MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Advantages of Shares

why the

Question

why the % total of assets liabilities of common size balance sheet should be 100.

Open in App

Solution

In Common Size Balance Sheet, each Asset/Liability is expressed as a percentage of Total Assets/Total Liabilities. Total Assets/Total Liabilities are taken as 100 and all the figures are expressed as percentage of total. Therefore, the total of the percentage column should add to 100.

Suggest Corrections

thumbs-up

0

Similar questions

Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:

Particulars	Aditya Ltd. Rs.	Anjali Ltd. Rs.
I. Equity and Liabilities
a) Equity share capital	6,00,000	8,00,000
b) Reserves and surplus	3,00,000	2,50,000
c) Current liabilities	1,00,000	1,50,000
Total	10,00,000	12,00,000
II. Assets
a) Fixed assets	4,00,000	7,00,000
b) Current assets	6,00,000	5,00,000
Total	1,00,0000*	12,00,000

*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.

In common size Balance Sheet , total of assets and liabilities is assumed to be equal to ________.

Q. Choosing a common base (as 100), for example, sales revenue total may be taken as base (100) in case of income statement, and total assets or total liabilities (100) in case of balance sheet, is step ____ in the procedure adopted for preparing common size income statements.

Q. A common size balance sheet shows the percentage of each asset to the ________, and that of each liability to the ______.

Q. Prepare a common size Balance Sheet of KJ Ltd. from the following information:

	Particulars	Note No.	31.3.2017 Rs.	31.3.2016 Rs.
I-	Equity and Liabilities:-
1.	Shareholder's Funds		$8, 00, 000$	$4, 00, 000$
2.	Non-current Liabilites		$5, 00, 000$	$2, 00, 000$
3.	Current Liabilities		$3, 00, 000$	$2, 00, 000$
		Total	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 16, 00, 000 - --------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 00, 000 - -------- -$
II-	Assets
1.	Non-current Assets		$10, 00, 000$	$5, 00, 000$
2.	Current Assets		$6, 00, 000$	$3, 00, 000$
		Total	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 16, 00, 000 - --------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 00, 000 - -------- -$

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Why to Invest in a Company?

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Advantages of Shares

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon