Advertisements
Advertisements
प्रश्न
Common size statements are prepared ______.
पर्याय
In the form of ratios
In the form of percentages
In both of the above
None of the above
Advertisements
उत्तर
Common size statements are prepared in the form of percentages.
Explanation:
Common size statements, each item is expressed as a percentage of a common base total assets, or revenue from operations in the income statement. This helps easy comparison and analysis of financial data.
APPEARS IN
संबंधित प्रश्न
What is meant by a 'Common Size Statement'?
Following is the Income statements, prepare a Common Size Income Statements of Jayant
Ltd. For the year ended 31-3-2011:
Income Statement of Jayant Ltd.
for the year ended 31.3.2011
| Particulars |
Amount Rs |
| Income: | |
| Sales | 25,38,000 |
| Other Incomes | 38,000 |
| Total Income | 25,76,000 |
| Expenses: | |
| Cost of goods sold | 14,00,000 |
| Operating expenses | 5,00,000 |
| Total Expenses | 19,00,000 |
| Tax | 3,38,000 |
Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.
Select the appropriate answer from the alternatives given below & rewrite the completed statement :
The common size statement requires _____________.
Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:
| Particulars | Aditya Ltd. Rs. |
Anjali Ltd. Rs. |
| I. Equity and Liabilities | ||
|
a) Equity share capital |
6,00,000 | 8,00,000 |
|
b) Reserves and surplus |
3,00,000 | 2,50,000 |
|
c) Current liabilities |
1,00,000 | 1,50,000 |
| Total | 10,00,000 | 12,00,000 |
| II. Assets | ||
|
a) Fixed assets |
4,00,000 | 7,00,000 |
|
b) Current assets |
6,00,000 | 5,00,000 |
| Total | 1,00,0000* | 12,00,000 |
*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.
Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:
|
Particulars |
Note No. |
31st March, 2018 (₹) |
| 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. Net Profit before Tax (I-II) | 5,50,000 |
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 |
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 |
The objective of the common size statement of profit and loss is not to ______.
Prabhu wants to know the main objective of Common Size Statement, help him to choose one:
From the following information, prepare a 'Common Size Statement of Profit and Loss' of GG Ltd. for the year ended 31.3.2021 and 31.3.2022:
| 31.3.2022 | 31.3.2021 | |
| Revenue from operations | 20,00,000 | 10,00,000 |
| Other Income | 2,00,000 | 1,00,000 |
| Expenses | 15,00,000 | 8,00,000 |
| Tax @ 50% |
