Question
Following is the statement of Profit and Loss of DD Ltd. For the year ended 31-3-2015.
| Particulars | Note No. | 31-3-2015 (Rs.) | 31-3-2014 (Rs.) |
|
Revenue from operations Other Income Employee benefit – expenses 60% of total revenue Other expenses 10% of employee benefit expenses Tax Rate |
75,00,000 1,50,000
40% |
34,00,000 3,00,000
50% |
The motto of DD 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 DD Ltd. from the given statement of Profit and Loss. Also identify any two values that the company wishes to convey to the society.
Solution
Comparative Statement of Profit and Loss
for the year ended March 31,2014 and 2015
| Particulars | Note No | 31st March 2014 (Rs.) | 31st March 2015 (Rs.) | Absolute Change (Rs.) | Percentage Change (Rs.) | |
| 1. | Revenue from operations | 34,00,000 | 75,00,000 | 41,00,000 | 120.59 | |
| 2. | Other Income | 3,00,000 | 1,50,000 | (1,50,000) | (50.00) | |
| 3. | Total Revenue (1+2) | 37,00,000 | 76,50,000 | 39,50,000 | 106.76 | |
|
4.
|
Expenses:- Employee Benefit Expenses Other Expenses |
|||||
| Total Expenses | 22,20,000 | 45,90,000 | 23,70,000 | 106.76 | ||
|
5.
|
Profit before Tax (3-4) Less: Income Tax |
14,80,000 7,40,000 |
30,60,000 12,24,000 |
15,80,000 4,84,000 |
106.76 65.41 |
|
| 6. | Profit after Tax | 7,40,000 | 18,36,000 | 10,96,000 | 148.11 |
The values conveyed by Company are
(i) Rural Development
(ii) Employment opportunities to plenty.
