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प्रश्न
The objective of the common size statement of profit and loss is not to ______.
पर्याय
Present changes in various items of incomes and expenses
Judge the cost items
Establish relationship between revenue from operations and other items of statement of profit & loss
Judge the relative financial soundness for different enterprises
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उत्तर
The objective of the common size statement of profit and loss is not to judge the relative financial soundness for different enterprises.
Explanation:
The objective of a common size Statement of Profit and Loss is to analyse and evaluate the relationship of various things to net revenue from operations, rather than to assess overall financial soundness, which is normally accomplished through ratio or balance sheet analysis.
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संबंधित प्रश्न
From the following information, prepare a Common Size Statement of Profit and Loss of Prudence Ltd. for the
year ending 31st March, 2017:
Particulars 31.03.2017
Revenue from Operations 20,00,000
Purchases 15,00,000
Changes in inventories 1,00,000
Other Income (Dividend received) 40,000
Depreciation and Amortization expenses 60,000
Tax Rate @ 40%
Explain the following :
Common size balance sheet.
Explain how common size statements are prepared giving an example.
Prepare a Common size statement of profit and loss of Shefali Ltd. with the help of following information:
| Particulars | 2015-16 (Rs) |
2016-17 (Rs) |
| Revenue from operations | 6,00,000 | 8,00,000 |
| Indirect expense | 25% of gross profit | 25% of gross profit |
| Cost of revenue from operations | 4,28,000 | 7,28,000 |
| Other incomes | 10,000 | 12,000 |
| Income tax | 30% | 30% |
Prepare Common-size Balance Sheet and comment on the financial position of Sun Ltd. and Star Ltd. The Balance Sheet of Sun Ltd. and Star Ltd. as at 31st March, 2019 are:
|
Particulars |
Sun Ltd. (₹) |
Star Ltd. (₹) |
| I. EQUITY AND LIABILITIES | ||
|
1. Shareholders' Funds |
||
|
(a) Share Capital |
9,00,000 |
12,00,000 |
|
(b) Reserves and Surplus |
4,00,000 |
3,50,000 |
|
2. Current Liabilities |
|
|
|
Trade Payables (Creditors) |
2,00,000 |
2,50,000 |
|
Total |
15,00,000 |
18,00,000 |
| II. ASSETS | ||
|
1. Non-Current Assets |
||
|
Fixed Assets (Tangible) |
10,00,000 |
16,00,000 |
|
2. Current Assets |
|
|
|
Trade Receivables (Debtors) |
5,00,000 |
2,00,000 |
|
Total |
15,00,000 |
18,00,000 |
Prepare common size statement of profit and loss from the following information:
| Particulars | Note No. | 2017-18 | 2016-17 |
| Revenue from operations | ₹ 16,00,000 | ₹ 8,00,000 | |
| Cost of material consumed | |||
| (% of revenue from operations) | 60% | 50% | |
| Operating expenses | ₹ 80,000 | ₹ 40,000 | |
| Income tax rate | 40% | 30% |
Prabhu wants to know the main objective of Common Size Statement, help him to choose one:
From the following Balance Sheet of Rohit Ltd., prepare a Common Size Balance Sheet:
| Balance Sheet of Rohit Ltd. as at 31st Mach, 2021 |
|||
| Particulars | Note No. | 31st March 2021 (₹) |
31st March 2020 (₹) |
| I. Equity and Liabilities | |||
| 1. Shareholders' Funds | 3,20,000 | 1,60,000 | |
| 2. Current Liabilities | 80,000 | 40,000 | |
| Total | 4,00,000 | 2,00,000 | |
| II. Assets | |||
| 1. Non-Current Assets | 3,00,000 | 1,50,000 | |
| 2. Current Assets | 1,00,000 | 50,000 | |
| Total | 4,00,000 | 2,00,000 | |
From the following information, prepare a 'Common Size Statement of Profit and Loss' of GG Ltd. for the year ended 31.3.2021 and 31.3.2022:
| 31.3.2022 | 31.3.2021 | |
| Revenue from operations | 20,00,000 | 10,00,000 |
| Other Income | 2,00,000 | 1,00,000 |
| Expenses | 15,00,000 | 8,00,000 |
| Tax @ 50% |
From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31st March 2022 and 31st March 2023, prepare a common size statement of profit & loss:
| Particulars | Note No. | 2022-23 (₹) | 2021-22 (₹) |
| Revenue from operations |
8,00,000 | 10,00,000 | |
| Gross Profit | 60% | 70% | |
| Other Expenses | 2,20,000 | 2,60,000 | |
| Tax Rate | 50% | 50% |
