Question

Convert the following particulars into common size statement of profit and loss and interpret the changes in 2023:

Particulars	Note No.	31st March 2023 (₹)	31st March 2022 (₹)
Revenue from Operations		18,00,000	15,00,000
Other Income		72,000	45,000
Cost of Materials Consumed		8,64,000	6,60,000
Employee Benefit Expenses (% of Revenue from Operations)		10%	12%
Other Expenses		54,000	1,05,000

Answer 1

Common Size Statement of Profit and Loss For the years ended 31st March 2023 and 2022
Particulars	Note No.	Absolute Amounts		% on Revenue from Operations
		31st March 2023 (₹)	31st March 2022 (₹)	31st March 2023 (%)	31st March 2022 (%)
I. Revenue from Operations		18,00,000	15,00,000	100	100
II. Other Income		72,000	45,000	4	3
III. Total Income (I + II)		18,72,000	15,45,000	104	103
IV. Less: Expenses:
Cost of Materials Consumed		8,64,000	6,60,000	48	44
Employee Benefit Expenses		1,80,000	1,80,000	10	12
Other Expenses		54,000	1,05,000	3	7
Total Expenses		10,98,000	9,45,000	61	63
V. Profit before Tax (III − IV)		7,74,000	6,00,000	43	40