Financial Statement AnalysisIllustration 4 (Commonsize Balance sheets of the same firm)Dhandapani & Co. Ltd., furnishes the following Balance sheets for the years1997 and 1998. Prepare common-size balance sheets.LiabilitiesShare capitalReserves10% DebenturesCreditorsBills payableTax payableBalance sheetsAssets19971998Rs.Rs.2,00,000 3,00,000 Buildings6,00,000 7,00,000 Machinery2,00,000 3,00,000 Stock3,00,000 5,00,000 Debtors1,00,0001,00,000 1,20,00015,00,000 20,00,00080,000 Cash at Bank19971998Rs.Rs.4,00,000 4,00,0006,00,000 10,00,0002,00,000 3,00,0002,00,000 2,50,0001,00,00050,00015,00,000 20,00,000

A balance sheet with a common size shows the absolute amount as well as the proportionate percentage…

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monsize ». Ltd., furnishes the following Balan re common-size balance sheets. Balance sheets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Financial Statement Analysis
Illustration 4 (Commonsize Balance sheets of the same firm)
Dhandapani & Co. Ltd., furnishes the following Balance sheets for the years
1997 and 1998. Prepare common-size balance sheets.
Liabilities
Share capital
Reserves
10% Debentures
Creditors
Bills payable
Tax payable
Balance sheets
Assets
1997
1998
Rs.
Rs.
2,00,000 3,00,000 Buildings
6,00,000 7,00,000 Machinery
2,00,000 3,00,000 Stock
3,00,000 5,00,000 Debtors
1,00,000
1,00,000 1,20,000
15,00,000 20,00,000
80,000 Cash at Bank
1997
1998
Rs.
Rs.
4,00,000 4,00,000
6,00,000 10,00,000
2,00,000 3,00,000
2,00,000 2,50,000
1,00,000
50,000
15,00,000 20,00,000

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Step 1 Format of Common Size Balance Sheet

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Step 2 Common size balance sheet of Dhandapani & Co. Ltd.

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Step 3 Calculation of Percentage

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Step 4 Common size balance sheet of Dhandapani & co. ltd. in Tabular Form

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