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M.378 An Aid to Accountancy—CBSE XII

22. (a) Common-size Income Statement is a Statement in which income and expenses are
shown as percentage of Revenue from Operations which is taken as 100.

(b) COMMON-SIZE STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2018
Particulars Note Absolute Amount Percentage of Revenue from
No. Operations
31st March, 2018 (`) 31st March, 2018 (%)

I. Revenue from Operations 60,00,000 100
Total Revenue 60,00,000 100
II. Expenses:
Employees Benefit Expenses 30,00,000 50
Other Expenses 6,00,000 10
Total Expenses 36,00,000 60

III. Profit before Tax (I – II) 24,00,000 40
Or
(a) (i) To make data simpler, understandable and comparable.
(ii) To help in forecasting.

(b) COMMON-SIZE BALANCE SHEET as at 31st March, 2017 and 2018
Particulars Note No. Absolute Amounts Percentage of Balance Sheet Total

31st March, 31st March, 31st March, 31st March,
2017 (`) 2018 (`) 2017 (%) 2018 (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds 9,00,000 6,00,000 60.00 60.00
2. Non-Current Liabilities 3,00,000 3,00,000 20.00 30.00
3. Current Liabilities 3,00,000 1,00,000 20.00 10.00
Total 15,00,000 10,00,000 100.00 100.00
II. ASSETS
1. Non-Current Assets 10,50,000 7,00,000 70.00 70.00
2. Current Assets 4,50,000 3,00,000 30.00 30.00
Total 15,00,000 10,00,000 100.00 100.00

23. CASH FLOW STATEMENT
for the year ended 31st March, 2018
Particulars `
I. Cash Flow from Operating Activities
Surplus, i.e., Balance in Statement of Profit and Loss (Closing) 35,000
Less: Surplus, i.e., Balance in Statement of Profit and Loss (Opening) 30,000
5,000
Add: Transfer to General Reserve (` 33,000 – ` 20,000) 13,000
Provision for Tax (Tax paid) 15,000
Net Profit before Tax and Extraordinary Items 33,000