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2.2 Management Accounting (Section B)—ISC XII

• Comparative Balance Sheet
“Comparative Balance Sheet analysis is the study of the trend of same items, group of items and computed items
in two or more Balance Sheets of the same business enterprise on different dates.” —Foulka
• Comparative Income Statement, i.e., Statement of Profit and Loss
A Comparative Income Statement or Comparative Statement of Profit and Loss shows the operating results
for a number of accounting periods so that changes in data in terms of money and percentage from one
period to another may be known.
• Common-size Balance Sheet
Common-size Balance Sheet is the statement in which amounts of individual items of Balance Sheet
for two or more years are written. These amounts are further converted into percentage to a common
base which is total of Equity and Liabilities or total Assets.
• Common-size Income Statement, i.e., Statement of Profit and Loss.
Common-size Income Statement or Common-size Statement of Profit and Loss is the statement in which
amounts of individual items of Statement of Profit and Loss for two or more years are written. These
amounts are further converted into percentage to a common base which is Revenue from Operations.

Solved Questions

Illustration 1.
From the following Balance Sheet of Exe Ltd. as at 31st March, 2019, prepare Comparative
Balance Sheet:
BALANCE SHEET as at 31st March, 2019
Particulars Note No. 31st March, 31st March,
2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital:
(i) Equity Share Capital 9,00,000 6,00,000
(ii) Preference Share capital 6,00,000 3,00,000
(b) Reserves and Surplus 3,00,000 3,00,000
2. Non-Current Liabilities
Long-term Borrowings:
(i) 8% Debentures 4,00,000 2,00,000
(ii) Loan from Bank 2,00,000 4,00,000
3. Current Liabilities
(a) Trade Payables (Creditors) 4,00,000 2,00,000
(b) Short-term Provisions 2,00,000 1,00,000
Total 30,00,000 21,00,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets: Tangible Assets 15,00,000 12,00,000
(b) Non-Current Investments 3,00,000 3,00,000
2. Current Assets
(a) Trade Receivables (Debtors) 9,00,000 4,00,000
(b) Cash and Bank Balances 3,00,000 2,00,000
Total 30,00,000 21,00,000