Tools of Financial Statement Analysis-Comparative Statements and Common-Size Statements (Part - 1)

Page No. 3.30

Question:1 From the following Balance Sheet, prepare Comparative Balance Sheet of Sun Ltd.:

Solution:

In the books of Sun Ltd.
Comparative Balance Sheet
as at March 31,2018 and 2019

Question:2
Following is the Balance Sheet of Radha Ltd. as at 31st March, 2019:

Page No. 3.31

Question:3
Balance Sheet of Blue Bell Ltd. as at 31st March, 2019 is given below:

BALANCE SHEET

as at 31st March, 2019

Prepare Comparative Balance Sheet showing percentage changes from 2018 to 2019.
Solution:

In the books of Blue Bell Ltd.
Comparative Balance Sheet

as at March 31, 2018 and 2019

Page No. 3.32

Question:4 Following is the summarised Balance Sheet of Wye Ltd. as at 31st March, 2019:


Notes to Accounts

You are required to comment upon the changes in absolute figures from one period to another.
Solution:

In the books of Wye Ltd.
Comparative Balance Sheet
as at March 31, 2018 and 2019

Page No. 3.33

Question:5
From the Following Balance Sheet of Royal Industries Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:

Solution:

In the books of Royal Industries Ltd.

Comparative Balance Sheet
as at March 31, 2018 and 2019

Page No. 3.33

Question:6
From the following Balance Sheet of Depth Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:

Solution:

Comparative Balance Sheet of Depth Ltd.
as a March 31, 2017 and March 31, 2018

Page No. 3.34

Question:7
From the following Balance Sheet of H.P. Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:



Solution:

Comparative Balance Sheet of H.P. Ltd.
as at March 31, 2018 and March 31, 2019

Question:8
Following information is extracted from the Statement of Profit and Loss of Gold Coin Ltd. for the year ended 31st March, 2015:

Solution:

Comparative Income Statement
for the year ended March 31, 2014 and 2015

Page No. 3.35

Question:9
Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:


Solution:

Comparative Income Statement

for the year ended March 31, 2018 and 2019

Question:10
Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:

Solution:

Comparative Income Statement

for the year ended March 31, 2018 and 2019

Page No. 3.36

Question:11
From the following Information, prepare Comparative Statement of Profit and Loss:

Solution:

Comparative Income Statement

for the year ended March 31, 2018 and 2019

Working Notes:
WN1 Computation of Other Income

WN2 Computation of Expenses


Question:12
From the following information, prepare Comparative Statement of Profit and Loss showing increase, decrease and percentage:

Solution:

Comparative Income Statement

for the year ended 31st March, 2018 and 2019

Working Notes:
WN1 Computation of Revenue from Operations

WN2 Computation of Other Expenses


Question:13
From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:

Notes to Accounts

Solution:

Comparative Income Statement

for the year ended March 31, 2018 and 2019

Page No. 3.37

Question:14
Prepare Comparative Statement of Profit and Loss from the following information:

Solution:

Comparative Income Statement

for the year ended March 31, 2018 and 2019

Question:15

From the following Statement of Profit and Loss of Antriksh Ltd. for the year ended 31st March, 2012 and 2013, Prepare
Comparative Statement of Profit and Loss:

Rate of Income Tax was 40%.
Solution:

Comparative Income Statement

for the year ending March 31, 2012 and 2013

Question:16
From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:

Notes to Accounts

Solution:

Comparative Income Statement

for the year ended March 31, 2018 and 2019

Page No. 3.38

Question:17
From the following Statement of Profit and Loss of Star Ltd., for the year ended 31st March, 2015 and 2016, prepare a Common-size statement:

Solution:

Common Size Statement of Profit and Loss

for the year ended March 31, 2015 and 2016

Question:18
Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:

Solution:

Common Size Income Statement

for the year ended March 31, 2018

Page No. 3.39

Question:19
Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:


Solution:

Common Size Income Statement

for the year ended.....

Question:20
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:

Solution:

Common Size Balance Sheet

as at March 31, 2019

Comments:
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. emphasises more on Current Assets as these are 33.33% of the total applications of funds in comparison to 11.11% of star Ltd.