Practical Problem 02

From the following Balance Sheet of Alpha Limited prepare a comparative Balance Sheet as on 31st March 2018 and 31st March 2019.

Balance Sheet As on 31st March 2018 and 31st March 2019

Liabilities

31.3.2018 (₹)

31.3.2019 (₹)

Assets

31.3.2018 (₹)

31.3.2019 (₹)

Equity Share Capital

2,00,000

2,50,000

Land

80,000

1,00,000

12% Preference Shares

80,000

80,000

Building

60,000

90,000

Reserves and Surplus

1,00,000

1,40,000

Plant and Machinery

73,000

1,73,000

15% Debentures

60,000

51,000

Stock

1,50,000

1,10,000

Creditors

50,000

80,000

Debtors

1,28,000

1,40,000

Bills Payable

10,000

6,000

Bank

34,000

37,000

Provision for Taxation

25,000

43,000

   
 

5,25,000

6,50,000

 

5,25,000

6,50,000

SOLUTION:

                                                                                             Balance Sheet As on 31st March 2018 and 31st March 2019

Comparative Balance Sheet of Alpha Limited as on 31st March, 2018 and 31st March, 2019

Particulars

31 – 03 – 2018 (₹)

31 – 03 – 2019 (₹)

Absolute Change (₹)

%  Change

 

I. Sources of Funds

 

(a) Equity Share Capital

2,00,000

2,50,000

50,000

25 % Increase

 

(b) 12 % Preference Shares

80,000

80,000

 

(c) Reserve and Surplus

1,00,000

1,40,000

40,000

40 % Increase

 

(A) Net Worth

3,80,000

4,70,000

90,000

23.68 % Increase

 

Borrowed Funds

     

Secured Loan – 15 % Debentures

60,000

51,000

(9,000)

(15 %) Decrease

 

(B) Total Borrowed Funds

60,000

51,000

(9,000)

(15 %) Decrease

 

Total Funds Available (A + B)

4,40,000

5,21,000

81,000

18.41 % Increase

 

  II. Application of Funds

A. Fixed Assets – Land

80,000

1,00,000

20,000

25 % Increase

Building

60,000

90,000

30,000

50 % Increase

Plant and Machinery

73,000

1,73,000

1,00,000

137 % Increase

 

2,13,000

3,63,000

1,50,000

70.42 % Increase

I. B. Working Capital

    

Current Assets – Stock

1,50,000

1,10,000

(40,000)

(26.67) % Decrease

Debtors

1,28,000

1,40,000

12,000

9.375 % Increase

Bank

34,000

37,000

3,000

8.82 % Increase

Less : Current Liabilities

    

Creditors

50,000

80,000

30,000

60 % Increase

Bills Payable

10,000

6,000

(4,000)

(40 %) Decrease

Provision for Taxation

25,000

43,000

18,000

72 % Increase

Working Capital

    

(Current Assets – Current Liabilities)

2,27,000

1,58,000

(69,000)

(30.40 %) Decrease

Total Funds Applied (A + B)

4,40,000

5,21,000

81,000

18.41 % Increase