Question

From the following information, prepare a Comparative Statement of Profit & Loss:

Particulars	Note No.	2022-23 (₹)	2021-22 (₹)
Revenue from Operations		40,00,000	50,00,000
Gross Profit		50%	40%
Other Expenses		7,00,000	10,00,000
Other Income		1,00,000	2,00,000

Answer 1

Comparative Statement of Profit and Loss for the years ended 31st March, 2025 and 2024
Particulars	Note No.	2022-23 (₹)	2021-22 (₹)	Absolute Change (₹)	Percentage Change (%)
I. Revenue from Operations		40,00,000	50,00,000	(10,00,000)	(20.00)
II. Add: Other Income		1,00,000	2,00,000	(1,00,000)	(50.00)
III. Total Income (I + II)		41,00,000	52,00,000	(11,00,000)	(21.15)
IV. Less: Expenses
(a) Cost of Materials Consumed		20,00,000	30,00,000	(10,00,000)	(33.33)
(b) Other Expenses		7,00,000	10,00,000	(3,00,000)	(30.00)
Total Expenses		27,00,000	40,00,000	(13,00,000)	(32.50)
V. Profit before tax (III − IV)		14,00,000	12,00,000	2,00,000	16.67

Working Note:

1. Calculate Gross Profit & Cost of Revenue:

1. 2022-23 (Current Year)
   Revenue = ₹ 40,00,000
   Gross Profit @ 50% = 40,00,000 × 50% = 20,00,000
   Cost of Revenue = 40,00,000 − 20,00,000 = 20,00,000
2. 2021-22 (Previous Year)
   Revenue = 50,00,000
   Gross Profit @ 40% = 50,00,000 × 40% = 20,00,000
   Cost of Revenue = 50,00,000 − 20,00,000 = 30,00,000

2. Calculate Total Income:

Total Income = Revenue from Operations + Other Income 

1. 2022-23 = 40,00,000 + 1,00,000 = 41,00,000
2. 2021-22 = 50,00,000 + 2,00,000 = 52,00,000

3. Profit before Tax:

Profit before Tax = Gross Profit + Other Income − Other Expenses

1. 2022-23 = 20,00,000 + 1,00,000 − 7,00,000 = 14,00,000
2. 2021-22 = 20,00,000 + 2,00,000 − 10,00,000 = 12,00,000