Ncert Solutions for Class 12 Accountancy part 2 Chapter 4 Analysis of Financial Statements

Class 12 accountancy part 2 Book chapter 4 exercise solutions: Accountancy Class 12 part 2 Book Chapter 4 questions and answers

Textbook	NCERT
Class	Class 12
Subject	Accountancy
Chapter	part 2 Chapter 4
Chapter Name	Analysis of Financial Statements class 12 solutions
Category	Ncert Solutions
Medium	English

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Short Answer Questions

Question 1: List the techniques of Financial Statement Analysis.

Answer 1: The most commonly used techniques of Financial Statement Analysis are as listed below:

• 1. Common Size Financial Statements
• 2. Trend Analysis
• 3. Comparative Financial Statements
• 4. Cash Flow Statement
• 5. Fund Flow Statement
• 6. Ratio Analysis

Question 2: Distinguish between Vertical and Horizontal Analysis of financial data.

Answer 2:

Basis of Difference	Horizontal Analysis	Vertical Analysis
Meaning	It refers to the comparison of an item of the financial statement of one period or periods to its corresponding item of the base accounting period.	It refers to the comparison of itemitems of the financial statement to the common item of the same accounting period.
Purpose	Its purpose is to determine the change in an item during an accounting period. The change in the item is expressed either in absolute figures or in percentage or in both terms.	Its purpose is to determine the proportion of item/items to the common item of the same accounting period. The change in the item is expressed either in ratio or in percentage terms.
Usefulness	It indicates growth or decline of the item.	It helps in predicting and determining the future relative proportion of an item to the common item.

Question 3: State the meaning of Analysis and Interpretation.

Answer 3: Analysis and interpretation is a critical and systematic examination of the financial statement. It presents the financial data in a systematic manner and also establishes a cause-and-effect relationship with all the items of financial statements.

Analysis and interpretation is all about presenting financial data which is self-explanatory and easy to understand. It helps users of accounting information in assessing the status of the financial performance of the business for a time period, and enables them to take proper decisions regarding the finance policy of the firm.

Question 4: State the importance of Financial Analysis?

Answer 4: Financial Analysis has great importance to various accounting users on various matters. Income Statements, Balance Sheets and other financial data provides information about expenses and sources of income, profit or loss and also helps in assessing the financial position of a business. These financial data are not useful until they are analysed. There are various tools and methods such as Ratio Analysis, Cash Flow Statements that make the financial data to cater varying needs of various accounting users.

The following are the reasons that advocate in favour of Financial Analysis:

• 1. It helps in evaluating the profit earning capacity and financial feasibility of a business.
• 2. It helps in assessing the long-term solvency of the business.
• 3. It helps in evaluating the relative financial status of a firm in comparison to other competitive firms.
• 4. It assists management in decision making process, drafting various plans and also in establishing an effective controlling system.

Question 5: What are Comparative Financial Statements?

Answer 5: Comparative financial statements refer to statements which enable comparison that is both intra and inter-firm and is based on a period of time. These statements help various users of accounting information in evaluating the financial progress of a firm in relative terms. These statements express the data in absolute figures or as percentage change and absolute change that occurs in the item of the financial statement over a period of time.

The data presented in financial statements are self-explanatory and easy to understand. When items of the financial statement are treated with the same accounting policies and practices over a fixed period of time, then the comparative data derived from such statements bear meaningful comparisons.

Two common types are as follows::

• 1. Comparative Income Statement
• 2. Comparative Balance Sheet

Question 6: What do you mean by Common Size Statements?

Answer 6: These statements depict the relationship between various items of financial statements and some common items (like Net Sales and the Total of Balance Sheet) in percentage terms. In other words, various items of Trading and Profit and Loss Account such as Cost of Goods Sold, Non-Operating Incomes and Expenses are expressed in terms of percentage of Net Sales.

On the other hand, different items of Balance Sheet such as Fixed Assets, Current Assets, Share Capital etc. are expressed in terms of percentage of Total of Balance Sheet. These percentage figures are easily comparable with that of the previous years’ (i.e. inter-firm comparison) and with that of the figures of other firms in the same industry (i.e. inter-firm comparison) as well.

The analyses based on these statements are commonly known as Vertical Analysis.

The following are commonly prepared Common Size Statements.

