Question

The following are the balance sheets of Devi Co. Ltd at the end of 2002 and 2003. Prepare a Comparative Balance Sheet and study the financial position of the concern.

Liabilities	2002 Rs	2003 Rs	Assets	2002 Rs	2003 Rs
Equity Capital	1,20,000	1,85,000	Fixed Assets	1,40,000	1,95,000
Preference Capital	70,000	95,000	Stock	40,000	45,000
Reserves	30,000	35,000	Debtors	70,000	82,500
P&L	17,500	20,000	Bills Receivables	20,000	50,000
Bank overdraft	35,000	45,450	Prepaid Expenses	6,000	8,000
Creditors	25,000	35,000	Cash at bank	40,000	48,500
Provision for Taxation	15,000	22,500	Cash in hand	5,000	29,000
Proposed Dividend	8,500	20,050
	3,21,000	4,58,000		3,21,000	4,58,000

Answer 1

Comparative Balance Sheet of Devi Co Ltd.
Particulars		2002	2003	Absolute Increase (+) or Decrease (–)	Percentage Increase (+) or Decrease (–)
		Rs	Rs	Rs	%
Assets:
	Current Assets
	Stock	40,000	45,000	+ 5,000	+ 12.50
	Debtors	70,000	82,500	+ 12,500	+ 17.86
	Bills Receivables	20,000	50,000	+ 30,000	+ 150.00
	Prepaid Expenses	6,000	8,000	+ 2,000	+ 33.33
	Cash at Bank	40,000	48,500	+ 8,500	+ 21.25
	Cash in hand	5,000	29,000	+ 24,000	+ 480.00
	Total Current Assets (A)	1,81,000	2,63,000	+ 82,000	+ 45.30
	Fixed Assets (B)	1,40,000	1,95,000	+ 55,000	+ 39.29
	Total Assets (A+B)	3,21,000	4,58,000	+ 1,37,000	+ 42.68
Liabilities:
	Current Liabilities
	Bank Overdraft	35,000	45,450	+ 10,450	+ 29.86
	Creditors	25,000	35,000	+ 10,000	+ 40.00
	Provision for Taxation	15,000	22,500	+ 7,500	+ 50.00
	Proposed Dividend	8,500	20,050	+ 11,550	+ 135.88
	Total Current Liabilities (A)	83,500	1,23,000	+ 39,500	+ 47.31
	Equity Capital	1,20,000	1,85,000	+ 65,000	+ 54.17
	Preference Capital	70,000	95,000	+ 25,000	+ 35.71
	Reserves	30,000	35,000	+ 5,000	+ 16.67
	P&L	17,500	20,000	+ 2,500	+ 14.29
	Shareholder Fund (B)	2,37,500	3,35,000	+ 97,500	+ 41.05
	Total Liabilities and Shareholder Fund (A+B)	3,21,000	4,58,000	+ 1,37,000	+ 42.68