Question

From the following information of Narsimham Company Ltd., prepare a Comparative Income Statement for the years 2004-2005

Particulars	2004 Rs	2005 Rs
Gross Sales	7,25,000	8,15,000
Less : Returns	25,000	15,000
Net Sales	7,00,000	8,00,000
Cost of Goods Sold	5,95,000	6,15,000
Gross Profit	1,05,000	1,85,000
Other Expenses
Selling & distribution Expenses	23,000	24,000
Administration Expenses	12,700	12,500
Total Expenses	35,700	36,500
Operating Income	69,300	1,48,500
Other Income	1,200	8,050
	70,500	1,56,550
Non Operating Expenses	1,750	1,940
Net Profit	68,750	1,54,610

Answer 1

Comparative Income Statement of Narsimham Company Ltd. for the year ended 2004 and 2005
Particulars	2004	2005	Absolute Increase (+) or Decrease (–)	Percentage Increase (+) or Decrease
	Rs	Rs	Rs	%
Gross Sales	7,25,000	8,15,000	+ 90,000	+ 12.41
Less: Return	25,000	15,000	(–) 10,000	(–) 40.00
Net Sales	7,00,000	8,00,000	+ 1,00,000	+ 14.28
Cost of Good Sold	5,95,000	6,15,000	+ 20,000	+ 3.36
Gross Profit	1,05,000	1,85,000	+ 80,000	+ 76.19
Other Expenses
Selling & distribution Expenses	23,000	24,000	+ 1,000	+ 4.35
Administration Expenses	12,700	12,500	(–) 200	(–) 1.57
Total Expenses	35,700	36,500	+ 800	+ 2.24
Operating Income	69,300	1,48,500	+ 79,200	+ 114.29
Other Income	1,200	8,050	+ 6,850	+ 570.83
	70,500	1,56,550	+ 86,050	+ 122.06
Non Operating Expenses	1,750	1,940	+ 190	+ 10.86
Net Profit	68,750	1,54,610	+ 85,860	+ 124.89