• 1. Common Size Balance Sheet
• 2. Common Size Income Statements

Long Answer Questions

Question 1: Describe the different techniques of financial analysis and explain the limitations of financial analysis.

Answer 1: Techniques of Financial Analysis:

1. Comparative Financial Statements: This technique involves comparing financial statements for two or more periods to identify trends and changes in financial position, performance, and cash flows. It highlights increases or decreases in assets, liabilities, revenues, or expenses.
2. Trend Analysis: Trend analysis examines financial data over multiple periods to identify patterns or tendencies in performance. For example, analyzing revenue growth or expense trends helps forecast future performance.
3. Common Size Statements: In this approach, financial statements are presented in a percentage format by expressing each item as a proportion of a base figure (e.g., sales or total assets). This makes it easier to compare companies of different sizes or analyze changes over time.
4. Ratio Analysis: Ratio analysis involves calculating financial ratios (e.g., liquidity, profitability, solvency, and efficiency ratios) to evaluate an organization’s performance, financial health, and operational efficiency.
5. Cash Flow Analysis: This technique analyzes the cash flow statement to assess an organization’s liquidity, solvency, and financial adaptability by focusing on operating, investing, and financing cash flows.
6. Break-Even Analysis: Break-even analysis determines the point at which revenues equal costs, helping businesses understand the level of sales required to cover expenses and start generating profit.
7. Fund Flow Analysis: Fund flow analysis examines changes in financial position over a period by analyzing sources and uses of funds, emphasizing long-term financial planning.

Limitations of Financial Analysis

1. Historical Data Dependency: Financial analysis is based on past data, which may not always reflect current market conditions or future prospects.
2. Qualitative Factors Ignored: Non-financial factors, such as employee satisfaction, market reputation, or management efficiency, are not considered in financial analysis.
3. Inflationary Effects: Financial analysis does not account for inflation, which can distort the real value of financial figures over time.
4. Comparability Issues: Differences in accounting policies and practices across firms can hinder meaningful comparisons.
5. Static Nature of Financial Statements: Financial statements provide a snapshot of financial health at a specific point in time, which may not capture ongoing changes in the business environment.
6. Overemphasis on Ratios: Excessive reliance on ratios can lead to misinterpretation if the context or underlying assumptions are ignored.
7. Lack of Timeliness: Financial statements are often prepared periodically, which may delay the identification of urgent issues or opportunities.

Question 2: Explain the usefulness of trend percentages in interpretation of financial performance of a company.

Answer 2: The Trend Analysis presents each financial item in percentage terms for each year. These Trend Analysis not only help the accounting users to assess the financial performance of the business but also assist them to form an opinion about various tendencies and predict the future trend of the business.

Usefulness and Importance of Trend Analysis: The following are the various importance of Trend Analysis
(i) Assists in Forecasting: The trends provided by Trend Analysis help the accounting users to forecast the future trend of the business.
(ii) Percentage Terms: The trends are expressed in percentage terms. Analysing the percentage figures is easy and also less time consuming.
(iii) User Friendly: As the trends are expressed in percentage figures, so it is the most popular financial analysis to analyse the financial performance and operational efficiency of the company. In other words, one needs not to have an in-depth and sophisticated knowledge of accounting in order to analyse these percentage trends.
(iv) Presents a Broader Picture :The trend analysis presents a broader picture about the financial performance, viability and operational efficiency of a business. Generally, companies prefer to present their financial data for a period of 5 or 10 years in forms of percentage trends.

Question 3: What is the importance of comparative statements? Illustrate your answer with particular reference to comparative income statement.

Answer 3: Comparative statements have the following importance:

1. It presents financial data in a simple form, with year-wise data being presented in a side-by-side fashion, making the presentation neat and enabling intra and inter-firm comparisons more conclusive.

2. Presentation is very effective for drawing insights quickly and easily

3. It assists the management in drafting future plans and forecast trends which is achieved by analysing the profitability and operating efficiency of a business over time.

4. Comparative analysis helps the easy detection of problems. Early detection helps take corrective measures and align the business to meet the desired target.

Question 4: What do you understand by analysis and interpretation of financial statements? Discuss its importance.

