Question

From the given balance sheet of Geox Ltd., prepare Common Size Balance Sheet:

BALANCE SHEET of Geox Ltd. as at 31st March, 2023
Particulars	Note No.	31st March, 2023 (₹)	31st March, 2022 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		4,00,000	2,50,000
2. Non-current Liabilities
(a) Long-term Borrowings		2,00,000	1,50,000
3. Current Liabilities
Trade Payables		2,00,000	1,00,000
Total		8,00,000	5,00,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets/Property, Plant and Equipment and Intangible Assets		4,00,000	3,50,000
2. Current Assets
(a) Inventories		2,00,000	70,000
(b) Trade Receivables		2,00,000	80,000
Total		8,00,000	5,00,000

Answer 1

Common Size Balance Sheet of Geox Ltd. (As of 31st March, 2022 and 31st March, 2023)
Particulars	Note No.	Absolute Amount 31st March, 2022 (₹)	Absolute Amount 31st March, 2023 (₹)	Percentage of Total 31st March, 2022 (%)	Percentage of Total 31st March, 2023 (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		2,50,000	4,00,000	50.00%	50.00%
2. Non-current Liabilities
(a) Long-term Borrowings		1,50,000	2,00,000	30.00%	25.00%
3. Current Liabilities
Trade Payables		1,00,000	2,00,000	20.00%	25.00%
Total Equity and Liabilities		5,00,000	8,00,000	100.00%	100.00%
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets / PPE & Intangible Assets		3,50,000	4,00,000	70.00%	50.00%
2. Current Assets
(a) Inventories		70,000	2,00,000	14.00%	25.00%
(b) Trade Receivables		80,000	2,00,000	16.00%	25.00%
Total Assets		5,00,000	8,00,000	100.00%	100.00%

Working Notes:

$$\text{Percentage of Total} = \frac{\text{Amount of Individual Item}}{\text{Total Assets or Total Liabilities}} \times 100$$ 

Share Capital for 2022 = `(2,50,000)/(5,00,000) xx 100`

= 50.00%

Inventories for 2023 = `(2,00,000)/(8,00,000) xx 100`

= 25.00%