Tools For   Financial Statement Analysis TS Solution








 

 

 

Tools F
or
 Financial Statement Analysis

comparative &
Common size Statement

TS Solutions



 

Comparative
Balance Sheet
. 1

Comparative
Statement of Profit & Loss (Income Statement)
. 11

COMMON SIZE
STATEMENT OF PROFIT & LOSS (INCOME STATEMENT)
. 21

COMMON SIZE
BALANCE SHEET
. 24

 

 

 

Comparative Balance Sheet

Question
1:
From the following information, prepare Comparative
Balance Sheet of Sunrise ta.

Particulars

31st March,
2020 (₹)

31st March,
2021 (₹)

Shareholders’ Funds

15,00,000

22,50,000

Non-current Liabilities

7,50,000

7,50,000

Current Liabilities

2,50,000

7,50,000

Non-current Assets

17,50,000

26,25,000

Current Assets

7,50,000

11,25,000

 

Answer:

Comparative
Balance sheet as at 31" March, 2021

Particulars

Note No.

 

31st March, 2020 (₹ )

31st March, 2021 ₹ (₹ )

Absolute Change

(Increase/Decrease)(₹)

Percentage Change

(Increase/Decrease)(%)

(A)

(B)

(C = A-B)

(D = C/A×100)< /b>

I. Equity and Liabilities

       1. Sharehold
unds

2. Non-current Current

3. Current liabilities

 

 

15,00,000

7,50,000

2,50,000

 

22,50,000

7,50,000

7,50,000

 

7,50,000

5,00,000

 

50.00

 

200.00

Total

 

25,00,000

37,50,000

12,50,000

50

II.  Assets

1.      Non-current Assets

2.      Current Assets

 


17,50,000

7,50,000


26,25,000

11,25,000


8,75,000

3,75,000


50.00

50.00

Total

 

25,00,000

37,50,000

12,50,000

50

 

 

Question
2:
From the following Balance Sheet, prepare Comparative Balance
Sheet of Sun Ltd:



Balance
Sheet of SUN Ltd.

As At
31St March 2022

Particulars

Note
No.

31st March, 2022 ( ₹)

31st March, 2021 ( ₹)

I. EQUITY AND LIABILITIES

1. Shareholder’s
Funds

(a) Share Capital

2. Non-Current Liabilities

Long-term Borrowings

3. Current Liabilities :

Trade Payables

 

 

 

 

 

 

 

3,50,000

 

1,00,000

 

1,50,000

 

3,00,000

 

2,00,000

 

1,00,000

Total

 

6,00,000

6,00,000

II. ASSETS

1. Non-Current Assets

Fixed Assets (Tangible)

2. Current Assets

Trade Receivables

 

 

 

 

 

 

 

4,00,000

 

2,00,000

 

 

3,00,000

 

3,00,000

Total

 

6,00,000

6,00,000

Solution-:



In the
books of Sun Ltd.

Comparative
Balance Sheet

as at March 31, 2021 and 2022

Particulars

2021

( ₹ )

2022

( ₹ )

Absolute

Change

( ₹ )

Percentage

Change

(%)

I. Equity and Liabilities

1. ShareholdersÂ’ Funds

a. Share Capital

ShareholdersÂ’ Fund

2. Non-Current Liabilities

a. Long-term Borrowings

3. Current Liabilities

a. Trade Payables

 

 

3,00,000

3,00,000

 

2,00,000

 

1,00,000

 

 

3,50,000

3,50,000

 

1,00,000

 

1,50,000

 

 

50,000

50,000

 

(1,00,000)

 

50,000

 

 

16.67

16.67

 

(50.00)

 

50.00

Total

6,00,000

6,00,000

–

–

II. Assets

1. Non-Current Assets

a. Fixed Assets (Tangible)

2. Current Assets

a. Trade Receivables

 

 

3,00,000

 

3,00,000

 

 

4,00,000

 

2,00,000

 

 

1,00,000

 

(1,00,000)

 

 

33.33

 

(33.33)

Total

6,00,000

6,00,000

–

–



Question
-3:
Following is the Balance Shect
of Radha Ltd. as at 31st March, 2022:

 

Balance
Sheet of Radha Ltd.

As At
31St March 2022


Particulars

 

Note

31st March,
2021 (₹)

31st March,
2022 (₹)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds

(a) Share Capital

(b) Reserves and Surplus

2. Non-Current Liabilities

Long Term Borrowings

3. Current Liabilities

(a) Trade Payables

 

15,00,000

10,00,000


8,00,000


5,00,000

10,00,000

10,00,000


2,00,000


3,00,000

Total

38,00,000

25,00,000

II. ASSETS

1. Non-Current Assets

Fixed Asscts:

(i) Tangible Assets

(ii) Intangible Assets

2. Current Assets

(a) Trade Receivables

(b) Cash and Cash Equivalents

25,00,000

5,00,000


6,00,000

2,00,000

15,00,000

5,00,tJ J0


3,50,000

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.