Answer 4: Financial Analysis has great importance to various accounting users on various matters. Income Statements, Balance Sheets and other financial data provide information about expenses and sources of income, profit or loss and also helps in assessing the financial position of a business. These financial data are not useful until they are analysed. There are various tools and methods such as Ratio Analysis, Cash Flow Statements that make the financial data to cater varying needs of various accounting users.

The following are the reasons that advocate in favour of Financial Analysis:

• 1. It helps in evaluating the profit earning capacity and financial feasibility of a business.
• 2. It helps in assessing the long-term solvency of the business.
• 3. It helps in evaluating the relative financial status of a firm in comparison to other competitive firms.
• 4. It assists management in decision making process, drafting various plans and also in establishing an effective controlling system.

Question 5: Explain how common size statements are prepared giving an example.

Answer 5: Preparation of Common Size Statements: Common size statements present financial data as percentages of a base figure, making it easier to analyze the structure and compare performance over time or between companies. The process involves the following steps:

1. Identify the Base Figure
   • For a Common Size Income Statement, net sales or total revenue is taken as the base figure (100%).
   • For a Common Size Balance Sheet, total assets or total liabilities and equity is the base figure (100%).
2. Express Each Item as a Percentage of the Base
   • Divide each item in the statement by the base figure.
   • Multiply the result by 100 to convert it into a percentage.
3. Present the Percentages
   • Replace the absolute values in the financial statements with their respective percentages for analysis.

Example: Common Size Income Statement

Given Data:

• Net Sales: $1,000,000
• Cost of Goods Sold (COGS): $600,000
• Gross Profit: $400,000
• Operating Expenses: $150,000
• Net Income: $250,000

Common Size Income Statement:

Item	Amount ($)	Percentage (%)
Net Sales (Base)	1,000,000	100%
Cost of Goods Sold	600,000	60%
Gross Profit	400,000	40%
Operating Expenses	150,000	15%
Net Income	250,000	25%

Example: Common Size Balance Sheet

Given Data:

• Total Assets: $500,000
  • Cash: $50,000
  • Inventory: $150,000
  • Fixed Assets: $300,000
• Total Liabilities and Equity: $500,000
  • Liabilities: $200,000
  • Equity: $300,000

Common Size Balance Sheet:

Item	Amount ($)	Percentage (%)
Assets
Cash	50,000	10%
Inventory	150,000	30%
Fixed Assets	300,000	60%
Total Assets (Base)	500,000	100%
Liabilities and Equity
Liabilities	200,000	40%
Equity	300,000	60%
Total Liabilities and Equity (Base)	500,000	100%

Advantages of Common Size Statements:

• Facilitates easier comparison between companies of different sizes.
• Highlights structural changes in a company’s financial position.
• Provides a clear view of cost composition and efficiency over time.

Numerical Questions

Question 1: Following are the balance sheets of Alpha Ltd., as at March 31, 2016 and 2017.
You are required to prepare Comparative Balance Sheet.

Particulars	March 31, 2016 Rs.	March 31, 2017 Rs.
I. Equity and Liabilities
Equity share capital	2,00,000	4,00,000
Reserves and surplus	1,00,000	1,50,000
Long-term borrowings	2,00,000	3,00,000
Short-term borrowings	50,000	70,000
Trade payables	30,000	60,000
Short-term provisions	20,000	10,000
Other current liabilities	20,000	30,000
Total	6,20,000	10,20,000
II. Assets
Fixed assets	2,00,000	5,00,000
Non-current investments	1,00,000	1,25,000
Current investments	60,000	80,000
Inventories	1,35,000	1,55,000
Trade receivables	60,000	90,000
Short term loans and advances	40,000	60,000
Cash at bank	25,000	10,000
Total	6,20,000	10,20,000

Answer 1:

