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M.170 An Aid to Accountancy—CBSE XII

PART B

18. Dividend received by a financial enterprise is considered as Operating Activity.
19. No Flow.
Reason: Old furniture written off would result in No Flow of Cash because it does
not involve cash, it being a non-cash transaction.
20.
Items Major Head Sub-head
1. Calls-in-Advance and Interest thereon Current Liabilities Other Current Liabilities
2. Investment in Property Non-current Assets Non-current Investments
3. Advance Tax Current Assets Other Current Assets
4. Mining Rights Non-current Assets Fixed Assets: Intangible Assets

21. (a) (i) To analyse the change in individual items of Balance Sheet.
(ii) To determine the trend in different items of Assets, Equity and Liabilities.

(b) COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars Note 31st March, 31st March, Absolute Change Percentage
No. 2017 2018 (Increase/ Change (Increase/
Decrease) Decrease)
` ` ` %
I. Revenue from Operations 6,00,000 8,00,000 2,00,000 33.33
II. Expenses
(a) Cost of Materials Consumed* 3,60,000 4,00,000 40,000 11.11
(b) Other Expenses 48,000 60,000 12,000 25.00
Total Expenses 4,08,000 4,60,000 52,000 12.74
III. Net Profit before Tax (I – II) 1,92,000 3,40,000 1,48,000 77.08
Less: Income Tax @ 50% 96,000 1,70,000 74,000 77.08
IV. Net Profit after Tax 96,000 1,70,000 74,000 77.08

* Cost of Materials Consumed:
31st March, 2017: 60% of Revenue from Operations (` 6,00,000 × 60/100) = ` 3,60,000.
31st March, 2018: 50% of Revenue from Operations (` 8,00,000 × 50/100) = ` 4,00,000.

Other Expenses:
31st March, 2017: 20% (` 6,00,000 – ` 3,60,000) = ` 48,000.
31st March, 2018: 15% (` 8,00,000 – ` 4,00,000) = ` 60,000.
Or
(a) Common-size Statement is a statement that expresses all items of a financial
statement as a percentage of some common base such as Revenue from
Operations for Statement of Profit and Loss and Total Assets or Total of Equity
and Liabilities for Balance Sheet.