# 12th | Ts grewal 2021-2022 Question 17 to 20 | ch:3 Tools of Financial statement analysis- Comparative statement and Common-Size statement

#### Question 17:

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

 Particulars 31st March, 2021 (`) 31st March, 2020 (`) 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%

 Comparative Statement of Profit and Loss as at 31st 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) 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 6,00,000 8,00,000 2,00,000 33.33 Changes in Inventories of Finished Goods and Work-in-Progress 2,00,000 4,00,000 2,00,000 100 Other Expenses (% of Cost of Revenue from Operations) 80,000 1,80,000 1,00,000 125 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

Working Note:

Calculation of cost of material Consumed and Other Expenses

 Items 2020 2021 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 18:

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

 Comparative Income Statement for the year ended March 31, 2018 and 2019 Particulars 2018 ( `) 2019 ( `) Absolute Change ( `) Percentage Change (%) I. Revenue from Operations 40,00,000 50,00,000 10,00,000 25.00 II. Expenses: a. Purchases of Stock-in-Trade 28,50,000 34,00,000 5,50,000 19.30 b. Changes in Inventories of Stock-in-Trade 1,50,000 1,00,000 (50,000) (33.33) c. Employees Benefit Expenses 1,00,000 1,00,000 – – d. Other Expenses 1,50,000 2,00,000 50,000 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

#### Question 19:

From the following Statement of Profit and Loss of Star Ltd., for the years ended 31st March, 401N 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%

(Delhi 2017)

 Common-Size Statement of Profit and Loss as at 31st March, 2016 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2015 (`) 31st March, 2016 (`) % 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

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

 Particulars Note No. 31st March, 2021 (`) 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