Question

X Ltd. decided to set up a charitable dispensary to provide free medical facilities to the weaker sections of the society. Following data is derived from the Company books:

$\begin{array}{ccc}\text{Particulars}& \mathrm{31.03.2017}& \mathrm{31.03.2016}\\ & \text{Rs.}& \text{Rs.}\\ \text{Share Capital}& 3,00,000& 2,40,000\\ \text{Reserve and Surplus}& 80,000& 70,000\\ \text{Trade Payables}& 1,00,000& 1,10,000\\ \text{Trade Receivables}& 1,90,000& 1,80,000\\ \text{Short Term Provisions}& 40,000& 15,000\\ \text{Fixed Assets}& 2,90,000& 2,30,000\\ \text{Long Term Provisions}& 80,000& 65,000\\ \text{Current Investments}& 10,000& 8,000\\ \text{Inventory}& 1,01,000& 72,000\\ \text{Cash and Cash Equivalents}& 9,000& 10,000\end{array}$

You are required to:

(a) Prepare a Common Size Balance Sheet, and

(b) Identify the value involved.

Answer 1

$\text{X LTD.}$
$\text{COMMON SIZE BALANCE SHEET}$
$\text{as at 31st March, 2016 and 2017}$
$\begin{array}{cccccc}\text{Particulars}& \text{Note}& \text{Absolute}& \text{Amounts}& \text{Percentage of}& \text{Balance Sheet Total}\\ & \text{No.}& 2016& 2017& 2016& 2017\\ & & \text{Rs}.& \text{Rs}.& \%& \%\\ \text{I. EQUITY AND LIABIITIES:}& & & & & \\ \text{1. Shareholder's Fund}& & & & & \\ \text{(a) Share Capital}& & 2,40,000& 3,00,000& 48.00& 50.00\\ \text{(b) Reserve and Surplus}& & 70,000& 80,000& 14.00& 13.33\\ \text{2. Non Current Liabilities}& & & & & \\ \text{Long term Provisions}& & 65,000& 80,000& 13.00& 13.33\\ \text{3. Current Liabilities}& & & & & \\ \text{(a) Trade payables}& & 1,10,000& 1,00,000& 22.00& 16.67\\ \text{(b) Short term Provisions}& & 15,000& 40,000& 3.00& 6.67\\ \text{Total}& & \overline{\underset{–}{5,00,000}}& \overline{\underset{–}{6,00,000}}& \overline{\underset{–}{100.00}}& \overline{\underset{–}{100.00}}\\ \text{II. ASSETS :}& & & & & \\ \text{1. Non Current Assets :}& & & & & \\ \text{(a) Fixed Assets}& & 2,30,000& 2,90,000& 46.00& 48.33\\ \text{2. Current Assets :}& & & & & \\ \text{(a) Current Investments}& & 8,000& 10,000& 1.60& 1.67\\ \text{(b) Inventory}& & 72,000& 1,01,000& 14.40& 16.83\\ \text{(c) Trade Receivables}& & 1,80,000& 1,90,000& 36.00& 31.67\\ \text{(d) Cash \& Cash Equivalents}& & 10,000& 9,000& 2.00& 1.50\\ \text{Total}& & \overline{\underset{–}{5,00,000}}& \overline{\underset{–}{6,00,000}}& \overline{\underset{–}{100.00}}& \overline{\underset{–}{100.00}}\end{array}$

(b) Value involved: Sympathy / Charity : By Providing free medical facilities to weaker sections of the society.