Question

Following are the summarized Balance Sheets of R.P. Ltd. Prepare a Comparative as well as Common-Size Balance Sheet:

Particulars		Note No.	31.3.2023 (₹)	31.3.2023 (₹)
I.	EQUITY AND LIABILITIES:
	Shareholder’s Funds:
	Share Capital		9,00,000	7,50,000
	Reserve & Surplus		2,25,000	1,50,000
	Non-Current Liabilities		3,00,000	4,20,000
	Current Liabilities		5,55,000	5,85,000
	TOTAL		19,80,000	19,05,000
II.	ASSETS:
	Non-Current Assets		11,55,000	12,45,000
	Current Assets		8,25,000	6,60,000
	TOTAL		19,80,000	19,05,000

Answer 1

Comparative Balance Sheet
Particulars	31.3.2023 (₹)	31.3.2022 (₹)	Absolute Change (₹)	Percentage Change (%)
Share Capital	9,00,000	7,50,000	1,50,000	20.00
Reserve & Surplus	2,25,000	1,50,000	75,000	50.00
Non-Current Liabilities	3,00,000	4,20,000	1,20,000	28.57
Current Liabilities	5,55,000	5,85,000	30,000	5.13
Non-Current Assets	11,55,000	12,45,000	90,000	7.23
Current Assets	8,25,000	6,60,000	1,65,000	25.00

 

Common-Size Balance Sheet
Particulars	31.3.2023 (%)	31.3.2022 (%)
Share Capital	45.45	39.37
Reserve & Surplus	11.36	7.87
Non-Current Liabilities	15.15	22.04
Current Liabilities	28.03	30.71
Non-Current Assets	58.33	65.34
Current Assets	41.67	34.66

Working Note 1: Total Assets / Liabilities.

Year	Amount (₹)
31st March, 2023	19,80,000
31st March, 2022	19,05,000

These totals are used as the base (100%) for calculating the Common-Size percentages.

Working Note 2: Percentage Calculation for Common-Size Statement.

(1) Share Capital (2023): 

`(9,00,000)/(19,80,000)xx100` = 45.45%

(2) Share Capital (2022):

`(7,50,000)/(19,05,000)xx100` = 39.37%

Working Note 3: Change & Percentage (%) Change Calculation for Comparative Statement.

Formula:

• Absolute Change = Current Year − Previous Year
• Percentage (%) Change = `"Absolute Change"/"Previous Year"xx100`

Reserve & Surplus: 

Absolute Change = 3,00,000 − 4,20,000 = 1,20,000

Percentage Change = `(1,20,000)/(4,20,000)xx100` = 28.57%