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Question
From the following information, prepare a Common-size Balance Sheet:
| Particulars | 31st March, 2026 (₹) | 31st March, 2025 (₹) |
| Shareholders’ Funds | 5,40,000 | 3,60,000 |
| Non-current Liabilities | 1,80,000 | 1,80,000 |
| Current Liabilities | 1,80,000 | 60,000 |
| Non-current Assets | 6,30,000 | 4,20,000 |
| Current Assets | 2,70,000 | 1,80,000 |
Ledger
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Solution
| Common-size Balance Sheet (As of 31st March, 2025 and 31st March, 2026) |
||||
| Particulars | Absolute Amounts 31st March, 2025 (₹) |
Absolute Amounts 31st March, 2026 (₹) |
Percentage of Total 31st March, 2025 (%) |
Percentage of Total 31st March, 2026 (%) |
| I. EQUITY AND LIABILITIES | ||||
| 1. Shareholders’ Funds | 3,60,000 | 5,40,000 | 60.00% | 60.00% |
| 2. Non-current Liabilities | 1,80,000 | 1,80,000 | 30.00% | 20.00% |
| 3. Current Liabilities | 60,000 | 1,80,000 | 10.00% | 20.00% |
| Total Equity and Liabilities | 6,00,000 | 9,00,000 | 100.00% | 100.00% |
| II. ASSETS | ||||
| 1. Non-current Assets | 4,20,000 | 6,30,000 | 70.00% | 70.00% |
| 2. Current Assets | 1,80,000 | 2,70,000 | 30.00% | 30.00% |
| Total Assets | 6,00,000 | 9,00,000 | 100.00% | 100.00% |
Working Notes:
In a Common-size Balance Sheet, the Total Assets or Total Equity and Liabilities is taken as the base (100%). Every individual line item is calculated as a percentage of this total.
Total Equity & Liabilities (2025) = ₹ 3,60,000 + ₹ 1,80,000 + ₹ 60,000
= ₹ 6,00,000
Total Equity & Liabilities (2026) = ₹ 5,40,000 + ₹ 1,80,000 + ₹ 1,80,000
= ₹ 9,00,000
$$\text{Percentage of Total} = \frac{\text{Amount of Individual Item}}{\text{Total Assets or Liabilities}} \times 100$$
Shareholders’ Funds for 2025 = `(3,60,000)/(6,00,000) xx 100`
= 60.00%
Shareholders’ Funds for 2026 = `(5,40,000)/(9,00,000) xx 100`
= 60.00%
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