Question

Raj Ltd. decided to bear the higher education cost of five brilliant students belonging to the weaker section of the society. Following is the Statement of Profit & Loss of Raj Ltd for the year ended 31-03-2018:

$\begin{array}{cc}\text{Particulars}& \text{Amount}\\ & \text{Rs}\\ \text{Income :}& \\ \text{Revenue from Operations}& 2,00,000\\ \text{Other Incomes}& 15,000\\ \text{Total Revenue}& \overline{\underset{–}{2,15,000}}\\ & \\ \text{Expenses:}& \\ \text{Cost of Materials Consumed}& 1,10,000\\ \text{Other Expenses}& 5,000\\ \text{Total Expenses}& \overline{1,15,000}\\ \text{Tax}& 40,000\end{array}$

You are required to :

(a) Prepare a common size Statement of Profit & Loss of Raj Ltd. for the year ended 31.03.2018.

(b) Identify the value involved.

Answer 1

Raj Ltd.

COMMON SIZE STATEMENT OF PROFIT & LOSS

for the year ended 31.03.2018

$\begin{array}{cccc}& \text{Note}& \text{Absolute}& \%\text{of}\\ \text{Particulars}& \text{No.}& \text{Amounts}& \text{Revenue}\\ & & & \text{from}\\ & & & \text{Operations}\\ & & \text{Rs}& \\ \text{I. Revenue from Operations}& & 2,00,00& 100\\ \text{II. Other Incomes}& & 15,000& 7.5\\ \text{III. Total Revenue (I + II)}& & \overline{\underset{–}{2,15,000}}& \overline{\underset{–}{107.5}}\\ \text{IV. Expenses:}& & & \\ \text{Cost of Materials Consumed}& & 1,10,000& 55\\ \text{Other Expenses}& & 5,000& 2.5\\ \text{Total Expenses}& & \overline{\underset{–}{1,15,000}}& \overline{57.5}\\ \text{V. Profit before Tax (III - IV)}& & 1,00,000& 50\\ \text{VI. Less : Tax}& & \underset{–}{40,000}& \underset{–}{20}\\ \text{VII. Profit after Tax (V - VI)}& & 60,000& 30\end{array}$

(b) Value Involved : Fulfilment of Social Responsibility by uplifting weaker section of the society.