Question

Which of the following are the steps followed for preparation of comparative statements?
a. List out absolute figures in rupees related to two points of time.
b. Find out changes in absolute figures by subtracting the first year from second year and indicating the change as increase or decrease.
c. Then calculate percentage for decrease amount.
d. Then calculate the percentage change.

• A. a, b, and c
• B. a, b, and d
• C. b, c, and d
• D. a, b, c, d

Answer 1

The correct option is B a, b, and d

Comparative statements refers to the profit and loss account and balance sheet prepared by providing columns for the figures for both the current year as well as for the previous year. The following steps may be followed to prepare the comparative statements:

1. List out absolute figures in rupees related to two points of time.

2. Find out change in absolute figures by subtracting the first year from the second year and indicate the change as increase (+) or decrease (-).

3. Calculate the percentage change as follows:

(Second year absolute fig./ First year absolute fig.) x 100