.....

pr - -· .
examin ation Quest ions

1 Mark Questio n .
1. Which one of the following is not a tool for analysing the financial statement s of a
company? . Sem 112022
(a) Comparat ive Statement s (b) Revaluatio n Account
(c) Cash Flow_Statement (d) Ratio Analysis
Ans (b) Revaluation Accou~t

2 Marks Questio ns
2. From the following particular s of Supreme Ltd., you are required to prepare its common
size balance sheet as at 31st March, 2021. ·
Particulars 1st March, 2021 (f)
Shareholders' Funds 6,00,000
Non-current Assets 8,00,000 .
Working Capital · 1,00,000
Current Liabilities 1,00,000
Total Debt 4,00,000
Sem II 2022
Ans . Common Size Balance Sheet
- Particulars 31st March, % of Balance
2021 ~ Sheet
I. EQUITY & LIABILITIES
Shareholders ' Funds 6,00,000 60%
Non-current Liabilities 3,00,000 30%
Current Liabilities 1,00,000 10%
10,00,000 100%
II. Assets
Current Assets (WN) 2,00,000 20%
. Non-current Assets 8,00,000 80%
10,00,000 100%

Working Note
Working Capital =Current Assets -Current Liabilities
1,00,000 = Current Assets -1,00,000
:. Current Assets = ~ 2,00,000
3. Mention any two commonl y used tools for compariso n of fmancial statement s. 2019
Ans Two commonly used tools for compariso n of financial statements are (any two)
(i) Comparati ve Financial Statements (ii) Common Size Statements
(iii) Ratio Analysis (iv) Cash Flow Statements
238 . Chapterwise ISC Solved Papers Accounts (Class XII)

4. Give any two differences between horizontal analysis and vertical analysis of financial
statements. 201s
Ans Difference between horizontal and vertical analysis
Vertical analysis
Basis Horizontal analysis
Meaning Horizontal anal'i(sis is a procedure in the fundamental Vertical analysis is the method of analysis of
analysis in which the amount of financial information financial statements where each line item.is
over a certain period of time is compared line by line in listed as a percentage of another item to assist
order to make related decisions. decision making.
Objective The main purpose of horizontal analysis is to compare Main purpose of vertical analysis is to compare
line items to calculate the changes over time. changes in percentage terms.
- - - - · - - - - -- - -- = - - - - - - - - - -·
5. What is a common size balance sheet? 2016
Ans Common siz~ balance sheet shows the percentage relation of each asset/liability to total assets/liabilities
including capital. In this, total assets or total equity and liabilities are taken as ·100 and all figures are
expressed as percentage of the total.
/

6. Give any two objectives of preparing common size statements. // / 2015

Ans The objectives of preparing common size statements are as under
(i) To analyse change in individuafitem of the financial statements.
(ii) To study the trend in different items of financial statements.

4 Marks-Questions
7. From the following data, prepare a comparative statement of profit and loss of Simon
Ltd. 2015
Particulars 31st March, 201'4 (~) 31st March, 2013 (t)

Revenue from Oper?tions 15,00,000 12,00,000

Other Income 30,000 20,000
Cost of Materials Consumed 7,00,000 5,50,000

Ans In the Boot{s of Simon Ltd

Comparative Statement of Profit and Loss
for the year ended 31st March, 2014 ·

31st March, 31st March, Absolute Percentage

Particulars
-~ 2014 m 2013 (t) Value~ (%)

I. Revenue
1
from Operations 15,00,000 12,00,000 3,00,000 25
II. Other Income 30,000 20,000 10,000 50
-
Ill. Total Revenue (I+ II) 15,30,000 12,20,000 25.41
3,10,000
-
IV. Expenses
Cost of Material's Consumed 7,00,000 5,50,000 1,50,000 27.27
V. Profit before Tax (Ill - IV) 8,30,000 6.70._000 J,60,000 23.88
financial Statement Analysis
239

