Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    Common Size Statements: Particulars

    Uploaded by

    Chandan Gupta
    The document provides information on common size statements including: 1. It defines common size statements as financial statement figures converted to percentages of a common base like revenue or total assets. 2. It explains the purposes of common size statements which include comparing performance over time and between companies and identifying strong/weak points. 3. It provides sample formats for common size balance sheets and income statements, with percentages of total assets or revenue respectively. 4. It includes sample questions for preparing common size statements from given financial information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Common Size Statements: Particulars

    Uploaded by

    Chandan Gupta
    45 views3 pages
    The document provides information on common size statements including: 1. It defines common size statements as financial statement figures converted to percentages of a common base like revenue or total assets. 2. It explains the purposes of common size statements which include comparing performance over time and between companies and identifying strong/weak points. 3. It provides sample formats for common size balance sheets and income statements, with percentages of total assets or revenue respectively. 4. It includes sample questions for preparing common size statements from given financial information.

    Original Description:

    Format and Sums

    Original Title

    COMMONSIZE STATEMENTS

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides information on common size statements including: 1. It defines common size statements as financial statement figures converted to percentages of a common base like revenue or total assets. 2. It explains the purposes of common size statements which include comparing performance over time and between companies and identifying strong/weak points. 3. It provides sample formats for common size balance sheets and income statements, with percentages of total assets or revenue respectively. 4. It includes sample questions for preparing common size statements from given financial information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views3 pages

    Common Size Statements: Particulars

    Uploaded by

    Chandan Gupta
    The document provides information on common size statements including: 1. It defines common size statements as financial statement figures converted to percentages of a common base like revenue or total assets. 2. It explains the purposes of common size statements which include comparing performance over time and between companies and identifying strong/weak points. 3. It provides sample formats for common size balance sheets and income statements, with percentages of total assets or revenue respectively. 4. It includes sample questions for preparing common size statements from given financial information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    CLASS XII ACCOUNTANCY

    COMMON SIZE
    STATEMENTS 1
    By CS Chandan Gupta
    BCOM(St. Xavier’s Calcutta),B.Ed, MCOM, MA (Eco), PGDIBO, NET, Company Secretaries, CA (Finalist)

    COMMON SIZE STATEMENTS


    MEANING
    When various figures of financial statements are converted into percentage to some common base
    (Revenue from Operation in case of Profit & Loss and Total Assets in case of Balance Sheet is
    taken as 100), these are called Common Size Statements.

    UTILITY or PURPOSE OF COMMON SIZE STATEMENTS


    i)To present the change in various items in relation to revenue from operations, total assets or total
    liabilities
    ii) To provide a common base for comparison
    iii) To make the data simpler and more understandable
    iv) To establish a relationship
    v) To indicate the strong points and weak points of the concern
    vi)To compare the firm’s performance with the average performance of the industry
    vii) To help in forecasting

    FORMAT OF COMMONSIZE BALANCE SHEET


    COMMON SIZE BALANCE SHEET
    As at 31st march _____ and _____
    PARTICULARS NOTE
    NO
    PREVIOUS
    YEAR
    CURRENT
    YEAR
    PREVIOUS
    YEAR
    CURRENT
    YEAR
    AMOUNT AMOUNT % OF B/S % OF B/S
    (A) (B) TOTAL TOTAL
    =A X 100% =B X 100%
    TOTAL TOTAL
    I. EQUITY AND LIABILITIES:
    1. Shareholder’s Funds:
    (a) Share Capital
    (b) Reserve and Surplus
    2. Non Current Liabilities:
    (a) Long term Borrowings
    (b) Long term Provisions
    3. Current Liabilities:
    (a) Short term Borrowings
    (b) Trade Payables
    (c) Other Current Liabilities
    (d) Short term Provisions
    TOTAL
    II. ASSETS:
    1. Noncurrent Assets:
    (a) Fixed Assets:
    (i) Tangible Assets
    (ii) Intangible Assets
    (b) Non-Current Investments
    (c) Long term Loans and
    Advances
    2. Current Assets:
    (a) Current Investment

