CCMA | COST CONTROL & MANAGEMENT ACCOUNTING | UNIT-3 COMPARATIVE STATEMENT | @shivanipallela⁩

Added: 2026-05-21

[00:00:00]Hello students, welcome back to our channel. So here in this video, the complete explanation of unit number three in CCMA subject we are going to discuss. Now so by watching this video you will get a clear clarification regarding unit number five. Okay, that is chapter 5, unit number three. Like many of these students are thinking that unit 3 chapter 5 are the uh toughest problematic uh in the CCMA subject but I swear it is going to be a easy chapter for you people but there are so many concepts. So rather than learning ratio analysis according to my advice I will give you to prefer financial statement analysis even though you are having so many problematic topics along with the theory also but still I suggest the students to go with chapter 5 only.

[00:00:59]Okay. So unit number three chapter number five we are discussing financial statement analysis. Okay. So financial statement analysis there are three topics we are having as a problematic along with this three topics you need to be perfect with the theory question also compulsory. If they are not asking this three problematics then they will ask the theory. If you are learning theory or if you are skipping problematic it is not good. If you are learning problematic if you are skipping theory is also not good. So both you need to cover. Theory problematic both you need to cover. Then what are the problematic concepts we are having? Means there are three problematic concepts. Now comparative, common size, trend analysis. How many problematic methods we are having? Three methods we are having. Comparative statement, common size statement, trend analysis. Okay. So trend analysis is easy but rarely they will ask in the examination. But comparative and common size is a uh repeated problematic questions. Now if you are understanding comparative automatically you'll understand common size also.

[00:02:15]In comparative and in common size there are two things profit and loss account.

[00:02:20]Balance sheet. Profit and loss account are also known as income statement balance sheet. So in comparative you will have a profit and loss account, balance sheet. In common size you will have profit and loss account, balance sheet. Okay. In this specific video we are going to discuss the comparative statement only. Okay. So three videos I will do. One is for comparative, one video for common size, one video for trend analysis. So three parts I am making this unit because in one one video I can't explain all these three topics because the video length will be like more than 2 hours. Okay. So detailed explanation I'm doing no. So that's why it will take some time. So sit back and uh make sure you keep your books, calculator everything along with me only you also do everything you'll easily get clarity. So in this video we are going to learn comparative profit and loss account balance sheet. So total comparative we will going to learn in this video. Okay. So in comparative we will having the profit and loss account and balance sheet. Profit and loss account is nothing about the income statement. No. So income statement balance sheet total two topics we are going to discuss in this video. And profarma profarma is the key role in this chapter. If student is very perfect with the profarma automatically you can able to learn the problematic solutions easily. So what is the first I will show you the profarma of profit and loss account or income statement. So in Roman number one you need to remember whole profarma. Okay forgot about this. Okay if you are remembering this part of the propharma means you'll understand comparative you'll understand common size. Okay. Proarma will be same for comparative and common size. One thing you remember what you need to remember Roman number one revenue from operations. Roman number two other incomes. Roman number three total revenue. That means 1 + 2 if you're adding means you'll get Roman number three. From that you need to minus the expenses. In expenses, there are different types of expenses like cost of materials consumed, purchases, change in inventories, employee benefit expenses, finance cost, depreciation, other expenses. So these are all the parts of expenses. Then you need to do the total expenses. Profit before tax that means total revenue minus total expenses if you are doing means you'll get profit before tax. From that if you are having any tax means you need to deduct it. The final answer will be profit after tax.

[00:05:05]See this part if you are remembering means it will be very helpful for you.

[00:05:10]Okay, this is comparative profit and loss account profarma compulsory any question this profarma you need to learn. You need to write it. Okay. Now coming back to the balance sheet.

[00:05:22]Balance sheet also compulsory you should be perfect with the propharma. This profarma is same for comparative and common size. Okay. So how well you are understanding comparative you will easily understand common size also. So that's why this video is very important.

[00:05:39]Okay. So see here in uh equity and liabilities this is the uh profarma you are having. Then in assets this is the proarma. Everything you need to remember this part compulsory. You need to buy hard you need to remember everything you need to do. Without learning the profarma you can't do comparative and common size. Okay. Either income statement or balance sheet anything.

[00:06:01]Okay. So I hope you have understood the propharma part. So take a screenshot or pause the video and write the profarma in your notes. This profarma is same for comparative and common size. Okay. So first we will discuss one question mark.

[00:06:18]See the question here from the following information. Prepare comparative balance sheet and comment. What they are asking with the following information we need to prepare comparative balance sheet. In comparative we will have balance sheet and profit and loss account. Now that is income statement. Here they are asking balance sheet. So balance sheet means you need to write this profarma first.

[00:06:45]Okay. So what they have given liabilities they have given they have given assets also. Okay. So this part I'm using for the working notes. Okay.

[00:06:53]This part I'm using for the working notes. Now coming back to the question uh profarma. So what is the propharma?

[00:07:00]Table name should be comparative balance sheet. Okay. What is the table name?

[00:07:05]They're asking comparative balance sheet. No. So what are the table? You will have particulars note number. What is the years they have given? 2020 and 2021. No. So 2020 column 2021 column.

[00:07:20]Next two columns will be absolute change and percentage change. What is the next column? Absolute change. Percentage change. Okay. This is the profarma.

[00:07:33]Okay. First what you'll have in the propharmama just make a note of that.

[00:07:38]Okay. So here in the first one okay here in the first one you will have equity and liabilities. No according to the proarma equity and equity and liabilities. Okay. In equity and liabilities what is the first one you are having? Shareholders fund. Yes.

[00:08:05]So first one shareholders fund in shareholders fund again what you are having share capital reserves okay so here again I'm writing share capital you need to remember the propharmama profarma itself will carry 7 to eight marks okay next one reserves and surplus plus so I'm writing just reserves okay now after that second one non-current liabilities okay second one what you are having non-current liabilities in non-current liabilities you will have long-term borrowings okay what you are having long-term borrowings long-term provisions okay just I'm mentioning long-term borrowing Means it will be okay. Next in the Roman number three what you'll have current liabilities what you'll have current liabilities in current liabilities short-term borrowings trade receivables other current liabilities everything you are having no so short-term borrowings next you are having trade receivable sorry trade payables next one other current liabilities.

[00:09:39]Okay, D1 you are having short-term provisions. Okay, so short-term provisions. So this is the profarma profarma compulsory you need to remember. After that you need to do the total. Okay, this is total of assets sorry total of liabilities.

[00:10:05]This I'm considering as a a okay in examination also one side of the page you need to write the liabilities and the continuation part here you need to write the assets in one side uh you will not finish whole profarma. Now how to recognize what are the items will come aa in the examination profarma means what is the first one you are having now share capital no so share capital reason in share capital only capitals will come what type of capitals equity share capital preference share capital if they are asking capital in the liability side you need to add it in the share capital reserves means any reserves like general reserve reserve fund okay fund or reserves like that if they're asking mean you need to add it here in the reserves now see the question here only the liabilities no yes only we are having only one capital what is the capital share capital only one thing you are having what is the share capital 1 lakh 50,000 here also 1 lakh 50,000 so only one thing you are having now so no need to do working notes in note number I'm not keeping anything so in 2020 it is 1 lakh 50,000 here also 1 lak 50,000 okay so both the sides I have wrote the 1 lakh 50 and 1 lakh 50 okay now I'll explain later these two columns okay now we will discuss only this part afterwards I'll discuss how to calculate absolute change and percentage change next in reserves we will look at only reserves general reserve reserve fund profit and loss account but here in the question you are having only reserves only one item so what is the amount 4,000 5,000 where you will add that 4,000 5,000 in reserves. So here 4,000 here 5,000. Clear? Next.

[00:12:00]Next what you are having my bills payable, credit hours we are having. So whenever we are getting bills payable and credit hours it will comes under trade payables. Where it will come?

[00:12:12]Trade payable. If you are unable to recognize where it will come, you can put that liabilities in the other current liabilities. But but we can able to guess where bills payable and craters will come. No. So we are having two items. Two items means more than one item if you are having means definitely you need to do the working notes. Okay.

[00:12:36]So working notes number one for what you are doing you are doing for trade payables. You're doing working notes for trade payables. No. So trade payables what are the items is coming in trade payables. So bills payable is coming.