Comparative Balance Sheet as on March 31, 2016, and 2017
Particulars	2016(₹)	2017(₹)	Absolute Change	Percentage Change
I. Equity and Liabilities
1. Shareholder’s Fund
a. Equity Share Capital	2,00,000	4,00,000	2,00,000	100
b. Reserves and Surplus	1,00,000	1,50,000	50,000	50
2. Non-Current Liabilities
a. Long Term Borrowings	2,00,000	3,00,000	1,00,000	50
3. Current Liabilities
a. Short Term Borrowings	50,000	70,000	20,000	40
b. Trade Payables	30,000	60,000	30,000	100
c. Short Term Provisions	20,000	10,000	(10,000)	(50)
d. Other Current Liabilities	20,000	30,000	10,000	50
Total	6,20,000	10,20,000	4,00,000	64.5
II. Assets
1. Non-Current Assets
a. Fixed Assets	2,00,000	5,00,000	3,00,000	150
b. Non-current Investments	1,00,000	1,25,000	25,000	25
2. Current Assets
a. Current Investments	60,000	80,000	20,000	33.3
b. Inventories	1,35,000	1,55,000	20,000	14.8
c. Trade Receivables	60,000	90,000	30,000	50
d. Short Term Loans and Advances	40,000	60,000	20,000	50
e. Cash and Cash Equivalents	25,000	10,000	(15,000)	(60)
Total	6,20,000	10,20,000	4,00,000	64.5

Question 2: Following are the balance sheets of Beta Ltd. at March 31^st, 2016 and 2017:

Particulars	2016 Rs.	2017 Rs.
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share capital	4,00,000	3,00,000
(b) Reserves and surplus	1,50,000	1,00,000
2. Non-Current Liabilities
(a) Loan from IDBI	3,00,000	1,00,000
3. Current Liabilities
(a) Short-term borrowings	70,000	50,000
(b) Trade payables	60,000	30,000
(c) Other current liabilities	1,10,000	1,00,000
(d) Short-term provisions	10,000	20,000
Total	11,00,000	7,00,000
II. Assets
1. Non-Current Liabilities
(a) Fixed assets	4,00,000	2,20,000
(b) Non-current investments	2,25,000	1,00,000
2. Current Assets
(a) Current investments	80,000	60,000
(b) Stock	1,05,000	90,000
(c) Trade receivables	90,000	60,000
(d) Cash and cash equivalents	1,00,000	85,000
(e) Short term loans and advances	1,00,000	85,000
Total	11,00,000	7,00,000

Prepare comparative Balance Sheet.

Answer 2:

Comparative Balance Sheet of Beta Ltd.

(As at March 31, 2016, and 2017)

Particulars	2016 (Rs.)	2017 (Rs.)	Absolute Change (Rs.)	Percentage Change (%)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital	4,00,000	3,00,000	-1,00,000	-25.00%
(b) Reserves and Surplus	1,50,000	1,00,000	-50,000	-33.33%
2. Non-Current Liabilities
(a) Loan from IDBI	3,00,000	1,00,000	-2,00,000	-66.67%
3. Current Liabilities
(a) Short-term Borrowings	70,000	50,000	-20,000	-28.57%
(b) Trade Payables	60,000	30,000	-30,000	-50.00%
(c) Other Current Liabilities	1,10,000	1,00,000	-10,000	-9.09%
(d) Short-term Provisions	10,000	20,000	+10,000	+100.00%
Total (I)	11,00,000	7,00,000	-4,00,000	-36.36%
II. Assets
1. Non-Current Assets
(a) Fixed Assets	4,00,000	2,20,000	-1,80,000	-45.00%
(b) Non-Current Investments	2,25,000	1,00,000	-1,25,000	-55.56%
2. Current Assets
(a) Current Investments	80,000	60,000	-20,000	-25.00%
(b) Stock	1,05,000	90,000	-15,000	-14.29%
(c) Trade Receivables	90,000	60,000	-30,000	-33.33%
(d) Cash and Cash Equivalents	1,00,000	85,000	-15,000	-15.00%
(e) Short-term Loans & Advances	1,00,000	85,000	-15,000	-15.00%
Total (II)	11,00,000	7,00,000	-4,00,000	-36.36

Question 3: Prepare Comparative Income Statement from the following information:

Particulars	2016-17 Rs.	2015-16 Rs.
Freight Outward	20,000	10,000
Wages (office)	10,000	5,000
Manufacturing Expenses	50,000	20,000
Stock adjustment	(60,000)	30,000
Cash purchases	80,000	60,000
Credit purchases	60,000	20,000
Returns inward	8,000	4,000
Gross profit	(30,000)	90,000
Carriage outward	20,000	10,000
Machinery	3,00,000	2,00,000
Charge 10% depreciation on machinery	10,000	5,000
Interest on short-term loans	20,000	20,000
10% debentures	20,000	10,000
Profit on sale of furniture	20,000	10,000
Loss on sale of office car	90,000	60,000
Tax rate	40%	50%