    Little Difference for Better Tomorrow. For Free Video Lectures: Click Here
    CLASS XII ACCOUNTANCY
    COMMON SIZE
    STATEMENTS 2
    By CS Chandan Gupta
    BCOM(St. Xavier’s Calcutta),B.Ed, MCOM, MA (Eco), PGDIBO, NET, Company Secretaries, CA (Finalist)

    (b) Inventories
    (c) Trade Receivables
    (d) Cash & Cash Equivalents
    (e) Short –term Loans and
    Advances
    (f) Other Current Assets
    TOTAL

    FORMAT OF COMMON SIZE STATEMENT OF PROFIT & LOSS


    COOMMON SIZE STATEMENT OF PROFIT & LOSS
    For the years ended 31st march ____ and ____
    PARTICULARS NOTE
    NO
    PREVIOUS
    YEAR
    CURRENT
    YEAR
    PREVIOUS
    YEAR
    CURRENT
    YEAR
    AMOUNT AMOUNT % OF REV % OF REV
    (A) (B) FROM OPN FROM OPN
    =A X 100% =B X 100%
    I I
    I. Revenue from Operation
    II. Add: Other Income
    III. TOTAL REVENUE (I+ II)
    IV. Less: Expenses
    a)Cost of Materials Consumed
    b)Purchase of stock in Trade
    c)Changes in Inventories of
    Finished Goods, Work –in-
    Progress and Stock in Trade
    d)Employee Benefit Expenses
    e)Finance Costs
    f)Depreciation and Amortization
    Expenses
    g)Other Expenses
    TOTAL EXPENSES
    V. Profit before Tax (III-IV)
    VI. Less: Tax
    VII. Profit After Tax (V-VI)

    Little Difference for Better Tomorrow. For Free Video Lectures: Click Here
    CLASS XII ACCOUNTANCY
    COMMON SIZE
    STATEMENTS 3
    By CS Chandan Gupta
    BCOM(St. Xavier’s Calcutta),B.Ed, MCOM, MA (Eco), PGDIBO, NET, Company Secretaries, CA (Finalist)

    QUESTION BANK
    Question: 1
    From the following information, prepare Common Size Balance Sheet of A Ltd. and C Ltd. as at
    31.03.2017 and comment on the financial position:
    PARTICULARS NOTE
    NO
    A LTD C LTD
    I. EQUITY AND LIABILITIES:
    1. Shareholder’s Funds 3,00,000 4,00,000
    2. Non-Current Liabilities 2,00,000 3,00,000
    3. Current Liabilities 1,00,000 50,000
    TOTAL 6,00,000 7,50,000
    II. ASSETS:
    1. Noncurrent Assets
    (a) Fixed Assets:
    (i) Tangible Assets
    2,50,000 3,00,000
    (ii) Intangible Assets 1,50,000 1,00,000
    2. Current Assets 2,00,000 3,50,000

    TOTAL 6,00,000 7,50,000

    Question: 2
    From the following information given below, prepare a Common size Statement of Profit & Loss of
    Relay Ltd.
    PARTICULARS 31st March, 2020 31st March, 2019
    Revenue from operations 51,73,000 49,70,000
    Other Income 35,000 40,000
    Purchase of Stock-in Trade 40,50,000 33,20,000
    Change in Inventories (90,000) 1,00,000
    Other Expenses 1,70,000 1,50,000

    Question: 3
    You are given the following information:
    PARTICULARS 31st March, 2019 31st March, 2020
    Revenue from operations 48,00,000 30,00,000
    Purchase of Stock-in-Trade 32,64,000 21,00,000
    Change in Inventories (1,92,000) (90,000)
    Other Expenses 3,36,000 1,50,000
    Other Income 72,000 60,000
    Income Tax (50%)

    THE END

    Little Difference for Better Tomorrow. For Free Video Lectures: Click Here

    You might also like