[00:12:51]Credit hours is coming. Okay. So in bills payable what is the amount? 6,000.

[00:12:58]Here also 6,000. In credit 7,472 7,39.

[00:13:05]Okay. So just do the total of separate separate years that means 6,000 + 7,472 you'll get 13,472 here also 6,000 + 7,39 that is 13,39 okay this is the final amounts means more than two items if you are having means we will get the we need to do the working notes this is working notes number one for what we are doing trade payables. No. So whenever you are writing here directly you come here. So in note number in note number you need to write working notes number one because you have done working notes. No.

[00:13:47]So what is the first amount you got?

[00:13:49]13,472.

[00:13:52]So here I'm writing 13,472.

[00:13:57]Here I'm writing 13,39.

[00:13:59]Okay. So if more than one item if you are having means you need to do the working notes. You need to put that working note number in the note number.

[00:14:07]Final amounts you need to keep it over here. Okay. Next, what is the leftover things again? Ma'am, debentures and long-term loan. So, debentures, long-term loan will comes here in the long-term borrowings means two items you are having. If you are having two items, definitely you need to do the working notes. Yes or no? So, what for what you are doing? You're doing for long-term borrowings. For long-term borrowings you have doing the working notes. Okay. So what is the debentures is there 4,000 and here it is zero and long-term loan you are having 53,000 here 52,000. Clear? So now do the total 53 + 4 is 54 55 56 57,000.

[00:14:55]Okay. Now here you're having only 52,000. So say working notes number two.

[00:15:00]know 57 and 52. So here I'm writing working notes number two 57,000 52,000 clear so like that what are the items under which it will come you need to put that items over there okay now liabilities all everything were done nothing were left over everything we have done now come back to the assets before coming back to the assets first I will write the asset side profarma this is will become Roman number to assets.

[00:15:34]Okay, in assets, okay, in assets, what is the first thing you'll have?

[00:15:41]Non-current assets. Okay, so here I'm keeping ro a non-current assets. No. So non-current in non-current assets again there are two parts fixed assets B1 is intangible asset what we will call intangible asset okay fixed asset and intangible assets after that non-current investment long-term loans and advances like that there are certain things no so you can remember or you can Remember it's completely your choice. Okay. So here I'm writing non-current investments long-term loans and advances like that. Okay. So this part of things will come here in the A. Next one B.

[00:16:40]What it will come? Current assets.

[00:16:45]what it will come up current assets in current assets what are the things is there in inventories is there most repeated only I'm saying inventories trade receivables cash and cash equivalents like that so here I'm writing inventories trade receivables cash and cash equivalents other current assets.

[00:17:24]Okay. After doing this, you need to do the total. So this is called total of B. Okay. So now check out what are the items will come here in the assets. So first fixed assets all you need to merge together and put the final amount over there. So what is the fixed assets?

[00:17:49]Building is a fixed asset. Yes, furniture is a fixed asset. Yes, machinery is a fixed asset. These are all fixed assets only. No, three items you are having. You are having three items mean definitely you need to do the working notes. This is working notes.

[00:18:02]Number three for what you are doing working notes for fixed assets. Okay.

[00:18:07]Compulsory working notes you need to write it.

[00:18:09]Buildings what you are having 1 lakh here 1 lakh 10,000 next furniture you are having 30,000 here 20,000 machinery you are having 30,000 31,200 yes so just add it 1 lakh 30 31 lakh 60,000 here 1 lakh 10 + 20 is 1 lakh 30 1 lakh 61,2 200 okay so 1 lakh 60 and 1 lakh 61 200 working notes number three so here in the note number I'm writing three 1 lak 60,000 1 lakh 61,200 okay now fixed assets is over cash bank like that what it will come it will come here in the cash and cash equalence that means in cash and cash equivalence only cash in hand cash at bank, normal cash, bank this kind of items will come. So cash and bank together we need to write it. Okay. So this is working notes number four. I'm doing for cash and cash equivalents. So cash amount you are having 30,000 and 20,000.

[00:19:28]Bank you are having 12,90 and 20,000.

[00:19:33]So 30 + 12,000 is 42,90.

[00:19:36]here 40,000 only. So working notes number four. So in cash and cash equivalent working notes number four I'm doing 42,90 and 40,000. Clear? Now this is also over. Cash is also over. Stock stock is nothing about inventory. Stock is nothing about inventory. So in inventory only stock will come. 6627 2650. So here I'm writing 6 627 and 2 650 only one item. So no need to do the working notes. Now what is the leftover thing? Stock is also over.

[00:20:15]Datars is left over. Bills receivable is rest left over. So datars and bills receivable will come here in the trade receivable. Remember datars and bills receivable will come here in the trade receivable. So you need to do the working notes. This is working notes number five for trade receivables you are doing. So what is the datas? 14,000 and 14,000.

[00:20:41]What is bills receivable?

[00:20:44]1755 2189.

[00:20:47]Okay. So here it will come 15,755.

[00:20:52]Here how much you'll get? 14,000 plus 2189. If you are doing means 16189 you'll get. So 1 1575.

[00:21:04]So where you will write that? 1575. Here working notes number five. No, here I'm putting five. Okay. Next 1 61 8 9 like that you need to do it. Now see here ma just understand everything we have taken. What we have taken what item under which it will come. That is the only thing we have done here. Nothing special. Yes or no. So till here you have understood in the examination also like this you'll need to first do everything whatever you want. Now come back to the absolute change and percentage change. How to calculate this absolute change? Absolute change formula is nothing about we will do the current year minus previous year. Okay. So how we will do the uh calculation of the absolute change? Absolute change is nothing about the current year minus previous year. So what is current year?

[00:22:01]1 lakh 50,000 previous year 1 lakh 50,000. So 1 lakh 50 - 1 lakh 50 is 0.

[00:22:06]So 0 is nothing about percentage also you'll get zero. Okay. For here current year is 5,000. Past year is 4,000. So 5,000 minus 4,000 is nothing about 1,000 is the absolute change. Now how you'll calculate percentage change?

[00:22:26]Absolute change divided by previous year into 100. What is the absolute change?

[00:22:31]We got 1,000. What is the previous year?

[00:22:34]4,000. So 1,000 divided by 4,000 into 100. You need to do you'll get 25%.

[00:22:42]Yes or no? Okay. Next. Absolute change formula. Present year minus previous year. So 52,000 minus 57,000. So 52,000 - 57,000 is nothing about - 5,000 you will get. Okay. So - 5,000 divided by old year is 57,000 into 100. How much you getting? - 8.77.

[00:23:08]So here I'm getting - 87 77.

[00:23:13]Next year also present year minus previous year that is 1339 minus 13472 how much you're getting - 433 you'll get - 432 divided by old year that is 1 lakh 34,72 into 100 - 3.21 21. Okay. Now come back to here also. Assets present year minus previous year. So 1 lak 61, 200 minus 1 lakh 60,000 1200. So 1200 divided by previous year that is 1 lakh 60,000 into 100 how much you are getting? 0.75.

[00:24:02]Okay. So 1200 / 1 lak 60,000 into okay now see here also present year is 2650 2650 minus 6627 if you are doing mean you are getting - 3,977.

[00:24:28]So how to calculate percentage change?

[00:24:31]Absolute change divided by previous year into 100. That means -60.01.

[00:24:40]Next year also present year minus previous year 1 lakh 61,000 uh sorry 16,189 minus 15,755 if you are doing means 434 you'll get.

[00:24:52]So 434 divided by previous year into 100. If you are doing means 2.75 okay next year also present year minus previous year that means 40,000 - 42,90 if you're doing mean you'll get -290 okay - 290 divided by 42,90 into 100 if you are doing means -4.96 clear now like this you'll get Now everything is over. Now you need to do the total liabilities and total assets.

[00:25:31]No, now do the total liabilities. So for 2020 1 lakh 50,000 + 4,000 is 1 lak 54,000 plus 57,000 plus 13,472.

[00:25:45]So how much you are getting my total?

[00:25:47]You are getting the total of 20 2 lakhs 24,472 you'll getting. Okay. Now do the 2021 total also 1 lakh 50,000 + 5,000 is 1 lakh 55,000 plus 52,000 plus 13,39.