Answer 3:

Comparative Income Statement
for the year ended March 31, 2016 and 2017 

Particulars	NoteNo.	2015-16(Rs)	2016-17(Rs)	Absolute Change (Rs)	PercentageChange
1. Revenue from Operations		2,16,000	92,000	(1,24,000)	(57.4)
2. Other Income		10,000	20,000	10,000	100
3. Total Revenue (1 + 2)		2,26,000	1,12,000	(1,14,000)	(50.44)
4. Expenses
a. Purchases of Stock-in-Trade		80,000	1,40,000	60,000	75
b. Change in Inventories		30,000	(60,000)	(90,000)	(300)
c. Employee Benefit Expenses		5,000	10,000	5,000	100
d. Finance Costs		21,000	22,000	1,000	4.54
e. Depreciation and Amortisation Expenses		5,000	10,000	5,000	100
f. Other Expenses		80,000	1,30,000	50,000	62.5
Total Expenses		2,21,000	2,52,000	31,000	14.03
5. Profit before Tax (3 – 4)		5,000	(1,40,000)	(83,000)	16.6
Less: Income Tax		2,500	–	(2,500)	(100)
6. Profit After Tax		2,500	(1,40,000)	(1,37,500)	55

Working Notes:

1. Calculation of Net Sales 

Net Sales = Cost of Goods Sold + Gross Profit – Sales Return

or, Net Sales = Purchases + Manufacturing Expenses + Change in Inventory + Gross Profit – Sales Return

Net Sales (2016) = 80,000 + 20,000 +30,000 + 90,000 – 4,000 = Rs 2,16,000

Net Sales (2017) = 1,40,000 + 50,000 – 60,000 – 30,000 – 80,000 = Rs 92,000

2. Calculation of Finance Cost

Finance Cost = Interest on short-term loans + Interest on 10% Debentures

Finance Cost (2016) = 20,000 + 1,000 = Rs 21,000

Finance Cost (2017) = 20,000 + 2,000 = Rs 22,000

3. Calculation of Other Expenses

Other Expenses = Freight Outward + Carriage Outward + Loss on sale of office car

Other Expenses (2016) = 10,000 + 10,000 + 60,000 = Rs 80,000

Other Expenses (2017) = 20,000 + 20,000 + 90,000 = Rs 1,30,000 

Question 4: Prepare Comparative Statement of Profit and Loss from the following information:

Particulars	2015-16 Rs.	2016-17 Rs.
Manufacturing expenses	35,000	80,000
Opening stock	30,000	60% of closing stock
Sales	9,60,000	4,50,000
Returns outward	4,000 (out of credit purchase)	6,000 (out of cash purchase)
Closing stock	150% of opening stock	1,00,000
Credit purchases	1,50,000	150% of cash purchase
Cash purchases	80% of credit purchases	40,000
Carriage outward	10,000	30,000
Building	1,00,000	2,00,000
Depreciation on building	20%	10%
Interest on bank overdraft	5,000	–
10% debentures	2,00,000	20,00,000
Profit on sale of copyright	10,000	20,000
Loss on sale of personal car	10,000	20,000
Other operating expenses	20,000	10,000
Tax rate	50%	40%

Answer 4:

Comparative Income Statement for the years ended March 31, 2016 and 2017
Particulars	2015-16  (Rs)	2016-17 (Rs)	Absolute Change (Rs)	Percentage Change
1. Revenue from Operations	9,60,000	4,50,000	(5,10,000)	(53.13)
2. Other Income	10,000	20,000	10,000	100
3. Total Revenue (1 + 2)	9,70,000	4,70,000	(5,00,000)	(51.55)
4. Expenses
a. Purchases of Stock-in-Trade	2,66,000	94,000	(1,72,000)	(64.66)
b. Change in Inventories	(15,000)	(40,000)	(25,000)	(166.67)
c. Finance Costs	25,000	20,00,000	1,75,000	700
d. Depreciation and Amortisation Expenses	20,000	20,000	–	–
e. Other Expenses	65,000	1,20,000	55,000	84.62
Total Expenses	3,61,000	3,94,000	33,000	9.14
5. Profit before Tax (3 – 4)	6,09,000	76,000	5,33,000	87.52
Less: Income Tax	3,04,000	30,400	2,74,100	90
6. Profit After Tax	3,04,000	45,600	2,58,900	85.02

