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The following are the Balance Sheets of Mohan Ltd., at the end of 2004 and 2005.

Equity share capital400600Land and buildings270170
Reserves and surplus312354plants and machinery310786
Debentures50100Furniture and fixtures918
Long-term loans150255other fixed assets2030
Accounts payable255117Loans and advances4659
other currect Liabilities710cash and bank11810
Account Receivable209190
prepaid expenses33
Othe current assets2940

Prepare a Comparative Balance Sheet and study the financial position of the company.

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Working note: 


(i) Decrease in current Liabilities is more than decrease in current assets which indicates that the current ratio has improved. 

(ii) Decrease in cash and bank may result in delay in payments. 

(iii) Fixed Assets have increased along with share capital. It indicates that such asset has been purchased using Long term sources of finance. 

(iv) Increase in reserve and surplus is a healthy indicator

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