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The following are the balance sheets of Devi Company Limited at the end of 2011 and 2012. Prepare a comparative Balance Sheet and study the financial position of the conL

Equity capital1,20,0001,85,000Fixed assets1,40,0001,95,000
preference capital
p & L17,50020,000Bills receivables20,00050,000
Bank overdraft                35,00045,450prepaid expenses6,0008,000
Creditors25,00045,450cash at bank40,00048,500
provision for taxation
15,00022,500cash in hand5,00029,000
proposed dividend8,50020,050

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(i) Change in current assets and current Liabilities is almost same. It indicates that ratio is same as of previous year. 

(ii) Fixed Assets have increased along with share capital which shows that assets are purchased with long term sources of finance. 

(iii) The overall financial position of company is satisfactory.

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