Following is the Balance Sheet of Param Company Ltd. as on 31st March, 2019 and 31st March, 2020:
| Liabilities | 31.3.2019 (₹) | 31.3.2020 (₹) | Assets | 31.3.2019 (₹) | 31.3.2020 (₹) |
| --- | --- | --- | --- | --- | --- |
| Share Capital | 2,50,000 | 3,70,000 | Fixed assets |

Question

Following is the Balance Sheet of Param Company Ltd. as on 31st March, 2019 and 31st March, 2020:
| Liabilities | 31.3.2019 (₹) | 31.3.2020 (₹) | Assets | 31.3.2019 (₹) | 31.3.2020 (₹) |
| --- | --- | --- | --- | --- | --- |
| Share Capital | 2,50,000 | 3,70,000 | Fixed assets | 2,80,000 | 4,40,000 |
| Reserve and Surplus | 60,000 | 1,00,000 | Current Assets | 1,30,000 | 1,20,000 |
| Current Liabilities | 1,00,000 | 90,000 |  |  |  |
|  | 4,10,000 | 5,60,000 |  | 4,10,000 | 5,60,000 |
You are required to prepare Comparative Balance Sheet of Param Company Ltd. as on 31st March. 2019 and 31st March. 2020.

Accepted Answer

>

> [!TLDR]
> A comparative balance sheet is a horizontal-analysis tool: for each item, Absolute Change = 2020 figure − 2019 figure, and Percentage Change = (Absolute Change ÷ 2019 figure) × 100. Applying this to Param Company Ltd. shows total funds up ₹ 1,50,000 (36.59%), driven mainly by fresh Share Capital and a large rise in Fixed Assets.
>
> **Comparative Balance Sheet of Param Company Ltd. as on 31st March 2019 and 2020**
>
> | Particulars | 31.3.2019 ₹ | 31.3.2020 ₹ | Absolute Change ₹ | % Change |
> | --- | --- | --- | --- | --- |
> | **I. Equity & Liabilities** |  |  |  |  |
> | Share Capital | 2,50,000 | 3,70,000 | + 1,20,000 | + 48.00 |
> | Reserve and Surplus | 60,000 | 1,00,000 | + 40,000 | + 66.67 |
> | Current Liabilities | 1,00,000 | 90,000 | − 10,000 | − 10.00 |
> | **Total** | **4,10,000** | **5,60,000** | **+ 1,50,000** | **+ 36.59** |
> | **II. Assets** |  |  |  |  |
> | Fixed Assets | 2,80,000 | 4,40,000 | + 1,60,000 | + 57.14 |
> | Current Assets | 1,30,000 | 1,20,000 | − 10,000 | − 7.69 |
> | **Total** | **4,10,000** | **5,60,000** | **+ 1,50,000** | **+ 36.59** |
> …

Liabilities	31.3.2019 (₹)	31.3.2020 (₹)	Assets	31.3.2019 (₹)	31.3.2020 (₹)
Share Capital	2,50,000	3,70,000	Fixed assets	2,80,000	4,40,000
Reserve and Surplus	60,000	1,00,000	Current Assets	1,30,000	1,20,000
Current Liabilities	1,00,000	90,000
	4,10,000	5,60,000		4,10,000	5,60,000
You are required to prepare Comparative Balance Sheet of Param Company Ltd. as on 31st March. 2019 and 31st March. 2020.

Particulars	31.3.2019 ₹	31.3.2020 ₹	Absolute Change ₹	% Change
I. Equity & Liabilities
Share Capital	2,50,000	3,70,000	+ 1,20,000	+ 48.00
Reserve and Surplus	60,000	1,00,000	+ 40,000	+ 66.67
Current Liabilities	1,00,000	90,000	− 10,000	− 10.00
Total	4,10,000	5,60,000	+ 1,50,000	+ 36.59
II. Assets
Fixed Assets	2,80,000	4,40,000	+ 1,60,000	+ 57.14
Current Assets	1,30,000	1,20,000	− 10,000	− 7.69
Total	4,10,000	5,60,000	+ 1,50,000	+ 36.59
…

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