8· From the following d~ta, p repare common size

·
balance sheet of Mint Ltd. 2015
Particulars
31st March, 2014 m 31st March, 2013 (f)
Share Capital
1,50,000 1,20,000
Reserves and Surplus
30,000 30,000
Trade Payables
20,000 40,000
Fixed Tangible Assets
2,00,000 1,90,000
Ans In the Boo~s of Mini Ltd
Common Si~e Balance Sheet
as at 31st March I 2014
Percentage of
Absolute Amount
Balance Sheet Total
Particulars
I
31st March, 31st March, 31st March, 31st March1
.. ·- - 2014 (~) 2013 (~) 2014 (%) 2013 (%)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(al Share Capital 1,50,000 1,20,000 75 6,3.16
lb) Reserves and Surplus 30,009 30,000 15 15.79
2. Current Liabilities (Trade payables) 20,000 40,000 10 . 21 .05
Total 2,00,000 1,90,000 100 100
II. ASSETS
1 Non-current Assets
la) Fixed Tangible Assets I 2,00,000· 1,90,000 100 100
Total I 2,00,000 1,90,00~+-=- : 100 100
__1~=-
L___-=..=.·.::;~ --
I

6 Marks Questions
9. Prepare a Comparative Statement of Profit and Loss of Cosmos Ltd. from the .
following information.. · 2020
31st March, 31st March,
Particulars
2019 2018

Revenue frnm operations ~ 20,00,000 ~ 10,00,000

. .
· Purchases of stock-in-trade ~ 12.00.000 I ~ 6,00,000

Charge in inventories of stock-in-trade 25% of 20% of

purchases of purchases of
stock-in-trade stock-in-trade
Other Expenses ~ 1,00,000 ~ 80,000

Tax Rate 40% 40%

)
240 Chapterwise JSC Solved Papers Accounts (Clas )(
s II)

Ans Comparative Statement of Profit and Loss of Cosmos Ltd.

Absolute Change Percentage Cha
Particulars Note No. 2018-19 ~ 2017-18 ~ ~ (%) nge

20,00,000 10,00,000 10,00,000

I. Revenue from Operations 100
20,00,000 10,00,000 .10,00,000
100
II. Expenses
12,00,000 6,00,000 6,00,000
(al Purchases of Stock-in-trade 100
(bl Change in Inventories of
3,00,000 1,20,000 1,80,000
Stock-in-trade 150
1,00,000 80,000 20,000
(cl Other Expenses 25
16,00,000 8,00,000 8,00,000 100
4,00,000 2,00;000 2,00,000 100
Ill. Profit before Tax (I - Ill
IV. (-)Tax® 40% (1 ,60,000l (80,000) (80,000) (lOQ)
1,20,000 1,20,000
V. Profit after Tax 2,40,000
-
100

10. From the following data, prepare a common size balance sheet of Palms Ltd. as at ~1st
March, 2018 ~

(All calculations upto two decimal places)

Particulars 31st March, 2018 (?)

Share Capital 24,00,000

Trade Payables 2,40,000
Property, Plant and Equipment 20,00,000
Fixed Assets (Intangible) 2,00,000 ·
Reserves and Surplus 3,60,000
Cash and Bank Balances 8,00,000
Short-term !.eans and Advances 2,00,000
Short-term Borrowings 40,000
Long-term Borrowings 1,60,000
2019

Ans Common Size Balance Sheet

as at 31st March, 2018
Absolute % of Balance
Particulars Note No.
Amount Sheet Total
2018 ro . 2018 ~

I. EQUITY AND LIABILITIES

1. Shareholders' Fund
(a) Share Capital 24,00,000 75
(b) Reserve and Surplus 3,60,000 11.25
2. Non-current Liabilities
(a) Long-term Borrowings 1,60,000 5
 . statement Analysis 241
~nancia 1 .