Answer:

 

In the
books of Radha Ltd.

Comparative
Balance Sheet

as at March 31, 2021 and 2022

Particulars

2021

( ₹Â )

2022

( ₹Â )

Absolute

Change

( ₹Â )

Percentage

Change

(%)

I. Equity and Liabilities

1. ShareholdersÂ’ Funds

a. Equity Share Capital

b. Reserve and Surplus

ShareholdersÂ’ Fund

2. Non-Current Liabilities

a. Long-term Borrowings

3. Current Liabilities

 

 

10,00,000

10,00,000

20,00,000

 

2,00,000

3,00,000

 

 

15,00,000

10,00,000

25,00,000

 

8,00,000

5,00,000

 

 

5,00,000

–

5,00,000

 

6,00,000

2,00,000

 

 

50.00

–

25.00

 

300.00

66.67

Total

25,00,000

38,00,000

13,00,000

52.00

II. Assets

    1. Non-Current Assets

a. Fixed Assets (Tangible)

b. Intangible Assets

 

 

15,00,000

5,00,000

 

 

25,00,000

5,00,000

 

 

10,00,000

 

 

66.67

 

20,00,000

30,00,000

10,00,000

50.00

    
2. Current Assets

a. Trade Receivables  

b. Cash and Cash Equivalents

 

3,50,000

1,50,000

 

6,00,000

2,00,000

 

2,50,000

50,000

 

71.43

33.33

 

5,00,000

8,00,000

3,00,000

60.00

Total

25,00,000

38,00,000

13,00,000

52.00

Question 4: Balance
Sheet of Blue Bell Ltd. as at 31st March, 2022 is
given below:

 

BALANCE
SHEET of  BLUE BELL Ltd.
/b>
as at 31st March, 2022

Particulars

Note 
No.

31st March, 2022 ( ₹Â )

31st March, 2021 ( ₹Â )

I. EQUITY AND
LIABILITIES

1. Shareholder’s
Funds

(a) Share Capital

(b) Reserves and Surplus

2. Non-Current Liabilities

Long-term Borrowings

3. Current Liabilities

Trade Payables

 

 

 

 

 

 

 

 

3,26,000

1,00,000

 

6,96,000

 

2,98,000

 

2,44,000

1,00,000

 

4,38,000

 

78,000

Total

 

14,20,000

8,60,000

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets

(b) Non-Current Investments

2. Current Assets

(a) Trade Receivables

(b) Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

5,68,000

6,000

 

6,46,000

2,00,000

 

 

4,30,000

4,000

 

3,76,000

50,000

Total

 

14,20,000

8,60,000

Prepare
Comparative Balance Sheet showing percentage changes from 2021 to 2022.

Solution-:

 

In the
books of Blue Bell Ltd.

Comparative
Balance Sheet

as at March 31, 2021 and 2022

Particulars

2021

( ₹Â )

2022
( ₹Â )

Absolute

Change

( ₹Â )

Percentage

Change

(%)

I. Equity and Liabilities

1. ShareholdersÂ’ Funds

a. Equity Share Capital

b. Reserves and Surplus

Shareholder’s Funds

     Â Â Â Â 2. Non-Current Liabiliti
/b>

a. Long-term Borrowings

3. Current Liabilities

 

 

2,44,000

1,00,000

3,44,000

 

4,38,000

78,000

 

 

3,26,000

1,00,000

4,26,000

 

6,96,000

2,98,000

 

 

82,000

82,000

 

2,58,000

2,20,000

 

 

33.61

23.84

 

58.90

282.05

Total

8,60,000

14,20,000

5,60,000

65.12

II. Assets

1. Non-Current
Assets

a. Fixed Assets (Tangible)

b. Non-Current Investments

 

 

4,30,000

4,000

 

 

5,68,000

6,000

 

 

1,38,000

2,000

 

 

32.09

50.00

 

4,34,000

5,74,000

1,40,000

32.26

2. Current Assets

         
a. Trade Receivables

         
b. Cash and Cash Equivalents

 

3,76,000

50,000

 

6,46,000

2,00,000

 

2,70,000

1,50,000

 

71.81

300.00

 

4,26,000

8,46,000

4,20,000

98.59

Total

8,60,000

14,20,000

5,60,000

65.12

Question
5:
From the Following Balance Sheet of Royal Industries
Ltd. as at 31st March, 2022,

prepare
Comparative Balance Sheet:
 

BALANCE
SHEETÂ of Royal
Industries Ltd.

as at 31st March, 2022

Particulars

Note No.

