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Following is the Statement of Profit and Loss of Dd Ltd. for the Year Ended 31-3-2015. - CBSE (Arts) Class 12 - Accountancy

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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.

  Is there an error in this question or solution?

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Solution Following is the Statement of Profit and Loss of Dd Ltd. for the Year Ended 31-3-2015. Concept: Comparative Statements.
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