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Question
From the following information provided, prepare a comparative income statement for the period 2008 and 2009:
|
Particulars |
2008 |
2009 |
|
Sales (Rs) |
6,00,000 |
8,00,000 |
|
Gross Profit |
40% on sales |
50% on sales |
|
Administrative expenses |
20% of Gross profit |
15% of Gross profit |
|
Income tax |
50% |
50% |
Solution
|
Comparative Income Statement for the period 2008 and 2009 |
||||
|
Particulars |
2008 Rs |
2009 Rs |
Absolute Change Rs |
Prcentage (%) Change |
|
Sales |
6,00,000 |
8,00,000 |
2,00,000 |
33.33 |
|
Less: Cost of Goods Sold |
3,60,000 |
4,00,000 |
40,000 |
11.11 |
|
Gross Profit |
2,40,000 |
4,00,000 |
1,60,000 |
66.67 |
|
Less: Administrative Expenses |
48,000 |
60,000 |
12,000 |
25 |
|
Net Profit before tax |
1,92,000 |
3,40,000 |
1,48,000 |
77.08 |
|
Less: Income Tax 50% |
96,000 |
1,70,000 |
74,000 |
77.08 |
|
Net Profit after Tax |
96,000 |
1,70,000 |
74,000 |
77.08 |
|
|
|
|
|
|
Notes
Gross Profit for 2008 = 40% on Sales; it means Cost of Goods Sold = 60% of Sales.
Gross Profit for 2009 = 50% on Sales; it means Cost of Goods Sold = 50% of Sales.
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