31st March,

2022 ( ₹Â )

31st March,

2021 ( ₹Â )

I. EQUITY AND LIABILITIES

1. Shareholder’s
Funds

(a) Share Capital

Equity Share Capital

(b) Reserves and Surplus

2. Non-Current Liabilities

Long-term Borrowings

3. Current Liabilities

Trade Payables

 

 

 

 

 

 

 

 

 

 

10,00,000

1,00,000

 

2,00,000

 

2,00,000

 

 

5,00,000

1,00,000

 

3,00,000

 

1,00,000

Total

 

15,00,000

10,00,000

 

 

 

 

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets:

(i) Tangible Assets

(ii) Intangible Assets

(b) Non-Current Investments

2. Current Assets

(a) Inventories

(b) Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

8,00,000

2,00,000

2,00,000

 

2,50,000

50,000

 

 

 

4,00,000

2,00,000

2,00,000

 

1,50,000

50,000

Total

 

15,00,000

10,00,000

Answer:

 

In the
books of Royal Industries Ltd.

Comparative
Balance Sheet

as at March 31, 2021 and 2022

Particulars

2021

( ₹Â )

2022

( ₹Â )

Absolute

Change

( ₹Â )

Percentage

Change

(%)

I. Equity and Liabilities

1. ShareholdersÂ’ Funds

a. Equity Share Capital

b. Reserve and Surplus

ShareholdersÂ’ Fund

2. Non-Current Liabilities

     a. Long-term Bor
ngs

3. Current Liabilities

a. Trade Payables

 

 

5,00,000

1,00,000

6,00,000

 

3,00,000

 

1,00,000

 

 

10,00,000

1,00,000

11,00,000

 

2,00,000

 

2,00,000

 

 

5,00,000

–

5,00,000

 

(1,00,000)

 

1,00,000

 

 

100.00

–

83.33

 

(33.33)

 

100.00

Total

10,00,000

15,00,000

5,00,000

50.00

II. Assets

1. Non-Current
Assets

a. Fixed Assets (Tangible)

 b. Intangible Assets

  c. Non-Current Investments

2. Current Assets

     a. Inventories
style=’font-size:12.0pt;font-family:Poppins’>

      b. Cash and Cash Equivalent
an>

 

 

4,00,000

2,00,000

2,00,000

 

1,50,000

50,000

 

 

8,00,000

2,00,000

2,00,000

 

2,50,000

50,000

 

 

4,00,000

 

1,00,000

 

 

 

100.00

 

66.67

 

 

2,00,000

3,00,000

1,00,000

50.00

Total

10,00,000

15,00,000

5,00,000

50.00

 

Question
6:
Following is the summarised
Balance Sheet of Wye Ltd.

as
at 31st March, 2022:

BALANCE
SHEETÂ of Wye Ltd.

as at 31st March, 2022

Particulars

Note No.

31st March,
2022 ( ₹Â
)

31st March,
2021 ( ₹Â
)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds

(a) Share Capital:

      (i)
Equity Share Capital

      (ii) Preferenc
re
Capital

(b) Reserves and Surplus

2. Non-Current Liabilities

(a) Long-term Borrowings

(b) Long-term Provisions

3. Current Liabilities

(a) Trade Payables (Creditors)

(b) Short-term Provisions

 

 

 

 

 

 

 

1.

 

 

 

 

 

 

 

4,00,000

1,00,000

1,20,000

 

4,50,000

50,000

 

5,30,000

50,000

 

 

 

4,00,000

1,00,000

1,10,000

 

4,50,000

1,00,000

 

3,30,000

50,000

Total

 

17,00,000

15,40,000

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets (Tangible)

(b) Non-Current Investments

2. Current Assets

(a) Trade Receivables

(b) Cash and Cash Equivalents

 

 

 

 

 

 

2

 

 

9,90,000

1,00,000

 

5,00,000

1,10,000

 

 

10,40,000

1,00,000

 

3,00,000

1,00,000

Total

 

17,00,000

15,40,000

Notes to Accounts

Particulars

31st March,
2022 ( ₹Â
)

31st March,
2021 ( ₹Â
)

I. Long-term Borrowings

Bank Loan

8% Debentures

 

3,50,000

1,00,000

 

4,50,000

 

4,50,000

4,50,000

2. Cash and Cash Equivalents

Bank Balance

Cash in Hand

 

1,00,000

10,000

 

90,000

10,000

 

1,10,000

1,00,000


You are required to comment upon the changes in absolute figures from one
period to

 another.< o:p>


Answer:

 

In the
books of Wye Ltd.

