# 12th | Ts grewal 2021-2022 Question 21 to 24 | ch:3 Tools of Financial statement analysis- Comparative statement and Common-Size statement

#### 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 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

#### Answer:

 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

#### Question 22: Prepare a Common-size Statement of Profit and Loss of Hari Darshan Ltd' from the following information:

 Particulars Note No. 2018-19 (`) 2017-18 (`) Revenue from Operations 20,00,000 10,00,000 Purchase of Stock-in-Trade 7,70,000 4,20,000 Changes in Inventories 1,20,000 80,000 Other Expenses 52,000 30,000 Other Incomes 60,000 50,000 Tax Rate 50%

(Delhi 2019 C)

Answer:

 Common-Size Statement of Profit and Loss as at 31st March, 2019 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2018 (`) 31st March, 2019 (`) % 31st March, 2018 (`) % 31st March, 2019 (`) Revenue from Operations 10,00,000 20,00,000 100 100 Other Incomes 50,000 60,000 5 3 Total Revenue 10,50,000 20,60,000 105 103 Expenses Purchase of Stock-in-Trade 4,20,000 7,70,000 42 38.5 Changes in Inventories 80,000 1,20,000 8 6 Other Expenses 30,000 52,000 3 2.6 Total Expenses 5,30,000 9,42,000 53 47.1 Profit before Tax 5,20,000 11,18,000 52 55.9 Less: Tax 50% 2,60,000 5,59,000 26 27.95 Profit after Tax 2,60,000 5,59,000 26 27.95

#### Question 23:

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

 Particulars 31st March, 2021 (`) March, 2020 (`) Revenue from Operations 25,00,000 20,00,000 Other Income 1,00,000 50,000 Cost of Materials Consumed 15,00,000 10,00,000 Employees Benefit Expenses 3,00,000 2,00,000 Other Expenses 4,50,000 3,50,000

Additional Information: Other expenses include Provision for Tax of `2,00,000 for the year ending 31st March, 2020 and  `2,50,000 for the year ending 31st March, 2021.

Answer:

 Common-Size Statement of Profit and Loss as at 31st March, 2021 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2020 (`) 31st March, 2021 (`) % 31st March, 2020 (`) % 31st March, 2021 (`) Revenue from Operations 20,00,000 25,00,000 100 100 Other Income 50,000 1,00,000 2.5 4 Total Revenue 20,50,000 26,00,000 102.5 104 Expenses Cost of Materials Consumed 10,00,000 15,00,000 50 60 Employees Benefit Expenses 2,00,000 3,00,000 10 12 Other Expenses 1,50,000 2,00,000 7.5 8 Total Expenses 13,50,000 20,00,000 67.5 80 Profit before Tax 7,00,000 6,00,000 35 24 Less: Tax 2,00,000 2,50,000 10 10 Profit after Tax 5,00,000 3,50,000 25 14

Note: Other expenses are after debiting Provision for Tax.

#### From the following information, prepare a Common-size Balance Sheet:

 Particulars 31st March, 2021 (`) 31st March, 2020 (`) Shareholders' Funds 5,40,000 3,60,000 Non-current Liabilities 1,80,000 1,80,000 Current Liabilities 1,80,000 60,000 Non-current Assets 6,30,000 4,20,000 Current Assets 2,70,000 1,80,000

Answer:

 Common-Size Statement of Balance Sheet as at 31st March, 2021 Particulars Note No. Absolute Amounts Percentage of Revenue from Operation (Net Sales) 31st March, 2020 (`) 31st March, 2021 (`) % 31st March, 2020 (`) % 31st March, 2021                    (`) I.Equity and Liabilities Shareholders' Funds 3,60,000 5,40,000 60 60 Non-current Liabilities 1,80,000 1,80,000 30 20 Current Liabilities 60,000 1,80,000 10 20 Total 6,00,000 9,00,000 100 100 II.Assets Non-current Assets 4,20,000 6,30,000 70 70 Current Assets 1,80,000 2,70,000 30 30 Total 6,00,000 9,00,000 100 100

Click on Below link for more questions Of Volume-3 of 12th