Question

Prepare a Common Size Balance Sheet of X Ltd. from the following information: Balance Sheet of X Ltd. as on 31\textsuperscript{st March, 2023} \begin{center} \begin{tabular}{|l|c|r|r|} Particulars & Note No. & 31.3.2023 & 31.3.2022
\multicolumn{4}{|l|}{I. Equity and Liabilities:}
1.Shareholders’ funds & & &
(a) Equity Share Capital & & 30,00,000 & 15,00,000
(b) Reserves and Surplus & & 10,00,000 & 5,00,000
2.Non-current liabilities & & 20,00,000 & 15,00,000
3.Current liabilities & & 20,00,000 & 15,00,000
Total liabilities & & 80,00,000 & 50,00,000
\multicolumn{4}{|l|}{II. Assets:}
1.Non-current assets & & 40,00,000 & 30,00,000
2.Current assets & & &
(a) Inventories & & 40,00,000 & 20,00,000
Total assets & & 80,00,000 & 50,00,000
\end{tabular} \end{center}

Hint:

In a common size balance sheet, each item is expressed as a percentage of the total assets or total liabilities to assess their relative importance.

Answer 1

Common Size Balance Sheet of X Ltd. \begin{center} \begin{tabular}{|l|r|r|} Particulars & 31.3.2023 (\%) & 31.3.2022 (\%)
I. Equity and Liabilities: & &
Equity Share Capital & 37.5 & 30.0
Reserves and Surplus & 12.5 & 10.0
Non-current liabilities & 25.0 & 30.0
Current liabilities & 25.0 & 30.0
Total liabilities & 100.0 & 100.0
II. Assets: & &
Non-current assets & 50.0 & 60.0
Current assets (Inventories) & 50.0 & 40.0
Total assets & 100.0 & 100.0
\end{tabular} \end{center}