Question

From the following particulars extracted from P & L Account of ‘Prashanth Limited, you are required to calculate trend percentages

$\begin{array}{ccccc}\text{Year}& \text{Sales(Rs.)}& \text{Wages(Rs.)}& \text{Bad Debts(Rs.)}& \text{Profit After Tax(Rs.)}\\ 2003& 350000& 50000& 14000& 16000\\ 2004& 415000& 60000& 26000& 24500\\ 2005& 425000& 72200& 29000& 45000\\ 2006& 460000& 85000& 33000& 60000\end{array}$

Answer 1

Trend Percentages
(Base Year 2003 = 100)

$\begin{array}{ccccccccc}\text{Year}& \text{Sales}& \text{Trend}& \text{Wages}& \text{Trend}& \text{Bad Debts}& \text{Trend}& \text{Profit after}& \text{Trend}\\ \text{Year}& \text{(Rs.)}& \text{(\%)}& \text{(Rs.)}& \text{(\%)}& \text{(Rs.)}& \text{(\%)}& \text{(Rs.)}& \text{(\%)}\\ 2003& 350000& 100.00& 50000& 100.00& 14000& 100.00& 16000& 100.00\\ 2004& 415000& 118.57& 60000& 120.00& 26000& 185.71& 24500& 153.13\\ 2005& 425000& 121.43& 72200& 144.40& 29000& 207.14& 45000& 281.25\\ 2006& 460000& 131.43& 85000& 170.00& 33000& 235.71& 60000& 375.00\end{array}$

$\text{Trend Percentage}=\frac{\text{Value of Present year}}{\text{Value of Base year}}\times 100$