From the following Balance sheets of Sunstar Company Limited on 31.03.2024 and 31.03.2025, prepare Comparative Balance sheet :
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When an item decreases (like Investments and Cash here), indicate the absolute change with a minus sign or in brackets. The resulting percentage change must also be shown as negative.
Step 1: Understanding the Concept:
A Comparative Balance Sheet shows the balances of two consecutive years side-by-side. It calculates the absolute increase or decrease and the percentage increase or decrease of each item to facilitate horizontal analysis.
Step 2: Key Formula or Approach:
\[ \text{Absolute Change (c)} = \text{Current Year (b)} - \text{Previous Year (a)} \]
\[ \text{Percentage Change (d)} = \left( \frac{\text{Absolute Change (c)}}{\text{Previous Year (a)}} \right) \times 100 \]
Step 2: Detailed Explanation:
Apply the formula to each line item. For example, for Share Capital:
Absolute Change = 7,50,000 - 5,00,000 = + 2,50,000.
% Change = (2,50,000 / 5,00,000) * 100 = + 50.00%.
If an item decreases, it is shown in brackets, indicating a negative change.
Step 3: Final Answer: Comparative Balance Sheet of Sunstar Company Limited as on 31.03.2024 and 31.03.2025
