# Chapter 3 – Tools of Financial statement analysis

TS Grewal Solutions for Class 12 Accountancy Chapter 3 – Tools of Financial statement analysis is an important concept to be studied thoroughly by the students. Here, Check TS Grewal Accountancy Solutions for Class 12.

##### Question 1: From the following information, prepare Comparative Balance Sheet of Sunrise ta.
 Particulars 31st March, 2020 (₹) 31st March, 2021 (₹) Shareholders’ Funds 15,00,000 22,50,000 Non-current Liabilities 7,50,000 7,50,000 Current Liabilities 2,50,000 7,50,000 Non-current Assets 17,50,000 26,25,000 Current Assets 7,50,000 11,25,000
 Comparative Balance sheet as at 31st March, 2021 Particulars Note No. 31st March, 2020 (₹) 31st March, 2021 ₹(₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) I.                    Equity and Liabilities 1.      Shareholders’ Funds 15,00,000 22,50,000 7,50,000 50.00 2.      Non-current Current 7,50,000 7,50,000 . . . . . . 3.      Current liabilities 2,50,000 7,50,000 5,00,000 200.00 Total 25,00,000 37,50,000 12,50,000 50 II.                 Assets 1.      Non-current Assets 17,50,000 26,25,000 8,75,000 50.00 2.      Current Assets 7,50,000 11,25,000 3,75,000 50.00 Total 25,00,000 37,50,000 12,50,000 50

#### Question 2:

From the following Balance Sheet, prepare Comparative Balance Sheet of Sun Ltd.:
 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. EQUITY AND LIABILITIES 1. Shareholder’s Funds (a) Share Capital 3,50,000 3,00,000 2. Non-Current Liabilities Long-term Borrowings 1,00,000 2,00,000 3. Current Liabilities : Trade Payables 1,50,000 1,00,000 Total 6,00,000 6,00,000 II. ASSETS 1. Non-Current Assets Fixed Assets (Tangible) 4,00,000 3,00,000 2. Current Assets Trade Receivables 2,00,000 3,00,000 Total 6,00,000 6,00,000
 In the books of Sun Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Equity and Liabilities 1. Shareholders’ Funds a. Share Capital 3,00,000 3,50,000 50,000 16.67 Shareholders’ Fund 3,00,000 3,50,000 50,000 16.67 2. Non-Current Liabilities a. Long-term Borrowings 2,00,000 1,00,000 (1,00,000) (50.00) 3. Current Liabilities a. Trade Payables 1,00,000 1,50,000 50,000 50.00 Total 6,00,000 6,00,000 – – II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 3,00,000 4,00,000 1,00,000 33.33 2. Current Assets a. Trade Receivables 3,00,000 2,00,000 (1,00,000) (33.33) Total 6,00,000 6,00,000 – –

#### Question 3:

Following is the Balance Sheet of Radha Ltd. as at 31st March, 2019:
 Particulars Note No. 31st March, 2019, ( ₹) 31st March, 2018, ( ₹) I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 15,00,000 10,00,000 (b) Reserves and Surplus 10,00,000 10,00,000 2. Non-Current Liabilities Long-term Borrowings 8,00,000 2,00,000 3. Current Liabilities (a) Trade Payables 5,00,000 3,00,000 Total 38,00,000 25,00,000 II. ASSETS 1. Non-Current Assets Fixed Assets: (i) Tangible Assets 25,00,000 15,00,000 (ii) Intangible Assets 5,00,000 5,00,000 2. Current Assets (a) Trade Receivables 6,00,000 3,50,000 (b) Cash and Cash Equivalents 2,00,000 1,50,000 Total 38,00,000 25,00,000
You are required to prepare Comparative  Balance Sheet on the basis of the information given in the above Balance Sheet. Answer:
 In the books of Radha Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Equity and Liabilities 1. Shareholders’ Funds a. Equity Share Capital 10,00,000 15,00,000 5,00,000 50.00 b. Reserve and Surplus 10,00,000 10,00,000 – – Shareholders’ Fund 20,00,000 25,00,000 5,00,000 25.00 2. Non-Current Liabilities a. Long-term Borrowings 2,00,000 8,00,000 6,00,000 300.00 3. Current Liabilities 3,00,000 5,00,000 2,00,000 66.67 Total 25,00,000 38,00,000 13,00,000 52.00 II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 15,00,000 25,00,000 10,00,000 66.67 b. Intangible Assets 5,00,000 5,00,000 – – 20,00,000 30,00,000 10,00,000 50.00 2. Current Assets a. Trade Receivables 3,50,000 6,00,000 2,50,000 71.43 b. Cash and Cash Equivalents 1,50,000 2,00,000 50,000 33.33 5,00,000 8,00,000 3,00,000 60.00 Total 25,00,000 38,00,000 13,00,000 52.00