Comparative
Balance Sheet

as at March 31, 2021 and 2022

Particulars

2021

( ₹ )

2022

( ₹ )

Absolute

Change

( ₹ )

Comments

I. Equity and
Liabilities

1. ShareholdersÂ’ Funds

        a. Equity
Share Capital

        Â Â Â b. Preference Share Capital

ii. Reserve and Surplus

 ShareholdersÂ’ Fund

2. Non-Current Liabilities

a. Long-term Borrowings

Bank Loan

8% Debentures

         
b. Long-Term Provision

3. Current Liabilities

         a.
Trade Payables

         b.
Short-Term Provisions

 

 

4,00,000

1,00,000

1,10,000

6,10,000

 

 

4,50,000

1,00,000

 

3,30,000

50,000

 

 

4,00,000

1,00,000

1,20,000

6,20,000

 

 

3,50,000

1,00,000

50,000

 

5,30,000

50,000

 

 

10,000

10,000

 

 

1,00,000

1,00,000

50,000

 

2,00,000

 

 

No Change

No Change

Increase

 

 

 

Decrease

Increase

Decrease

 

Increase

No Change

Total

15,40,000

17,00,000

1,60,000

 

II. Assets

     1. Non-Current Assets

a. Fixed Assets (Tangible)

         
b. Non-Current Investments

     2. Current Assets
an>

a. Trade Receivables

b. Cash and Cash Equivalents

 

 

10,40,000

1,00,000

 

3,00,000

1,00,000

 

 

9,90,000

1,00,000

 

5,00,000

1,10,000

 

 

50,000

 

2,00,000

10,000

 

 

Decrease

No Change

 

Increase

Increase

Total

15,40,000

17,00,000

1,60,000

 

Question 7: From the
following Balance Sheet of H.P. Ltd. as at 31st March,
2022, prepare

Comparative
Balance Sheet:

BALANCE
SHEETÂ of H.P.
Ltd.

as at 31st March, 2022

Particulars

Note No.

31st March,

2022 ( ₹
)

31st March,

2021 ( ₹
)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds

(a) Share Capital:

        (i)
Equity Share Capital

        (ii) Prefe
hare
Capital

(b) Reserves and Surplus

2. Non-Current Liabilities

Long-term Borrowings: 12% Debentures

Loan from Directors

3. Current Liabilities

(a)Short-term Borrowings

(b) Trade Payables

(c) Short-term Provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,50,000

2,50,000

3,00,000

 

9,50,000

 

2,50,000

3,50,000

2,00,000

50,000

 

 

 

5,00,000

2,50,000

4,50,000

 

5,50,000

 

2,00,000

 1,75,000

1,00,000

25,000

Total

 

36,00,000

22,50,000

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets (Tangible)

2. Current Assets

(a) Inventories

(b) Trade Receivables

(c) Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

22,50,000

 

4,50,000

8,00,000

1,00,000

 

 

15,00,000

 

2,50,000

4,50,000

50,000

Total

 

36,00,000

22,50,000

Answer:

 

Comparative
Balance Sheet of H.P. Ltd.

as at
March 31, 2021  and March 31, 2022

Particulars

2021
( ₹ )

2022
( ₹ )

Absolute
Change
( ₹ )

Percentage
Change
(%)

I. Equity and Liabilities

    1. ShareholdersÂ’ Funds

a. Share Capital

    1. Equity Share Ca
al

    2. Preference Shar
apital

 

 

 

12,50,000

2,50,000

 

 

 

5,00,000

2,50,000

 

 

 

7,50,000

–

 

 

 

150.00

–

Total

15,00,000

7,50,000

7,50,000

100.00

b. Reserve and Surplus

3,00,000

4,50,000

(1,50,000)

(33.33)

 

18,00,000

12,00,000

6,00,000

50.00

2. Non-Current
Liabilities

a. Long-term Borrowings

12% Secured Debentures

12% Unsecured Debentures

 

 

9,50,000

2,50,000

 

 

5,50,000

2,00,000

 

 

4,00,000

50,000

 

 

72.73

25.00

 

12,00,000

7,50,000

4,50,000

60.00

3. Current
Liabilities

a. Short-Term Borrowings

b. Trade Payables

c. Short-Term Provisions

 

3,50,000

2,00,000

50,000

 

1,75,000

1,00,000

25,000

 

1,75,000

1,00,000

25,000

 

100.0

100.00

100.00

Total

36,00,000

22,50,000

13,50,000

60.00

II. Assets

    1. Non-Current Assets

a. Fixed Assets (Tangible)

