A Common Size Balance Sheet is a statement in which total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total. In other words, each asset is expressed as percentage to total assets and each liability is expressed as percentage to total liabilities.

Format of Common Size Balance Sheet

Common Size Balance Sheet of … on 31st March 20…and 31st March 20…….

Particulars Note No. Previous Year  (`) Current Year (`) Percentage  Previous Year Percentage Current Year

I. Equity and Liabilities

1. Shareholders’ funds

(a) Share capital

(b) Reserves and Surplus

2. Non-Current Liabilities

(a) Long-term borrowings

(b) Long-term provisions

3. Current Liabilities

(a) Short-term borrowings

(b) Trade payables

(c) Other current liabilities

(d) Short-term provisions

Total  100 100 


(1) Non-Current Assets

(a) Fixed Assets

(i) Tangible assets

(ii) Intangible assets

(b) Non-current investments

(c) Long-term loans and advances

(2) Current Assets

(a) Current investments

(b) Inventories

( c) Trade receivables

(d) cash and cash equivalents

(e) Short term loans and advances

(f) Other current assets

Total  100  100

How to prepare Common Size Balance sheet

The main steps in preparing the Common Size Balance Sheet are:

1. Enter the items of Balance Sheet in first column.

2. Enter the absolute amounts of previous year figures in the second column.

3. Enter the absolute amounts of current year figures in third column.

4. Enter the common size percentages of previous year items in the fourth column.

5. Enter the common size percentages of current year items in the fifth column.

Formula for calculating the common size percentage:

[Item figure/Total assets (Total liabilities)] x100

The Comparative Balance Sheet shows increase and decrease in various assets, liabilities and capital in absolute terms as well as percentages.

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