Particulars Absolute 1/o of Balance

Note No.
- Amount Sheet Total
3. Current Liabilities
(a) Short-term Borrowings
40,000 1.25
(bl Trade Payables
2.40,000 7.50
Total
32,00,000 100
U. ASSETS
1. Non-current Assets
(a) Property, Plant and Equipment and
'
Intangible Assets
(i) Property, Plant and Equipment 20,00,000 62.50
(ii) Intangible Assets 6.25
2,00,000
2. Current Assets
(a) Cash and Cash Equivalents 8,00,000 25
(bl Short-term Loans and Advances 2,00,000 6.25
Total 32,00,000 100

11. From the following information, prepare a co~on size statement of profit and loss of
Prudence Ltd for the.year ending 31st March, 2017
Particulars 31st March, 2017 ro
Revenue from Operations 20,00,000
Purchases 15,00,000
Changes in Inventories 1,00,000
Other Income (Dividend received) 40,000
Depreciation and Amortization Expenses 60,000
Tax Rate @ 40%
2018
Ans In the Books of Prudence Ltd
Common Size Stat~ment of Profit and loss
for the year ending 31st March, 2017
Note Absolute Percentage of Revenue
Particulars
No. Amount ro from O perat ions
I. Revenue from Operations (Net Sales) 20,00,000 100
II. Other Income (Dividend received) 40,000 2
Ill. Total Revenue·(! + 11) 20.40,000 102
IV. Expenses
(a) Purchase 15,00,000 75
. (bl Changes in Inventories- 1,00,000 5
(cl Depreciation and Amortization Expenses 60,000 3
Total Expenses 16,60,000 83
V. Profit before Tax (Ill - IV) 3,80,000 19
VI. (-)Tax@40% (1 ,52,000) (7.6)
VII. Profit after Tax (V - VI) 2,28,000 11 .4
242 Chapterwise ISC Solved Papers Accounts (Class XII)

12. From the following information, prepare a comparative statement of profit and loss of
Matrix Ltd.
31st March, 31st March,
Particulars 2016(~ 2015 ro

3,00,000 2,50,000
Revenue from Operations
1,70,000 1,50,000
Cost of Material Consumed
20,000 20,000
Interest from Investments
Employee Benefit Expenses 10,000 I
10,000

Tax Rate 50% 50%

2017
Ans In the Boo~s of Matrix Ltd
Comparative Statement of Profit and Loss. :-.
for the year ended at 31st March, 2016 and 2015
Absolute Value Change

Piirticulars Absolute Percentage

2015-16 (~ 2014-1s ro Changero Change(%)
---- --·- - - ---
I.Revenue from Operations 3,00,000 2,50,000 50,000 20
II. 0ther Incomes 20,000 20,000 - -
Ill. Total Revenue (I + 11) 3,20,000 2,70,000 50,000 18.52
IV. Expenses
(a) Cost of Material Consumed 1.70,000 1,50,000 20,000 13.33
(b) Employee Benefit Expenses 10,000 10,000 - -
Total Expenses 1,80,000 1,60,000 20,000 12.5
V. Profit before Tax (Ill-IV) 1,40,000 1, 10,000 30,000 27.27
VI. (-)Tax@50% 70,000 .. 55,000 15,000 27.27
VII. Profit after Tax (V - VI) • 70,000 55,000 15,000 27.27

13. From the following data, prepare a common size statement of profit and los; of Nicholson
Ltd.
Particulars 31st March, 2015 31st March, 2014

Revenue from Operations t 6,00,000 f 4,00,000

Cost of Materials Consumed 60% of Revenue from 50% of Revenue from
Operations Operations
Finance Cost t 10,000 ta,ooo
Tax Rate· 40% of Profit before Tax 40% of Profit before Tax
2016
 ·al statement Analysis 243
fi11anc1

In the Boo~s of Nicholson Ltd

Common Size Statement of Profit and Loss

- _ _ _ __ fo_r_t_h_e .:..
y~~:_nded 31st March, 2015 and 2014
Pa11iculars
I

I Absolute Amount
Percentage of Revenue from
Operations___ _
..

