Question

Following is the balance sheet of Varad Company Ltd as on 31.03.2019 and 31.03.2020 is given as below:

Liabilities	31.3.2019 (₹)	31.3.2020 (₹)	Assets	31.3.2019 (₹)	31.3.2020 (₹)
Share Capital	2,50,000	3,70,000	Fixed assets	3,50,000	5,70,000
Reserve and Surplus	60,000	1,00,000	Investment	1,20,000	1,70,000
Secured Loans	1,00,000	1,60,000	Current Assets	1,30,000	1,20,000
Unsecured Loons	90,000	1,40,000
Current Liabilities	1,00,000	90,000
	6,00,000	8,60,000		6,00,000	8,60,000

You are required to prepare Comparative Balance Sheet of Varad Company Ltd. as on 31.03.2019 & 31.03.2020.

Answer 1

Comparative Balance Sheet of Varad Company Ltd. as on 31st March, 2019 and 31st March, 2020
Particulars	31.3.2019 (₹)	31.3.2020 (₹)	Absolute change (₹)	Percentage change (%)
(I) Source of Funds
(a) Share Capital	2,50,000	3,70,000	1,20,000	48% Increase
(b) Reserves and Surplus	60,000	1,00,000	40,000	66.67% Increase
Total Funds Available	3,10,000	4,70,000	1,60,000	51.61% increase
(II) Borrowed Funds
(a) Secured Loon	1,00,000	1,60,000	60,000	60% increase
(b) Unsecured Loan	90,000	1,40,000	50,000	55.55% increase
Total Borrowed Fund	1,90,000	3,00,000	1,10,000	57.89% increase
Total Fund Available (A + B)	5,00,000	7,70,000	2,70,000	54% Increase
Application of Funds
(a) Fixed Assets	3,50,000	5,70,000	2,20,000	62.86% Increase
(b) Investment	1,20,000	1,70,000	50,000	41.67% Increase
(c) Working capital:
Current Assets	1,30,000	1,20,000	(10,000)	(7.69%) Decrease
Less: Current liabilities	1,00,000	90,000	(10,000)	(10%) Decrease
Working Capital (Current Asset - Current Liabilities)	30,000	30,000	Nil	Nil
Total Funds Applied (a + b + c)	5,00,000	7,70,000	2,70,000	54% Increase

Working Notes:

`"Amount of Absolute Change"/"Amount of Previous Year" xx 100`

= `(1,20,000)/(2,50,000) xx 100`

= 48%