Answer to Question #344810 in Management for SALOMI DAGGUPATI

Question

The following are the Balance Sheets of M/s.Virat Traders for the year 2016

and 2017, Discuss the Financial Position of the Company in Two years with

the help of Common Size Balance Sheet.

Balance Sheet as at 31st December

Liabilities 2016 2017 Assets 2016 2017 Rs.

Share Capital 525000 575000 | Goodwill 85000 5000

Reserve 252000 252000 | Plant & Equipment 426000 413000

Surplus 175535 59070 | Patents 30000 24000

6% Debentures 125000 100000 | Investments 105000 25800

Accrued interest | Cash & Bank 170650 287000

On Debentures 3750 3000 | Sundry debtors 138760 153000Sundry Creditors 112000 142000 | Inventories 235800 287670

Dividends Payable 25000 | Prepaid expenses 3200 4600

Taxation Provision 8000 48000 | Debentures discount 6875 5000

---------- --------- | ----------- ----------

1201285 1205070 | 1201285 1205070

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