Problem

From the following balance sheets of Dramas Ltd., compute the trend percentages using 31st December 2005 as the base year.

Assets & Liabilities                        Amount

                                         2005     2006    2007

Liabilities:

Share capital                 2,00,000    2,50,000    3,00,000
Reserves                       1,00,000   1,50,000     1,50,000
Loans                            2,00,000   1,00,000        50,000
Creditors                       3,00,000   4,00,000     2,00,000
                                    8,00,000   9,00,000      7,00,000

Assets:

Buildings                       2,00,000    2,50,000     3,00,000
Plant                             2,00,000    2,50,000     1,00,000
Stock                            2,50,000    2,50,000     1,50,000
Debtors                         1,00,000    1,00,000     1,00,000
Cash at Bank                    50,000      50,000        50,000
                                    8,00,000    9,00,000     7,00,000

• Preparation of comparative balance sheet with the increase or decrease in percentage
• Conclusions