Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 2 Chapter 2 VK Publications Class 12 Part 2 - 2021
2. Given below are the Balance Sheets of Essex Ltd. for the years ended on 31st March, 2018 and 2017. Prepare a Comparative Balance Sheet and comment upon the changes over two years.
| Particulars | Note No. | 1st March,2018 (Rs.) | 31st March, 2017 (Rs.) |
| I.EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 3,00,000 | 3,00,000 | |
| (b) Reserves and Surplus | 65,000 | 50,000 | |
| 2. Non-Current Liabilities | |||
| (a) Long-term Borrowings | 1,50,000 | 1,00,000 | |
| 3. Current Liabilities | |||
| (a) Trade Payables | 2,00,000 | 1,50,000 | |
| Total. | 7,65,000 | 6,00,000 | |
| II. ASSETS | |||
| 1. Non-Current Assetd | |||
| (a) Fixed Assets | 6,15,000 | 5,00,000 | |
| 2. Current Assets | |||
| (a) Cash and Cash Equivalents | 1,50,000 | 1,00,000 | |
| Total | 7,65,000 | 6,00,000 |
Comparitive Balance Sheets of Essex Ltd. As at 31st March, 2017 & 2018
| Particulars | Note | 2016-2017 Rs. | 2017-2018 Rs. | Absolute Change Rs. | Percentage Change % |
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |
| A | B | B - A = C | C/A X 100 = D | ||
| I. Equity & Liabilities | |||||
| 1. Shareholder’s Fund | |||||
| a. Share Capital | 3,00,000 | 3,50,000 | 50,000 | 16.67 | |
| b. Reserve & Surplus | 50,000 | 65,000 | 15,000 | 30.00 | |
| 2. Non – current Liabilities | |||||
| a. Long term Borrowings | 1,00,000 | 1,50,000 | 50,000 | 50.00 | |
| 3. Current Liabilities | |||||
| a. Trade payable | 1,50,000 | 2,00,000 | 50,000 | 33.33 | |
| Total | 6,00,000 | 7,65,000 | 1,65,000 | 27.50 | |
| II. Assets | |||||
| 1. Non – current Assets | |||||
| a. Fixed Assets | 5,00,000 | 6,15,000 | 1,15,000 | 23.00 | |
| 2. Current Assets | |||||
| a. Cash & Cash equivalents | 1,00,000 | 1,50,000 | 50,000 | 50.00 | |
| Total | 6,00,000 | 7,65,000 | 1,65,000 | 27.50 |
Comment: The analysis of the above Comparative Balance Sheet gives the following conclusions:
(i) Share Capitäl has increased by Rs. 50,000, i.e .,16.67% increase.
(ii) Reserves and Surplus have increased by Rs. 15,000, i.e., 30% which reflects the increase in profits.
(iii) Long-term Borrowings has increased by 50% which shows the increased participation of debt capital in business.
(iv) Increase of fixed assets means purchase of fixed Assets partly by issue of share capital and partly by debt capital.
(v) Current Liabilities have increased by 33.33% whereas Current assets have increased by 50%. It has resulted in the imcrease in working capital of the firm.
https://tutorstips.com/financial-statement-analysis-and-its-tools-or-techniques/
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 2 Chapter 2 VK Publications Class 12 Part 2 - 2021", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to V K Publications part 2 class 12.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 2 Chapter 2 VK Publications Class 12 Part 2 - 2021" instantly.
