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Prepare a Comparative Statement of Profit & Loss with the help of the following information: Particulars Revenue from Operations, Gross Profit, Employee Benefit Expenses, Other Expenses, Income Tax - Accounts

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Question

Prepare a Comparative Statement of Profit & Loss with the help of the following information:

Particulars 31.3.2023
(₹)
31.3.2022
(₹)
Revenue from Operations 10,00,000 8,00,000
Gross Profit 30% 25%
Employee Benefit Expenses 30,000 40,000
Other Expenses 50,000 10,000
Income Tax 40% 40%
Ledger
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Solution

Comparative Statement of Profit and Loss
for the years ended 31st March, 2023 and 2022
Particulars Note No. 31.3.2023
(₹)
31.3.2022
(₹)
Absolute Change (₹) Percentage Change (%)
I. Revenue from Operations   10,00,000 8,00,000 2,00,000 25.00
II. Less: Expenses          
(a) Cost of Revenue from Operations   7,00,000 6,00,000 1,00,000 16.67
(b) Employee Benefit Expenses   30,000 40,000 (10,000) (25.00)
(c) Other Expenses   50,000 10,000 40,000 400.00
Total Expenses   7,80,000 6,50,000 1,30,000 20.00
III. Profit before tax (I − II)   2,20,000 1,50,000 70,000 46.67
IV. Less: Tax @ 40%   88,000 60,000 28,000 46.67
V. Profit after Tax (III − IV)   1,32,000 90,000 42,000 46.67

Working Note:

Calculation of Cost of Revenue from operation

For 31st March 2023:

Gross profit = 25% of Revenue from operation

= `25/100` × 8,00,000

= ₹ 2,00,000

Cost of Revenue from operation = Revenue from operation − Gross profit

₹ 8,00,000 − ₹ 2,00,000

= ₹ 6,00,000

For 31st March 2024:

Gross profit = 30% of Revenue from operation

= `30/100` × 10,00,000

= ₹ 3,00,000

Cost of Revenue from operation = Revenue from operation − Gross profit

₹ 10,00,000 − ₹ 3,00,000

= ₹ 7,00,000

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Chapter 11: Tools for Financial Analysis : Comparative Statements - PRACTICAL QUESTIONS [Page 11.32]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 11 Tools for Financial Analysis : Comparative Statements
PRACTICAL QUESTIONS | Q 14. | Page 11.32
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