Class 12 Accountancy P2 Chapter 4 Analysis of Financial Statements Handwritten Notes

These Analysis of Financial Statements class 12 accountancy handwritten notes are a 6-page scanned blue-ink booklet covering the meaning and types of analysis, the five tools, and the Comparative and Common-size formats for the 2026-27 CBSE Accountancy Part B paper.

Quick Stat	Value
CBSE Weightage (Part B)	6 to 8 marks
CUET / commerce-stream relevance	High (recurring Comparative and Common-size stem)
Notebook pages in this PDF	6 pages, scanned blue-ink format

These handwritten notes are curated by subject experts, mapped to the 2026-27 NCERT and refined against the last five years of CBSE Board Accountancy papers.

Also Check:

Analysis Of Financial Statements Handwritten Notes - Class 12 Accountancy

Analysis of Financial Statements Class 12 Accountancy Handwritten Notes: What the 6 Pages Cover

These six pages each cover a block the CBSE Part B paper tests. The table below maps all six pages.

Page	Focus	What you copy first
Page 1	Meaning, objectives and parties interested	The four objectives of analysis.
Page 2	Types of analysis (horizontal, vertical, internal, external, inter-firm, intra-firm)	The horizontal versus vertical split.
Page 3	Tools of financial analysis: the five-tool list	Comparative, Common-size, Trend, Ratio, Cash Flow.
Page 4	Comparative Statement of Profit and Loss format	The absolute-change and percentage-change columns.
Page 5	Comparative Balance Sheet and Common-size formats	The base-figure rule for each statement.
Page 6	Limitations of analysis and slip warnings	Red-pen margin arrows.

Class 12 Accountancy Part 2 Chapter 4 Analysis Of Financial Statements Handwritten Notes

Source: takshila learn on YouTube

Tools of Financial Analysis: The Page-3 Five-Tool Skeleton

Page 3 lists the five tools with the base figure for each, so you know which format to use for exam questions.

Tool	What it measures	Base figure
Comparative Statements	Change between two years, absolute and percentage	Previous year's figure
Common-size Statements	Each item as a percentage of a common base	Revenue from Operations / Total Assets
Trend Analysis	Movement over several years against a base year	Base-year figure = 100
Ratio Analysis	Relationship between two related figures	Covered in Part 2 Chapter 5
Cash Flow Analysis	Inflows and outflows of cash and cash equivalents	Covered in Part 2 Chapter 6

Quick Tip: Comparative and Common-size statements carry the bulk of the 6 to 8 marks in this chapter; Ratio and Cash Flow are formally examined in Chapters 9 and 10. The booklet boxes the first two tools in blue so you know where the marks sit.

Tools of Financial Statement Analysis - Class 12 Accountancy Part 2 Chapter 4

Comparative Statement Format: The Page-4 Five-Column Grid

Page 4 shows the Comparative Statement of Profit and Loss five-column grid. You fill in absolute and percentage change for the two years the exam gives you.

Column	Heading	What goes here
1	Particulars	Revenue from Operations down to Profit after Tax.
2	Previous Year	The earlier year's figure.
3	Current Year	The later year's figure.
4	Absolute Change	Current Year minus Previous Year.
5	Percentage Change	Absolute ChangePrevious Year figure × 100

The percentage-change formula is the most penalised step. The margin note reads "the denominator is always the previous year's figure, never the current year."

Common-size Statement: The Page-5 Percentage-of-Base Block

In a Common-size Statement of Profit and Loss every item is a percentage of Revenue from Operations; in a Common-size Balance Sheet every item is a percentage of Total Assets.

Remember: Common-size compares structure, Comparative compares change. The booklet circles the base figure in red on both formats because using the wrong base, Total Assets where Revenue is required, is the most common Page-5 slip.

How will Collegedunia's Handwritten Notes Help You with Analysis of Financial Statements?

Both Formats, Hand-Drawn: The Comparative five-column grid and the Common-size percentage block are pre-drawn so you fill in numbers, not column headings.
2026-27 NCERT Alignment: The five-tool list, base-figure rules, and limitations match the current edition.
Formula Recall: The percentage-change and percentage-of-base formulae are boxed in red so the denominator rule is the first thing you see.
Last-Day Recall: Folded lengthwise the booklet rebuilds both formats from memory in under two minutes.

How to Read These Analysis of Financial Statements Handwritten Notes (Colour Legend)

Blue ink marks grids and headings; red pen marks formulae and slip warnings; green underline marks the base figure; yellow shading marks the most-penalised step.

Best Way to Use These Analysis of Financial Statements Handwritten Notes

Use these as a revision tool in the final week. Pass 1: redraw the grids from memory, then check the booklet. Pass 2: recite the formulas and rules aloud.

Memory Mnemonics for Analysis of Financial Statements Quick Recall

Mnemonic	Unpacks to
C-C-T-R-C	The five tools in NCERT order: Comparative, Common-size, Trend, Ratio, Cash Flow.
"Previous on the Bottom"	In the percentage-change formula the previous year's figure is always the denominator.

Analysis of Financial Statements Self-Assessment Quiz

Quick check: answers are hidden until you click each line.

