Present the above Balance Sheet in vertical form. OR Prepare the common size revenue statement with amount and percentage in vertical form suitable for analysis.
Understand the Problem
The question is asking to prepare the Balance Sheet of Abhijeet Ltd. in vertical form based on the provided figures for liabilities and assets. It presents the required data clearly, specifying the amounts for different items. Additionally, an alternative question is provided, which requests the preparation of a common size revenue statement for M/s Star Ltd. with amounts and percentages in vertical form for analysis.
Answer
Vertical Balance Sheet and percentages for liabilities and assets provided.
Vertical Balance Sheet:
Liabilities
- Equity Shares: ₹3,90,000 (22.94%)
- 10% Preference Share Capital: ₹2,00,000 (11.76%)
- 9% Debenture: ₹2,50,000 (14.71%)
- General Reserve: ₹60,000 (3.53%)
- Capital Reserve: ₹50,000 (2.94%)
- 11% Bank Loan: ₹1,00,000 (5.88%)
- Creditors: ₹1,25,000 (7.35%)
- Bank Overdraft: ₹1,35,000 (7.94%)
- Provision for Tax: ₹1,40,000 (8.24%)
- Proposed Dividend: ₹30,000 (1.76%)
- Profit and Loss A/C: ₹1,40,000 (8.24%)
- Bills Payable: ₹80,000 (4.71%)
Assets
- Cash in Hand: ₹15,000 (0.88%)
- Cash at Bank: ₹90,000 (5.29%)
- Preliminary Expenses: ₹20,000 (1.18%)
- Goodwill: ₹1,00,000 (5.88%)
- Building: ₹3,00,000 (17.65%)
- Investment (Long Term): ₹2,00,000 (11.76%)
- Furniture: ₹2,50,000 (14.71%)
- Plant and Machinery: ₹3,00,000 (17.65%)
- Debtors: ₹1,50,000 (8.82%)
- Prepaid Expenses: ₹50,000 (2.94%)
- Stock: ₹2,00,000 (11.76%)
- Discount on Issue of Shares: ₹25,000 (1.47%)
Answer for screen readers
Vertical Balance Sheet:
Liabilities
- Equity Shares: ₹3,90,000 (22.94%)
- 10% Preference Share Capital: ₹2,00,000 (11.76%)
- 9% Debenture: ₹2,50,000 (14.71%)
- General Reserve: ₹60,000 (3.53%)
- Capital Reserve: ₹50,000 (2.94%)
- 11% Bank Loan: ₹1,00,000 (5.88%)
- Creditors: ₹1,25,000 (7.35%)
- Bank Overdraft: ₹1,35,000 (7.94%)
- Provision for Tax: ₹1,40,000 (8.24%)
- Proposed Dividend: ₹30,000 (1.76%)
- Profit and Loss A/C: ₹1,40,000 (8.24%)
- Bills Payable: ₹80,000 (4.71%)
Assets
- Cash in Hand: ₹15,000 (0.88%)
- Cash at Bank: ₹90,000 (5.29%)
- Preliminary Expenses: ₹20,000 (1.18%)
- Goodwill: ₹1,00,000 (5.88%)
- Building: ₹3,00,000 (17.65%)
- Investment (Long Term): ₹2,00,000 (11.76%)
- Furniture: ₹2,50,000 (14.71%)
- Plant and Machinery: ₹3,00,000 (17.65%)
- Debtors: ₹1,50,000 (8.82%)
- Prepaid Expenses: ₹50,000 (2.94%)
- Stock: ₹2,00,000 (11.76%)
- Discount on Issue of Shares: ₹25,000 (1.47%)
More Information
Vertical analysis helps in understanding the relative size of financial statement items.
Tips
Ensure that all percentages add up to 100%. Check calculations for accuracy to avoid errors.
Sources
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