
| Shareholder’s funds | 500 | 550 | 600 |
| Non-Current liabilities | 200 | 250 | 240 |
| Current liabilities | 100 | 80 | 120 |
| Total | 800 | 880 | 960 |
| II. ASSETS | |||
| Non- Current assets | 600 | 720 | 780 |
| Current assets | 200 | 160 | 180 |
| Total | 800 | 880 | 960 |
From the following particulars, calculate the trend percentages of Babu Ltd.
| Particulars | ₹ in thousands | ||
| Year 1 | Year 2 | Year 3 | |
| I EQUITY AND LIABILITIES | |||
| 1. Shareholders' Fund | |||
| a) Share capital | 100 | 127 | 106 |
| b) Reserves and surplus | 30 | 30 | 45 |
| 2. Non-current liabilities | |||
| Long-term borrowings | 70 | 77 | 84 |
| 3. Current liabilities | |||
| Trade payables | 20 | 30 | 40 |
| Total | 220 | 264 | 275 |
| II ASSETS | |||
| 1. Non-current assets | |||
| a) Fixed assets | 100 | 118 | 103 |
| b) Non-current investments | 40 | 50 | 60 |
| 2. Current assets | |||
| Inventories | 60 | 66 | 72 |
| Cash and cash equivalents | 20 | 30 | 40 |
| Total | 220 | 264 | 275 |
Solutions for 8: Financial Statement Analysis
Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board chapter 8 - Financial Statement Analysis
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Concepts covered in Accountancy [English] Class 12 TN Board chapter 8 Financial Statement Analysis are Concept of Financial Statement Analysis, Financial Statements of a Company, Financial Statements of Companies, Tools for Financial Statement Analysis, Preparation of Comparative Statements, Preparation of Common-size Statements, Trend Analysis.
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