Page 22 - MA12

2.8 Management Accounting (Section B)—ISC XII

Illustration 7.
From the following Balance Sheet of XYZ Ltd. as at 31st March, 2019, prepare Common-Size
Balance Sheet:
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 10,00,000 5,00,000
(b) Reserves and Surplus 2,00,000 3,00,000
2. Non-Current Liabilities
Long-term Borrowings: 12% Loans 8,00,000 5,00,000
3. Current Liabilities
Trade Payables 4,00,000 2,00,000
Total 24,00,000 15,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets—Tangible 15,00,000 10,00,000
2. Current Assets
Cash and Bank Balances 9,00,000 5,00,000
Total 24,00,000 15,00,000

Solution: COMMON-SIZE BALANCE SHEET of XYZ LTD. 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 10,00,000 5,00,000 41.67 33.33
(b) Reserves and Surplus 2,00,000 3,00,000 8.33 20.00
2. Non-Current Liabilities
Long-term Borrowings: 12% Loans 8,00,000 5,00,000 33.33 33.33
3. Current Liabilities
Trade Payables 4,00,000 2,00,000 16.67 13.33
Total 24,00,000 15,00,000 100.00 100.00

II. ASSETS
1. Non-Current Assets
Fixed Assets—Tangible 15,00,000 10,00,000 62.50 66.67
2. Current Assets
Cash and Bank Balances 9,00,000 5,00,000 37.50 33.33
Total 24,00,000 15,00,000 100.00 100.00

Note: Percentage is calculated on the basis of Total of Equity and Liabilities/Total Assets.
` 10,00,000
Percentage of Share Capital (31st March, 2019) = × 100 = 41.67%
` 24,00,000
In the same manner other percentages are calculated.