Working Notes:

1. Calculation of Net Purchases and Change in Inventory 

Net Purchases of stock in Trade = Cash Purchases + Credit Purchases – Purchases Returns

2013 = 120000 + 150000 – 4000 = Rs 266000

2014 = 40000 + 60000 – 6000 = Rs 94000

Change in Inventory = Opening Stock – Closing Stock

2013 = 30000 – 45000 = Rs (15000)

2014 = 60000 – 100000 = Rs (40000)

2. Calculation of Finance Cost

Finance Cost = Interest on Bank Overdraft + Interest on Debentures

Finance Cost (2016) = 5,000 + 20,000 = Rs 25,000

Finance Cost (2017) = 0 + 20,000 = Rs 20,000

3. Calculation of Other Expenses

Other Expenses = Carriage outward + Manufacturing expenses + Other operating expenses

Other Expenses (2016) = 10,000 + 35,000 + 20,000 = Rs 65,000

Other Expenses (2017) = 30,000 + 80,000 + 10,000 = Rs 1,20,000

Question 5: Prepare a Common size statement of profit and loss of Shefali Ltd. with the help of following information:

Particulars	2015-16 (Rs)	2016-17 (Rs)
Revenue from operations	6,00,000	8,00,000
Indirect expense	25% of gross profit	25% of gross profit
Cost of revenue from operations	4,28,000	7,28,000
Other incomes	10,000	12,000
Income tax	30%	30%

Answer 5:

Common Size Income Statement
for the years ended March 31, 2016 and 2017 

Particulars	NoteNo.	2015-16(₹)	2016-17(₹)	Percentage ofSales
				2015-16	2016-17
1. Revenue from Operations		6,00,000	8,00,000	100	100
2. Other Income		10,000	12,000	1.67	1.5
3. Total Revenue (1 + 2)		6,10,000	8,12,000	101.67	101.5
4. Expenses
a. Cost of Revenue from Operations (COGS)		4,28,000	7,28,000	71.33	91
b. Other Expenses		43,000	18,000	7.17	2.25
Total Expenses		4,71,000	7,46,000	78.5	93.25
5. Profit before Tax (3 – 4)		1,39,000	66,000	23.167	8.25
Less: Income Tax		(41,700)	(19,800)	5.35
6. Profit After Tax		97,300	46,200	16.22	5.775

Working Notes:

1. Calculation of Other Expenses

Other Expenses = Indirect Expenses = % of Gross Profit

Gross Profit = Net Sales −- Revenue from Operations 

For 2016, Gross Profit = ₹(6,00,000 – 4,28,000) = ₹1,72,000

For 2017, Gross Profit = ₹(8,00,000 – 7,28,000) = ₹72,000 

2016 = 172000 × 25% = ₹ 43000

2017 = 72000 × 25 % = ₹ 18000

Question 6: Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:

Particulars	Aditya Ltd. Rs.	Anjali Ltd. Rs.
I. Equity and Liabilities
a) Equity share capital	6,00,000	8,00,000
b) Reserves and surplus	3,00,000	2,50,000
c) Current liabilities	1,00,000	1,50,000
Total	10,00,000	12,00,000
II. Assets
a) Fixed assets	4,00,000	7,00,000
b) Current assets	6,00,000	5,00,000
Total	1,00,0000	12,00,000

Answer 6: *The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.

Common Size Balance Sheet 

Particulars	Aditya Ltd.(Rs)	Anjali Ltd. (Rs)	% of Total
			Aditya Ltd.	Anjali Ltd.
I. Equity and Liabilities
1. Shareholder’s Fund
a. Equity Share Capital	6,00,000	8,00,000	60	66.67
b. Reserves and Surplus	3,00,000	2,50,000	30	20.83
2. Current Liabilities	1,00,000	1,50,000	10	12.5
Total	10,00,000	12,00,000	100	100
II. Assets
1. Non-Current Assets
a. Fixed Assets	4,00,000	7,00,000	40	58.33
2. Current Assets	6,00,000	5,00,000	60	41.67
Total	10,00,000	12,00,000	100	100