t -2015
-m -
- - - - --- - · - · -- I 2014 (f)
---·
2015 (%l :
0
2014 ( /co)
1. Revenue from Operations
6,00,000 I
-
4,00,000 ,oo I 100
II. Expenses
(a) Cost of Materials Consumed 3,60,000
7 2,00,000 60.00 50.00
(b) Finance Cost
Total Expenses
10,000
3,70,000 I
l 8,000
2,08,000
-
1.67
61 .67
2. 00
52. 00
--·- -- - -
Ill. Profit before Tax (1-11) 2,30,000 I 1,92,000 38.33 48.OD
IV- (-) Tax@40% (92,000) (76,800) (15.33) (19.2O)
V. Profit after Tax (Ill - IV) 28.80
.. _ -- )___~ ,38,000_ 1,15,200 23
-

10 Marks Question
14. From the following data, prepare a common size balance sheet of Teak Wood Ltd.
Note Current year's figures appear in the first column and the previous year's figures are in the second column.
31st March, 31st March,
Particulars
20n m 2012(~
Share Capital 3.00.900 2,40,000
Reserves and Surplus 80,000 70,000
Trade Payables 1,00,000 1,10,000
Trade Receivables , 1,90,000 1,80,000
Short-term Provision 40,000 15,000
_
Property, Plant and Equipment and Intangible Assets 2,90,000 2,30,000
long-term Provision 80,000 65,000
Current Investments 10,000 8,000
Inventory 1,01:000 72,000
Cash.and Cash Equivalents 9,000 10,000

-2014
Ans In the Boo~s of Tea~ Wood Ltd
Common Size Balance Sheet
as at 31st March, 2013 and 31st March, 2012
Note Absolute_Amount °lo of Balance Sheet Total
Particulars
No. 2013 m 2012 ~ 2013 (%) 2012 (%)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 3,00,000 2.40,000 50:00 48
(bl Reserves and Surplus 80,000 70,000 13.33 1
14
244 chapterwise ISC Solved Papers Accounts (Class XII)

Absolute Amount % of Balance SheetTotal

Note
Particulars No. 2012 (t) 2013 (%) 2012 ('3/0 )
2013 (t)
-
2. Non-cunent Liabilities
80,000 65,000 13.33 13
(a) Long-term Provision
3. Current Liabilities
1,00,000 1,10,000 16.67 22
(a) Trade Payables
'--
(b) Short-term Provisions 40,000 15,000 6.67 3

Total 6,00,000 5,00,000 100 100

-·
II. ASSETS
1. Non-current Assets
(a) Property, Plant and Equipment and 2,90,000 2,30,000 48.33 46
Intangible Assets
2. Current Assets
(a) Current Investments · 10,000 8,000 1.67 1.6
(b) Inventory 1,01,000 72,000 1.6.83 14.4
(c) Trade Receivables 1,90,000 1,80,000 31.67 36
(d) Cash and Cash Equivalents . 9,000 10,000 1.50 2
Total · 6,00,000 . 5,00,000 100 100

araitiirtffl Questions.
15.· From the statement of profit and loss, prepare comparative income sta.tement' or statement
of profit and loss of Sai Ram Ltd ·
Particulars _2013 ~ 2012 ~ _
I. Income
'
Revenue from _
Operations 66,00,000 60,00,000
-
Other Income . 1,20,000 1,20,000
Total 61,20,0~
67,20,000
II. Expenses
Purchases of Stock-in-Trade 46,00,000
48,00,000
Changes in Inventories of Stock-in-Trade 2,00,000
2,40,000
Employees Benefit Expenses 1,40,000
- 1,80,000
Finance Cost 1,20,000
1,20,000
Other Expenses 1,60,000
1,80,000
Total 52,20.00°
55,20,000
Ill. Pr~frt (1 - 11)
Tax is Payable @ 50% 9,oo.ooo
12,00,000
financial Statement Analysis 245·

In the Books of Sal Ram Ltd

Comparative Statement o( Profit and Loss
for the years ended 31st March, 2013 and 2012
,,
-
Absolute Percentage ·
31st March, 31st March,
Particulars Change Change
2013 2012
(Increase or (Increase or
(f) (~)
Decrease) (fl Decrease) (%)
I. Revenue from Operations (Sales) 66,00,000 60,00,000 6,00,000 10.00
II. Other Income 1,20,000 1,20,000 - -
Ill. i otal Revenue (I + II) 67,20,000 61 ,20,000 6,00,000 9.80
IV. Expenses I

