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Question
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%
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Solution
Common size Statement of Profit and Loss of Prudence Ltd [6]
For the year ending 31st March, 2017
| Particulars | Absolute Amount (Rs.) | % to Revenue from Operations |
| Revenue from Operations | 20,00,000 | 100 |
| Other Income (Dividend received) | 40,000 | 2 |
| Total Revenue | 20,40,000 | 102 |
| Expenses | ||
| Purchases | 15,00,000 | 75 |
| Changes in inventories | 1,00,000 | 5 |
| Depreciation and Amortization expenses | 60,000 | 3 |
| Total Expenses | 16,60,000 | 83 |
| Profit before Tax | 3,80,000 | 19 |
| Less Tax | (1,52,000) | 7.6 |
| Profit after Tax | 2,28,000 | 11.4 |
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RELATED QUESTIONS
Explain how common size statements are prepared giving an example.
From the following Statement of Profit and Loss of Star Ltd., for the year ended 31st March, 2015 and 2016, prepare a Common-size statement:
| Particulars | Note No. | 2015-16 |
2014-15 |
||
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| Other Expenses | ₹ 2,00,000 | ₹ 3,00,000 | |||
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Tax Rate |
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| Revenue from operations | ₹ 16,00,000 | ₹ 8,00,000 | |
| Cost of material consumed | |||
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|||
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31st March 2020 (₹) |
| I. Equity and Liabilities | |||
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| Tax Rate | 50% | 50% |
