Question

Prepare a common size statement of profit and loss of Vegas Ltd. from the following information:

Particulars	2023-24 (₹)	2022-23 (₹)
Revenue from Operations	40,00,000	30,00,000
Gross Profit	55%	60%
Employee Benefit Expenses	8,00,000	6,00,000
Other Expenses	1,20,000	1,20,000
Tax Rate	30%	35%

Answer 1

Common Size Statement of Profit & Loss of Vegas Ltd. for the years ended 31st March, 2024 and 2023
Particulars	Note No.	Absolute Amounts		% on Revenue from Operations
		2023-24 (₹)	2022-23 (₹)	2023-24 (%)	2022-23 (%)
I. Revenue from Operations		40,00,000	30,00,000	100.00	100.00
II. Less: Expenses:
Cost of revenue from operations		18,00,000	12,00,000	45.00	40.00
Employee Benefit Expenses		8,00,000	6,00,000	20.00	20.00
Other Expenses		1,20,000	1,20,000	3.00	4.00
Total Expenses		27,20,000	19,20,000	68.00	64.00
III. Profit Before Tax (I − II)		12,80,000	10,80,000	32.00	36.00
IV. Less: Tax		3,84,000	3,78,000	9.60	12.60
V. Profit After Tax (III − IV)		8,96,000	7,02,000	22.40	23.40

Working Note:

Cost of Revenue from Operations = Revenue from Operations − Gross Profit

Cost % for 2023-24 = 100% − 55% = 45%

Cost % for 2022-23 = 100% − 60% = 40%