[00:26:15]If you are doing mean you are getting 2 lakh 20,39 you should not add these two here also you need to do the absolute change and percentage change. How you'll do present year minus previous year? No, that means 2 lakh 20,39 minus 2 lak 24,472 if you are doing means you are getting - 4433 - 4433 divided by old year that is 22 4472 into 100 if you are doing mean you are getting minus 1.97.

[00:26:51]Okay, here you should not add absolute change column and percentage column.

[00:26:55]Instead of that you need to do the calculation only. Now do the assets also. Assets should get tall because it is a balance sheet. No, total liabilities and assets everything should get tall. Now here see 1 lakh 60,000 plus 1 uh 6,627 plus 1 lakh 57,000 uh 15,755 plus 42,90 if you are adding mean here also you are getting 2 lak 24,472 see this amount and this amount is getting tallied yes same like that everything it should get tallied same here also see 1 lakh 61,200 00 + 2650 plus 1 16,189 + 40,000 how much you getting 2 lakhs 20,39 now do the absolute change present year minus previous year how much you're getting -43 -43 divide by 224472 into 100 if you are doing this you're getting - 1.97 Seven like this your balance sheet should get tallied. See here this is liabilities total. This is assets total. Like this if it is getting tallied means you have done correct.

[00:28:18]Simple thing absolute change and percentage change is easy. All the thing you need to remember is which item under which it will come. This part of recognizing is same in common size also.

[00:28:32]In common size only these two columns will change. This is the way of calculation is same only only absolute change and percentage will change will change in common size. So that's why try to understand what are the items will come in everything. Understood? So this is the comparative balance sheet. Let me know in the comment section whether you are understanding or not. Okay. Now we'll go to the another question. So this is what they have asked balance sheet or income statement. From the following particulars of XY Z limited you are required to prepare a comparative income statement. Income statement is nothing about profit and loss account. Yes. So they have given the table. This is the easy small table. Here only you need to item here only you need to guess what are the items will come here under which so this part I'm using for the working notes now here they have asked about the income statement no if they are asking about the income statement first you need to draw the income statement profarma that means particulars note number 2021 and 2022 they have given no so 2021 2022 absolute change column percentage change column heading is comparative income statement. Okay. So comparative income state profarma is this only no Roman number one revenue from operations Roman number two other incomes compulsory you need to write this profarma without writing the profarma you can't do the solution profarma itself will carry six to seven marks here I'm not having anything to say absolute change and percentage change how we have calculated in balance sheet same like that only we will calculate here also but you need to recognize what are the items will come under Which clear? So now I'll explain.

[00:30:28]Okay. First I will write the profarmama.

[00:30:31]Okay. So see here first what you'll have in Roman number one you'll have revenue from operations. No revenue from operations.

[00:30:44]In Roman number two other incomes.

[00:30:50]Okay.

[00:30:52]In Roman number three, total revenue that is 1 + 2. If you're adding Roman number one plus Roman number two, you'll get total revenue. Okay? So for this total revenue, Roman number four, you'll have the expenses.

[00:31:12]There are more expenses you are having in like cost of materials or finance cost, depreciation, everything. So here I'll give you the most important repeated. So first one is cost of materials consumed.

[00:31:26]So I'm writing cost of materials. B1 is finance cost.

[00:31:34]C1 is employee benefits.

[00:31:43]D1 is depreciation.

[00:31:47]Depreciation and amortization we will call it as E1 is other expenses. If you are unable to recognize the expenses in which it will come you need to put put that all that expenses here in the other expenses. Okay. So after that you'll get the total expenses.

[00:32:08]Okay. So total expenses you'll get. So here in fifth one you'll get profit before tax. You need to remember like me. Okay. So profit before tax is nothing about 3 - 4. Roman number 3 minus Roman number four. If you're doing profit before tax from that sixth Roman number is tax. You need to deduct the tax. So seventh Roman number will be profit after tax. Yes. This is the complete profile ma. Clear ma. So now I will show you how to do the solution.

[00:32:44]Okay. So see here what are the first thing you're having revenue from operations second one other incomes no so what first in the question what is incomes what is expenses you need to segregate that okay first divide it these are the income these are the expenses okay in incomes like sales okay like sales like that if they are giving means except sales uh Like that if they are giving means you will come in the revenue from operations except sales whatever the other incomes you are having like in income received profit uh we have got a profit dividends received interest on rate like that if you are getting the other incomes like more except sales whatever the other incomes you are having put it here in the other incomes if more than one item if you are having means you need to do the working notes Now see here in the question directly they have given revenue from operations directly they have given so no need to do the working notes so 2021 how much they have given m 58,000 yes here 66,200 okay how you'll calculate absolute change in percentage change present year minus previous year that means 66,200 minus 58,000 if you are doing means 8,200 is the absolute change percentage is nothing about 8,200 is absolute change divided by previous year that is 58,000 into 100 how much it is 14.1 okay or is 14.13 point after two numbers is more than enough now except sales like here in this question specifically revenue from oper operations directly they have given. No, except that whatever the other incomes you are having like for example see cost of material consumed means it is nothing about cost of materials, administrative expenses, selling expenses, general expenses, nonoperating expenses. All these expenses will come here in the other expense only. Okay. Now nonoperating income nonoperating income it is an income. Okay. So where it will come other incomes only it will come?

[00:35:14]No. So how much they have given 150 and 640.

[00:35:18]So only one night only to do working notes 150 and 640. How you will do the absolute change? 640 minus 150 how much it is? 490. 490 divided by previous year that is 150 into 100 how much it will be? 326.6.

[00:35:40]Okay, that's it. Now, how to do this total revenue? How to do this total revenue? Just you need to add 1 and 2.

[00:35:49]Okay, so 58,000 + 150 is 58,150.

[00:35:55]66,200 + 640. 66,200 + 640 if you are doing means 66,840 you'll get. How to do the absolute change? Then present year minus previous year minus 58,150.

[00:36:12]If you are doing means 8690 you'll get absolute change divided by previous year that is 58,150 into 100 if you are doing means you'll get the percentage change. How much is the percentage change? 14.94 is the percentage change. Clear? Now everything is over. Now cost of materials consumed where it will get here in cost of materials only know how much it is there 45,49,200.

[00:36:43]So here I'm writing 45,000 49,200.

[00:36:48]How you will calculate absolute change present year minus previous year that is 49,200 minus 45,000 how much it is? 4,200.

[00:36:59]4,200 divid by 45,000 into 100 9.33.

[00:37:07]Okay. Next.

[00:37:10]So revenue from operations is over. Cost of materials is over. Nonoperating income is also over. What is the leftover? Administrative expenses, selling expenses, general expenses, nonoperating expenses. All these expenses will comes here in the other expenses. More than one item if we are having means what we need to do we need to do the working notes. So working notes number one for what you are doing you are doing for other expenses.

[00:37:39]Working notes is compulsory. Okay. So other expenses what we are having administrative expenses it is 1020 and 1,000. Next selling expenses.

[00:37:53]Selling expenses you are having 840 920 General expenses General expenses you are having 1,000 here also 1,000 nonoperating expenses how much you are having 200 240 only this four items will come here in the other expenses only no so this four item I'm adding together okay now just I'm adding together so 1020 plus 840 + 1 1200. Okay. So 1,000 + 200 is 1200.

[00:38:28]So here 3060. Here 1,000 + 920 is 1,920 + 1 2 4 0. So it is 3 160. So you are getting the final answer. So here in the other expenses in note number I'm keeping one because we have done the working notes. No. So 3 0 6 0 3 1 6 0.

[00:38:51]Okay. So how you will calculate absolute change 3 160 minus 3060 if you are doing means 100 you will get 100 divided by previous year 3060 into 100 if you are doing mean you are getting 3.26 26 clear here absolute change and percentage change is easy just you need to remember what are the items under which it will come now just we need to do the total expenses only we need to do the total expenses so total expenses means nothing about 45,000 + 360 46 47 48 so 48,60 you'll get it here 49,200 + 3160 49,200 100 + 3 160 if you are doing means 5 23 6 how you will calculate absolute change this year means current year minus previous year no so 52360 minus 48,60 if you are doing means you are getting 4,300 4,300 divided by old year 4860 into 100 if you are doing means you are getting 8.94 Clear simple now how you'll do the profit before tax profit before tax formula is Roman number three minus Roman number four so this is considered as a Roman number four only no so total expenses so what is the total revenue total expenses so for 2021 I'll do ma so total revenue is 58,150 minus 48,60 how much it will getting profit before tax 10,9 90. Same here also 66,000 66,840 plus five 52,360.

