Question

Prepare a Common-size income statement of Shefali Ltd. with the help of following information: Particulars 2015-16 Rs. 2016-17 Rs. Sales 6,00,000 8,00,000 Gross profit 50% of sales 45% of sales Indirect expense 25% of gross profit 25% of gross profit Less: Cost of goods sold 4,28,000 7,28,000 Other incomes 10,000 12,000 Income tax 30% 30%

Answer 1

Given :Shefali Ltd. with the help of following information: Particulars 2015-16 Rs. 2016-17 Rs. Sales 6,00,000 8,00,000 Gross profit 50% of sales 45% of sales Indirect expense 25% of gross profit 25% of gross profit Less: Cost of goods sold 4,28,000 ………..

Complete question is in the attachment.

Concept :  

Comparative common size balance sheet :

• The common size statements are shown in analytical percentages. The figures of these statements are shown as percentage of Total assets, Total liabilities and revenue from operations.

• Common size balance sheets are those in which figures of amount are converted into percentage to some common base.

• In COMMON SIZE INCOME STATEMENT, revenue from operations is taken as 100 and all figures of cost expenses are expressed as percentage (%) to sales.

Under Equity and liabilities heading in a Balance sheet :  

1. Shareholders funds :

• Share capital
• Reserves and surplus
• Money received against share warrants

2. Share application money pending allotment

3. Non current liabilities :

• Long term borrowings
• Deferred tax liabilities
• Other long term liabilities
• Long term provisions

4. Current liabilities :  

• Short term borrowings
• Trade payables
• Other current liabilities
• Short term provisions

Under Assets heading in a Balance sheet :  

1. Non current assets :

• (A) Fixed assets -  

1. Tangible assets
2. Intangible assets
3. Capital work in progress
4. Intangible assets under development

• (B) non current Investments
• (C) deferred tax assets
• (D) Long term loans and advances
• (E) Other non current Assets

2. Current assets :  

• Current Investments
• Inventories
• Trade receivables
• Cash and cash equivalents
• Short term loans and advances
• Other current assets

The Common Size income statement of Shefali Ltd. is in the attachment below :  

Hope this answer will help you..

Some more questions of this chapter :  

Following are the balance sheets of Beta Ltd. at March 31st, 2016 and 2017: Particulars 2017 Rs. 2016 Rs. I. Equity and Liabilities Equity share capital 4,00,000 3,00,000 Reserves and surplus 1,50,000 1,00,000 Loan from IDBI 3,00,000 1,00,000 Short-term borrowings 70,000 50,000 Trade payables 60,000 30,000 Short-term provisions 10,000 20,000 Other current liabilities 1,10,000 …….

https://brainly.in/question/17093546

 

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.

https://brainly.in/question/17093548