Q.From the following figures, prepare a Comparative Statement of Profit and Loss: Revenue from Operations — 2023 ₹10,00,000, 2024 ₹12,00,000; Cost of Materials Consumed — 2023 ₹6,00,000, 2024 ₹6,60,000; Other Expenses — 2023 ₹1,00,000, 2024 ₹1,20,000.

Each line has to be extended first with a Total Expenses row (adding the two expense items) and a Profit before Tax row, and only then can the absolute and percentage change columns be filled in.

Step 1 — Compute Total Expenses and Profit before Tax for each year.

Total Expenses (2023) = 6,00,000 + 1,00,000 = ₹7,00,000. Total Expenses (2024) = 6,60,000 + 1,20,000 = ₹7,80,000.

Profit before Tax (2023) = 10,00,000 − 7,00,000 = ₹3,00,000. Profit before Tax (2024) = 12,00,000 − 7,80,000 = ₹4,20,000.

Step 2 — Compute Absolute Change and Percentage Change (Absolute Change ÷ 2023 figure × 100) for every row.

Comparative Statement of Profit and Loss for the years ended 31st March 2023 and 2024

Working for % Change (illustrative rows):

• Revenue: (2,00,000 ÷ 10,00,000) × 100 = 20.00% …

Always compute the SUBTOTAL rows (Total Expenses, Profit before Tax) first, from the given individual items, before attempting to fill in their Absolute Change and % Change columns — trying to compute a subtotal's percentage change d …

A frequent error is computing the percentage change on the LATER year's figure instead of the EARLIER year's figure (e.g. dividing by 2024's figure instead of 2023's) — the formula always divid …