#### Question 4:

 Balance Sheet of Blue Bell Ltd. as at 31st March, 2019 is given below: BALANCE SHEET as at 31st March, 2019 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. EQUITY AND LIABILITIES 1. Shareholder’s Funds (a) Share Capital 3,26,000 2,44,000 (b) Reserves and Surplus 1,00,000 1,00,000 2. Non-Current Liabilities Long-term Borrowings 6,96,000 4,38,000 3. Current Liabilities Trade Payables 2,98,000 78,000 Total 14,20,000 8,60,000 II. ASSETS 1. Non-Current Assets (a) Fixed Assets 5,68,000 4,30,000 (b) Non-Current Investments 6,000 4,000 2. Current Assets (a) Trade Receivables 6,46,000 3,76,000 (b) Cash and Cash Equivalents 2,00,000 50,000 Total 14,20,000 8,60,000
Prepare Comparative Balance Sheet showing percentage changes from 2018 to 2019. Answer:
 In the books of Blue Bell Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Equity and Liabilities 1. Shareholders’ Funds a. Equity Share Capital 2,44,000 3,26,000 82,000 33.61 b. Reserves and Surplus 1,00,000 1,00,000 – – Shareholder’s Funds 3,44,000 4,26,000 82,000 23.84 2. Non-Current Liabilities a. Long-term Borrowings 4,38,000 6,96,000 2,58,000 58.90 3. Current Liabilities 78,000 2,98,000 2,20,000 282.05 Total 8,60,000 14,20,000 5,60,000 65.12 II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 4,30,000 5,68,000 1,38,000 32.09 b. Non-Current Investments 4,000 6,000 2,000 50.00 4,34,000 5,74,000 1,40,000 32.26 2. Current Assets a. Trade Receivables 3,76,000 6,46,000 2,70,000 71.81 b. Cash and Cash Equivalents 50,000 2,00,000 1,50,000 300.00 4,26,000 8,46,000 4,20,000 98.59 Total 8,60,000 14,20,000 5,60,000 65.12
Page No 3.31: Question 5: Following is the summarised Balance Sheet of Wye Ltd. as at 31st March, 2019:
 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital: (i) Equity Share Capital 4,00,000 4,00,000 (ii) Preference Share Capital 1,00,000 1,00,000 (b) Reserves and Surplus 1,20,000 1,10,000 2. Non-Current Liabilities (a) Long-term Borrowings 1. 4,50,000 4,50,000 (b) Long-term Provisions 50,000 1,00,000 3. Current Liabilities (a) Trade Payables (Creditors) 5,30,000 3,30,000 (b) Short-term Provisions 50,000 50,000 Total 17,00,000 15,40,000 II. ASSETS 1. Non-Current Assets (a) Fixed Assets (Tangible) 9,90,000 10,40,000 (b) Non-Current Investments 1,00,000 1,00,000 2. Current Assets (a) Trade Receivables 5,00,000 3,00,000 (b) Cash and Cash Equivalents 2 1,10,000 1,00,000 Total 17,00,000 15,40,000
Notes to Accounts
 Particulars 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. Long-term Borrowings Bank Loan 3,50,000 4,50,000 8% Debentures 1,00,000 … 4,50,000 4,50,000 2. Cash and Cash Equivalents Bank Balance 1,00,000 90,000 Cash in Hand 10,000 10,000 1,10,000 1,00,000
You are required to comment upon the changes in absolute figures from one period to another. Answer:
 In the books of Wye Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Comments I. Equity and Liabilities 1. Shareholders’ Funds a. Equity Share Capital 4,00,000 4,00,000 – No Change b. Preference Share Capital 1,00,000 1,00,000 – No Change ii. Reserve and Surplus 1,10,000 1,20,000 10,000 Increase Shareholders’ Fund 6,10,000 6,20,000 10,000 2. Non-Current Liabilities a. Long-term Borrowings Bank Loan 4,50,000 3,50,000 1,00,000 Decrease 8% Debentures – 1,00,000 1,00,000 Increase b. Long-Term Provision 1,00,000 50,000 50,000 Decrease 3. Current Liabilities a. Trade Payables 3,30,000 5,30,000 2,00,000 Increase b. Short-Term Provisions 50,000 50,000 – No Change Total 15,40,000 17,00,000 1,60,000 II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 10,40,000 9,90,000 50,000 Decrease b. Non-Current Investments 1,00,000 1,00,000 – No Change 2. Current Assets b. Trade Receivables 3,00,000 5,00,000 2,00,000 Increase c. Cash and Cash Equivalents 1,00,000 1,10,000 10,000 Increase Total 15,40,000 17,00,000 1,60,000
Page No 3.32: Question 6: From the Following Balance Sheet of Royal Industries Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:
 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. EQUITY AND LIABILITIES 1. Shareholder’s Funds (a) Share Capital Equity Share Capital 10,00,000 5,00,000 (b) Reserves and Surplus 1,00,000 1,00,000 2. Non-Current Liabilities Long-term Borrowings 2,00,000 3,00,000 3. Current Liabilities Trade Payables 2,00,000 1,00,000 Total 15,00,000 10,00,000 II. ASSETS 1. Non-Current Assets (a) Fixed Assets: (i) Tangible Assets 8,00,000 4,00,000 (ii) Intangible Assets 2,00,000 2,00,000 (b) Non-Current Investments 2,00,000 2,00,000 2. Current Assets (a) Inventories 2,50,000 1,50,000 (b) Cash and Cash Equivalents 50,000 50,000 Total 15,00,000 10,00,000
 In the books of Royal Industries Ltd. Comparative Balance Sheet as at March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Equity and Liabilities 1. Shareholders’ Funds a. Equity Share Capital 5,00,000 10,00,000 5,00,000 100.00 b. Reserve and Surplus 1,00,000 1,00,000 – – Shareholders’ Fund 6,00,000 11,00,000 5,00,000 83.33 2. Non-Current Liabilities a. Long-term Borrowings 3,00,000 2,00,000 (1,00,000) (33.33) 3. Current Liabilities a. Trade Payables 1,00,000 2,00,000 1,00,000 100.00 Total 10,00,000 15,00,000 5,00,000 50.00 II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 4,00,000 8,00,000 4,00,000 100.00 b. Intangible Assets 2,00,000 2,00,000 – – c. Non-Current Investments 2,00,000 2,00,000 – – 2. Current Assets a. Inventories 1,50,000 2,50,000 1,00,000 66.67 b. Cash and Cash Equivalents 50,000 50,000 2,00,000 3,00,000 1,00,000 50.00 Total 10,00,000 15,00,000 5,00,000 50.00
Page No 3.33: Question 7: From the following Balance Sheet of H.P. Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:
 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital: (i) Equity Share Capital 12,50,000 5,00,000 (ii) Preference Share Capital 2,50,000 2,50,000 (b) Reserves and Surplus 3,00,000 4,50,000 2. Non-Current Liabilities Long-term Borrowings: 12% Debentures 9,50,000 5,50,000 Loan from Directors 2,50,000 2,00,000 3. Current Liabilities (a)Short-term Borrowings 3,50,000 1,75,000 (b) Trade Payables 2,00,000 1,00,000 (c) Short-term Provisions 50,000 25,000 Total 36,00,000 22,50,000 II. ASSETS 1. Non-Current Assets (a) Fixed Assets (Tangible) 22,50,000 15,00,000 2. Current Assets (a) Inventories 4,50,000 2,50,000 (b) Trade Receivables 8,00,000 4,50,000 (c) Cash and Cash Equivalents 1,00,000 50,000 Total 36,00,000 22,50,000
 Comparative Balance Sheet of H.P. Ltd. as at March 31, 2018  and March 31, 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Equity and Liabilities 1. Shareholders’ Funds a. Share Capital 1. Equity Share Capital 12,50,000 5,00,000 7,50,000 150.00 2. Preference Share Capital 2,50,000 2,50,000 – – Total 15,00,000 7,50,000 7,50,000 100.00 b. Reserve and Surplus 3,00,000 4,50,000 (1,50,000) (33.33) 18,00,000 12,00,000 6,00,000 50.00 2. Non-Current Liabilities a. Long-term Borrowings 12% Secured Debentures 9,50,000 5,50,000 4,00,000 72.73 12% Unsecured Debentures 2,50,000 2,00,000 50,000 25.00 12,00,000 7,50,000 4,50,000 60.00 3. Current Liabilities a. Short-Term Borrowings 3,50,000 1,75,000 1,75,000 100.0 b. Trade Payables 2,00,000 1,00,000 1,00,000 100.00 c. Short-Term Provisions 50,000 25,000 25,000 100.00 Total 36,00,000 22,50,000 13,50,000 60.00 II. Assets 1. Non-Current Assets a. Fixed Assets (Tangible) 22,50,000 15,00,000 7,50,000 50.00 2. Current Assets a. Inventories 4,50,000 2,50,000 2,00,000 80.00 b. Trade Receivables 8,00,000 4,50,000 3,50,000 77.78 c. Cash and Cash Equivalents 1,00,000 50,000 50,000 100.00 Total 36,00,000 22,50,000 13,50,000 60.00
Page No 3.33: Question 8: Prepare Comparative Statement of Profit and Loss from the following information:
 Particulars 31st March, 2020 (₹) 31st March, 2019 (₹) Revenue from Operations 30,00,000 20,00,000 Other Income 3,60,000 4,00,000 Expenses 21,00,000 12,00,000
 Comparative Statement of Profit and Loss as at 31st March, 2021 Particulars Note No. 31st March, 2020 (₹) 31st March, 2021 ₹(₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) Revenue from Operations 30,00,000 20,00,000 10,00,000 50.00 Other Income 3,60,000 4,00,000 (40,000) (10.00) Total Revenue (I+II) 33,60,000 24,00,000 9,60,000 40.00 Expenses 21,00,000 12,00,000 9,00,000 75.00 Profit before Tax 12,60,000 12,00,000 60,000 5.00
Page No 3.33: Question 9: From the following Statement of Profit and Loss of Skills India Ltd. for the year ended 31st March, 2018 and 2019, prepare a Comparative Statement of Profit and Loss:
