Doubts

SOLUTION A common size balance sheet is a statement in which total of assets or equity & liabilities is assumed to be equal to 100 and all the figures are…

SOLUTION Common size statements express all items of a financial statement percentage of some common base such as revenue from operations for profit and loss statement and total assets for…

SOLUTION It throws light on nature, size and direction of change in respect of each itemof balance sheet.

SOLUTION A Comparative Statement of Profit & Loss shows the figures of revenue from operations, expenses, incomes and net profit or loss for a number of years so that changes…

SOLUTION A Comparative Balance Sheet shows the increase and decrease in various assets liabilities and capital in two or more balance sheets of the same business enterprise on different dates.

SOLUTION When financial statements figures for two or more years are placed side-by-side to facilitate comparison, these are called ‘Comparative Financial Statements.’ Such statements provide for columns to indicate the…

SOLUTION (i) Comparative financial statements. (ii) Common Size financial statements.

SOLUTION It will be shown in the following manner:(i) Share application money not exceeding the issued capital and to the extent not refundable is to be disclosed under a separate…

SOLUTION These will be treated as ‘Short-term borrowings’.