[00:40:46]Okay, how much you're getting?

[00:40:51]1 lakh 19,200.

[00:40:54]So absolute how you'll calculate 1 lakh 19,200 minus wait a minute 58,150. No 58,150 plus 48,60 it is here you have got wrong it is 1 lakh 60 uh 1 lakh 6,210 this is the answer actually this minus this sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry I have done a mistake sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry we need to do minus no sorry extremely sorry 58,150us 48, 60 how much? It is 10,90.

[00:41:37]Same here also 66,840 minus 52,360.

[00:41:46]We need to do minus. Okay. Now you're getting 14,480. I have done plus before.

[00:41:52]So 10,9 2021 14,480 is 2022. Now simply how we will do the absolute change present year minus previous year. No that is 14,480 minus 10,90 how much it is 4390 4390 divided by 10,90 into 100 how much it will be 4350 clear now tax is there in the question or not check out here they have given tax rate how you'll calculate tax rate whenever they are giving The percentage how you will calculate simple see here.

[00:42:35]So 2021 what is the profit before tax? We got 10,90. No. So for this 10,90 into what is the tax percentage they have given? 45%.

[00:42:49]In 45% if you are doing mean you'll get the value. Same for the 2022 also. What is the value here? 14,480.

[00:42:58]So 14,480 into 45%, here also 45% they have given.

[00:43:05]So simply do it 10,90 into 45% is 4541 point after five means one number I'm adding. Same here also 14,480 into 45% means 6516 is the tax. So here I'm writing 6516.

[00:43:28]Here I'm writing 4541.

[00:43:31]Okay. Now how you'll get profit after tax. Profit after tax means profit before tax minus tax. Okay. So how you'll get 5 - 6 if you are doing means you are getting the value of profit after tax. That means 10,90 - 4541 if you are doing means 5549 you'll get. Same here also 14,480 minus 6516 if you are doing means 7 964 you'll get for this both we need to do the absolute change and percentage change no so 7 964 minus 5549 if you are doing means 2 415 you'll get divided by old year into 100 43 52 same year also 65 1 6 - 45 41 you're getting 1975 1975 divided by 4541 into 100 if you are doing mean you are getting the value of 4 3 4 9 clear that's it tax always we need to do the minus ma like this you need to do it clear understood So see the next question.

[00:44:55]See here the following are the extracts from the balance sheet. You need to prepare the comparative balance sheet.

[00:45:04]Okay. Comparative balance sheet. So first you need to do the uh proarma.

[00:45:10]First what you will have equity and liabilities. No. So equity and liabilities what is the first one you will have share capital no? So I'm writing share capital in share capital all capitals will come like for example preference share capital is a capital equity share capital is a capital means two capitals you are getting if more than one item if you are getting means you need to do the working notes no compulsory okay definitely you need to do the working notes okay so here I'm doing working notes working notes number one you're Doing for share capital for this share capital preference shares how much you're getting 30,000 and 30,000 equity share how much you're getting 40,000 40,000.

[00:46:12]So 30 + 40 is 70,000.

[00:46:16]Here also you're getting 70,000. That's it. So simply put that amount here. that is note number one 70,000 70,000 okay so next reserves will come here in the reserves only so B1 reserves you will have no only one item no need to do working notes so 20,000 and 24500 so 20,000 24,500 no need to do any working notes only one item you are having no Next, outstanding tax, credit hours, bills payable, debentures. These four all liabilities only. Outstanding tax is a liability, credit ass is a liability, bills payable is a liability, debenture is a liability. These are all land, building, plant, furniture, these are all assets only. No. Now here in the liabilities where it will come outstanding tax is a current liability.

[00:47:16]Cratas and bills payable together we will get it here in the trade payable.

[00:47:20]No. So here I'm writing everything.

[00:47:23]See here in the B1 you'll have the current liabilities.

[00:47:33]Okay. See I'm writing like trade payables.

[00:47:40]Okay.

[00:47:42]D I'm writing long-term borrowings other current liabilities. So this will become the total liabilities.

[00:48:01]Now tell me outstanding tax will comes here in the other current liability. No.

[00:48:07]So 10,000 and 15,000 only one item. So here I'm writing 10,000. Here I'm writing 15,000. Okay. Next credits and bills payable together will come here in the trade payable. So you need to do the working notes. So for working notes what you are doing for trade payable you are doing working notes. Okay. So trade payable micas 15,000 and 20,000 bills payable how much you getting?

[00:48:36]5,000 7,500.

[00:48:39]This will become 20,000. This will become 27,500.

[00:48:44]So working notes number two. Yes. So for trade payable I'm writing 20,000 27,000 500. Okay. Next debentures is nothing about long-term borrowings. So only one item you are having to do working notes.

[00:49:03]So 10,000 and 15,000. So here I'm writing 10,000 and 15,000. Okay. Now in the uh next you are having the assets.

[00:49:14]No. So same second one in assets first one non-current assets you will have in non-current assets again you will have fixed assets.

[00:49:31]B1 intangible asset.

[00:49:36]Next you'll have current assets.

[00:49:42]In current assets you'll have inventories, trade receivable, cash and cash equivalence others.

[00:50:00]Okay.

[00:50:05]Now in asset side land is a fixed asset.

[00:50:10]Building is a fixed asset. Plant is a fixed asset. Furniture is a fixed asset.

[00:50:15]Means four fixed assets you are having.

[00:50:17]If you are having means you need to do the working notes. No. So this is become working notes. Number three. You are doing for fixed assets.

[00:50:27]Okay. You are doing for fixed assets. So land how much you are having land? You are having 10,000 and 10,000.

[00:50:38]Next building 30,000 27,000.

[00:50:49]Next you are having the plant 30,000 27,000.

[00:50:59]Next you are having the furniture 10,000 14,000 just do the total.

[00:51:08]Okay. So 30 30 + 60 70 80,000 you having the opening. So 10 20 27 37 37 47 37,000 plus 27,000 + 14,000 how much it will be? 78,000.

[00:51:27]Okay. So fixed assets number three. No.

[00:51:30]So 80 and this is working notes three. Here 80,000 here 78,000. Okay. Intangible such you're not having anything. Next stock is nothing about inventory 20,000 and 30,000. So here in the inventory I'm writing 20,000 and 30,000. Next datars will come here in the trade receivable only one item you are having no need to do the working notes. So 20,000 and 30,000. So here also 20,000 30,000. Okay. Next cash will comes in the cash and cash equivalent. So 10,000 and 14,000. So 10,000 14,000. Okay. First do the total. 70,000 plus uh 20 80 90 1 lakh 10,000 1 lakh 20,000 1 lakh 30,000 you are getting here 80 90 20 1 lakh 1 lakh 30,000. So here also 1 lakh 30,000. Okay. Next 70,000 24,500 27,500 15,000 again 15,000 how much it is 1 lakh 52,000 you are getting here same here also it should get 1 lakh 52,000 78,000 plus 30 30 60,000 plus 14,000 here also you're getting 1 lakh 52,000 that means you have done correct now absolute change in percentage you need to do it. No, same absolute change and percentage changes. No, no issue in that. So 7,000 minus 7,000 you are getting zero. So percentage also will get zero. Next 24,500 minus 20,000 if you are doing means you're getting 4,500.

[00:53:23]45,500 divide by old year that is 20,000 into 100. If you are doing means 22.5 you will get. Okay. Same here also 27,500 minus 20,000 you'll getting 7,500 7,500 divide by 20,000 into 100 37.5.

[00:53:46]Next 15,000 - 10,000 is 5,000. So 5,000 divided by 10,000 into 100 it is 50. Next here also it will get the same 5,000 here also it will get 50 because same values no now how you'll do this one also no need to add same do it 1 lakh 52,000 minus 1 lakh 30,000 22,000 you'll get 22,000 divide by 1 lakh 30,000 into 100 how much you getting 16.92 okay same do it for the assets also 78,000 000 - 80,000 is - 2,000.