 Particulars 31st March, 2019 (₹) 31st March, 2018 (₹) Revenue from Operations 45,00,000 20,00,000 Employee Benefit Expenses 10,00,000 8,00,000 Other Expenses 5,00,000 2,00,000 Tax Rate 30%
 Comparative Statement of Profit and Loss as at 31st March, 2019 Particulars Note No. 31st March, 2018 (₹) 31st March, 2019(₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) Revenue from Operations 20,00,000 45,00,000 25,00,000 125 Employee Benefit Expenses 8,00,000 10,00,000 2,00,000 25 Other Expenses 2,00,000 5,00,000 3,00,000 150 Total Expenses 10,00,000 15,00,000 5,00,000 50 Profit before Tax 10,00,000 30,00,000 20,00,000 200 Less: Tax 30% 3,00,000 9,00,000 6,00,000 200 Profit after Tax 7,00,000 21,00,000 14,00,000 200
Page No 3.33: Question 10: Following information is extracted from the Statement of Profit and Loss of Gold Coin Ltd. for the year ended 31st March, 2015:
 Particulars 31st March, 2015 31st March, 2014 Revenue from Operations ₹ 60,00,000 ₹ 45,00,000 Employee Benefit Expenses ₹ 30,00,000 ₹ 22,50,000 Depreciation ₹ 7,50,000 ₹ 6,00,000 Other Expenses ₹ 15,50,000 ₹ 10,00,000 Tax Rate 30% 30%
 Comparative Income Statement for the year ended March 31, 2014 and 2015 Particulars 2014 (Rs) 2015 (Rs) Absolute Change (Rs) Percentage Change (%) I. Revenue from Operations 45,00,000 60,00,000 15,00,000 33.33 II. Expenses a. Depreciation 6,00,000 7,50,000 1,50,000 25.0 b. Employees Benefit Expenses 22,50,000 30,00,000 7,50,000 33.33 c. Other Expenses 10,00,000 15,50,000 5,50,000 55.0 38,50,000 53,00,000 14,50,000 37.66 Profit before Income Tax 6,50,000 7,00,000 50,000 7.69 Less: Income Tax 1,95,000 2,10,000 15,000 7.69 Profit after Income Tax 4,55,000 4,90,000 35,000 7.69
Page No 3.34: Question 11: Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:
 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. Income Revenue from Operations (Net Sales) 3,50,000 3,00,000 II. Expenses Purchases of Stock-in-Trade 2,10,000 1,80,000 Change in Inventories of Stock-in-Trade 15,000 20,000 Employees Benefits Expenses 17,500 15,000 Other Expenses 7,500 5,000 Total 2,50,000 2,20,000 III. Profit before Tax (I-II) 1,00,000 80,000 IV. Less: Tax 30,000 24,000 V. Profit after Tax (III-IV) 70,000 56,000
 Comparative Income Statement for the year ended March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Revenue from Operations 3,00,000 3,50,000 50,000 16.67 II. Expenses a. Purchase of Stock-in-Trade 1,80,000 2,10,000 30,000 16.67 b. Changes in Inventories of Stock-in-Trade 20,000 15,000 (5,000) (25.00) c. Employees Benefit cost 15,000 17,500 2,500 16.67 d. Other Expenses 5,000 7,500 2,500 50.00 2,20,000 2,50,000 30,000 13.67 Profit before Income Tax (I-II) 80,000 1,00,000 20,000 25.00 Less: Income Tax 24,000 30,000 6,000 25.00 Profit after Income Tax 56,000 70,000 14,000 25.00
Page No 3.34: Question 12: Prepare a Comparative Income Statement of Bikul Ltd. with the help of the following information:
 Particulars 2016-17 (₹) 2017-18 (₹) Revenue from Operations 10,00,000 16,00,000 Cost of Materials Consumed 5,00,000 10,00,000 Employee Benefit Expenses 80,000 40,000 Other Indirect Expenses 60,000 80,000 Income Tax Rate 40%.
 Comparative Statement of Profit and Loss as at 31st March, 2018 Particulars Note No. 31st March, 2017 (₹) 31st March, 2018(₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) Revenue from Operations 10,00,000 16,00,000 6,00,000 60.00 Expenses Cost of Materials Consumed 5,00,000 10,00,000 5,00,000 100.00 Employee Benefit Expenses 80,000 40,000 (40,000) (50.00) Other Indirect Expenses 60,000 80,000 20,000 33.33 Total Expenses 6,40,000 11,20,000 4,80,000 75.00 Profit before Tax 3,60,000 4,80,000 1,20,000 33.33 Less: Tax 40% 1,44,000 1,92,000 48,000 33.33 Profit after Tax 2,16,000 2,88,000 72,000 33.33
Page No 3.35: Question 13: Prepare Comparative Statement of Profit and Loss from the following information:
 Particulars 31st March, 2019 31st March, 2018 Revenue from Operations ₹ 37,50,000 ₹ 25,00,000 Other Income ₹ 4,50,000 ₹ 5,00,000 Cost of Materials Consumed ₹ 22,50,000 ₹ 12,50,000 Other Expenses ₹ 3,75,000 ₹ 2,50,000 Tax Rate 50% 50%
