From the following particulars of Mani Ltd an Kani Ltd prepare a common-size income statement for the year ended 31^st March, 2019

Particulars	Mani Ltd	Kani Ltd
	Rs.	Rs.
Revenue from operations	2,00,000	2,50,000
Other income	30,000	25,000
Expenses	1,10,000	1,25,000

Prepare common-size balance sheet of Maria Ltd. as on 31^st March, 2018.

Particulars	31st March 2018
	Rs.
I EQUITY AND LIABILITIES
Shareholders’ funds	4,00,000
Non-current liabilities	3,20,000
Current liabilities	80,000
Total	8,00,000
II ASSETS
Non-current assets	6,00,000
Current assets	2,00,000
Total	8,00,000

‘Financial statements are prepared based on the past data’. Explain how this is a limitation.

Briefly explain any three limitations of financial statements

Explain the procedure for preparing common-size statement