question_answer

Following are the balance sheets of Riyansh Ltd as at 31st March, 2016 and 2017. The motto of Riyansh Ltd is to provide vocational training to the girls belonging to the backward areas of the city. From the following balance sheet, prepare common size balance sheet of Riyansh Ltd for 2016 and 2017 and also identify the value that the company wishes to communicate to the society. Balance Sheet as at 31st March, 2016 and 2017

	Particulars	31st March, 2016 Amt (Rs.)	31st March, 2017 Amt (Rs.)
I.	I. EQUITY AND LIABILITIES
	1 Shareholders' Funds
	(a) Share Capital	5,48,000	5,48,000
	(b) Reserves and Surplus	3,04,000	1,40,000
	2. Non-current Liabilities
	Long-term Borrowings: Secured Loans	2,00,000	4,64,000
	Unsecured Loans	11,92,000	4,12,000
	3. Current Liabilities
	(a) Short-term Borrowings	2,50,000	1,00,000
	(b) Trade Payables	2,00,000	40,000
	(c) Other Current Liabilities	1,00,000	6,000
	(d) Short-term Provisions	46,000	10,000
	Total	28,40,000	17,20,000
II.	ASSETS
	1. Non-current Assets
	(a) Fixed Assets (Tangible) (Net)	11,36,000	8,60,000
	(b) Non-current Investments	12,000	8,000
	2. Current Assets
	(a) Inventories	8,52,000	4,32,000
	(b) Trade Receivables	6,60,000	2,80,000
	(c) Cash and Cash Equivalents	1,80,000	1,40,000
	Total	28,40,000	17,20,000

Answer:

                                                            Common Size Balance Sheet as at 31st March, 2016 and 2017

	Particulars	2016		2017
I.	EQUITY AND LIABILITIES	Amt (Rs.)	% of Balance Sheet Total	Amt (Rs.)	% of Balance Sheet Total
	1. Shareholders' Funds
	(a) Share Capital	5,48,000	\[\left. \begin{align}   & 19.3 \\  & 10.7 \\ \end{align} \right]30\]	5,48,000	\[\left. \begin{align}   & 31.9 \\  & 8.1 \\ \end{align} \right]40\]
	(b) Reserves and Surplus	3,04,000		1,40,000
	2. Non-current Liabilities
	Long-term Borrowings: Secured Loans	2,00,000	7.0	4,64,000	27.0
	Unsecured Loans	11,92,000	42.0	4,12,000	24.0
	3. Current Liabilities
	(a) Short-term Borrowings	2,50,000	8.8	1,00,000	5.8
	(b) Trade Payables	2,00,000	7.1	40,000	2.3
	(c) Other Current Liabilities	1,00,000	3.5	6.000	0.3
	(d) Short-term Provision	46,000	1.6	10.000	0.6
	Total	28,40,000	100.0	17,20,000	100.0
II.	ASSETS
	1. Non-current Assets
	(a) Fixed Assets (Tangible) (Net)	11,36,000	40.0	8,60,000	50.0
	(b) Non-current Investments	12,000	0.4	8,000	0.5
	2. Current Assets
	(a) Inventories	8,52,000	30.0	4,32,000	25.0
	(b) Trade Receivables	6,60,000	23.2	2,80,000	16.3
	(c) Cash and Cash Equivalents	1,80,000	6.4	1,40,000	8.1
	Total	28,40,000	100.0	17,20,000	100.0

Value which the company wants to communicate to society is Women Empowerment.