 Comparative Income Statement for the year ended March 31, 2018 and 2019 Particulars March 31, 2018 ( ₹) March 31, 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Revenue from operations 25,00,000 37,50,000 12,50,000 50.00 II. Other Income 5,00,000 4,50,000 (50,000) (10.00) III. Total Revenue (I + II) 30,00,000 42,00,000 12,00,000 40.00 IV. Expenses a. Cost of Materials Consumed 12,50,000 22,50,000 10,00,000 80.00 b. Other Expenses 2,50,000 3,75,000 1,25,000 50.00 15,00,000 26,25,000 11,25,000 75.00 Profit before Income Tax 15,00,000 15,75,000 75,000 5.00 Less: Income Tax @ 50% 7,50,000 7,87,500 37,500 5.00 Profit after Income Tax 7,50,000 7,87,500 37,500 5.00
Page No 3.34: Question 14: Prepare a Comparative Statement of Profit and Loss from the information extracted from the Statement of Profit and Loss for the year ended 31st March, 2017 and 2018.
 Particulars 2017-18 (₹) 2016-17 (₹) Revenue from Operations 15,00,000 10,00,000 Other Income (% of Revenue from Operations) 60% 50% Employee Benefit Expenses (% of total revenue) 40% 30% Tax Rate 40% 40%
 Comparative Statement of Profit and Loss as at 31st March, 2018 Particulars Note No. 31st March, 2017 (₹) 31st March, 2018 (₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) Revenue from Operations 10,00,000 15,00,000 5,00,000 50.00 Other Income (% of Revenue from Operations) 5,00,000 9,00,000 4,00,000 80.00 Total Revenue 15,00,000 24,00,000 9,00,000 60.00 Employee Benefit Expenses (% of total revenue) 4,50,000 9,60,000 5,10,000 113.33 Profit before Tax 10,50,000 14,40,000 3,90,000 37.14 Less: Tax 40% 4,20,000 5,76,000 1,56,000 37.14 Profit after Tax 6,30,000 8,64,000 2,34,000 37.14
Page No 3.35: Question 15: From the following information, prepare Comparative Statement of Profit and Loss showing increase, decrease and percentage:
 Particulars 31st March, 2019 31st March, 2018 Cost of Materials Consumed ₹ 13,44,000 ₹ 6,00,000 Revenue from Operations (% of Materials Consumed) 125% 200% Other Expenses (% of Operating Revenue) 10% 10% Tax Rate 50% 50%
 Comparative Income Statement for the year ended 31st March, 2018 and 2019 Particulars March 31, 2018 ( ₹) March 31, 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Revenue from Operations (WN1) 12,00,000 16,80,000 4,80,000 40.00 II. Expenses a. Cost of Material Consumed 6,00,000 13,44,000 7,44,000 124.00 b. Other Expenses (WN2) 1,20,000 1,68,000 48,000 40.00 7,20,000 15,12,000 7,92,000 110.00 Profit before Income Tax (I-II) 4,80,000 1,68,000 (3,12,000) (65.00) Less: Income Tax @ 50% 2,40,000 84,000 (1,56,000) (65.00) Profit after Income Tax 2,40,000 84,000 1,56,000 (65.00)
Working Notes: WN1 Computation of Revenue from Operations
 Particulars 2018 ( ₹) 2019 ( ₹) Cost of Materials Consumed 6,00,000 13,44,000 % of Materials Consumed 200% 125% Revenue from Operations 12,00,000 16,80,000
WN2 Computation of Other Expenses
 Particulars 2018 ( ₹) 2019 ( ₹) Revenue From Operations 12,00,000 16,80,000 % of Operating Revenue 10% 10% Other Expenses 1,20,000 1,68,000
Page No 3.35: Question 16: From the following particulars obtained from the books of Mark, prepare a Comparative Statement of Profit and Loss:
 Particulars 31st March, 2018 (₹) 31st March, 2017 (₹) Revenue from Operations 50,00,000 40,00,000 Purchase of Stock-in-Trade 40,00,000 30,00,000 Changes in Inventory 10,00,000 8,00,000 Other Expenses 5,00,000 4,00,000 Other Incomes 2,50,000 2,00,000
 Comparative Statement of Profit and Loss as at 31st March, 2018 Particulars Note No. 31st March, 2017 (₹) 31st March, 2018 (₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) Revenue from Operations 40,00,000 50,00,000 10,00,000 25 Other Incomes 2,00,000 2,50,000 50,000 25 Total Revenue 42,00,000 52,50,000 10,50,000 25 Expenses Purchase of Stock-in-Trade 30,00,000 40,00,000 10,00,000 33.3 Changes in Inventory 8,00,000 10,00,000 2,00,000 25 Other Expenses 4,00,000 5,00,000 13,00,000 25 Total Expenses 42,00,000 55,00,000 13,00,000 30.95 Profit before Tax . . . (2,50,000) (2,50,000) … Less: Tax … % . . . . . . . . . … Profit after Tax 42,00,000 55,00,000 13,00,000 30.95
Page No 3.36: Question 17: From the following information, prepare Comparative Statement of Profit and Loss
