Prepare a Common-size income statement of Shefali Ltd. with the help of following information:

Particulars 2015-16
Rs. 2016-17
Rs.

Sales 6,00,000 8,00,000

Gross profit 50% of sales 45% of sales

Indirect expense 25% of gross profit 25% of gross profit

Less: Cost of goods sold 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 20174

Particulars

Note

No.

2015-16

(Rs)

2016-17

(Rs)

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 Goods Sold

4,28,000

7,28,000

71.33

91

b. Other Expenses

75,000

90,000

12.50

11.25

Total Expenses

5,03,000

8,18,000

83.83

102.25

5. Profit before Tax (3 – 4)

1,07,000

(6,000)

17.83

(0.75)

Less: Income Tax

32,100

-

5.35

-

6. Profit After Tax

74,900

(6,000)

12.48

(0.75)

Working Notes:

1. Calculation of Other Expenses

Other Expenses = Indirect Expenses = % of Gross Profit
$2016 = 6, 00, 000 \times 50 % \times 25 % = Rs 75, 000 2017 = 8, 00, 000 \times 45 % \times 25 % = Rs 90, 000$

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Q. 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%

Prepare Comparative Income Statement from the following information:

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Manufacturing Expenses	50,000	20,000
Stock adjustment	(60,000)	30,000
Cash purchases	80,000	60,000
Credit purchases	60,000	20,000
Returns inward	8,000	4,000
Gross profit	(30,000)	90,000
Carriage outward	20,000	10,000
Machinery	3,00,000	2,00,000
Charge 10% depreciation on machinery	10,000	5,000
Interest on short-term loans	20,000	20,000
10% debentures	20,000	10,000
Profit on sale of furniture	20,000	10,000
Loss on sale of office car	90,000	60,000
Tax rate	40%	50%

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

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From the following information prepare a Comparative Statement of Profit & Loss of Victor Ltd. :

$\begin{matrix} 31.03.2017 & 31.03.2016 Rs. & Rs. Revenue from Operations & 18, 00, 000 & 15, 00, 000 Cost of Materials Consumed & 14, 00, 000 & 11, 00, 000 Other Expenses & 12 % of Materials & 10 % of Materials Consumed & Consumed Income Tax & 50 % & 40 % \end{matrix}$

Q. From the following particulars, ascertain the value of Opening Stock:-

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Common Size Income Statement for the years ended March 31, 2016 and 20174
Particulars	Note No.	2015-16 (Rs)	2016-17 (Rs)	Percentage of Sales
Particulars	Note No.	2015-16 (Rs)	2016-17 (Rs)	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 Goods Sold		4,28,000	7,28,000	71.33	91
b. Other Expenses		75,000	90,000	12.50	11.25
Total Expenses		5,03,000	8,18,000	83.83	102.25
5. Profit before Tax (3 – 4)		1,07,000	(6,000)	17.83	(0.75)
Less: Income Tax		32,100	-	5.35	-
6. Profit After Tax		74,900	(6,000)	12.48	(0.75)