[00:54:31]Okay. So, - 2,000 divided by 80,000 in into sorry 78,000 - 80,000 is - 2,000 divided by 80,000 into 100. You're getting - 2.5.

[00:54:52]Okay. Same 30,000 - 20,000 is 10,000.

[00:54:56]10,000 divided by 20,000 into 100.

[00:55:01]Here you'll get 50. Here you'll get 10,000.

[00:55:07]Same value. So 10,000 50. 14,000 - 10,000 is 4,000. So 4,000 divided by 10,000 into 100 40. Say 1 lakh 52,000 minus 1 lakh 30 is 22,000.

[00:55:27]22,000 divide by 1 lakh 30 into 100 is 16.92.

[00:55:33]Like this your assets and liabilities should get tall. See this is total liabilities. This is total assets. Here simply you need to identify what items where it will come and working notes is must and should. Okay. After drawing the table in the next page neatly you need to mention the working notes. You need to show for what you are doing the working notes neatly. However I have mentioned like this you need to show it.

[00:55:59]Okay. Are you understanding or you listening or you people are sleeping I'm not understanding anything. Okay. Even though the video is lengthy but you'll understand the total concept easily. So that's why I and uh that's why I'm uh doing in detailed video. Okay. So nobody in the YouTube channel like this nobody has explained. Okay. Every questions I'm doing I'm not giving any questions as a homework because along with me if you do means you will also get a clarity. No.

[00:56:26]So that's why I'm saying that's why I'm doing the uh more uh explanation videos.

[00:56:32]Okay. Now see this question here also see the question. The question is about the comparative balance sheet they are asking ma. Okay. So if you are going to practicing like around five to six questions automatically you'll remember the profarma also no need to buy hard or butterify anything or five to six questions.

[00:56:56]Okay.

[00:56:58]So actually I wanted to explain in Telugu only but many of these students again they'll comment in the comment section why not English will be understandable for Telugu students also why you are doing favoritism to the Telugu students so that's why with the basic English it is not my English was not a professional English it is a basic butler English so everyone will understand okay so see this question They have given the assets. They have given the liabilities.

[00:57:31]See here current assets they have clearly mentioned. Fixed assets also they have clearly mentioned. Okay. And uh share capital, general reserve, capital reserve, syncing fund uh and long-term liabilities everything they have clearly mentioned. Okay. They are asking you to prepare the balance sheet.

[00:57:51]Okay. So for preparing the balance sheet first what we will write equity and liabilities no so here I'm writing equity and liabilities okay so in equity and liabilities first you will have shareholders fund I'm writing shortcut but don't write shortcuts in the examination clearly you need to mention okay so share capital Next what you'll have now you'll have reserves and surplus. No next in in this non-current liabilities you'll have in non-current liabilities again you'll have long-term borrowings B1 long-term provisions.

[00:58:48]Next in the third one you'll have current liabilities.

[00:58:56]In current liabilities again you will have trade payables, short-term borrowings, other current liabilities.

[00:59:20]Okay. Now we need to do the total. This total is called total liabilities.

[00:59:29]This we will consider as a a. So first I will do the liabilities part. Now see the question capital what kind of capitals we'll get like equity share capital is a capital here capital reserves they are saying it is not a capital they are saying reserve. Okay.

[00:59:48]So only equity share capital is there 1991 and 1992. So 1991 and 1992. So 800 1200 you are having. So in share capital only one item. No. So here 800 1200 only one items means no need to do the working notes. If more than two items is there we need to do the working notes.

[01:00:08]But only one item is there. So that's why we should not do any working notes.

[01:00:12]But see here capital reserves comes here. in the reserve only general reserve come here in the reserve only syncing fund any type of fund also I have said any type of fund also will come here in the reserves only so three items you are having so we need to do the working notes yes or no so working notes for what you are doing for reserves you are doing for reserves and surplus you are doing for reserves capital reserve how much you are having 120 and 220 general reserve how much you are having 444 and 418 sinking fund how much you are having now 80 and 100 simply this three will come now just do the total okay so 120 + 444 + 80 how much it will be 644 now here also 220 + 418 + 100 738 okay so 644 738 this is working notes number one okay in reserves I'm doing now equity share capital general is everything is over in long-term liabilities what is the thing you are having only debentures debentures where it will come long-term borrowings only no only one item is there 400 650 no need to do the working notes so directly I'm giving 400 650 next In current liabilities what you are having sunry cratas and others sunundry cratas will come here in the trade payable only no so 510 and 234 so here I'm writing 510 234 others this that is nothing about other current liabilities what you are having 14 and 20 in other current liabilities 14 and 20 that's it okay if one item is there only two working notes just add the total 800 + 644 + 400 + 510 + 40 it is 2 3 6 8.

[01:02:24]Okay. Next. 1200 + 738 + 650 + 234 + 20. How much? which is 2842.

[01:02:43]Now we will calculate the absolute change in percentage also so that we will complete equity and liabilities.

[01:02:48]How you will do the absolute change m current year minus previous year. Okay current year minus previous year only you will do no for absolute change that means 1200 minus 800. So 1200us 800 is 400. Okay. So 400 divided by previous year that is 800. 400 divid by 800 into 100 if you are doing means you're getting 50. Same here also 738 minus 644 it is 94 94 divided by 644 into 100 if you are doing means 14.5.

[01:03:26]Next 650 - 400 650 - 400 is 250.

[01:03:35]250 divided by 400 into 100 if you are doing means 62.5.

[01:03:43]Next 234 minus 510 if you are doing mean - 276 - 276 divided by 510 into 100 because old year no you'll get - 54.1 next 20 -4 it is nothing about 6 divided by 14 into 100 how much it will be 42.8 8. So here also 2842 minus 23 68. If you're doing this you'll get 474.

[01:04:22]474 divided by 2368 into 100. If you are doing mean you'll get 20.01.

[01:04:31]Clear? So like this we have completed the total liabilities. Now after doing the liabilities in the examination also you'll not uh sufficient one side to uh do the balance sheet one side you need to do liability second side you need to do the assets so keep the heading uh row one number two assets in assets what is the first one you will have non-current assets yes in non-current assets Again you will have fixed assets.

[01:05:13]Second one is intangible asset. Yes, intangible asset. Next B1 you will have current assets.

[01:05:29]In current assets again what? You will have inventories, trade receivable, short-term borrowings, cash and cash equivalents Father yes you need to identify you need to do the if you are practicing mean easily you will understand. Okay. Now first what you are having fixed assets. No in the question. In the question what are the fixed assets? They have given furnitureless depreciation. That is nothing about they have deducted the depreciation. They have given the furniture value. So furniture, buildings, land other assets. So all these four comes here in the fixed assets only. No. Okay. Four items you are having. So definitely you need to do the working notes. So here I'm doing working notes number two. For what you are doing my working notes for fixed assets you are doing the working notes.

[01:06:45]Okay.

[01:06:47]What is your thing you are having?

[01:06:49]Furniture you are having.

[01:06:53]Okay. Furniture how much you having? 18 and 36. So 18 and 36.

[01:07:00]Next what you are having buildings sir.

[01:07:07]Buildings how much you having? 620 and 1572.

[01:07:15]Next land 40 and 60.

[01:07:22]Next other fixed assets how much you are having? 112 and 148.

[01:07:34]Just do the total.

[01:07:37]So 18 + sorry 18 + 620 + 40 + 112 790.

[01:07:49]Next here also 36 + 1572 + 60 + 148 1816 okay this is total fixed assets no so where you'll write this is working notes number two so here I'm writing two okay so 790 18 16 okay next so pixel sets is over next is here current assets in current assets investment investment is also comes here in the fixed asset only but uh we have not uh forgot to write it now so we can write it down only so 540 and 340 you are having so I will add it here in the intangible only so 540 and because I forgot to write it here in the fixed assets so 540 and 340 no problem if you are forgotting anything you can write it like that next other current assets how much you are having 64 and 26 No. So here in 64 and 26 because other current uh assets. Next what you are having cash 236 and 20. So cash will come here only.

[01:09:00]So 236 and 20.

[01:09:04]Next stock. Stock where it will come? My inventory is 320 and 260.

