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Following is the Statement of Profit and Loss of Sun India Ltd. for the Year Ended 31st March. 2015 - CBSE (Arts) Class 12 - Accountancy

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Question

Following is the statement of Profit and Loss of Sun India Ltd. For the year ended 31st March. 2015:

Particulars Note No. 31-3-2015 (Rs.) 31-3-2014 (Rs.)

Revenue from operations

Other Income

Employee benefit – expenses

Other expenses

Tax Rate

 

25,00,000

1,00,000

60% of total revenue

10% of employee benefit expenses

50%

20,00,000

5,00,000

50% of total revenue

20% of employee benefit expenses

40%

The motto of Sun India Ltd is to produce and supply green energy in the rural areas of India. It has also taken up a project of constructing a road that will pass through five villages, so that these villages could be connected to the nearby town. It will use the local resources and employ local people for construction of the road.

You are required to prepare a Comparative Statement of Profit and Loss of Sun India Ltd from the given statement of Profit and Loss. Also identify any two values that the company wishes to convey to the society.

Solution

  Particulars Note No 31st March 2014 31st March 2015 Absolute Change Percentage Change

1.

2.

Revenue from operations

Other Income

 

20,00,000

5,00,000

25,00,000

1,00,000

5,00,000

(4,00,000)

25.00

(80.00)

3. Total Revenue (1+2)   25,00,000 26,00,000 1,00,000 4.00

4.

 

 

Expenses:-

Employee Benefit Expenses

Other Expenses

 

 

12,50,000

2,50,000

 

15,60,000

1,56,000

 

3,10,000

(94,000)

 

24.80

(37.60)

  Total Expenses   15,00,000 17,16,000 2,16,000 14.40

5.

 

Profit before Tax (3-4)

        Less: Income Tax

 

10,00,000

4,00,000

8,84,000

4,42,000

(1,16,000)

42,000

(11.60)

10.50

6. Profit after Tax   6,00,000 4,42,000 (1,58,000) (26.30)

 

The values conveyed by Company are

(i) Rural Development

(ii) Employment opportunities to plenty.

  Is there an error in this question or solution?

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Solution Following is the Statement of Profit and Loss of Sun India Ltd. for the Year Ended 31st March. 2015 Concept: Comparative Statements.
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