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M.62 Management Accounting (Section B)—ISC XII

II. ASSETS
1. Non-Current Assets
(a) Fixed Assets 72,00,000 60,00,000 12,00,000 20.00
(b) Non-current Investments 10,00,000 10,00,000 ... ...
2. Current Assets 21,00,000 30,00,000 (9,00,000) (30.00)
Total 1,03,00,000 1,00,00,000 3,00,000 3.00

Note: When the amount of current year has decreased, then the absolute change and percentage
change is shown in brackets.

(b) Advantages of Comparative Balance Sheet:
(i) Comparative Balance Sheet shows the increase or decrease in various items of
Balance Sheet as compared to single year’s Balance Sheet which shows the balances
of assets, equity and liabilities accounts at a certain date.
(ii) Comparative Balance Sheet acts as a connecting link between Statement of Profit
and Loss and the Balance Sheet as it shows the effect of business operation on its
assets, liabilities and capital.
Profit before Interest and Tax ` 2,00,000
(c) Interest Coverage Ratio = = = 5 Times.
Interest on Long-term Debt ` 40,000
Profit before Interest and Tax = ` 2,00,000
Interest on Debentures = ` 5,00,000 × 8/100 = ` 40,000.