(a) Purchases of Stock-in-Trade 48,00,000 46,00,000 2,00,000 4.35

(bl Changes in Inventories of Stock-in-Trade 2.40,000 2,00,000 40,000 20.00
(cl Employess Benefit Expenses 1,80,000 1,40,000 40,000 28.57
Id) Finance Costs 1,20,000 1,20,000 " - -
le) Other Expenses 1:80,000 1,60,000 20,000 12.50
Total Expenses . 55,20,000 52,20,000 3,00,000 5.75
V. Profit before Tax 1111 - IV) 12,00,000 9,00,000 3,00,000 33.33
H Income Tax @ 50% 16,00,000) (4,50,000) (1,50,000) (33.33)
VI. Profit after Tax 6,00,000 4,50,000 · 1,50,000 33.33

16. From the following balance sheet of Saransh Ltd, as at 31st March, 2012 ·and 2011,
prepare a comparative balance sheet
2011-12 2010-11
Particulars Note No.
(f) (f)

I. EQUr:V AND LIABILITIES

1. Shareholders' Funds
la) Share Capital 2,80,000 1,80,000
(bl Reserves and Surplus 1,00,000 1,00,000
2. Non-current Liabilities
Long-term Borrowings 80,000 20,000
I

3. Current Liabilities
Trade Payables 50,000 30,000
Total 5,10,000 3,30,000
II. ASSETS .
1. Non-current Assets
(a) Property, Pl~~t and'Equipment and Intangible Assets
Ii) Property, Plant and Equipment 2,80,000 1,80,000
Iii) Intangible Assets 50,000 30,000
lb) Non-current Investments 80,000 50,000
 Chapterwise ISC Solved Papers Accounts (Class XII)
246
- - - - - - - -- - - - - - --- -------- ------- T.. ·----- r 2011-12- ~
Notr. ;-,i,,. '. (t) ' ·11
Particulars I -- - --L-- -- ~)
-L ----
-----· ~ f . ; :
1
2. Current Assets
70,000
(a) Inventories
(bl Cash and Cash Equivalents
Total

Ans In the Boo~s of Saransh Ltd

Comparative Balance Sheet
as at 31st March, 2012 and 2011
Absolute Percentage
2011-12 2010-11 Change Change
Particulars (~) ~) (Increase or (Increase or
Decrease) ~ ) Decrease) (%
-
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
2,80,000 1,80,000 1,00,000 55.55
(a) Share Capital
(bl Reserves and Surplus 1,00,000 1,00,000 - -
2. Non-current Liabilities
60,000
Long-term Borrowings 80,000 .
20,000 300
3. Current Liabilities
Trade Payables 50,000 30,000 20,000 66.67
I

Total ,---
5,10;000 .3,30.000 I · 1,80,000 54.54
I
I

II. ASSETS i I
I
Il
1. Non-current Assets
(a) Property, .Plant and Equipment and Intangible i
i
Assets I
I
I
Ii) Property, Plant and Equipment i 2,80,000 1,80,000 1,00,000 55.55
(ii) Intangible Assets II 50,000 . 30,000 20,000 66.67
I
· (bl Non-current Investments 80,000 l50,000 30,000 60.00
I
2. Current Assets
(a) Inventories
!
I 70,000 ,30,000
I
40,000 133.33
(b) Cash and Cash Equivalents I 30,000 40,000 i (10,000) (25)
!

Total f
-·----~
5,1·0,000
.· -
3.30,000 I
I
. 1,80,000 54.54_

1'7.,' From the following balance sheet of Sun Ltd, as at 31st March, 2012 and 2011, prepare
a common size balance sheet · .
Particulars 201~-12~ 2010-11 ~
----.........__ .... .,_,_..,___,_,- :!-NoteNo.
- - - - - ! - --_:_:-1 --

I. EQUITY AND LIABILITIES

1. Shareholders' Funds 1

(a) Share Capital 40,00,000 30,00,000

eserves and Surplus
(b) R_ 6,00,000 4,00,000
 . ancial Stat eme nt Analysis
fin .
247

