Question
What is Comparative Balance Sheet? How is it prepared?
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Answer
Comparative Balance Sheet analysis is the study of the trend of same items, group of items and computed items in two or more Balance Sheets of the same business enterprise on different dates. The fonn of comparative balance sheet consists of five columns.
In the first column the items of Balance Sheet are entered. ln the second column the data for previous year is shown and in the third column the data for current year is shown. In the fourth column the increases or decreases in absolute data is shown in terms of rupee amounts. Fifth column shows the percentage of increase or decrease in absolute data.
In the first column the items of Balance Sheet are entered. ln the second column the data for previous year is shown and in the third column the data for current year is shown. In the fourth column the increases or decreases in absolute data is shown in terms of rupee amounts. Fifth column shows the percentage of increase or decrease in absolute data.
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