   2. Current Assets

a. Inventories

b. Trade Receivables

c. Cash and Cash Equivalents

 

 

22,50,000

 

4,50,000

8,00,000

1,00,000

 

 

15,00,000

 

2,50,000

4,50,000

50,000

 

 

7,50,000

 

2,00,000

3,50,000

50,000

 

 

50.00

 

80.00

77.78

100.00

Total

36,00,000

22,50,000

13,50,000

60.00

Comparative Statement of Profit & Loss (Income
Statement)

Question 8: Prepare Comparative
Statement of Profit and Loss from the following

information:

Particulars

31st March, 2021 (₹)

31st
March,

2020 Â (< b>₹)

Revenue from Operations

30,00,000

20,00,000

Other Income

3,60,000

4,00,000

Expenses

21,00,000

12,00,000





Particulars

Note
No.

31st
March, 2020

31st
March, 2021

Absolute
Change

Percentage

Change (Increase/
Decrease)’

Revenue from Operations
Other Income

 

30,00,000
3,60,000

20,00,000
4,00,000

10,00,000
(40,000)

50.00
(10.00)

Total Revenue (I+II)

 

33,60,000

24,00,000

9,60,000

40.00

Expenses

 

21,00,000

12,00,000

9,00,000

75.00

Profit before Tax

 

12,60,000

12,00,000

60,000

5.00

Question
9:
From the following Statement of Profit and Loss of
Skills India Ltd. for the year

 ended 31st March,
2021 and 2022, prepare a Comparative Statement of Profit and Loss:

Particulars

31st March, 2022 (₹)

31st March,

2021 (₹)

Revenue from Operations

45,00,000

20,00,000

Employee Benefit Expenses

10,00,000

8,00,000

Other Expenses

5,00,000

2,00,000

Tax Rate 30%

Answer:

 

Particulars

Note No.

31st March, 2021 (₹ )

31st March, 2022(₹ )

Absolute Change
(Increase/

Decrease)(₹ )

Percentage Change
(Increase/

Decrease)(%)

Revenue from Operations

 

20,00,000

45,00,000

25,00,000

125

Employee Benefit Expenses

Other Expenses

 

 

8,00,000

2,00,000

10,00,000

5,00,000

2,00,000

3,00,000

25

150

Total Expenses

 

10,00,000

15,00,000

5,00,000

50

Profit before Tax

 

10,00,000

30,00,000

20,00,000

200

Less: Tax 30%

 

3,00,000

9,00,000

6,00,000

200

Profit after Tax

 

7,00,000

21,00,000

14,00,000

200





Question
10:
 Followin
information is extracted from the Statement of Profit and Loss of

 Gold Coin Ltd. for the year ended 31st < span class=GramE>March, 2015:

 

Particulars

31st March,

2015

31st March,

2014

Revenue from Operations

60,00,000

45,00,000

Employee Benefit Expenses

30,00,000

22,50,000

Depreciation

7,50,000

6,00,000

Other Expenses

15,50,000

10,00,000

Tax Rate

30%

30%

 

Answer:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2015

Particulars

2014

(Rs)

2015

(Rs)

Absolute

Change

(Rs)

Percentage

Change

(%)

 

(A)

(B)

(C
= A-B)

(D
= C/A×100)

I. Revenue from Operations

45,00,000

60,00,000

15,00,000

33.33

II. Expenses

 

 

 

 

a. Depreciation

6,00,000

7,50,000

1,50,000

25.0

b. Employees Benefit
Expenses

22,50,000

30,00,000

7,50,000

33.33

c. Other Expenses

10,00,000

15,50,000

5,50,000

55.0

     

38,50,000

53,00,000

14,50,000

37.66

Profit before Income Tax

6,50,000

7,00,000

50,000

7.69

Less: Income Tax

1,95,000

2,10,000

15,000

7.69

Profit after Income Tax

4,55,000

4,90,000

35,000

7.69

Question 11: Prepare comparative Statement of Profit and Loss from
following:

Particulars

2019

2020

Revenue from Operations

20,00,000

25,00,000

Cost of material consumed

10,00,00o

13,00,000

Other Expenses

Nil

1,20,000

Tax rate

50%

50%

(CBSE
Sample paper 2020)

Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2020

Particulars

Note No.

