Question

Prepare Common-size Statement of Profit & Loss from the following Statement of Profit & Loss:

Particulars	Note No.	31st March, 2026 (₹)
I. Income
Revenue from Operations		15,00,000
Other Income		60,000
Total Revenue		15,60,000
II. Expenses
Purchases of Stock-in-Trade		7,50,000
Change in Inventories of Stock-in-Trade		50,000
Other Expenses		2,10,000
Total		10,10,000
III. Profit before Tax (I – II)		5,50,000

Answer 1

Common-size Statement of Profit & Loss (For the year ended 31st March, 2026)
Particulars	Note No.	Absolute Amount 31st March, 2026 (₹)	Percentage of Revenue from Operations (%)
I. Income
Revenue from Operations		15,00,000	100.00%
Add: Other Income		60,000	4.00%
Total Revenue		15,60,000	104.00%
II. Expenses
Purchases of Stock-in-Trade		7,50,000	50.00%
Change in Inventories of Stock-in-Trade		50,000	3.33%
Other Expenses		2,10,000	14.00%
Total Expenses		10,10,000	67.33%
III. Profit before Tax (I – II)		5,50,000	36.67%

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 Income: $\frac{60,000}{15,00,000} \times 100 = 4.00\%$

Purchases of Stock-in-Trade: $\frac{7,50,000}{15,00,000} \times 100 = 50.00\%$

Change in Inventories: $\frac{50,000}{15,00,000} \times 100 = 3.33\%$

Other Expenses: $\frac{2,10,000}{15,00,000} \times 100 = 14.00\%$

Profit before Tax: $\frac{5,50,000}{15,00,000} \times 100 = 36.67\%$