Home » Commerce for 11th and 12th Standard Students » DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 4 Common Size Statements

DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 4 Common Size Statements

DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 4 Common Size Statements which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at CoolGyan’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. Learn more concepts in Accountancy, however, the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is required.

DK Goel Solutions Class 12 – Chapter 4 – Part B

Question 1

The following data is related to Cambridge Ltd.

(₹ in lakhs)

Particulars31.03.201931.03.2018
Equity Share Capital1616
Preference Share Capital22
Reserves and Surplus5.44
Non-Current Liabilities14.414
Current Liabilities7.24
Non-Current Assets30.6028
Current Assets14.412

Now, you are required to prepare a Common Size Balance Sheet.

Solution:

CAMBRIDGE LTD.

COMMON SIZE BALANCE SHEET

As at 31.3.2018 and 31.3.2019

(₹ in lakhs)

ParticularsNote No.Absolute Amounts% of Balance Sheet Total
2018201920182019
%%
EQUITY AND LIABILITIES:
Shareholders’ Funds
Share Capital181845 (i)40 (iv)
Reserves and Surplus45.410 (ii)12 (v)
Non-Current Liabilities1414.435 (iii)32 (vi)
Current Liabilities47.21016
TOTAL4045100100
ASSETS
Non-Current Assets2830.67068
Current Assets1214.43032
TOTAL4045100100

Question 2

Following is the Statement of Profit and Loss of Crown Ltd. for the year ended 31.3.2018:

ParticularsAmount (₹)
Income:
Revenue from operations2,00,000
Other Incomes15,000
Total Revenue2,15,000
Expenses:
Cost of Materials Consumed1,10,000
Other Expenses5,000
Total Expenses1,15,000
Tax40,000

You are required to prepare a common size statement of P & L of Crown Ltd. for the year ended 31.03.2018.

Solution:

CROWN LTD.

COMMON SIZE INCOME STATEMENT

As at 31.3.2018

ParticularsNote No.Absolute Amounts

% of Revenue from Operations
Revenue from Operations2,00,000100
Other Incomes15,0007.5
Total Revenue (Revenue from Operations + Other Incomes)2,15,000107.5
Expenses:
Cost of Materials Consumed1,10,00055
Other Expenses5,0002.5
Total Expenses1,15,00057.5
Profit before Tax (Total Revenue – Expenses)1,00,00050
Less: Tax40,00020
Profit after tax (Profit before Tax – Tax)60,00030

Question 3

What are Common Size Statements?

Answer: Common Size Statements express all items of a financial statement as a % of some common base such as revenue from operations for P & L statement and total assets for the balance sheet.

Stay tuned to CoolGyan’S for more DK Goel solutions, question papers, sample papers, syllabus and Commerce notifications.