Question

From the information given below, prepare a common size statement of profit & loss of Relay Ltd.:

Particulars	31st March, 2024 (₹)	31st March, 2023 (₹)
Revenue from Operations	50,00,000	40,00,000
Other Income	2,00,000	2,00,000
Purchase of Stock-in Trade	34,00,000	24,00,000
Change in Inventories	(1,00,000)	80,000
Other Expenses	1,50,000	1,60,000

Answer 1

Common Size Statement of Profit & Loss of Relay Ltd. for the years ending 31st March, 2024 and 2023
Particulars	Note No.	Absolute Amounts		Percentage of Revenue from Operations
		31st March, 2024 (₹)	31st March, 2023 (₹)	31st March, 2024 (₹)	31st March, 2023 (₹)
I. Revenue from Operations		50,00,000	40,00,000	100.00	100.00
II. Other Income		2,00,000	2,00,000	4.00	5.00
III. Total Income		52,00,000	42,00,000	104.00	105.00
IV. Less: Expenses:
Purchase of Stock-in Trade		34,00,000	24,00,000	68.00	60.00
Change in Inventories		(1,00,000)	80,000	(2.00)	02.00
Other Expenses		1,50,000	1,60,000	3.00	04.00
Total Expenses		34,50,000	26,40,000	69.00	66.00
V. Profit before Tax (III − IV)		17,50,000	15,60,000	35.00	39.00

Working Note:

All percentages will be calculated on the basis of Revenue from Operations.

(1) Other Income

Year 31st March, 2024:

= `(₹ 2,00,000) / (₹ 50,00,000) xx 100`

= 4.00%

Year 31st March, 2023:

= `(₹ 2,00,000) / (₹ 40,00,000) xx 100`

= 5.00%

(2) Purchase of Stock-in-Trade

Year 31st March, 2024:

= `(₹ 34,00,000) / (₹ 50,00,000) xx 100`

= 68.00%

Year 31st March, 2023:

= `(₹ 24,00,000) / (₹ 40,00,000) xx 100`

= 60.00%

(3) Change in Inventories

Year 31st March, 2024:

= `(₹ -1,00,000) / (₹ 50,00,000) xx 100`

= − 2.00%

Year 31st March, 2023:

= `(₹ 80,00,000) / (₹ 40,00,000) xx 100`

= 2.00%

(4) Other Expenses

Year 31st March, 2024:

= `(₹ 1,50,00,000) / (₹ 50,00,000) xx 100`

= 3.00%

Year 31st March, 2023:

= `(₹ 1,60,00,000) / (₹ 40,00,000) xx 100`

= 4.00%