Problem 1 From the following balance sheets prepare comparative balance sheet and explain the financial position. Kiran Enterprises Limited Balance Sheets as on 31st December Liabilities 1990 1991 Assets 1990 1991 Rs. Rs. Rs. Rs. Equity share capital 12,00,000 16,00,000 Land and Buildings 7.40,000 5.40.000 Reserves & surplus 6,60,000 4,44,000 Plant and Machinery 8,00,000 12,00.000 Debentures 4,00,000 6,00,000 Furniture 40,000 50,000 Long term pledge 3,00.000 4,00,000 Sundry debtors 4,00,000 5,00,000 Loans and bills payable 1,00,000 90,000 Other fixed assets 50,000 60,000 Sundry creditors 2,00,000 2,40,000 Cash at Bank 40,000 1,60,000 Other current liabilities 10,000 20,000 Bills receivable 3,00.000 1.80,000 Stock 5.00.000 7,00,000 Prepaid expenses 4,000 28,70,000 33,94,000 28,70,000 33,94,000