# Prepare a Common Size Statement of Profit and Loss of Shefali Ltd. with the Help of Following Information: - Accountancy

Sum

Prepare a Common size statement of profit and loss of Shefali Ltd. with the help of following information:

 Particulars 2015-16(Rs) 2016-17(Rs) Revenue from operations 6,00,000 8,00,000 Indirect expense 25% of gross profit 25% of gross profit Cost of revenue from operations 4,28,000 7,28,000 Other incomes 10,000 12,000 Income tax 30% 30%

#### Solution

Common Size Income Statement
for the years ended March 31, 2016 and 2017

 Particulars Note No. 2015-16 (₹) 2016-17 (₹) Percentage of Sales 2015-16 2016-17 1. Revenue from Operations 6,00,000 8,00,000 100 100 2. Other Income 10,000 12,000 1.67 1.5 3. Total Revenue (1 + 2) 6,10,000 8,12,000 101.67 101.5 4. Expenses a. Cost of Revenue from Operations (COGS) 4,28,000 7,28,000 71.33 91 b. Other Expenses 43,000 18,000 7.17 2.25 Total Expenses 4,71,000 7,46,000 78.5 93.25 5. Profit before Tax (3 – 4) 1,39,000 66,000 23.167 8.25 Less: Income Tax (41,700) (19,800) 5.35 6. Profit After Tax 97,300 46,200 16.22 5.775

Working Notes:

1. Calculation of Other Expenses

Other Expenses = Indirect Expenses = % of Gross Profit

Gross Profit = Net Sales - Revenue from Operations

For 2016, Gross Profit = ₹(6,00,000 - 4,28,000) = ₹1,72,000

For 2017, Gross Profit = ₹(8,00,000 - 7,28,000) = ₹72,000

2016 = 172000 × 25% = ₹ 43000

2017 = 72000 × 25 % = ₹ 18000

Concept: Common Size Statements
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#### APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 4 Analysis of Financial Statements
Numerical Questions | Q 5 | Page 187