Question

From the following information, prepare Comparative Statement of Profit and Loss of X Ltd :

$\begin{array}{ccc}\text{Particulars}& 31-03-2016& 31-03-2015\\ & \text{(Rs)}& \text{(Rs)}\\ & & \\ \text{Revenue from Operations}& 25,00,000& 20,00,000\\ \text{Cost of Materials Consumed}:& 21,00,000& 16,00,000\\ \text{Other Expenses}& 25\%\text{of Gross Profit}& 20\%\text{of Gross Profit}\\ \text{Income Tax}& 50\%& 50\%\end{array}$

Answer 1

COMPARATIVE STATEMENT OF PROFIT AND LOSS OF X LTD.

for the years ended 31st March, 2015 and 2016.

$\begin{array}{cccccc}& & & & \text{Absolute}& \text{Percentage}\\ & \text{Note}& 31-03-2015& 31-03-2016& \text{Change}& \text{Change}\\ \text{Particulars}& \text{No.}& & & (\text{Increase or}& (\text{Increase or}\\ & & & & \text{Decrease})& \text{Decrease})\\ 1& & 2& 3& 4& 5\\ & & \text{A}& \text{B}& \text{(B-A = C)}& \text{C/A}\times 100=\text{D}\\ & & \text{Rs}& \text{Rs}& \text{Rs}& \%\\ \text{I. Revenue from Operation}& & \underset{–}{20,00,000}& \underset{–}{25,00,000}& \underset{–}{5,00,000}& \underset{–}{25.00}\\ \text{II. Less : Expenses :}& & & & & \\ \text{(a) Cost of Materials Consumed}& & 16,00,000& 21,00,000& 5,00,000& 31.25\\ \text{(b) Other Expenses (Note 1)}& & 80,000& 1,00,000& 20,000& 25.00\\ \text{Total Expenses}& & \overline{\underset{–}{16,80,000}}& \overline{\underset{–}{22,00,000}}& \overline{\underset{–}{5,20,000}}& \overline{\underset{–}{30.95}}\\ \text{III. Profit before Tax (I - II)}& & 3,20,000& 3,00,000& (20,000)& \left(6.25\right)\\ \text{IV. Less : Tax 50}\%& & \underset{–}{1,60,000}& \underset{–}{1,50,000}& \underset{–}{(10,000)}& \left(\underset{–}{6.25}\right)\\ \text{V. Profit after Tax (III - IV)}& & 1,60,000& 1,50,000& (10,000)& \left(6.25\right)\end{array}$

(1) Gross Profit = Revenue from Operations - Cost of Materials Consumed

Gross Profit for 2015 = Rs 20,00,00 - Rs 16,00,000 = Rs 4,00,000

Other Expenses for 2015 = 20 $\%$ of 4,00,000 = Rs 80,000

for 2016 = 25 $\%$ of 4,00,000 = Rs 1,00,000