DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 4 Common Size Statements

DK Goel Accountancy Class 12 Solutions 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. Click here to 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 BALANCE SHEET

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.

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