Question

From the following information of CK Ltd., prepare a Common Size Statement of Profit and Loss for the year ended 31^st March, 2024 and 31^st March, 2025.

Particulars	Note No.	2024-25 (₹)	2023-24 (₹)
Revenue from operations		80,00,000	40,00,000
Cost of materials consumed		24,00,000	16,00,000
Employee benefit expenses		4,00,000	2,00,000
Income tax @ 20%

Answer 1

Common Size Statement of Profit and Loss for CK Ltd. for the years ended 31st March, 2024 and 31st March, 2025
Particulars	Absolute Amounts (₹)	Percentage of Revenue (%)
	2023-24	2024-25
I. Revenue from Operations	40,00,000	80,00,000
II. Expenses:
(a) Cost of materials consumed	16,00,000	24,00,000
(b) Employee benefit expenses	2,00,000	4,00,000
Total Expenses	18,00,000	28,00,000
III. Profit before Tax (I - II)	22,00,000	52,00,000
IV. Less: Tax @ 20%	4,40,000	10,40,000
V. Profit after Tax (III - IV)	17,60,000	41,60,000

Working Note:

Calculation of Percentages:

Calculations for the year 2024-25 (Base = ₹ 80,00,000):

Cost of Materials Consumed:

Percentage = `"Amount of the item"/"Revenue from Operations" xx 100`

= `(24,00,000)/(80,00,000) xx 100`

= 30%

Employee Benefit Expenses:

= `(4,00,000)/(80,00,000) xx 100`

= 5%

Income Tax (20% on Profit):

Profit Before Tax = ₹ 52,00,000

Tax = `52,00,000 xx 20/100`

= 10,40,000

Percentage = `(10,40,000)/(80,00,000) xx 100`

= 13%