Comparative Statements
A comparative statement is a financial document that compares data from two or more periods to show changes and trends over time. This type of statement can be applied to various financial metrics, such as income, expenses, and balance sheets, to help analyze a company’s financial performance and make informed business decisions
Comparative Balance Sheet
A comparative balance sheet compares a company’s financial position over time by showing changes in assets, liabilities, and equity from one period to another.
Illustration 1. From the following information, prepare a comparative balance sheet of ABC Ltd.
| Particulars | 31.3.2020 | 31.3.2019 |
| Equity share capital | 50,00,000 | 50,00,000 |
| Fixed Assets | 72,00,000 | 60,00,000 |
| Reserve and Surplus | 12,00,000 | 10,00,000 |
| Investments | 10,00,000 | 10,00,000 |
| Long- Term loans | 30,00,000 | 30,00,000 |
| Current Assets | 21,00,000 | 30,00,000 |
| Current liabilities | 11,00,000 | 10,00,000 |
Solution:
Comparative Balance Sheet as of 31.3.2019 and 31.3.2020
2019 |
2020 |
Absolute Change(Rs.) |
Percentage Change(%) |
|
Assets |
||||
Fixed Assets |
60,00,000 |
72,00,000 |
12,00,000 |
20 |
Investments |
10,00,000 |
10,00,000 |
—- |
—- |
Current Assets |
30,00,000 |
21,00,000 |
(9,00,000) |
-30 |
Total Assets |
1,00,00,000 |
1,03,00,000 |
3,00,000 |
3 |
Liabilities and Capital |
||||
Equity share capital |
50,00,000 |
50,00,000 |
—- |
—- |
Reserve and Surplus |
10,00,000 |
12,00,000 |
2,00,000 |
20 |
Long- Term loans |
30,00,000 |
30,00,000 |
—- |
—- |
Current liabilities |
10,00,000 |
11,00,000 |
1,00,000 |
10 |
Total Liabilities |
1,00,00,000 |
1,03,00,000 |
3,00,000 |
3 |
Illustration 2. The followings are the balance sheets of concern for the years 2019 and 2020. Prepare a Comparative balance sheet and study the financial position of the concern.
Liabilities & Capital |
2019 |
2020 |
Assets |
2019 |
2020 |
Equity share capital |
6,00,000 |
8,00,000 |
Land&Bulidings |
3,70,000 |
2,70,000 |
Reserve and Surplus |
3,30,000 |
2,22,000 |
Plant & Machinery |
4,00,000 |
6,00,000 |
Debentures |
2,00,000 |
3,00,000 |
Furniture & Fixtures |
20,000 |
25,000 |
Long-term Loans on Mortgage |
1,50,000 |
2,00,000 |
other fixed Assets |
25,000 |
30,000 |
Bills Payable |
50,000 |
45,000 |
Cash In hand and at the bank |
20,000 |
80,000 |
Sundry Creditors |
1,00,000 |
1,20,000 |
Bills Receivable |
1,50,000 |
90,000 |
Other Current Liabilities |
5,000 |
10,000 |
Sundry Debtors |
2,00,000 |
2,50,000 |
Stock |
2,50,000 |
3,50,000 |
|||
Prepaid Expenses |
2,000 |
Solution:
Comparative Balance Sheet as of 31.12.2019 and 31.12.2020
| Year Ending 31 December | ||||
| 2019 | 2020 | Increase/Decrease (Amounts) | Increase/Decrease (Percentages ) | |
| Assets | ||||
| Current Assets | ||||
| Cash In hand and at the bank | 20,000 | 80,000 | 60,000 | 300 |
| Bills Receivable | 1,50,000 | 90,000 | -60,000 | -40 |
| Sundry Debtors | 2,00,000 | 2,50,000 | 50,000 | 25 |
| Stock | 2,50,000 | 3,50,000 | 1,00,000 | 40 |
| Prepaid Expenses | —- | 2,000 | 2,000 | —- |
| Total Current Assets | 6,20,000 | 7,72,000 | 1,52,000 | 24.52 |
| Fixed Assets | ||||
| Land&Bulidings | 3,70,000 | 2,70,000 | -1,00,000 | 27.03 |
| Plant & Machinery | 4,00,000 | 6,00,000 | 2,00,000 | 50 |
| Furniture & Fixtures | 20,000 | 25,000 | 5,000 | 25 |
| other fixed Assets | 25,000 | 30,000 | 5,000 | 20 |
| Total Fixed Assets | 8,15,000 | 9,25,000 | 1,10,000 | 13.49 |
| Total Assets | 14,35,000 | 16,97,000 | 2,62,000 | 18.26 |
| Liabilities & Capital | ||||
| Current Liabilities | ||||
| Bills Payable | 50,000 | 45,000 | -5,000 | -10 |
| Sundry Creditors | 1,00,000 | 1,20,000 | 20,000 | 20 |
| Other Current Liabilities | 5,000 | 10,000 | 5,000 | 100 |
| Total Current Liabilities | 1,55,000 | 1,75,000 | 20,000 | 12.9 |
| Long-term Liabilities | ||||
| Debentures | 2,00,000 | 3,00,000 | 1,00,000 | 50 |
| Long-term Loans on Mortgage | 1,50,000 | 2,00,000 | 50,000 | 33 |
| Total Liabilities | 5,05,000 | 6,75,000 | 1,70,000 | 33.66 |
| Capital | ||||
| Equity share capital | 6,00,000 | 8,00,000 | 2,00,000 | 33 |
| Reserve and Surplus | 3,30,000 | 2,22,000 | -1,08,000 | -32.73 |
| Total | 14,35,000 | 16,97,000 | 2,62,000 | 18.26 |