Question

Fixed Assets of a company increased from ₹ 8,00,000 to ₹ 10,00,000. The percentage change is ______.

Options

• 20%

• 33.3%

• 25%

• 40%

Answer 1

Fixed Assets of a company increased from ₹ 8,00,000 to ₹ 10,00,000. The percentage change is 25%.

Explanation:

To find the percentage change in a Comparative Balance Sheet, the absolute change in the asset value is divided by the base year (original) value and multiplied by 100. In this case, the fixed assets increased by an absolute amount of ₹ 2,00,000 (₹ 10,00,000 − ₹ 8,00,000). Dividing this absolute increase of ₹ 2,00,000 by the base year value of ₹ 8,00,000 results in exactly 0.25, which translates to a 25% increase when converted to a percentage.