Question

Prepare a Comparative Balance Sheet of Tushar Ltd. as at 31^st March, 2024, from the following information.  

Hint:

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Answer 1

A Comparative Balance Sheet compares financial positions of two periods. The structure involves 5 columns: Particulars, 2024 values, 2023 values, Absolute Change, Percentage Change. This helps identify financial trends and shifts. 

Comparative Balance Sheet of Tushar Ltd. as at 31^st March, 2024

 

Particulars	2024 (₹)	2023 (₹)	Change (₹)	% Change
I. Equity and Liabilities
Share Capital	27,00,000	18,00,000	9,00,000	50%
Long-term Borrowings	9,00,000	6,00,000	3,00,000	50%
Trade Payables	3,00,000	2,00,000	1,00,000	50%
Total	39,00,000	26,00,000	13,00,000	50%
II. Assets
Property, Plant & Equipment	33,00,000	20,00,000	13,00,000	65%
Inventory	3,00,000	2,00,000	1,00,000	50%
Cash and Cash Equivalents	3,00,000	4,00,000	-1,00,000	-25%
Total	39,00,000	26,00,000	13,00,000	50%

Interpretation:
There is a 50% increase in total equity and liabilities as well as total assets.
- Share Capital: Increase due to fresh issue of shares indicates equity funding.
- Borrowings: Additional ₹3,00,000 may have been used for capital expenditure.
- Fixed Assets: Rise of 65% shows significant investment, possibly for expansion.
- Cash Position: 25% decline in cash must be watched to ensure liquidity isn't strained.

Overall, the company's financial position has expanded substantially.