DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 4 Common Size Statements which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. Learn more concepts in Accountancy, however, the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is required.
DK Goel Solutions Class 12 – Chapter 4 – Part B
Question 1
The following data is related to Cambridge Ltd.
(₹ in lakhs)
| Particulars | 31.03.2019 | 31.03.2018 |
| ₹ | ₹ | |
| Equity Share Capital | 16 | 16 |
| Preference Share Capital | 2 | 2 |
| Reserves and Surplus | 5.4 | 4 |
| Non-Current Liabilities | 14.4 | 14 |
| Current Liabilities | 7.2 | 4 |
| Non-Current Assets | 30.60 | 28 |
| Current Assets | 14.4 | 12 |
Now, you are required to prepare a Common Size Balance Sheet.
Solution:
CAMBRIDGE LTD.
COMMON SIZE BALANCE SHEET
As at 31.3.2018 and 31.3.2019
(₹ in lakhs)
| Particulars | Note No. | Absolute Amounts | % of Balance Sheet Total | ||
| 2018 | 2019 | 2018 | 2019 | ||
| ₹ | ₹ | % | % | ||
| EQUITY AND LIABILITIES: | |||||
| Shareholders’ Funds | |||||
| Share Capital | 18 | 18 | 45 (i) | 40 (iv) | |
| Reserves and Surplus | 4 | 5.4 | 10 (ii) | 12 (v) | |
| Non-Current Liabilities | 14 | 14.4 | 35 (iii) | 32 (vi) | |
| Current Liabilities | 4 | 7.2 | 10 | 16 | |
| TOTAL | 40 | 45 | 100 | 100 | |
| ASSETS | |||||
| Non-Current Assets | 28 | 30.6 | 70 | 68 | |
| Current Assets | 12 | 14.4 | 30 | 32 | |
| TOTAL | 40 | 45 | 100 | 100 | |
Question 2
Following is the Statement of Profit and Loss of Crown Ltd. for the year ended 31.3.2018:
| Particulars | Amount (₹) |
| Income: | |
| Revenue from operations | 2,00,000 |
| Other Incomes | 15,000 |
| Total Revenue | 2,15,000 |
| Expenses: | |
| Cost of Materials Consumed | 1,10,000 |
| Other Expenses | 5,000 |
| Total Expenses | 1,15,000 |
| Tax | 40,000 |
You are required to prepare a common size statement of P & L of Crown Ltd. for the year ended 31.03.2018.
Solution:
CROWN LTD.
COMMON SIZE INCOME STATEMENT
As at 31.3.2018
| Particulars | Note No. | Absolute Amounts
₹ |
% of Revenue from Operations |
| Revenue from Operations | 2,00,000 | 100 | |
| Other Incomes | 15,000 | 7.5 | |
| Total Revenue (Revenue from Operations + Other Incomes) | 2,15,000 | 107.5 | |
| Expenses: | |||
| Cost of Materials Consumed | 1,10,000 | 55 | |
| Other Expenses | 5,000 | 2.5 | |
| Total Expenses | 1,15,000 | 57.5 | |
| Profit before Tax (Total Revenue – Expenses) | 1,00,000 | 50 | |
| Less: Tax | 40,000 | 20 | |
| Profit after tax (Profit before Tax – Tax) | 60,000 | 30 |
Question 3
What are Common Size Statements?
Answer: Common Size Statements express all items of a financial statement as a % of some common base such as revenue from operations for P & L statement and total assets for the balance sheet.
Stay tuned to BYJU’S for more DK Goel solutions, question papers, sample papers, syllabus and Commerce notifications.
| DK Goel Accountancy Solutions Class 12 – Part B (Chapter wise) | ||
| Chapter 1 Financial Statements of Companies (As per Schedule III) | Chapter 2 Financial Statements Analysis | |
| Chapter 3 Tools for Financial Analysis: Comparative Statements | Chapter 5 Accounting Ratios | |
| Chapter 6 Cash Flow Statement (As per AS – 3 Revised) | ||
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