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Question
Prepare Common-size Statement of Profit and Loss from the following Statement of Profit and Loss:
|
Particulars |
Note No. |
Year I (₹) |
Year II (₹) |
| I. Income | |||
|
Revenue from Operations (Net Sales) |
14,00,000 |
16,00,000 |
|
| II. Expenses | |||
|
Purchases of Stock-in-Trade |
9,00,000 |
10,00,000 |
|
|
Change in Inventories of Stock-in-Trade |
1,00,000 |
1,80,000 |
|
|
Finance Costs |
80,000 |
80,000 |
|
|
Other Expenses |
90,000 |
1,30,000 |
|
|
Total |
11,70,000 |
13,90,000 |
|
| III. Net Profit (I-II) |
2,30,000 |
2,10,000 |
|
| IV. Less: Tax |
40,000 |
36,000 |
|
| V. Net Profit After Tax (III-IV) |
1,90,000 |
1,74,000 |
Solution
Common Size Income Statement
for the year ended…..
|
Particulars |
Absolute Amount (Rs) |
Percentage of Revenue (%) |
||
|
Year 1 |
Year II |
Year 1 |
Year II |
|
|
I. Revenue from Operations |
14,00,000 |
16,00,000 |
100.00 |
100.00 |
|
II. Expenses |
|
|
|
|
|
a. Purchases of Stock-in-Trade |
9,00,000 |
10,00,000 |
64.28 |
62.5 |
|
b. Change in Inventories of Stock-in-Trade |
1,00,000 |
1,80,000 |
7.14 |
11.25 |
|
c. Finance Cost |
80,000 |
80,000 |
5.71 |
5.00 |
|
d. Other Expenses |
90,000 |
1,30,000 |
6.43 |
8.12 |
|
Profit before Income Tax |
2,30,000 |
2,10,000 |
16.43 |
13.13 |
|
Less: Income Tax |
40,000 |
36,000 |
2.84 |
2.25 |
|
Profit after Income Tax |
1,90,000 |
1,74,000 |
13.57 |
10.88 |
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