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Class 12 Accountancy Project Important Points To Be Considered

This document outlines the important points to be included in a class 12 accountancy project. It includes: [1] An introduction to the selected company's history; [2] An explanation of financial statement analysis concepts; [3] Comparative balance sheets and income statements for years 2019-2020 with calculations of absolute and percentage changes; [4] Common size balance sheets and income statements to show percentages of totals; [5] Calculation of 10 selected financial ratios for 2019-2020; [6] Inclusion of the company's cash flow statement; and [7] Conclusion of the project analysis.

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303 views2 pages

Class 12 Accountancy Project Important Points To Be Considered

This document outlines the important points to be included in a class 12 accountancy project. It includes: [1] An introduction to the selected company's history; [2] An explanation of financial statement analysis concepts; [3] Comparative balance sheets and income statements for years 2019-2020 with calculations of absolute and percentage changes; [4] Common size balance sheets and income statements to show percentages of totals; [5] Calculation of 10 selected financial ratios for 2019-2020; [6] Inclusion of the company's cash flow statement; and [7] Conclusion of the project analysis.

Uploaded by

Rita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CLASS 12 ACCOUNTANCY PROJECT

IMPORTANT POINTS TO BE CONSIDERED


1. Introduction about the company – history of the company ( 3- 4 pages)

2.Meaning of financial statement analysis, objectives of financial statement analysis, tools of financial
statement analysis

3. Comparative statements – BALANCE SHEET AND INCOME STATMENT

3.1 COMPARATIVE BALANCE SHEET OF ------------------------

PARTICULARS 2019(P.YEAR) 2020(C.YEAR ABSOLUTE % OF CHANGE


) CHANGE(C.Y- P.YE)
1. EQUITY SHARE CAPITAL 40,00,000 50,00,000 10,00,000 25.00
2.RESERVES SURPLUS
TOTAL
ASSETS

% OF CHANGE = ABSOLUTE CHANGE 10,00,000


--------------------------- X 100 -------------- X 100 = 25%
PREVIOUS YEAR 40,00,000

3.2. COMPARATIVE INCOME STATEMENT

PARTICULARS 2019-20 2020-21 AB CHAN % CHANGE


REVENUE FROM OPERATIONS 4,00,000 6,00,000 2,00,000 50.00

TOTAL INCOME (A) 4,00,000 6,00,000 2,00,000 50.00

EXPENSES
Cost of materials 2,40,000 4,20,000 1,80,000 75.00
Employee benefit expenses 60,000 1,20,000 60,000 100
PROFIT BEFORE TAX (A-B) 1,00,000 60,000 (40,000) (40)
LESS INCOME TAX 40,000 24,000 (16,000) (40)
PROFIT AFTER TAX 60,000 36,000 (24,000) (40)

3.3 COMMON SIZE BALANCE SHEET

PARTICULARS 2019 2019(%) 2020 2020(%)


EQUITY SHARE CAPITAL 4,00,000 44.44 8,00,000 44.44
RESERVES AND SURPLUS 1,00,000 11.11 5,00,000 27.78
LONG TERM BORROWINGS 3,00,000 33.33 3,00,000 16.67
TRADE PAYABLES 1,00,000 11.11 2,00,000 11.11
TOTAL 9,00,000 100.00 40,00,000 100.00
NON CURRENT ASSETS 5,00,000 55.56 10,00,000 55.56
CURRENT ASSETS 3,00,000 33.33 6,00,000 33.33
CASH 1,00,000 11.11 2,00,000 11.11
TOTAL 9,00,000 100.00 18,00,000 100.00

EQUITY SHARE CAPITAL = 4,00,000


------------- X 100 = 44.44%
9,00,000
3.4 COMMONSIZE INCOME STATEMENT
PARTICULARS 2019-20 2020-21 2019-20 2020-21
REVENUE FROM OPERATIONS 4,00,000 6,00,000 100.00 100.00

TOTAL INCOME (A) 4,00,000 6,00,000 100.00 100

EXPENSES
Cost of materials 2,40,000 4,20,000 60.00 70.00
Employee benefit expenses 60,000 1,20,000 15.00 20.00
PROFIT BEFORE TAX (A-B) 1,00,000 60,000 25.00 10.00
LESS INCOME TAX 40,000 24,000 10.00 4.00
PROFIT AFTER TAX 60,000 36,000 15.00 6.00

4.RATIO ANALYSIS OF THE COMPANY

15 RATIOS ARE GIVEN IN THE TEXT BOOK

1. CURRENT RATIO, LIQUID RATIO, INVENTORY TURNOVER RATIO, DEBT EQUITY RATIO, ROI, INTEREST
COVERAGE RATIO, TRADE PAYABLES TURNOVER RATIO, WORKING CAPITAL TURNOVER RATIO, GROSS
PROFIT RATIO, NET PROFIT RATIO, OPERATING RATIO, OPERATING PROFIT RATIO, PROPRIETORY RATIO

SELECT ANY 10 RATIOS FROM THE COMPANY WHICH YOU HAVE SELECTED FOR PROJECT .CALCULATE
RATIOS FOR THE YEARS 2019 AND 2020.

5.CASH FLOW STATEMENT OF THE COMPANY WHICH YOU HAVE SELECTED ( IT IS AVAILABLE IN THE NET
JUST COPY THE CASH FLOW STATEMENT)

6.DIAGRAMMATIC PRESENTATION

7.CONCLUSION

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