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Model Test Papers M.303

21. (a) Common-size Balance Sheet is the vertical analysis of Balance Sheet in which
Total Assets or Total of Equity and Liabilities is taken as 100 and all other items
of Assets, Equity and Liabilities are expressed as percentage of Total Assets or
Total of Equity and Liabilities.

(b) COMMON-SIZE BALANCE SHEET
as at 31st March, 2017 and 31st March, 2018
Particulars Note Absolute Amounts Percentage of Balance Sheet
No. Total
31st March, 31st March, 31st March, 31st March,
2017 (`) 2018 (`) 2017 (%) 2018 (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds 12,00,000 18,00,000 60 60
2. Non-current Liabilities 6,00,000 6,00,000 30 20
3. Current Liabilities 2,00,000 6,00,000 10 20
Total 20,00,000 30,00,000 100 100
II. ASSETS
1. Non-current Assets 14,00,000 21,00,000 70 70
2. Current Assets 6,00,000 9,00,000 30 30
Total 20,00,000 30,00,000 100 100
Or
(a)
Basis Horizontal Analysis Vertical Analysis
Period It is conducted for two or more accounting periods It is conducted for one accounting period

(b)
COMPARATIVE STATEMENT OF PROFIT AND LOSS for the years ended 31st March, 2018 and 2019
Particulars Note 31st March, 31st March, Absolute Change Percentage
No. 2018 2019 (Increase/ Change (Increase/
Decrease) Decrease)
` ` ` %
(A) (B) (C = B – A) ( D = C ¥ 100 )
A
I. Revenue from Operations 20,00,000 30,00,000 10,00,000 50.00
II. Other Income 4,00,000 4,50,000 50,000 12.50
III. Total Revenue (I + II) 24,00,000 34,50,000 10,50,000 43.75
IV. Expenses 10,00,000 18,00,000 8,00,000 80.00
V. Profit before Tax (III – IV) 14,00,000 16,50,000 2,50,000 17.86

Operating Cost × 100 ` 15,40,000
22. Operating Ratio = = × 100 = 70%.
Revenue from Operations ` 22,00,000

Cost of Revenue from Operations
Inventory Turnover Ratio =
Average Inventory