 Particulars 31st March, 2021 (₹) 31st March, 2020 (₹) Revenue from Operations 20,00,000 16,00,000 Other Income 4,40,000 3,00,000 Cost of Materials Consumed 8,00,000 6,00,000 Changes in Inventories of Finished Goods and Work-in-Progress 4,00,000 2,00,000 Other Expenses (% of Cost of Revenue from Operations) 15% 10% Tax Rate 30% 30%
 Comparative Statement of Profit and Loss as at 31st March, 2021 Particulars Note No. 31st March, 2020 (₹) 31st March, 2021 (₹) Absolute Change (Increase/Decrease)(₹) Percentage Change (Increase/Decrease)(%) (A) (B) (C = A-B) (D = C/A×100) Revenue from Operations 16,00,000 20,00,000 4,00,000 25 Other Incomes 3,00,000 4,40,000 1,40,000 46.67 Total Revenue 19,00,000 24,40,000 5,40,000 Expenses Cost of Materials Consumed 6,00,000 8,00,000 2,00,000 33.33 Changes in Inventories of Finished Goods and Work-in-Progress 2,00,000 4,00,000 2,00,000 100 Other Expenses (% of Cost of Revenue from Operations) 80,000 1,80,000 1,00,000 125 Total Expenses 8,80,000 13,80,000 5,00,000 56.82 Profit before Tax 10,20,000 10,60,000 40,000 3.92 Less: Tax 30% 3,06,000 3,18,000 12,000 3.92 Profit after Tax 7,14,000 7,42,000 28,000 3.92
Working Note: Calculation of cost of material Consumed and Other Expenses
 Items 2020 2021 Cost of Materials Consumed 6,00,000 8,00,000 Changes in Inventories of Finished Goods and Work-in-Progress 2,00,000 4,00,000 Cost of Revenue from Operations 8,00,000 12,00,000 Other Expenses (2020: 10% and 2021:15% of Cost of Revenue from Operations) 80,000 1,80,000
Page No 3.35: Question 18: From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:
 Particulars Note No. 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. Income Revenue from Operations (Net Sales) 50,00,000 40,00,000 II. Expenses Purchases of Stock-in-Trade 34,00,000 28,50,000 Change in Inventories of Stock-in-Trade 1 1,00,000 1,50,000 Employees Benefits Expenses 1,00,000 1,00,000 Other Expenses 2 2,00,000 1,50,000 Total 38,00,000 32,50,000 III. Net Profit (I-II) 12,00,000 7,50,000
Notes to Accounts
 Particulars 31st March, 2019 ( ₹) 31st March, 2018 ( ₹) I. Change in Inventory of stock-in-Trade Opening Inventory 2,00,000 3,50,000 Less: Closing Inventory 1,00,000 2,00,000 1,00,000 1,50,000 2. Other Expenses Administrative Expenses 50,000 50,000 Selling and Distribution Expenses 1,50,000 1,00,000 2,00,000 1,50,000
 Comparative Income Statement for the year ended March 31, 2018 and 2019 Particulars 2018 ( ₹) 2019 ( ₹) Absolute Change ( ₹) Percentage Change (%) I. Revenue from Operations 40,00,000 50,00,000 10,00,000 25.00 II. Expenses: a. Purchases of Stock-in-Trade 28,50,000 34,00,000 5,50,000 19.30 b. Changes in Inventories of Stock-in-Trade 1,50,000 1,00,000 (50,000) (33.33) c. Employees Benefit Expenses 1,00,000 1,00,000 – – d. Other Expenses 1,50,000 2,00,000 50,000 33.33 32,50,000 38,00,000 5,50,000 16.92 Profit before Income Tax (I-II) 7,50,000 12,00,000 4,50,000 60.00 Less: Income Tax – – – – Profit after Income Tax 7,50,000 12,00,000 4,50,000 60.00
Page No 3.36: Question 19: From the following Statement of Profit and Loss of Star Ltd., for the years ended 31st March, 401N and 2016, prepare a Common-size statement:
 Particulars 2015-16 2014-15 Revenue from Operations 25,00,000 20,00,000 Employee Benefit Expenses 10,00,00o 7,00,000 Other Expenses 2,00,000 3,00,000 Tax rate 40% 40%
 Common-Size Statement of Profit and Loss as at 31st March, 2016 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2015 (₹) 31st March, 2016 (₹) % 31st March, 2015 (₹) % 31st March, 2016 (₹) Revenue from Operations 20,00,000 25,00,000 100 100 Expenses Employee Benefit Expenses 7,00,000 10,00,00o 35 40 Other Expenses 3,00,000 2,00,000 15 8 Total Expenses 10,00,000 12,00,000 50 48 Profit before Tax 10,00,000 13,00,000 50 52 Less: Tax 40% 4,00,000 5,20,000 20 20.80 Profit after Tax 6,00,000 7,80,000 30 31.20
Page No 3.36: Question 20: Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:
 Particulars Note No. 31st March, 2021 (₹) I. Income Revenue from Operations 15,00,000 Other Income 60,000 Total Revenue 15,60,000 II. Expenses Purchases of Stock-in-Trade 7,50,000 Change in Inventories of Stock-in-Trade 50,000 Other Expenses 2,10,000 Total 10,10,000 III. Profit before Tax (I-II) 5,50,000
