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Question
Prepare Comparative Income Statement from the following information:
| Particulars | 2015-16 Rs. |
2016-17 Rs. |
| Manufacturing expenses | 35,000 | 80,000 |
| Opening stock | 30,000 | 60% of closing stock |
| Sales | 9,60,000 | 4,50,000 |
| Returns outward | 4,000 (out of credit purchase) | 6,000 (out of cash purchase) |
| Closing stock | 150% of opening stock | 1,00,000 |
| Credit purchases | 1,50,000 | 150% of cash purchase |
| Cash purchases | 80% of credit purchases | 40,000 |
| Carriage outward | 10,000 | 30,000 |
| Building | 1,00,000 | 2,00,000 |
| Depreciation on building | 20% | 10% |
| Interest on bank overdraft | 5,000 | - |
| 10% debentures | 2,00,000 | 20,00,000 |
| Profit on sale of copyright | 10,000 | 20,000 |
| Loss on sale of personal car | 10,000 | 20,000 |
| Other operating expenses | 20,000 | 10,000 |
| Tax rate | 50% | 40% |
Solution
| Comparative Income Statement for the years ended March 31, 2016 and 2017 |
||||
|
Particulars |
2015-16 |
2016-17 |
Absolute |
Percentage |
|
1. Revenue from Operations |
9,60,000 |
4,50,000 |
(5,10,000) |
(53.13) |
|
2. Other Income |
10,000 |
20,000 |
10,000 |
100 |
|
3. Total Revenue (1 + 2) |
9,70,000 |
4,70,000 |
(5,00,000) |
(51.55) |
|
4. Expenses |
|
|
|
|
|
a. Purchases of Stock-in-Trade |
2,66,000 |
94,000 |
(1,72,000) |
(64.66) |
|
b. Change in Inventories |
(15,000) |
(40,000) |
(25,000) |
(166.67) |
|
c. Finance Costs |
25,000 |
20,00,000 |
1,75,000 |
700 |
|
d. Depreciation and |
20,000 |
20,000 |
- | - |
|
e. Other Expenses |
65,000 | 1,20,000 | 55,000 | 84.62 |
|
Total Expenses |
3,61,000 |
3,94,000 |
33,000 |
9.14 |
|
5. Profit before Tax (3 – 4) |
6,09,000 |
76,000 |
5,33,000 |
87.52 |
|
Less: Income Tax |
3,04,000 |
30,400 |
2,74,100 |
90 |
|
6. Profit After Tax |
3,04,000 |
45,600 |
2,58,900 |
85.02 |
Working Notes:
1. Calculation of Net Purchases and Change in Inventory
Net Purchases of stock in Trade = Cash Purchases + Credit Purchases - Purchases Returns
2013 = 120000 + 150000 - 4000 = Rs 266000
2014 = 40000 + 60000 - 6000 = Rs 94000
Change in Inventory = Opening Stock - Closing Stock
2013 = 30000 - 45000 = Rs (15000)
2014 = 60000 - 100000 = Rs (40000)
2. Calculation of Finance Cost
Finance Cost = Interest on Bank Overdraft + Interest on Debentures
Finance Cost (2016) = 5,000 + 20,000 = Rs 25,000
Finance Cost (2017) = 0 + 20,000 = Rs 20,000
3. Calculation of Other Expenses
Other Expenses = Carriage outward + Manufacturing expenses + Other operating expenses
Other Expenses (2016) = 10,000 + 35,000 + 20,000 = Rs 65,000
Other Expenses (2017) = 30,000 + 80,000 + 10,000 = Rs 1,20,000
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| Particulars | Note No. | 31-3-2015 (Rs.) | 31-3-2014 (Rs.) |
|
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|
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| Particulars | 2012-13 (Rs.) | 2011-12 (Rs.) |
| Revenue from operation | 20,00,000 | 15,00,000 |
| Other expenses | 10,00,000 | 4,00,000 |
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The motto of 'Pharma Ltd', a company engaged in the manufacturing of low-cost generic medicines, is 'Healthy India'. Its management and employees are hardworking, honest and motivated. The net profit of the company doubled during the year ended 31-3-2014. Encouraged by its performance, the company decided to pay the bonus to all employees at double the rate than last year. Following is the Comparative Statement of Profit and Loss of the company for the years ended 31-3-2013 and 31-3-2014.