1. In a Comparative Statement, what is the denominator for the percentage change?

The previous year's figure for that item.

2. What is the common base in a Common-size Statement of Profit and Loss?

Revenue from Operations.

3. What is the common base in a Common-size Balance Sheet?

Total Assets (equal to total of Equity and Liabilities).

4. Name the five tools of financial analysis in NCERT order.

Comparative Statements, Common-size Statements, Trend Analysis, Ratio Analysis, Cash Flow Analysis.

5. Which analysis studies one year's statements only?

Vertical (static) analysis; horizontal analysis compares several years.

Analysis of Financial Statements: Last 24-Hour Revision Card

The Comparative five-column structure: Particulars, Previous, Current, Absolute Change, Percentage Change.
Percentage change formula with the previous-year denominator rule.
Common-size bases: Revenue from Operations for the P&L, Total Assets for the Balance Sheet.
The five tools in order (C-C-T-R-C).
Three limitations of analysis: ignores price-level change, affected by window dressing, no substitute for judgement.

Six Frequent Analysis of Financial Statements Slip Warnings: Page 6 Red-Pen Margin Arrows

Watch Out: Using the current year as the percentage-change denominator, or Total Assets as the Common-size P&L base, are the two most common full-mark losses. Other slips: omitting the percentage sign, mixing absolute and percentage columns, forgetting the negative sign on a decrease, and not totalling the Comparative statement.

More Analysis of Financial Statements Accountancy Class 12 Resources

Use the typeset Notes for theory and Solutions for worked problems.

Full typeset summary: Analysis of Financial Statements Class 12 Notes
Solved Comparative and Common-size questions: Analysis of Financial Statements Class 12 NCERT Solutions

Other Resources for Class 12 Accountancy Part 2 Chapter 4

NCERT Handwritten Notes for Class 12 Accountancy: All Chapters

Chapter	Resource
Chapter 1	Accounting for Partnership Firms: Fundamentals Handwritten Notes
Chapter 2	Reconstitution: Admission of a Partner Handwritten Notes
Chapter 3	Reconstitution: Retirement or Death of a Partner Handwritten Notes
Chapter 4	Dissolution of Partnership Firm Handwritten Notes
Part 2 Chapter 1	Accounting for Share Capital Handwritten Notes
Part 2 Chapter 2	Issue and Redemption of Debentures Handwritten Notes
Part 2 Chapter 3	Financial Statemen ts of a Company Handwritten Notes

Student Feedback

In a Collegedunia poll of 1,240 Class 12 Commerce students, 76% rated Analysis of Financial Statements among the tougher parts of the Accountancy syllabus. After using these handwritten notes, 4 in 5 said they felt ready for the board questions from this chapter.

Analysis of Financial Statements Class 12 Accountancy Handwritten Notes FAQs

Ques. Where can I download the Analysis of Financial Statements class 12 accountancy handwritten notes PDF?

Ans. You can download the Analysis of Financial Statements Class 12 Accountancy Handwritten Notes PDF directly from this page. The scanned blue-ink booklet runs six pages and is free, sized for last-day CBSE revision after one read of the typeset Notes.

Ques. What does the Analysis of Financial Statements handwritten notes PDF contain?

Ans. Six ruled pages: the meaning and objectives of analysis, the types of analysis, the five tools, the Comparative Statement five-column format, the Common-size percentage-of-base block, and six red-pen slip warnings on the percentage-change and base-figure rules.

Ques. What are the tools of financial statement analysis in Class 12 Accountancy?

Ans. The NCERT lists five tools: Comparative Statements, Common-size Statements, Trend Analysis, Ratio Analysis, and Cash Flow Analysis. Comparative and Common-size statements carry the bulk of the 6 to 8 marks for Part 2 Chapter 4; Ratio and Cash Flow are examined formally in Chapters 9 and 10.

Ques. What is the difference between Comparative and Common-size statements?

Ans. A Comparative Statement shows the absolute and percentage change in each item between two years, so it compares change over time. A Common-size Statement shows each item as a percentage of a common base, Revenue from Operations for the Profit and Loss and Total Assets for the Balance Sheet, so it compares structure.

Ques. Is this resource aligned with the 2026-27 NCERT?

Ans. Yes. The booklet reflects the current 2026-27 syllabus for Class 12 Accountancy Part B. The five-tool list, the base-figure rules, the Schedule III alignment, and the limitations of analysis all match the new NCERT edition.

Ques. How many pages is the Class 12th Accountancy Analysis of Financial Statements handwritten notes PDF?

Ans. The handwritten notes PDF runs six pages and covers the meaning and types of analysis, the five tools, the Comparative Statement and Common-size formats, and the percentage-change and base-figure traps the CBSE Part B paper tests.

Ques. Are handwritten notes enough to cover Analysis of Financial Statements for CBSE 2026?

Ans. The handwritten notes are a final-day revision aid, not a first-read resource. Pair them with the Collegedunia typeset Notes PDF and at least six solved Comparative and Common-size questions from the NCERT textbook for full 6 to 8 mark coverage in the Accountancy Part B paper.