Finance and Accounts

This query is : Resolved

Share Report Follow Query Ask a Query

Khushabu

Khushabu (Querist)
Follow

18 December 2009 how to analyse the balance sheet and P&L?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
Follow

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

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

18 December 2009 Surendra sir Do you have any formula to calculate

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rampal Saini

Narendra

Vivekanand Sagar

SANJAY GOSALIA

Amit Goyal

Subscribe Now

Finance and Accounts

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

Article Assistant

Manager- Finance and Compliance

GST CONSULTANT

Accountant