[01:09:11]320 and 260. Only one more item you are having. No need to do working notes.

[01:09:17]Next datars 418 and 380 418 and 380 418 and 318 so datas is nothing about trade receivable no so only one one item you are having so that's why I have done now do the total okay so 790 + 540 + 320 + 418 + 236 + 64 how much you getting 2 3 68 Okay. Now do this also. 1816 + 340 + 260 + 380 + 20 + 26 how much it will be? 2842.

[01:10:01]See 2 3 68 2842 like that it is getting tallied. Now calculate absolute change and percentage change. So how you'll calculate my 1816 minus 790 if you're doing means 10 26 divided by 790 into 100 if you are doing means 1298.

[01:10:30]Same here also 340 - 540 is - 200 - 200 / 540 into 100 if you are doing means you are getting minus 37.03 03.

[01:10:47]Okay. Next here also 260 - 320 how much?

[01:10:53]It is -60.

[01:10:55]-60 / 320 into 100 how much? It will be -8.75.

[01:11:04]Next one 380 - 418 how much? It will be - 38. - 38 / 418 into 100 if you are doing means - 9.09.

[01:11:20]Next 20 - 236 - 26 divided by 236 into 100 if you're doing means - 91.5.

[01:11:33]Okay. 26 - 64 - 38 - 38 / 64 into 100 - 55 59.3 2842 - 2368 474 divided by 2368 into 100 how much it will be 20.01 01.

[01:12:05]So everything is calculated 474 and 20.01 here also 474 and 20.01 right like that your assets and liabilities should get tallied clear ma understanding or not it is easy sums only but better you need to have more more more practice.

[01:12:23]Okay, next see the fifth question. Here they are asking prepare comparative income statement from them. Income statement they are asking. So this page I'm using for the working notes. Okay.

[01:12:37]So net profit is nothing about the final answer. Man don't confuse net profit is nothing about the final answer.

[01:12:49]Okay. Now first they are asking the income statement. No. So I have drawn the income statement that is comparative income statement. Particulars note number 2016 2017 absolute change percentage change. Okay. So now tell me what is the first one?

[01:13:10]You'll have revenue from operations. No.

[01:13:12]So revenue from operations in revenue from operations what will come? It will come sales. Yes. But see here sales they have given cost of goods sold also they have given that means you need to do the working notes for revenue from operations you are doing the working notes. So sales they have given 935 and 1269.

[01:13:42]Okay. Whenever they are saying cost of goods sold that is cost of goods sold whenever they are giving means we need to do it minus from the sales that means 582 you need to do minus from 935 and 700 and level you need to do minus whenever they are giving cost of goods sold you need to deduct it from the sales. Okay. So 935 - 582 it is nothing about 353.

[01:14:14]Next 1269 - 71 it is 558.

[01:14:22]So what is the answer of sales? 353 and here the working notes number one 3 53 558 How you will calculate absolute change 558 minus 353 205 so 205 divided by 353 into 100 how much it will be 58.07 07.

[01:14:52]Okay. See next after writing the revenue from operations Roman number two what you will have ma in income statement other incomes you'll have yes now check out in the question what is the other incomes you are having see expenses expenses other income see specifically they have given other income no 12 and 13 okay so here I'm doing 12 here I'm doing 13 so 13 - 12 is 1 1 divided by 12 into 100 how much it will be 8.33.

[01:15:29]Okay. Now you need to do the 1 and 2 so that you will get row one number three that is total revenue.

[01:15:41]So how it will be 353 + 12 365 558 + 13 571 How you calculate absolute change? 517US 365 26 divided by 365 into 100 56 43 is the answer. Okay. After writing the total revenue what you'll have my expenses you will have no cost of materials consumed.

[01:16:25]Second one, employee benefits, employee expenses, finance cost, depreciation and amortization, other expenses. Okay, so these are the items will come now in the expenses. Now check out what are the items will come.

[01:16:49]Sales expenses, administrative expenses, other expenses, all these three like sales, administrative and other expenses all will come here in the other expense only because you are not having any other expenses nothing will come here.

[01:17:03]So definitely you need to do the working notes. No. So here you're doing working notes number two for other expenses.

[01:17:11]For other expenses you are doing the working notes. How much you are having?

[01:17:15]Sales expenses you are having uh one is 24 and 360. Next administrative expenses you are having 75 and 92.

[01:17:31]Other expenses you are having 11 and 20 only these three you are having. No just do the total. So 24 + 75 + level it is 290 same 360 + 92 + 20 472 where it will come other expenses it will come that means here you are doing working notes number two no so what is the first thing you have got 290 next you got 472 okay so how you will calculate uh absolute change 472 minus 290 if If you are doing mean is 182.

[01:18:13]182 divided by 290 into 100 if you are doing means 62.75.

[01:18:21]Okay. Now only this two only one item you got it. No. So total expenses also you'll get the same thing. So total expenses how much you got? 290 and 472.

[01:18:36]Okay. Now after this what you will have my Roman number five that means profit before tax 3 - 4 that means 365 - 290 365 minus 290 if you are doing mean 75 you are getting next 571 minus 472 99 you will get so 99 minus is 75 you're doing means absolute change is 24. 24 divided by 75 into 100 means 32.

[01:19:15]So from this profit before tax Roman number six what we need to do we need to deduct the tax. Is there given any tax in the question? See income tax 27 and 64. Income tax is nothing about tax. So how much you have given 27 and 64? No.

[01:19:30]So 27 and 64. What you need to do this?

[01:19:34]You need to do the minus. That means 75 minus 27 how much? It is 48.

[01:19:43]99us 64 how much? It is 35. What is this called? Roman number 7.

[01:19:54]Profit after tax.

[01:19:58]Absolute change and percentage change we need to calculate is 64 minus 27 it is 37 37 divided by 27 into 100 if you're doing means 137.03 same here also 35 - 48 -3 -3 divided by 48 into 100 means - 27.08 08.

[01:20:26]Okay. So 48 and 35 you have got no that is the final answer. Okay understood like this you need to calculate it. Okay ma'am. So I hope these are all blank only. If you are not having anything just you need to put that profarma items but no need to keep anything just keep it dash. Okay. So like that you need to do the things. Clear? Understood? Now see the again next question. Here also income statement only. Following is the profit and loss account of Mr. Pawan Limited 2012 to 2013. Prepare comparative income statement. So they have given the data.

[01:21:09]We need to do the comparative income statement. Okay. So this part I'm using for the working notes.

[01:21:20]Okay. So first I'll draw the profarma.

[01:21:23]See here comparative income statement particulars note number 2012 because 2012 and 2013 they have given absolute change and percentage change. Okay. So income statement no first I will write all the things. Okay.

[01:21:43]Roman number one revenue from operations. I'm writing shortcut mark because already you know no but in examination don't write like this. Okay.

[01:21:52]Next one other incomes.

[01:21:56]Third one total revenue that is 1 + 2 expenses.

[01:22:10]In expenses you will have cost of materials.

[01:22:21]Finance cost, employee expenses, depreciation, others you'll get the total expenses.

[01:22:44]Fifth one profit before tax that is 3 - 4.

[01:22:51]Sixth one tax.

[01:22:54]Seventh one profit after tax. This is the profarma.

[01:23:09]Okay.

[01:23:11]This is the profile. First check out revenue from operations. What are the things will come here in revenue from operations? Sales. Any returns is is there means we need to do minus already they have rejected. So sales minus returns. What is the sales after returns? This 7 lak 9,868 and 8 lak 20,347.

[01:23:33]So directly returns after deduction only we need to take it. No. So 7 lak 9,868.

[01:23:40]So here I'm writing 7 lakh 9,868.

[01:23:50]Okay. Next 8 lakh 20,347.

[01:23:56]How to do absolute change and percentage change present year minus previous year.

[01:24:01]No 8 lakh 20,347 minus 7 lak 9,868.

[01:24:08]If you are doing means 1 lakh 10,479 divided by old year 868 into 100 how much you are getting 15.56 okay next this is over what are the things will come here in the other incomes see interest on dividend is an income we are getting a interest from dividends discount is an income for us profit Put on sale of land you are getting profit all except sales whatever the other incomes you are having all we need to put it here in the other incomes only. No. So more threetory items you are having that means you need to do working notes. This is other income you are doing working notes for other incomes. What is there interest on deposits you are having that is 3795 2620.