31st March, 2019 (₹ )

31st March, 2020 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

Revenue
from Operations

 

20,00,000

25,00,000

5,00,000

25

Cost
of material consumed

 

10,00,00o

13,00,000

3,00,000

30

Other
expenses

 

1,20,000

1,20,000

Total
Expenses

 

10,00,000

14,20,000

4,20,000

42

Profit
before Tax

 

10,00,000

10,80,000

80,000

8

Less: Tax
50%

 

5,00,000

5,40,000

40,000

8

Profit
after Tax

 

5,00,000

5,40,000

40,000

8

Question 12: Prepare a Comparative
Income Statement of Bikul Ltd. with the
help of

the
following information:

Particulars

2016-17 (₹
)

2017-18 (₹
)

Revenue from Operations

10,00,000

16,00,000

Cost of Materials Consumed

5,00,000

10,00,000

Employee Benefit Expenses

80,000

40,000

Other Indirect Expenses

60,000

80,000

Tax Rate 40%

Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2018

Particulars

Note No.

31st March, 2017 (₹ )

31st March, 2018 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

Revenue
from Operations

 

10,00,000

16,00,000

6,00,000

60.00

Expenses

Cost
of Materials Consumed

Employee
Benefit Expenses

Other
Indirect Expenses

 

 

 

 

 

5,00,000

80,000

60,000

 

10,00,000

40,000

80,000

 

5,00,000

(40,000)

20,000

 

100.00

(50.00)

33.33

Total Expenses

 

6,40,000

11,20,000

4,80,000

75.00

Profit before Tax

 

3,60,000

4,80,000

1,20,000

33.33

Less: Tax
40%

 

1,44,000

1,92,000

48,000

33.33

Profit after Tax

 

2,16,000

2,88,000

72,000

33.33


Question 13: Prepare
Comparative Statement of Profit and Loss from the following information:

Particulars

31st March,

2022

31st March,

2021

Revenue from Operations

 ₹  37,50,000

 ₹  25,00,000

Other Income

 ₹  4,50,000

 ₹  5,00,000

Cost of Materials Consumed

 ₹  22,50,000

 ₹  12,50,000

Other Expenses

 ₹  3,75,000

 ₹  2,50,000

Tax Rate

50%

50%

Answer:

 

Comparative
Income Statement

for the year ended March 31, 2021 and
2022

Particulars

March 31, 2021

( ₹ )

March 31, 2022

( ₹ )

Absolute

Change

( ₹ )

Percentage

Change

(%)

I. Revenue from operations

25,00,000

37,50,000

12,50,000

50.00

II. Other Income

5,00,000

4,50,000

(50,000)

(10.00)

III. Total Revenue (I + II)

30,00,000

42,00,000

12,00,000

40.00

IV. Expenses

a. Cost of Materials
Consumed

b. Other Expenses

 

12,50,000

2,50,000

 

22,50,000

3,75,000

 

10,00,000

1,25,000

 

80.00

50.00

 

15,00,000

26,25,000

11,25,000

75.00

 

 

 

 

 

Profit before Income Tax

15,00,000

15,75,000

75,000

5.00

Less: Income Tax @ 50%

7,50,000

7,87,500

37,500

5.00

Profit after Income Tax

7,50,000

7,87,500

37,500

5.00


Question 14: Prepare a
Comparative Statement of Profit and Loss from the 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

15,00,000

10,00,000

Other Income (% of Revenue from Operations)

60%

50%

Employee Benefit Expenses (% of total revenue)

40%

30%

Tax Rate

40%

40%

Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2018

Particulars

Note No.

31st March, 2017 (₹ )

31st March, 2018 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

Revenue from Operations

 

10,00,000

15,00,000

5,00,000

50.00

Other Income

(% of Revenue from
Operations)

 

5,00,000

9,00,000

4,00,000

80.00

Total Revenue

 

15,00,000

24,00,000

9,00,000

60.00

Employee Benefit Expenses

(% of total revenue)

 

4,50,000

9,60,000

5,10,000

113.33

Profit before Tax

 

10,50,000

14,40,000

3,90,000

37.14

Less: Tax 40%

 

4,20,000

5,76,000

1,56,000

37.14

Profit after Tax

 

6,30,000

8,64,000

2,34,000

37.14

 

Question
15:
From the following particulars obtained from the books
of Mark, prepare a

Comparative
Statement of Profit and Loss:

Particulars

31st March,
2018 (₹)

31st March,
2017 (₹)

Revenue from Operations

50,00,000

40,00,000

Purchase of Stock-in-Trade

40,00,000

30,00,000

Changes in Inventory

10,00,000

8,00,000

Other Expenses

5,00,000

4,00,000

Other Incomes

2,50,000

2,00,000

Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2018

Particulars

Note No.

31st March, 2017 (₹ )

31st March, 2018 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

Revenue from Operations

 

40,00,000

50,00,000

10,00,000

25

Other Incomes

 

2,00,000

2,50,000

50,000

25

Total Revenue

 

42,00,000

52,50,000

10,50,000

25

Expenses

 

 

 

 

 

Purchase of Stock-in-Trade

 

30,00,000

40,00,000

10,00,000

33.3

Changes in Inventory

 

8,00,000

10,00,000

2,00,000

25

Other Expenses

 

4,00,000

5,00,000

13,00,000

25

Total Expenses

 

42,00,000

55,00,000

13,00,000

30.95

Profit before Tax

 

. . .

