Question

X Ltd. was in the business of manufacturing plastic bags. The company decided to manufacture low cost jute bags instead of plastic bags. Following are the Balance Sheets of X Ltd. as at 31st March, 2017 and 2016. * As per Revised Format, Balance Sheet of current year will be given first.

You are require to :

(a) Prepare a Comparative Balance Sheet,

and

(b) Identify any two values which the Company wants to communicate to the society.

$\begin{array}{cccc}\text{Particulars}& \text{Note No}& \mathrm{31.03.2017}\ast & \mathrm{31.03.2016}\\ \text{I. EQUITY AND LIABILITIES:}& & \text{Rs.}& \text{Rs.}\\ \text{1. Shareholder's Funds:}& & & \\ \text{(a) Share Capital}& & 10,00,000& 5,00,000\\ \text{(b) Reserves and Surplus}& & 2,00,000& 3,00,000\\ \text{2. Non-Current Liabilities}& & & \\ \text{3. Long-term Borrowings}& & 8,00,000& 5,00,000\\ \text{4. Current Liabilities}& & & \\ \text{Trade Payables}& & 4,00,000& 2,00,000\\ \text{TOTAL}& & \overline{\underset{–}{\underset{–}{24,00,000}}}& \overline{\underset{–}{\underset{–}{15,00,000}}}\\ \text{II. ASSETS}:& & & \\ \text{1. Non Current Assets}& & & \\ \text{a. Fixed Assets:}& & & \\ \text{(i) Tangible Assets}& & 14,00,000& 8,00,000\\ \text{(ii) Intangible Assets}& & 3,00,000& 2,00,000\\ \text{2. Current Assets}& & & \\ \text{(a) Inventories}& & 5,00,000& 4,00,000\\ \text{(b) Cash and Cash Equivalents}& & 2,00,000& 1,00,000\\ \text{TOTAL}& & \overline{\underset{–}{\underset{–}{24,00,000}}}& \overline{\underset{–}{\underset{–}{15,00,000}}}\end{array}$

Answer 1

COMPARATIVE BALANCE SHEET OF X LTD.
as at 31st March, 2016 and 2017

$\begin{array}{cccccc}& & & & \text{Absolute}& \text{Percentage}\\ \text{Particulars}& \text{Note No.}& \mathrm{31.03.2016}& \mathrm{31.03.2017}& \text{Change}& \text{Change}\\ & & & & (\text{Increase}& (\text{Increase or}\\ & & & & \text{or Decrease}& \text{Decrease})\\ & & \text{A}& \text{B}& \left(\text{B - A = C}\right)& \text{C/A}\times 100\text{D}\\ \text{I. EQUITY AND LIABILITIES:}& & \text{Rs.}& \text{Rs.}& \text{Rs.}& \%\\ \text{(1) Shareholder's Funds:}& & & & & \\ \text{(a) Share Capital}& & 5,00,000& 10,00,000& 5,00,000& 100.00\\ \text{(b)Reserve and Surplus}& & 3,00,000& 2,00,000& (1,00,000)& 33.33\\ \text{(2)Non-Current Liabilities:}& & & & & \\ \text{Long term Borrowings}& & 5,00,000& 8,00,000& 3,00,000& 60.00\\ \text{(3) Current Liabilities}& & & & & \\ \text{Trade Payables}& & 2,00,000& 4,00,000& 2,00,000& 100.00\\ \text{TOTAL}& & 15,00,000& 24,00,000& 9,00,000& 60.00\\ \text{II. ASSETS}:& & & & & \\ \text{(1)Non Current Assets}& & & & & \\ \text{(i) Tangible Assets}& & 8,00,000& 14,00,000& 6,00,000& 75.00\\ \text{(ii) Intangible Assets}& & 2,00,000& 3,00,000& 1,00,000& 50.00\\ \text{(2)Current Assets :}& & & & & \\ \text{(a) Inventories}& & 4,00,000& 5,00,000& 1,00,000& 25.00\\ \text{(b) Cash and Cash Equivalents}& & 1,00,000& 2,00,000& 1,00,000& 100.000\\ \text{TOTAL}& & 15,00,000& 24,00,000& 9,00,000& 60.00\end{array}$