(a) List any four items that are shown under the sub-heading 'Cash and Cash Equivalents' as per Schedule III of the Companies Act, $2013$ .
(b) What is meant by a 'Common Size Statement'?

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Solution

(a) Cash and Cash Equivalents include the following items.
(i) Balances with Bank
(ii) Cheques and drafts-on-hand
(iii) Cash on hand
(iv) Others, including any short term investments
(b) Those statements in which the individual figures of components of statement are converted into percentages to a common base are termed as Common Size Statements. Percentage of each individual item reflects its relation to the respective total. This type of analysis is also known as vertical analysis These statements can be prepared for Balance Sheet as well as Statement of Profit and Loss.

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The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-Heads mentioned which were not as per Schedule III of the Companies Act, 2013

$\begin{matrix} Items & Major Head/Sub-head Loose Tools & Trade Receivables Cheques in Hand & Currnt Investments \end{matrix}$

You are required to represent the items as per the Companies Act, 2013.

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(a) List any four items that are shown under the sub-heading 'Cash and Cash Equivalents' as per Schedule III of the Companies Act, 2013. (b) What is meant by a 'Common Size Statement'?

(a) List any four items that are shown under the sub-heading 'Cash and Cash Equivalents' as per Schedule III of the Companies Act, $2013$ .
(b) What is meant by a 'Common Size Statement'?