(2,50,000)

(2,50,000)

Â…

Less: Tax Â
%

 

. . .

. . .

. . .

Â…

Profit after Tax

 

42,00,000

55,00,000

13,00,000

30.95


Question 16: From the following
information, prepare Comparative Statement of Profit and Loss:

Particulars

31st March,

2022 (₹ )

31st March,

2021(₹ )

Revenue from Operations

20,00,000

16,00,000

Other Income

4,40,000

3,00,000

Cost of Materials Consumed

8,00,000

6,00,000

Changes in Inventories of Finished Goods and
Work-in-Progress

4,00,000

2,00,000

Other Expenses (% of Cost of Revenue from
Operations)

15%

10%

Tax Rate

30%

30%


Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2018

Particulars

Note No.

31st March, 2017 (₹ )

31st March, 2018 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

Revenue from Operations

 

16,00,000

20,00,000

4,00,000

25

Other Incomes

 

3,00,000

4,40,000

1,40,000

46.67

Total Revenue

 

19,00,000

24,40,000

5,40,000

 

Expenses

Cost of Materials Consumed

Changes in Inventories of Finished Goods and
Work-in-Progress

Other Expenses

(% of Cost of Revenue from Operations)

 

 

 

 

 


6,00,000

2,00,000

80,000

 


8,00,000

4,00,000

1,80,000

 


2,00,000

2,00,000

1,00,000

 


33.33

100

125

Total Expenses

 

8,80,000

13,80,000

5,00,000

56.82

Profit before Tax

 

10,20,000

10,60,000

40,000

3.92

Less: Tax
30%

 

3,06,000

3,18,000

12,000

3.92

Profit after Tax

 

7,14,000

7,42,000

28,000

3.92

Revenue from Operations

 

16,00,000

20,00,000

4,00,000

25


Working Note:

Calculation
of cost of material Consumed and Other Expenses

Items

2021

2022

Cost of Materials Consumed

6,00,000

8,00,000

Changes in Inventories of Finished Goods and
Work-in-Progress

2,00,000

4,00,000

Cost of Revenue from Operations

8,00,000

12,00,000

Other Expenses

 (2020: 10% and 2021:15% of Cost of Revenue
from Operations)

80,000

1,80,000


Question 17: Prepare
Comparative Statement of Profit and Loss from the following Statement

of Profit
and Loss:
 

Particulars

Note No.

31st March, 2022 ( ₹
)

31st March, 2021 ( ₹
)

I. Income

 

 

 

Revenue from Operations (Net Sales)

 

3,50,000

3,00,000

II. Expenses

Purchases of Stock-in-Trade

Change in Inventories of Stock-in-Trade

Employees Benefits Expenses

Other Expenses

 

 

 

 

 

 

2,10,000

15,000

17,500

7,500

 

1,80,000

20,000

15,000

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


Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2022

Particulars

Note No.

31st March, 2022 (₹ )

31st March, 2021 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

I. Revenue from Operations

 

3,00,000

3,50,000

50,000

16.67

II. Expenses

a. Purchase of Stock-in-Trade

b. Changes in Inventories of Stock-in-Trade

c. Employees Benefit cost

d. Other Expenses

 

 

1,80,000

20,000


15,000

5,000

 

2,10,000

15,000


17,500

7,500

 

30,000

(5,000)


2,500

2,500

 

16.67

(25.00)


16.67

50.00

 

 

2,20,000

2,50,000

30,000

13.67

Profit before Income Tax (I-II)

 

80,000

1,00,000

20,000

25.00

Less: Income Tax

 

24,000

30,000

6,000

25.00

Profit after Income Tax

 

56,000

70,000

14,000

25.00


Question 18: From the
following Statement of Profit and Loss, prepare Comparative

Statement
of Profit and Loss:
 

Statement
of Profit and Loss,

Particulars

Note
No.

31st March, 2022

( ₹
)

31st March, 2021

( ₹
)

I. Income

 

 

 

Revenue from Operations
(Net Sales)

 

50,00,000

40,00,000

II. Expenses

Purchases of Stock-in-Trade

Change in Inventories of
Stock-in-Trade

Employees Benefits Expenses

 

 

1

 

 

34,00,000

1,00,000

1,00,000

 

28,50,000

1,50,000

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, 2022Â ( ₹ )

31st March, 2021 ( ₹
)

I. Change in Inventory of stock-in-Trade

Opening Inventory

Less: Closing Inventory

 

2,00,000

1,00,000

 

3,50,000

2,00,000

 

1,00,000

1,50,000

2. Other Expenses

Administrative Expenses

Selling and Distribution
Expenses

 

50,000

1,50,000

 

50,000

1,00,000

 

2,00,000

1,50,000

Solution-:

Comparative
Income Statement

for the
year ended March 31, 2014 and 2022

Particulars

Note No.

