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Question
Prepare a Common-size Statement of Profit & Loss of 'Hari Darshan Ltd' from the following information:
| Particulars | Note No. | 2025–26 (₹) | 2024–25 (₹) |
|---|---|---|---|
| Revenue from Operations | 20,00,000 | 10,00,000 | |
| Purchase of Stock-in-Trade | 7,70,000 | 4,20,000 | |
| Changes in Inventories | 1,20,000 | 80,000 | |
| Other Expenses | 52,000 | 30,000 | |
| Other Incomes | 60,000 | 50,000 | |
| Tax Rate 50% |
Ledger
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Solution
| Common-size Statement of Profit & Loss of Hari Darhan Ltd. (For the years ended 31st March, 2025 and 31st March, 2026) |
||||
|---|---|---|---|---|
| Particulars | Absolute Amount 2024–25 (₹) |
Absolute Amount 2025–26 (₹) |
Percentage of Revenue from Operations 2024–25 (%) |
Percentage of Revenue from Operations 2025–26 (%) |
| I. Revenue from Operations | 10,00,000 | 20,00,000 | 100.00% | 100.00% |
| II. Add: Other Incomes | 50,000 | 60,000 | 5.00% | 3.00% |
| III. Total Revenue (I + II) | 10,50,000 | 20,60,000 | 105.00% | 103.00% |
| IV. Less: Expenses | ||||
| (a) Purchase of Stock-in-Trade | 4,20,000 | 7,70,000 | 42.00% | 38.50% |
| (b) Changes in Inventories | 80,000 | 1,20,000 | 8.00% | 6.00% |
| (c) Other Expenses | 30,000 | 52,000 | 3.00% | 2.60% |
| Total Expenses (IV) | 5,30,000 | 9,42,000 | 53.00% | 47.10% |
| V. Profit before Tax (III - IV) | 5,20,000 | 11,18,000 | 52.00% | 55.90% |
| VI. Less: Tax @ 50% | 2,60,000 | 5,59,000 | 26.00% | 27.95% |
| VII. Profit after Tax (V - VI) | 2,60,000 | 5,59,000 | 26.00% | 27.95% |
Working Notes:
Base value = Revenue from Operations (100%)
$$\text{Percentage of an item} = \frac{\text{Amount of Item}}{\text{Revenue from Operations}} \times 100$$
Other Incomes for 2024–25: $\frac{50,000}{10,00,000} \times 100 = 5.00\%$
Purchase of Stock-in-Trade for 2025–26: $\frac{7,70,000}{20,00,000} \times 100 = 38.50\%$
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