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

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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%
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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

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