31st March, 2022 (₹ )

31st March, 2021 (₹
)

Absolute Change

(Increase/

Decrease)

(₹ )

Percentage Change

(Increase/

Decrease)

(%)

 

 

(A)

(B)

(C = A-B)

(D = C/A×100)

I. Revenue from Operations

 

40,00,000

50,00,000

10,00,000

25.00

II. Expenses:

a. Purchases of Stock-in-Trade

b. Changes in Inventories of Stock-in-Trade

c. Employees Benefit Expenses

d. Other Expenses

 

 

28,50,000


1,50,000


1,00,000


1,50,000

 

34,00,000


1,00,000


1,00,000


2,00,000

 

5,50,000


(50,000)


–


50,000

 

19.30


(33.33)


–


33.33

 

 

32,50,000

38,00,000

5,50,000

16.92

Profit before Income Tax (I-II)

 


7,50,000


12,00,000


4,50,000


60.00

Less: Income Tax

 

–

–

–

–

Profit after Income Tax

 

7,50,000

12,00,000

4,50,000

60.00

 

 

COMMON SIZE STATEMENT OF PROFIT
& LOSS (INCOME STATEMENT)

Question
19:

From the following Statement of Profit and Loss of
Star Ltd., for the years

ended
31st March, 2015 and 2016, prepare a Common-size
statement:

Particulars

2015-16

2014-15

Revenue from Operations

25,00,000

20,00,000

Employee Benefit Expenses

10,00,00o

7,00,000

Other Expenses

2,00,000

3,00,000

Tax rate

40%

40%

Solution-:

Common Size Statement of Profit
& loss Â

Particulars



Note No.



Absolute Amounts

Percentage of Revenue From Operation (Net Sales)

31ST March 2015
(A)

31st March 2016
(B)

31ST March 2015
(%)

31st March 2016 (%)

Revenue from Operations

 

20,00,000

25,00,000

100

100

Expenses

 

 

 

 

 

Employee Benefit Expenses

 

7,00,000

10,00,00o

35

40

Other Expenses

 

3,00,000

2,00,000

15

8

Total Expenses

 

10,00,000

12,00,000

50

48

Profit before Tax

 

10,00,000

13,00,000

50

52

Less: Tax 40%

 

4,00,000

5,20,000

20

20.80

Profit after Tax

 

6,00,000

7,80,000

30

31.20


Question 20: Prepare
Common-size Statement of Profit and Loss from the following

Statement
of Profit and Loss:


Particulars

Note No.

31st March,

2022 (₹
)

I. Income

 

 

Revenue from Operations

 

15,00,000

Other Income

 

60,000

Total Revenue

 

15,60,000

II. Expenses

 

 

Purchases of Stock-in-Trade

 

7,50,000

Change in Inventories of Stock-in-Trade

 

50,000

Other Expenses

 

2,10,000

Total

 

10,10,000

III. Profit before Tax (I-II)

 

5,50,000


Solution-:



Common Size Statement of Profit
& loss Â

Particulars

Note No.

Absolute Amounts

Percentage of Revenue from
Operation

(Net Sales)

 

 

31st
March,
2022 (₹ )

% 31st March,

2022 (₹
)

I. Income

Revenue from Operations

Other Income

 

 

 

 

15,00,000

60,000

 

100

4

Total Revenue

 

15,60,000

104

II. Expenses

Purchases of Stock-in-Trade

Change in Inventories of Stock-in-Trade

Other Expenses

 

 

 

 

 

7,50,000

50,000

2,10,000

 

50

3.33

14

Total Expenses

 

10,10,000

67.33

III. Profit before Tax (I-II)

 

5,50,000

36.63

 

Question
21:

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

Change in Inventories of
Stock-in-Trade

Finance Costs

Other Expenses

 

 

 

 

 

 

9,00,000

1,00,000

80,000

90,000

 

10,00,000

1,80,000

80,000

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 endedÂ…..

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

b. Change in Inventories of
Stock-in-Trade

c. Finance Cost

d. Other Expenses

 

9,00,000

1,00,000

80,000

90,000

 

10,00,000

1,80,000

80,000

1,30,000

 

64.28

7.14

5.71

6.43

 

62