Q.From the following statement of profit and loss of Ferox Ltd. for the year ended 31st March, 2018 and 2019, prepare a comparative statement of profit and loss:
Particulars | 2019 ₹ | 2018 ₹
Revenue from operations | 8,00,000 | 6,00,000
Other incomes | 1,00,000 | 50,000
Expenses | 5,00,000 | 4,00,000
Rate of income tax was 40%.
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Start your 14-day free trial to unlock the full solution →Comparative Statement of Profit and Loss shows Profit After Tax rising from Rs. 1,50,000 (2018) to Rs. 2,40,000 (2019), a 60% increase.
First compute each year's Profit Before Tax and Profit After Tax:
2019: Revenue from Operations 8,00,000 + Other Income 1,00,000 = Total Revenue 9,00,000; less Expenses 5,00,000 = Profit Before Tax 4,00,000; less Tax @40% = 1,60,000; Profit After Tax = 2,40,000
2018: Revenue from Operations 6,00,000 + Other Income 50,000 = Total Revenue 6,50,000; less Expenses 4,00,000 = Profit Before Tax 2,50,000; less Tax @40% = 1,00,000; Profit After Tax = 1,50,000
Comparative Statement of Profit and Loss for the years ended 31st March, 2018 and 2019 (Absolute Change = 2019 - 2018; % Change = Absolute Change / 2018 figure x 100):
Revenue from Operations: 6,00,000 -> 8,00,000; Change = +2,00,000 (+33.33%)
Other Income: 50,000 -> 1,00,000; Change = +50,000 (+100%)
Total Revenue: 6,50,000 -> 9,00,000; Change = +2,50,000 (+38.46%) …
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