Question

Prepare a Comparative Statement of Profit & Loss of Ahmed Ltd., with the help of the following information :

$\begin{array}{ccc}\text{Particulars}& 31-03-2018& 31-03-2017\\ & \text{(Rs.)}& \text{(Rs.)}\\ & & \\ \text{Revenue from Operations}& 8,00,000& 5,00,000\\ \text{Purchase of Stock in Trade}& 4,20,000& 2,40,000\\ \text{Changes in Inventories}& 80,000& 60,000\\ {\text{Employee Benefit Expenses}}^{\ast }& 20,000& 40,000\\ \text{Other Expenses}& 40,000& 30,000\\ \text{Income Tax}& 50\%& 40\%\end{array}$

* Employee Benefit Expenses means expenses incurred on employees. It includes expenses such as salaries and wages, contribution to Provident Fund, staff welfare etc.

Answer 1

Ahmed Ltd.

COMPARATIVE STATEMENT OF PROFIT & LOSS

for the years ended 31st March, 2017 and 2018

$\begin{array}{cccccc}& & & & \text{Absolute}& \text{Percentage}\\ & \text{Note}& 2016-2017& 2017-2018& \text{Change}& \text{Change}\\ \text{Particulars}& \text{No.}& & & (\text{Increase or}& (\text{Increase or}\\ & & & & \text{Decrease})& \text{Decrease})\\ & & \text{Rs.}& \text{Rs.}& \text{Rs.}& \%\\ \text{I. Revenue from Operations}& & \underset{–}{5,00,000}& \underset{–}{8,00,000}& \underset{–}{3,00,000}& \underset{–}{60.00}\\ \text{II. Less : Expenses :}& & & & & \\ \text{Purchase of Stock in Trade}& & 2,40,000& 4,20,000& 1,80,000& 75.00\\ {\text{Change in Inventories}}^{\ast }& & 60,000& 80,000& 20,000& 33.33\\ \text{Employee Benefit Expenses}& & 40,000& 20,000& (20,000)& \left(50.00\right)\\ \text{Other Expenses}& & \underset{–}{30,000}& \underset{–}{40,000}& \underset{–}{10,000}& \underset{–}{33.33}\\ \text{Total Expenses}& & \underset{–}{3,70,000}& \underset{–}{5,60,000}& \underset{–}{1,90,000}& \underset{–}{51.35}\\ \text{III. Profit before Tax (I - II)}& & 1,30,000& 2,40,000& 1,10,000& 84.62\\ \text{IV. Less: Tax}& & 52,000& 1,20,000& 68,000& 130.77\\ \text{V. Profit after Tax (III - IV)}& & \overline{78,000}& \overline{1,20,000}& \overline{42,000}& \overline{53.85}\end{array}$

* Changes in Inventories means Opening Stock less Closing Stock.