Particulars
2. Non-current Liabilities Note No. 2011 -12 ~ 2010 -11 ~)

Long-term Borrowings
3. Curtent Liabilities 12,00,000 10,00 ,000
Trade Payables
· 2,00,000 6,00,000
Total
11. ASSETS 60,00,000 50,00 ,000
1. Non-current Assets
{a) Property, Plant and Equipment and Intangible Asset
s
(i) Property, Plant and Equipment
{ii) Intangible Assets 40,00,000 30,00,000
2. Current Assets 2,00,000 6,00,000
{a) Inventories
(bl Cash and Cash Equivalents . 12,00,000 10,00,000
6,00,000 4,00,000
Total
60,00,000 50,00,000
Ans In the BooRs of Sun Ltd
Com mon Size Balance She et
as at 31st March, 201 2 and 2011
Absolute Amount Percentage Percentage
Particulars of Total of Total
2011 -12 2010 -11
(t) Revenue Revenue
{t)
2011 -12 2010 -11
I. EQUITY AND LIABILITIES
1• Sharet,olders' Funds

(a) Share Capital

40,00 ,000 30,00,000 66.7
{bl Rese rves and Surplus 60
6,00,000 4,00,000 10.0
2.. Non-current Liabilities 8
Long -term Borrowings 12,00 ,000 10,00 ,000 20.0 20
3. Current Liabilities
Trade Payables 2,00,000 6,00,000 3.3 I 12
Total 60,00,000 50,00,000 100.0 100
II. ASSETS
1. Non-current Assets
(a) Property, Plant anct Equipment and Intangible Asse
ts
•(i) Property, Plant and Equipment 40,00,000 30,00 ,000 66.7. 60
(ii) Intangible Assets 2,00, 000 6,00,000 3.3 12
2. Current Assets
(a) Inventories 12,00,000 10,00 ,000 20.0 20
(bl Cash and Cash Equivalents 6,00,000 4,00,000 10.0 8
Total 60,00,000 50,00 ,000 100 100
 --...
I
chapt erwise ISC Solved Papers Accou nts (Class XII) :
248

of
18. Prepare comm on size statement of profit and loss from the following s~tem ent
profit and loss · · ·
31st March, 31st MarchI
Particulars 2013 ~ 2012~
-
I. Income 5,00,000 5,00,000
Revenue from Operations INet sales) 5,500 5,000
Other Income
5,05,500 5,05,000
Total -
II. Expenses 3,50,000 3,25,000
Purchases of Stock-in-Trade 24,000 25,000
Changes in Inventories of Stock-in -Trade 49,000 · 40,000
Employees Benefit Expenses
45,000 58,750
Other Expenses
Total
4,68,000 4,48,750
37,500 56,250
Ill. Profit II - Ill

Additional information
Other Expenses Includ e 2013 (~ 2012 (~
Provision for Tax 37,500 56,250
Ans In the Books of ........ .
Comm on Size Statem ent of Profit and Loss
for the year ended 31st March, 2013 and 2012
Percentage of Revenue
Absolute Amount
from Operations (Net sales)
Particulars
2013 (f) 2012 ro 2013 <%> I 2012 (%)

5,00,000 5,00,000 100.00 I 100.00

I. Revenue from_Operations INet sales)
5,500 5,000 1.10 1.00
II. Other Income
Ill. Total Revenue II + 11) 5,05,500 5,05,000 101.10 101.00
·.

IV. Expense s
la) Purchases of Stock-in-Trade 3,50,000 3,25,000 70.00 65.00
(bl Changes in Inventories of Stock-in-Trade 24,000 . 25,000 4.80 5.00
le) Employees Benefit Expenses 49,000 40,000 9.80 8.00
Id) ·Other Expenses 7,500 2,500 1.50 0.50
Total Expenses 4,30,500 3,92,500 86.10 78.50
V. Profit before Tax 1111- IV) 75;000 1,12,500 15.00 22.50
VI. Tax 37,500 56,250 7.50 11 .25
VII. Profit after Tax IV-VI) 37,500 56,250 7.50 11.2§
-