 Common-Size Statement of Profit and Loss as at 31st March, 2021 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2021 (₹) % 31st March, 2021 (₹) I. Income Revenue from Operations 15,00,000 100 Other Income 60,000 4 Total Revenue 15,60,000 104 II. Expenses Purchases of Stock-in-Trade 7,50,000 50 Change in Inventories of Stock-in-Trade 50,000 3.33 Other Expenses 2,10,000 14 Total Expenses 10,10,000 67.33 III. Profit before Tax (I-II) 5,50,000 36.63
Page No 3.37: Question 21: Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:
 Particulars Note No. Year I ( ₹) Year II ( ₹) I. Income Revenue from Operations (Net Sales) 14,00,000 16,00,000 II. Expenses Purchases of Stock-in-Trade 9,00,000 10,00,000 Change in Inventories of Stock-in-Trade 1,00,000 1,80,000 Finance Costs 80,000 80,000 Other Expenses 90,000 1,30,000 Total 11,70,000 13,90,000 III. Net Profit (I-II) 2,30,000 2,10,000 IV.  Less: Tax 40,000 36,000 V. Net Profit After Tax (III-IV) 1,90,000 1,74,000
 Common Size Income Statement for the year ended….. Particulars Absolute Amount (Rs) Percentage of Revenue (%) Year 1 Year II Year 1 Year II I. Revenue from Operations 14,00,000 16,00,000 100.00 100.00 II. Expenses a. Purchases of Stock-in-Trade 9,00,000 10,00,000 64.28 62.5 b. Change in Inventories of Stock-in-Trade 1,00,000 1,80,000 7.14 11.25 c. Finance Cost 80,000 80,000 5.71 5.00 d. Other Expenses 90,000 1,30,000 6.43 8.12 Profit before Income Tax 2,30,000 2,10,000 16.43 13.13 Less: Income Tax 40,000 36,000 2.84 2.25 Profit after Income Tax 1,90,000 1,74,000 13.57 10.88
Page No 3.37: Question 22: Prepare a Common-size Statement of Profit and Loss of Hari Darshan Ltd’ from the following information:
 Particulars Note No. 2018-19 (₹) 2017-18 (₹) Revenue from Operations 20,00,000 10,00,000 Purchase of Stock-in-Trade 7,70,000 4,20,000 Changes in Inventories 1,20,000 80,000 Other Expenses 52,000 30,000 Other Incomes 60,000 50,000 Tax Rate 50%
 Common-Size Statement of Profit and Loss as at 31st March, 2019 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2018 (₹) 31st March, 2019 (₹) % 31st March, 2018 (₹) % 31st March, 2019 (₹) Revenue from Operations 10,00,000 20,00,000 100 100 Other Incomes 50,000 60,000 5 3 Total Revenue 10,50,000 20,60,000 105 103 Expenses Purchase of Stock-in-Trade 4,20,000 7,70,000 42 38.5 Changes in Inventories 80,000 1,20,000 8 6 Other Expenses 30,000 52,000 3 2.6 Total Expenses 5,30,000 9,42,000 53 47.1 Profit before Tax 5,20,000 11,18,000 52 55.9 Less: Tax 50% 2,60,000 5,59,000 26 27.95 Profit after Tax 2,60,000 5,59,000 26 27.95
Page No 3.37: Question 23: Prepare Common-size Statement of Profit and Loss from the following information:
 Particulars 31st March, 2021 (₹) March, 2020 (₹) Revenue from Operations 25,00,000 20,00,000 Other Income 1,00,000 50,000 Cost of Materials Consumed 15,00,000 10,00,000 Employees Benefit Expenses 3,00,000 2,00,000 Other Expenses 4,50,000 3,50,000
Additional Information: Other expenses include Provision for Tax of ₹2,00,000 for the year ending 31st March, 2020 and  ₹2,50,000 for the year ending 31st March, 2021.   Answer:
 Common-Size Statement of Profit and Loss as at 31st March, 2021 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2020 (₹) 31st March, 2021 (₹) % 31st March, 2020 (₹) % 31st March, 2021 (₹) Revenue from Operations 20,00,000 25,00,000 100 100 Other Income 50,000 1,00,000 2.5 4 Total Revenue 20,50,000 26,00,000 102.5 104 Expenses Cost of Materials Consumed 10,00,000 15,00,000 50 60 Employees Benefit Expenses 2,00,000 3,00,000 10 12 Other Expenses 1,50,000 2,00,000 7.5 8 Total Expenses 13,50,000 20,00,000 67.5 80 Profit before Tax 7,00,000 6,00,000 35 24 Less: Tax 2,00,000 2,50,000 10 10 Profit after Tax 5,00,000 3,50,000 25 14
Note: Other expenses are after debiting Provision for Tax.       Page No 3.38: Question 24: From the following information, prepare a Common-size Balance Sheet:
 Particulars 31st March, 2021 (₹) 31st March, 2020 (₹) Shareholders’ Funds 5,40,000 3,60,000 Non-current Liabilities 1,80,000 1,80,000 Current Liabilities 1,80,000 60,000 Non-current Assets 6,30,000 4,20,000 Current Assets 2,70,000 1,80,000