| Pharma Ltd Comparative Statement of Profit and Loss |
|||||
| Particulars | Note No. |
2012-13 Rs |
2013-14 Rs |
Absolute Rs |
% Change |
|
Revenue from operations Less Employee benefit expenses Profit before tax Tax Rate 25% Profit after tax |
20,00,000 12,00,000 8,00,000 2,00,000 6,00,000 |
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50 16-87 100 100 100 |
|
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| Nav Hind Pharma Ltd Comparative Statement of Profit and Loss |
|||||
| Particulars | Note No |
2012-13 Rs |
2013-14 Rs |
Absolute Rs |
% Change |
| Revenue from operations | 40,00,000 | 60,00,000 | 20,00,000 | 5.0 | |
| Less : Employee benefit expenses | 24,00,000 | 28,00,000 | 4,00,000 | 16.67 | |
| Profit before tax | 16,00,000 | 32,00,000 | 16,00,000 | 100 | |
| Tax Rate 50% | 8,00,000 | 16,00,000 | 8,00,000 | 100 | |
| Profit after tax | 8,00,000 | 16,00,000 | 8,00,000 | 100 | |
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From the following Statement of profit and loss of Fenox Ltd, for the year ended 31st March 2013; prepare a comparative statement of Profit and Loss:
| Particulars |
2012-13 Rs |
2011-12 Rs |
| Revenue from operation | 8,00,000 | 6,00,000 |
| Other Income | 1,00,000 | 50,000 |
| Expenses | 5,00,000 | 4,00,000 |
A rate of Income-tax was 40%.
From the following Statement of profit and loss of Ajanta Ltd, year ended 31st March 2013, prepare a comparative statement of Profit and Loss :
| Particular |
2012-13 Rs |
2011-12 Rs |
| Revenue from operation | 20,00,000 | 18,00,000 |
| Other expenses | 4,00,000 | 6,00,000 |
| Expenses | 19,00,000 | 17,00,000 |
Rate of Income tax was 50%.
Give one word/term/ phrase for the following statement
The statement showing profitability of two different period and its percentage change.
Solve the following :
If office expenses of two different periods are Rs 4,000 and Rs 5,000 respectively and sales for same two periods are Rs 1,00,000 and Rs 2,00,000 respectively then what is absolute change and percentage?
Prepare Comparative Income Statement from the following information:
| Particulars | 2016-17 Rs. |
2015-16 Rs. |
| Freight Outward | 20,000 | 10,000 |
| Wages (office) | 10,000 | 5,000 |
| Manufacturing Expenses | 50,000 | 20,000 |
| Stock adjustment | (60,000) | 30,000 |
| Cash purchases | 80,000 | 60,000 |
| Credit purchases | 60,000 | 20,000 |
| Returns inward | 8,000 | 4,000 |
| Gross profit | (30,000) | 90,000 |
| Carriage outward | 20,000 | 10,000 |
| Machinery | 3,00,000 | 2,00,000 |
| Charge 10% depreciation on machinery | 10,000 | 5,000 |
| Interest on short-term loans | 20,000 | 20,000 |
| 10% debentures | 20,000 | 10,000 |
| Profit on sale of furniture | 20,000 | 10,000 |
| Loss on sale of office car | 90,000 | 60,000 |
| Tax rate | 40% | 50% |
Following is the Balance Sheet of Radha Ltd. as at 31st March, 2019:
|
Particulars |
Note No. |
31st March, 2019, (₹) |
31st March, 2018, (₹) |
|
I. EQUITY AND LIABILITIES 1. Shareholders' Funds |
|||
|
(a) Share Capital |
15,00,000 |
10,00,000 |
|
|
(b) Reserves and Surplus |
10,00,000 | 10,00,000 | |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
|
8,00,000 |
2,00,000 |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
|
5,00,000 |
3,00,000 |
|
Total |
38,00,000 |
25,00,000 |
|
|
II. ASSETS |
|||
|
1. Non-Current Assets |
|||
|
Fixed Assets: |
|||
|
(i) Tangible Assets |
|
25,00,000 |
15,00,000 |
|
(ii) Intangible Assets |
5,00,000 | 5,00,000 | |
|
2. Current Assets |
|||
|
(a) Trade Receivables |
|
6,00,000 |
3,50,000 |
|
(b) Cash and Cash Equivalents |
2,00,000 |
1,50,000 |
|
|
Total |
38,00,000 |
25,00,000 |
You are required to prepare Comparative Balance Sheet on the basis of the information given in the above Balance Sheet.
Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Income | |||
|
Revenue from Operations (Net Sales) |
3,50,000 | 3,00,000 | |
| II. Expenses | |||
|
Purchases of Stock-in-Trade |
2,10,000 | 1,80,000 | |
|
Change in Inventories of Stock-in-Trade |
15,000 | 20,000 | |
|
Employees Benefits Expenses |
17,500 | 15,000 | |
|
Other Expenses |
7,500 |
5,000 | |
|
Total |
2,50,000 | 2,20,000 | |
| III. Profit before Tax (I-II) |
1,00,000 |
80,000 | |
|
IV. Less: Tax |
30,000 |
24,000 | |
|
V. Profit after Tax (III-IV) |
70,000 |
56,000 |
Prepare Comparative Statement of Profit and Loss from the following Statement of Profit and Loss:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
|
I. Income |
|||
|
Revenue from Operations (Net Sales) |
3,00,000 |
2,50,000 |
|
|
II. Expenses |
|||
|
Cost of Materials Consumed |
1,20,000 |
1,00,000 |
|
|
Changes in Inventories of WIP and Finished Goods |
(2,000) |
5,000 |
|
|
Employees Benefits Expenses (Wages) |
30,000 |
25,000 |
|
|
Other Expenses |
22,000 |
20,000 |
|
|
Total |
1,70,000 |
1,50,000 |
|
|
III. Net Profit (I-II) |
1,30,000 |
1,00,000 |
From the following information, prepare Comparative Statement of Profit and Loss showing increase, decrease and percentage:
| Particulars | 31st March, 2019 |
31st March, 2018 |
||
| Cost of Materials Consumed | ₹ 13,44,000 |
₹ 6,00,000 |
||
| Revenue from Operations (% of Materials Consumed) | 125% |
200% |
||
| Other Expenses (% of Operating Revenue) | 10% | 10% | ||
| Tax Rate | 50% | 50% | ||
From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Income | |||
|
Revenue from Operations (Net Sales) |
50,00,000 |
40,00,000 | |
| II. Expenses |
|
||
|
Purchases of Stock-in-Trade |
34,00,000 | 28,50,000 | |
|
Change in Inventories of Stock-in-Trade |
1 | 1,00,000 | 1,50,000 |
|
Employees Benefits Expenses |
1,00,000 | 1,00,000 | |
|
Other Expenses |
2 |
2,00,000 |
1,50,000 |
|
Total |
38,00,000 |
32,50,000 | |
| III. Net Profit (I-II) | 12,00,000 | 7,50,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Change in Inventory of stock-in-Trade | ||
|
Opening Inventory |
2,00,000 |
3,50,000 |
|
Less: Closing Inventory |
1,00,000 |
2,00,000 |
|
1,00,000 |
1,50,000 | |
| 2. Other Expenses | ||
|
Administrative Expenses |
50,000 |
50,000 |
|
Selling and Distribution Expenses |
1,50,000 |
1,00,000 |
|
2,00,000 |
1,50,000 |
From the following Statement of Profit and Loss of Antriksh Ltd. for the year ended 31st March, 2012 and 2013, Prepare Comparative Statement of Profit and Loss:
| Particulars | Note No. | 31st March, 2013 (₹) |
31st March, |
||
| Revenue from Operations | 14,00,000 | 8,00,000 | |||
| Other Incomes | 6,00,000 |
4,00,000 |
|||
|
Expenses |
17,00,000 |
11,00,000 |
|||
Rate of Income Tax was 40%.
From the following Statement of Profit and Loss, prepare Comparative Statement of Profit and Loss:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Income | |||
|
Revenue from Operations (Net Sales) |
20,00,000 | 17,50,000 | |
|
Other Income |
75,000 |
50,000 | |
|
Total |
20,75,000 | 18,00,000 | |
| II. Expenses |
|
||
|
Purchases of Stock-in-Trade |
11,60,000 | 10,00,000 | |
|
Change in Inventories of Stock-in-Trade |
10,000 | (25,000) | |
|
Employees Benefits Expenses |
1 | 3,00,000 | 3,00,000 |
|
Depreciation and Amortisation Expenses |
50,000 | 50,000 | |
|
Other Expenses |
2 |
90,000 |
75,000 |
|
Total |
16,10,000 |
14,00,000 | |
| III. Net Profit (I-II) | 4,65,000 | 4,00,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Employees Benefit Expenses | ||
|
Wages |
3,00,000 |
3,00,000 |
| 2. Other Expenses | ||
|
Administrative and General Expenses |
70,000 |
50,000 |
|
Miscellaneous Expenses |
20,000 |
25,000 |
|
90,000 |
75,000 |
Prepare a comparative statement of Profit and Loss from the following information extracted from the statement of Profit and Loss for the year ended 31st March, 2017 and 2018.
| Particulars | 2017-18 | 2016-17 |
| Revenue from operations | (₹) 12,00,000 | (₹)10,00,000 |
| Other income (% of Revenue from operations) | 25% | 25% |
| Employee benefit expenses(% of Total Revenue) | 40% | 30% |
| Tax Rate | 40% | 40% |
You are required to prepare a Comparative Statement of Profit & Loss from the following particulars of Nishant Ltd.
| Particulars | No. | 31.03.2021 (₹) |
31.03.2020 |
| Revenue from operations | 4,00,000 | 3,00,000 | |
| Cost of raw materials consumed | 2,00,000 | 1,50,000 | |
| Changes in inventories of raw materials |
25,000 | (12,500) |
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Comparative Balance Sheet:
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From the following data of Horizon Ltd., you are required to prepare a Comparative Statement of Profit and Loss.
| Particulars | 31.03.2022 | 31.03.2021 |
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| Other Income | ₹ 1,00,000 | ₹ 50,000 |
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| Comparative Income Statement of Violet Ltd. For the years ending 31-3-2023 and 31-3-2022 |
||||
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| Expenses | 8,998 | 7,931 | ?? | ?? |
| Net Profit | ?? | (833) | (703) | ?? |
