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Question
Balance Sheet of Olam Ltd. for the year ending 31st March, 2021 is given below:
| Balance Sheet as on 31st March, 2021 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Equity Share Capital | 4,50,000 | Fixed Assets | 4,50,000 |
| Preference Share Capital | 40,000 | Investments | 75,000 |
| Reserved and surplus | 75,000 | Current Assets | 3,65,000 |
| Secured Loans | 1,50,000 | ||
| Unsecured Loans | 1,00,000 | ||
| Current Liabilities | 75,000 | ||
| 8,90,000 | 8,90,000 | ||
You are required to prepare common size statement for the year ending 31st March, 2021:
Ledger
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Solution
| In the books of Olam Ltd. Common size Balance Sheet as on 31st March, 2021 |
||||
| Particulars | Amount (₹) | Amount (₹) | Percentage (%) | |
| 1. | Sources of funds | |||
| Owner’s equity: | ||||
| Equity share capital | 4,50,000 | 55.22% | ||
| Preference share capital | 40,000 | 4.91% | ||
| Reserves and surplus | 75,000 | 9.20% | ||
| (A) Net Worth | 5,65,000 | 69.33% | ||
| 2. | Borrowed funds | |||
| Secured loan | 1,50,000 | 18.40% | ||
| Unsecured loan | 1,00,000 | 12.27% | ||
| (B) Total Borrowed Fund | 2,50,000 | 30.67% | ||
| Total funds available (A) + (B) | 8,15,000 | 100% | ||
| 3. | Application of funds | |||
| 1. Fixed assets | 4,50,000 | 55.22% | ||
| 2. Investments | 75,000 | 9.20% | ||
| 3. Working capital | ||||
| (a) Current assets | 3,65,000 | |||
| less (b) Current liabilities | 75,000 | |||
| Net Working capital (A) – (B) | 2,90,000 | 35.58% | ||
| Total funds employed (1) + (2) + (3) | 8,15,000 | 100% | ||
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