[01:25:03]Next discount 4250 3792.

[01:25:11]Next profit on sale of land. No, how much? It is 3,000. Here it is nil. Just do the total 3795 plus 4250 plus 3,000 it is level,45.

[01:25:31]Same here also 2620 plus 3792 which is 6,412.

[01:25:40]So other incomes you have got no so 11 level,45 this is working notes number one level 11,045 6,412 how you'll do absolute change present year minus previous year that means -463 - 463 divid by previous year okay into 100 - 41.94 Four.

[01:26:10]How you will do the total revenue? Just we need to add it. That is 7 lakh 9,868 plus 11,045 is nothing about 7 lakh 20,913.

[01:26:23]Same 8 lakh 20,347 + 6,412 is nothing about 8 lakh 26,759.

[01:26:33]So this minus this you'll get absolute change that is 1 lakh 5,846 divided by previous year into 100 1468.

[01:26:52]Clear? Understood? Now next expenses cost of sales comes here in the cost of materials only one item no need to do working note. So 46 4 lakh 63,250 4 lakh 83,899 Administrative expenses selling expenses where it will come interest paid interest anything related to the finance interest paid will comes in the finance cost that is 4,275 3,500 Administrative and selling expense comes here in the other expenses only. No. So next loss on sale of plant. Loss on sale of plant. You are getting a loss plant.

[01:27:48]So that means you can add it here in the other expenses only. Okay. So here working notes number two I'm doing that is other expenses. So what is there loss on sale of plant is 1254 and 350.

[01:28:04]Next administrative expenses is 91,823 1 lakh 15,632.

[01:28:13]Next selling expenses 46,531 and 54,137.

[01:28:25]Just do the total 1254 + 91823 + 46,531 is nothing about 1 lakh 39,68.

[01:28:38]Same here also 350 + 1 lakh 15,632 plus 54,137 1 lakh 70,119 Okay 1 lakh 39,000 this is working notes number two Okay.

[01:29:08]Next 1 lakh 17,119.

[01:29:11]Now first calculate absolute change for this. So this minus old value if you are doing means 30,5001 divided by old value into 100 21.85.

[01:29:28]Same here also 3500 - 4275 if you are doing means - 775 divided by 4275 into 100 if you are doing mean - 18.12 next here also 48389 - 4 63250 if you are doing means 20,649 divided by previous year that is 4 lakh 63,250 into 100. If you're doing means 44.45 4.45. Now what you need to do? You need to do the total expenses. Just add the total expenses. That means 4 lakh 63,250 plus 4275 plus 139608.

[01:30:19]If you're doing means you're getting 6 lakh 7,133.

[01:30:24]Same here also 4 lakh 83,899 plus 3,500 plus 17119 how much it is 657518 from the deduct old value okay you'll get absolute change absolute change divided by previous year into 100 how much it is 8.29 29.

[01:30:53]Okay. Profit before tax how you'll do 3 minus 4 that means 7 lakh 20,913 minus 6 lak 7,133 you'll get 1 lakh 13,780.

[01:31:12]Next year also 8 lakh 26,759 minus 6 lakh 57,518 you'll get 1 lakh 69,241 from the deduct old value old value divide by previous year into 100 48.7 74. Okay. Profit before tax from the tax any tax is given in the question. See income tax they have given 43,38,390.

[01:31:53]So same 43, 38.

[01:31:58]Next 80,390.

[01:32:01]That's it. Huh? Income tax what you will do? You need to do minus that is 1 lakh 13,780 minus 43,38 you need to do minus that you will get your profit after tax.

[01:32:17]Okay. Same here also 1 lak 69,241 minus 80,390 that is 88851.

[01:32:30]Do the absolute change.

[01:32:38]divided by previous year into 100.

[01:32:48]Same here also 80,390 minus 43,38 is uh 37,352 divided by old year into 100 86.78.

[01:33:06]So the final answer is this.

[01:33:09]Clear? Understood?

[01:33:12]I hope you are getting the point. Okay.

[01:33:15]Still watching the sleeping. Let me know in the comment section. Okay.

[01:33:20]Because duration is too much. No like that. And more two questions is there ma. Okay. Seventh and eighth question is there. If we are completing this means you'll perfectly complete comparative statement. Okay. See the question ma'am.

[01:33:34]Seventh question. The following are the balance sheet of lucky limited for the year ended. You are need to prepare the comparative balance sheet. So simple thing they have given everything. So simply we need to do the comparative balance sheet. So I have drawn comparative balance sheet particulars note number 2012 and 2013 they have given. So 2012 2013 absolute change percentage change. So before that I will write the uh profile mama. So first one you will have equity and liabilities.

[01:34:10]No. So equity and liabilities in equity and liabilities first one you will have shareholders fund and directly I'm writing share capital.

[01:34:26]Okay. Share capital. Next one, reserves and surplus. So, reserves. So, second concept you will have current liabilities.

[01:34:44]Uh-huh. No. Non-current liabilities you will have. In non-current liabilities, long-term borrowings, you'll have long-term provisions. You will have Yes.

[01:35:00]In third one, you will have current liabilities.

[01:35:09]In current liabilities, you'll have trade payables, short-term provisions, others. Okay.

[01:35:27]So if you are adding this all these things means this is the total of liabilities. Okay. Now first we'll do the liabilities. Ma'am uh this part I'm using for the working notes. First what you are having share capital. Now in the liability side what are the items is there? See equity capital preference capital both are capitals. No. So capitals where it will come in share capital two items is the definitely need to do the working notes.

[01:35:58]So this is working notes number one for share capital I'm doing. So for share capital equity capital how much you are having four lakhs. This is 6 lakh 60,000. Next preference capital you are having two lakhs.

[01:36:20]This is three lakhs. Just add this both.

[01:36:24]4 + 2 is 6 lakhs.

[01:36:28]6 lakhs 60,000 + 3 lakhs is 67 and 9 lakh 60,000. Yes.

[01:36:36]So 6 lakhs and 9 lakh 60,000. This is working notes number one. 6 lakhs 9 lakh 60,000.

[01:36:46]That's it. Do the calculation of absolute change. 9 lakh 60,000 minus 6 lakhs 3 lakh 60,000 divided by 6 lakhs into 100 if you are doing mean 60% you are getting okay next what you are having my reserves in reserves only reserves is there nothing is there no need to do working notes so 70,000 and 1 lakh so here I'm doing 70,000 here it is 1 lakh so one lakh - 70,000 is 30,000.

[01:37:23]30,000 divided by 70,000 into 100 is nothing about 42.8.

[01:37:32]Next overdraft, citors provisions for taxation all these three comes here in the craters will come here in the trade payables. Okay. So cras directly I'm writing okay 80,000 1 lakh 1 lakh minus 80,000 is 20,000 20,000 divided by 80,000 into 100 is nothing about 25 next overdraft and provision for taxes you may get it here in the others other current liabilities okay two items you are having no definitely you need to do the working notes so working notes Number two you're doing for other current liabilities.

[01:38:18]What are the things is there? First one you are having the overdraft.

[01:38:23]Overdraft is one lakh. Here also one lakh.

[01:38:29]Provision for taxation. How much you are having? 70,000.

[01:38:34]Here you are having again 1 lakh. So how much it will be? 1 lakh. 70,000.

[01:38:40]It will be 2 lakhs.

[01:38:44]So working notes number two no so here I'm writing two here it is 1 lak 70,000 it is 2 lakhs 2 lakhs - 1 lak 70,000 is 30,000 okay so 30,000 divided by 1 lak 70,000 into 100 that is 17.6 six. Now everything is over in the liabilities. Everything we have done.

[01:39:12]Now just do the total. So 6 lakhs + 70,000 is 6 lakh 70,000 plus 80,000 plus 1 lakh 70,000 it is getting 92 sorry 9 lakh 20,000.

[01:39:28]Okay. In 2013 also check out 9 lakh 60,000 plus 1 lakh plus uh 2 lakhs plus 1 lakh is 3 lakhs no it is getting 13 lakhs 60,000 13 lakh 60,000 minus 9 lakh 20,000 is nothing about 4 lak 40,000 4 lak 40,000 divided by 9 lakh 20,000 into 100 is nothing about 47.8.

