Finance and Accounts
This query is : Resolved
18 December 2009
Take two year's figure of b/s and pnl i.e. previous year and current year.
Check the differences.
If a particular item in pnl was shown in previous year and in current year that figure is not shown; it means it requires attention.
Regarding income part; apply Gross Profit Ratio and Net Profit Ratio.
If GP is down without any variation in prices; most probably it means valuation of closing stock is wrong.
There should be change in balance sheet according to the financial performance.
If debtors are increasing; check the age of debtor. It might be that some debtors which are outstanding for a long time; are actually bad.
Practice a lot on different published balance sheets of listed companies.
CA Rakhecha,Surat
Check the differences.
If a particular item in pnl was shown in previous year and in current year that figure is not shown; it means it requires attention.
Regarding income part; apply Gross Profit Ratio and Net Profit Ratio.
If GP is down without any variation in prices; most probably it means valuation of closing stock is wrong.
There should be change in balance sheet according to the financial performance.
If debtors are increasing; check the age of debtor. It might be that some debtors which are outstanding for a long time; are actually bad.
Practice a lot on different published balance sheets of listed companies.
CA Rakhecha,Surat
Murtaza I Bhagat
(Expert)
18 December 2009
Surendra sir Do you have any formula to calculate
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