Question

The following balance sheets relate to Modem Computers Ltd. convert these into common size balance sheet and interpret the same:

BALANCE SHEETS as at 31st March
Particulars	Note No.	2024 (₹)	2023 (₹)
I. EQUITY AND LIABILITIES:
1. Shareholder’s Funds:
(a) Share Capital		3,00,000	3,00,000
(b) Reserves and Surplus		6,50,000	4,36,000
2. Non-Current Liabilities:
Long-term Borrowings		2,50,000	2,00,000
3. Current Liabilities:
(a) Trade Payables		2,85,000	2,40,000
(b) Short term Provisions		15,000	24,000
Total		15,00,000	12,00,000
II. ASSETS:
1. Non-Current Assets:
(a) Property, Plant and Equipment and Intangible Assets		5,00,000	5,00,000
(b) Non-Current Investments		3,10,000	1,96,000
2. Current Assets:
(a) Inventory		3,69,000	2,58,000
(b) Trade Receivables		2,25,000	1,98,000
(c) Cash & Bank Balance		96,000	48,000
Total		15,00,000	12,00,000

Answer 1

Modem Computers Ltd. Common Size Balance Sheet for Modem Computers Ltd.  as on 31st March 2023 and 2024
Particulars	Note No.	Absolute Amounts		Percentage of Balance Sheet Total
		2024 (₹)	2023 (₹)	2024 (%)	2023 (%)
I. EQUITY AND LIABILITIES:
1. Shareholder’s Funds:
(a) Share Capital		3,00,000	3,00,000	20.00	25.00
(b) Reserves and Surplus		6,50,000	4,36,000	43.33	36.33
2. Non-Current Liabilities:
Long-term Borrowings		2,50,000	2,00,000	16.67	16.67
3. Current Liabilities:
(a) Trade Payables		2,85,000	2,40,000	19	20
(b) Short term Provisions		15,000	24,000	1	2
Total		15,00,000	12,00,000	100.00	100.00
II. ASSETS:
1. Non-Current Assets:
(a) Property, Plant and Equipment and Intangible Assets		5,00,000	5,00,000	33.33	41.67
(b) Non-Current Investments		3,10,000	1,96,000	20.67	16.33
2. Current Assets:
(a) Inventory		3,69,000	2,58,000	24.60	21.50
(b) Trade Receivables		2,25,000	1,98,000	15.00	16.50
(c) Cash & Bank Balance		96,000	48,000	6.40	4.00
Total		15,00,000	12,00,000	100.00	100.00