[01:40:04]Okay. So like this we have done the liabilities. Now next part what you will have my assets. No. So next section Roma number two is assets. In assets first one you will have non-current assets.

[01:40:20]In non-current again you will have fixed assets.

[01:40:28]Second one you may have intangible asset.

[01:40:37]B1 you will have current assets.

[01:40:43]In current assets again you will have inventories.

[01:40:47]Inventories is nothing about stock, trade receivable, short-term provisions, cash and cash equivalents, other current assets. Okay. Now simply we need to do the total over here after doing that. So this is total of assets.

[01:41:22]So now tell me what are the fixed assets you are having. So fixed assets directly they have given. So fixed assets is 4 lakh 80 and 7 lakh. No need to do working notes. Directly fixed asset they have given 4 lakh 80 and 7 lakhs. So here I'm doing 4 lak 80,000.

[01:41:39]This is 7 lakhs.

[01:41:42]So 7 lakhs - 4 lak 80,000 is nothing about 2 laks 20,000 2 lakhs 20,000 divided by 4 lak 80,000 into 100 is nothing about 45.8 Eight.

[01:41:59]Next what you are having m inventory.

[01:42:02]Inventory is nothing about stock. No. So 80 and 1 lakh. So 80,000 1 lakh.

[01:42:12]So 1 lakh minus 80,000 is 20,000. 20,000 divide by 80,000 into 100 is nothing about 25. Okay. Next datas bills receivable will come both it will come here in the trade receivable no so you need to do the working notes you are doing for working notes of trade receivable more than one item you are having no so definitely do the working notes so trade receivable what will come datas you will come okay datas you are having two lakhs and 2 lakh 50,000 2 lakhs and 2 lakhs 50,000 next bills received able you are having 40,000 1 lakh 20,000 okay so how much it will become it will become 2 lak 40,000 250 + 1 lakh 20 is 250,000 + 1 lakh 20,000 is 370,000 so working notes number three for trade receivable no so 2 so here I'm writing working notes number Three 2 lakhs 40,000 370,000 3 lak 70,000 - 2 lak 40,000 is 1 lakh 30,000 1 lakh 30,000 divid by 2 lak 40,000 into 100 is nothing about 54.1 okay next prepaid expenses comes here in the other expenses so 20,000 and 24,000 only one thing you are having no so 20,000 24,000 24 - 20 is 4,000. Okay. So 4,000 divided by 20,000 into 100 is nothing about 20.

[01:44:01]Okay.

[01:44:03]Yes. Next cash in hand and cash at bank will come both in one only. Cash and cash equivalence. So you need to do the working notes. So cash and cash equivalence what other items is there ma cash in hand you are having that is 20,000 and 60,000 cash at bank you are having 80,000 1 lakh 6,000 so 80,000 + 20,000 is 1 lakh l 1 lakh 6,000 + 60 is 1 lakh 66,000.

[01:44:47]Okay, this is working notes number four.

[01:44:50]This is 1 lakh 1 lakh 66,000.

[01:44:55]1 lakh 66,000 - 1 lakh is 66,000.

[01:44:59]66,000 divided by 1 lakh into 100 is nothing about 66. Now do the assets total. It should match the liabilities that is 4 lakh 80,000 plus 80,000 plus 2 lak 40,000 plus 1 lakh plus 20,000. So it is getting 9 lakh 20,000. So it is matched. Same here also do it. 7 lakh + 1 lakh is 8 lakhs.

[01:45:28]8 lakhs plus 3 lak 70,000 plus 1 lak 66,000 plus 24,000 how much it is getting 1 lakh 36,000 sorry 13 lakh 60,000 13 lakh 60,000 - 9 9 lakh 20,000 is 4 lak 40,000 4 lakh 40,000 divided by 9 lakh 20,000 into 100 is 47.8 eight. So it is getting matched. Yes. See here total liabilities total assets it is getting matched. Okay. So that means you have done correct answer.

[01:46:08]Now see the last question. Last question in comparative. I hope you have understood. Let me know in the comment section how you are feeling about the explanation. Okay. So see here small question. Here they are asking you to do the income statement. Net sales they have given. Cost of goods sold they have given. What we will do? So first we will write the profile mama. So first one revenue from operations. Second one other incomes.

[01:46:41]Third one you'll get total revenue.

[01:46:46]Okay.

[01:46:51]Now whenever they are saying net sales cost of goods sold simply what we need to do we need to do minus so this part I'm using for the working notes I have said no so first one revenue from operations you are doing the working notes sales how much is the sales from that cost of goods sold we need to do minus so what is the sales 1570 180 from that 900 deduct because cost of goods sold 1,000 also deduct So 1,800 -,000 is 800. 1570 - 900. 1570 - 900 is 670.

[01:47:31]Okay. So this is the revenue from operations. So working notes number 1 670 800 absolute change 800 minus 670 130 130 divided by 670 into 100 is nothing about 19.40 40. Okay. Next, other incomes.

[01:47:55]What is other incomes you are having?

[01:47:57]Nothing you are having. This two only you are having expenses. Expenses.

[01:48:00]Interest rate is also expenses. So other incomes you are not having anything. So same value you will get here 670 800 130 absolute change and 1940 you'll get it here. Now in the expenses fourth one you are having the expenses. No interest paid will come in the finance cost. No, I have explained no need to write everything like cost of materials, depreciation everything. So directly I'm writing finance cost only that only I'm having. No. So finance cost what you are having in finance cost interest paid. So 50 and 60. So 50 and 60. 60 - 50 is 10.

[01:48:39]So 10 divided by 50 into 100 is nothing about 20. Okay. Next, administrative expense and selling expenses comes in the other expenses.

[01:48:50]No, directly I'm keeping other expenses.

[01:48:54]Okay. Do the rough work because two items you are having. No. So other expenses what are the things you are having? Administrative you are having selling you are having.

[01:49:06]Administrative is 140 and 144.

[01:49:11]Dist selling and distribution is 160 and 180. Okay.

[01:49:18]320. Okay. That's it.

[01:49:22]300. Sorry.

[01:49:25]Here also 144 + 180 is 324. So here working notes number two. This is 300. This is 324. So 324 minus 300 is 24. 24 divided by 300 into 100 is sorry 24 divided by 300 into 100 is 8. Okay. So total expenses will be 350.

[01:50:03]324 + 60 is 384. 384 minus 350 is 34. 34 divided by 350 into 100 is you'll get percentage change that is 9.71.

[01:50:16]Clear? Next after expenses fifth one you will have profit before tax. How you'll calculate profit before tax? 3 - 4 that is 670 minus 350. 670 minus 350 is nothing about 320.

[01:50:34]Next 800 - 384 800us 384 if you are doing means 460.

[01:50:43]So how you'll calculate absolute change?

[01:50:45]460 - 320 is 96. 96 / 320 into 100 is nothing about 30. Okay. From that sixth one any tax is there check out income tax you are having 140 and 160 what you will do minus. So 140 160 160 - 140 is 20. 20 / 140 into 100 is 14.2.

[01:51:14]Okay.

[01:51:18]So 7th one you'll get profit after tax.

[01:51:23]That means 320 minus 140 is nothing about 180.

[01:51:28]416 - 160 is nothing about 256.

[01:51:34]256 - 180 if you are doing means you'll get absolute change that is 76.

[01:51:40]Percentage changes absolute change divided by previous year into 100 is nothing about 42.22 over clear understood. So this is the complete income statement of comparative. So topic number one only we have discussed that is comparative income statement along with the balance sheet. So just comparative means only two columns you'll have absolute change and percentage change. Recognizing the items is same in common size also. Let me know in the comment section whether you have watched the video fully or not. Whether you have understood comparative statement, income statement and balance sheet or not let me know in the comment section. If you are understanding this video only then only I will upload the topic two and topic three. So let me know. So common size in next video I will upload then I will upload trend analysis. The three problematic topic you need to be perfect along with the theory also. If they are not asking these three questions problematic they will ask theory question. Clear? So all the very best. I hope that you have got a clarity still. If you're having any further doubts, do let me know in the comment section. See you all in next video students. Bye-bye everyone.