 Common-Size Statement of Balance Sheet as at 31st March, 2021 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2020 (₹) 31st March, 2021 (₹) % 31st March, 2020 (₹) % 31st March, 2021                    (₹) I.Equity and Liabilities Shareholders’ Funds 3,60,000 5,40,000 60 60 Non-current Liabilities 1,80,000 1,80,000 30 20 Current Liabilities 60,000 1,80,000 10 20 Total 6,00,000 9,00,000 100 100 II.Assets Non-current Assets 4,20,000 6,30,000 70 70 Current Assets 1,80,000 2,70,000 30 30 Total 6,00,000 9,00,000 100 100
Page No 3.38: Question 25: Prepare Common-size Balance Sheet and comment on the financial position of Sun Ltd. and Star Ltd. The Balance Sheet of Sun Ltd. and Star Ltd. as at 31st March, 2019 are:
 Particulars Sun Ltd. ( ₹) Star Ltd. ( ₹) I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 9,00,000 12,00,000 (b) Reserves and Surplus 4,00,000 3,50,000 2. Current Liabilities Trade Payables (Creditors) 2,00,000 2,50,000 Total 15,00,000 18,00,000 II. ASSETS 1. Non-Current Assets Fixed Assets (Tangible) 10,00,000 16,00,000 2. Current Assets Trade Receivables (Debtors) 5,00,000 2,00,000 Total 15,00,000 18,00,000
 Common Size Balance Sheet as at March 31, 2019 Particulars Absolute Amount (₹) Percentage of Balance Sheet Total (%) Sun Ltd. Star Ltd. Sun Ltd. Star Ltd. I. Equity and Liabilities 1. Shareholders’ Funds a. Share Capital 9,00,000 12,00,000 60.00 66.67 b. Reserve and Surplus 4,00,000 3,50,000 26.67 19.44 2. Current Liabilities a. Trade Payables 2,00,000 2,50,000 13.33 13.89 Total 15,00,000 18,00,000 100.00 100.00 II. Assets 1. Non-Current Assets a. Fixed Assets 10,00,000 16,00,000 66.67 88.89 2. Current Assets a. Trade Receivables 5,00,000 2,00,000 33.33 11.11 Total 15,00,000 18,00,000 100.00 100.00
1. Star Ltd. has a greater share of Capital in the total sources of funds i.e. 66.67% in comparison to 60% of Sun Ltd.
2. Sun Ltd. retains 26.67% of their earnings as a part of Reserves and Surplus. Whereas, Star Ltd. retains only 19.44% of their earnings.
3. Star Ltd. has invested major portion of its funds on acquiring the Fixed Assets as these are 88.89% of the total application of funds in comparison to 66.67% of Sun Ltd. On the other hand, Sun Ltd. emphasizes more on Current Assets as these are 33.33% of the total applications of funds in comparison to 11.11% of Star Ltd.
Page No 3.38: Question 26: From the following information, prepare a Common-size Balance Sheet:
 BALANCE SHEET as at 31st March, 2021 Particulars Note No. March, 31st 2021 (₹) 31st March, 2020 (₹) I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 32,00,000 18,00,000 (b) Reserves and Surplus 8,00,000 6,00,000 2. Non-Current Liabilities Long-term Borrowings 16,00,000 12,00,000 3. Current Liabilities Short-term Borrowings 8,00,000 12,00,000 Total 64,00,000 48,00,000 Il. ASSETS 1. Non-Current Assets (a) Property, Plant and Equipment (Fixed Assets): Tangible Assets 18,00,000 16,00,000 (b) Non-current Investments 8,00,000 6,00,000 2. Current Assets (a) Inventories 10,00,000 8,00,000 (b) Trade Receivables 16,00,000 12,00,000 (c) Cash and Cash Equivalents 12,00,000 6,00,000 Total 64,00,000 48,00,000
 Common-Size Statement of Balance Sheet as at 31st March, 2021 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2020 (₹) 31st March, 2021 (₹) % 31st March, 2020 (₹) % 31st March, 2021 (₹) I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 18,00,000 32,00,000 37.5 50 (b) Reserves and Surplus 6,00,000 8,00,000 12.5 12.5 2. Non-Current Liabilities Long-term Borrowings 12,00,000 16,00,000 25 25 3. Current Liabilities Short-term Borrowings 12,00,000 8,00,000 25 12.5 Total 48,00,000 64,00,000 100 100 Il. ASSETS 1. Non-Current Assets (a) Property, Plant and Equipment (Fixed Assets): Tangible Assets 16,00,000 18,00,000 33.33 28.13 (b) Non-current Investments 6,00,000 8,00,000 12.5 12.5 2. Current Assets (a) Inventories 8,00,000 10,00,000 16.67 15.62 (b) Trade Receivables 12,00,000 16,00,000 25 25 (c) Cash and Cash Equivalents 6,00,000 12,00,000 12.5 18.75 Total 48,00,000 64,00,000 100 100

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Vol1 Lessons Vol2 Lessons Vol3 Lessons

Chapter 1- Accounting for Share Capital
Chapter 2- Issue of Debentures
Chapter 10- Redemption of Debentures

Chapter-1: Financial statement of a company

Chapter-2: Financial statement of a analysis

Chapter-3: Tools of analysis of financial statement

Chapter-4: Accounting ratio

Chapter-5: Cash flow statement