Question

From the following particulars, prepare a comparative statement of profit and loss of Narang Colours Ltd. for the years ended March 31, 2016 and 2017:

Particulars	Note No.	2016-17	2015-16
1. Revenue from operations		40,00,000	35,00,000
2. Other income		50,000	50,000
3. Cost of material consumed		15,00,000	18,00,000
4. Changes in inventories of finished goods		10,000	(15,000)
5. Employee benefit expenses		2,40,000	2,40,000
6. Depreciation and amortisation		25,000	22,500
7. Other expenses		2,66,000	3,02,000
8. Profit		20,09,000	14.27,300

Notes to Accounts

Particulars	2016-17	2015-16
1. Other expenses
i) Power and fuel	36,000	40,000
ii) Carriage outwards	7,500	9,500
iii) License fees	2,500	2,500
iv) Selling and distribution	1,70,000	1,90,000
v) Provision of tax	50,000	60,000
	2,66,000	3,02,000

Answer 1

Comparative Statement of Profit and Loss of Narang Colours Ltd. for the years ended March 31, 2016 and 2017
Particulars	2015-16	2016-17	Absolute Increase (+) or Decrease (−)	Percentage Increase (+) or Decrease (−)
	(Rs.)	(Rs.)	(Rs.)	%
I. Revenue from Operations	35,00,000	40,00,000	5,00,000	14.29
II. Other Income	50,000	50,000	0	0.00
III. Total Revenue (I + II)	35,50,000	40,50,000	5,00,000	14.08
IV. Expenses:
(a) Cost of material consumed	18,00,000	15,00,000	3,00,000	16.67
(b) Changes in inventories of finished goods	(15,000)	10,000	25,000	166.67
(c) Employee benefit expenses	2,40,000	2,40,000	0	0.00
(d) Depreciation and amortisation	22,500	25,000	2,500	11.11
(e) Other expenses (Excluding Tax)	2,42,000	2,16,000	26,000	10.74
Total Expenses	22,89,500	19,91,000	2,98,500	13.04
V. Profit Before Tax (III – IV)	12,60,500	20,59,000	7,98,500	63.35
Less: Provision of tax	(60,000)	(50,000)	10,000	16.67
VI. Net Profit After Tax	12,00,500	20,09,000	8,08,500	67.35