Page 19 - MA12

Comparative Statements and Common-Size Statements 2.5

Solution: COMMON-SIZE BALANCE SHEET OF STAR PAINTS LIMITED as at 31st March, 2019 and 2018
Particulars Note Absolute Amounts Percentage of Balance Sheet Total
No. 31st March, 31st March, 31st March, 31st March,
2019 (`) 2018 (`) 2019 (%) 2018 (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,74,000 2,74,000 31.86 19.30
(b) Reserves and Surplus 70,000 1,52,000 8.14 10.70
2. Non-Current Liabilities
Long-term Borrowings: (Secured Loan) 2,32,000 1,00,000 26.98 7.04
(Unsecured Loan) 2,06,000 5,96,000 23.95 41.97
3. Current Liabilities 78,000 2,98,000 9.07 20.99
Total 8,60,000 14,20,000 100.00 100.00
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible) 4,30,000 5,68,000 50.00 40.00
(b) Non-Current Investments 4,000 6,000 0.46 0.42
2. Current Assets
(a) Inventories 2,16,000 4,26,000 25.12 30.00
(b) Trade Receivables 1,40,000 3,30,000 16.28 23.24
(c) Cash and Bank Balances 70,000 90,000 8.14 6.34
Total 8,60,000 14,20,000 100.00 100.00

Illustration 4.
Prepare Comparative Income Statement (Statement of Profit and Loss) from the following
information:
Year Ended 31st March, 2019:
Revenue from Operations—` 9,60,000, Cost of Revenue from Operations—` 5,80,000, Office
and Administration Expenses—` 1,90,000, Selling and Distribution Expenses—` 70,000
and Other Expenses—` 5,000.
Year Ended 31st March, 2018:
Revenue from Operations—` 8,00,000, Cost of Revenue from Operations—` 5,00,000, Office
and Administration Expenses—` 1,40,000, Selling and Distribution Expenses—` 90,000
and Other Expenses—` 10,000.
Solution: 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 9,60,000 8,00,000 1,60,000 20.00
II. Expenses
Cost of Revenue from Operations 5,80,000 5,00,000 80,000 16.00
Office and Administration Exp. 1,90,000 1,40,000 50,000 35.71
Selling and Distribution Exp. 70,000 90,000 (20,000) (22.22)
Other Expenses 5,000 10,000 (5,000) (50.00)
Total Expenses 8,45,000 7,40,000 1,05,000 14.19
III. Net Profit (I – II) 1,15,000 60,000 55,000 91.67