Question

Gwalior Ltd. is in the business of manufacturing woolen garments. It decided to donate woollen clothes, blankets and other garments for flood affected areas of Jammu and Kashmir. Following particulars are obtained from the Company's books :

$\begin{array}{ccc}\text{Particulars}& 31-03-2014& 31-03-2015\\ & \text{(Rs)}& \text{(Rs)}\\ \text{Revenue from Operations}& 30,00,000& 40,00,000\\ \text{Purchase of Stock in Trade}:& 19,00,000& 20,00,000\\ \text{Changes in Inventories}& (1,00,000)& 2,00,000\\ \text{Other Expenses}& 1,80,000& 1,76,000\end{array}$

You are required to :

(a) Prepare a Comparative Statement of Profit & Loss, and

(b) Identify the value involved.

Answer 1

Gwalior Ltd.

COMPARATIVE STATEMENT OF PROFIT & LOSS

for the years ended 31st March 2014 and 2015

$\begin{array}{cccccc}& & & & \text{Absolute}& \text{Percentage}\\ & \text{Note}& & & \text{Change}& \text{Change}\\ \text{Particulars}& \text{No}& 2013-14& 2014-15& \text{(Increase}& \text{(Increase}\\ & & & & \text{or}& \text{or}\\ & & & & \text{Decrease)}& \text{Decrease)}\\ \text{I. Revenue from Operations}& & \underset{–}{30,00,000}& \underset{–}{40,00,000}& \underset{–}{10,00,000}& 33.33\\ \text{II. Less : Expenses :}& & & & & \\ \text{Purchases of Stock in Trade}& & 19,00,000& 20,00,000& 1,00,000& 5.26\\ \text{Changes in Inventories}& & (1,00,000)& 2,00,000& 3,00,000& 300.00\\ \text{Other Expenses}& & \underset{–}{1,80,000}& \underset{–}{1,76,000}& \underset{–}{4,000}& \left(2.22\right)\\ \text{Total Expenses}& & \underset{–}{19,80,000}& \underset{–}{23,76,000}& \underset{–}{3,96,000}& 20.00\\ \text{III. Profit before Tax (I - II)}& & 10,20,000& 16,24,000& 6,04,000& 59.22\end{array}$

(b) Value Involved : Sympathy / Charity : By providing help to the needy people with woolen clothes, blankets etc.