Page 18 - MA12

2.4 Management Accounting (Section B)—ISC XII

Solution: Vaio Ltd.
COMPARATIVE INCOME STATEMENT OR COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2019 and 2018
Particulars Note 31st March, 31st March, Absolute Change Percentage Change
No. 2019 2018 (Increase/Decrease) (Increase/Decrease)
` ` ` %
I. Revenue from Operations 20,00,000 15,00,000 5,00,000 33.33
II. Other Income 75,000 55,000 20,000 36.36
III. Total Income 20,75,000 15,55,000 5,20,000 33.44
IV. Expenses
Purchases of Stock-in-Trade 13,80,000 9,00,000 4,80,000 53.33
Change in Inventories of
Stock-in-Trade (25,000) 1,00,000 (1,25,000) (125.00)
Employees Benefit Expenses 1,50,000 1,25,000 25,000 20.00
Finance Costs 15,000 12,000 3,000 25.00
Depreciation and
Amortisation Expense 3,200 3,500 (300) (8.57)
Other Expenses 7,800 7,500 300 4.00
Total Expenses 15,31,000 11,48,000 3,83,000 33.36
V. Profit before Tax (III – IV) 5,44,000 4,07,000 1,37,000 33.66
VI. Less: Tax 1,15,000 1,00,000 15,000 15.00
VII. Profit after Tax (V – VI) 4,29,000 3,07,000 1,22,000 39.74
Illustration 3.
The Balance Sheet of Star Paints Limited as at 31st March, 2019 is given below:
Star Paints Limited
BALANCE SHEET as at 31st March, 2019
Particulars Note 31st March, 31st March,
No. 2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,74,000 2,74,000
(b) Reserves and Surplus 70,000 1,52,000
2. Non-Current Liabilities
Long-term Borrowings:
(a) Loan from Bank (Secured) 2,32,000 1,00,000
(b) Loan from Directors (Unsecured) 2,06,000 5,96,000
3. Current Liabilities
(a) Short-term Borrowings (Secured Bank Overdraft) 50,000 1,25,000
(b) Trade Payables (Creditors) 20,000 1,00,000
(c) Other Current Liabilities 3,000 50,000
(d) Short-term Provisions 5,000 23,000
Total 8,60,000 14,20,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible) 4,30,000 5,68,000
(b) Non-Current Investments 4,000 6,000
2. Current Assets
(a) Inventories 2,16,000 4,26,000
(b) Trade Receivables 1,40,000 3,30,000
(c) Cash and Bank Balances 70,000 90,000
Total 8,60,000 14,20,000
Prepare Common-size Balance Sheet for Star Paints Limited.