Prepare Common Size Statement Of Profit And Loss of Shefali Ltd. With the Help Of Following Information-ACCOUNTANCY

Q.5.Prepare common size statement of profit and loss of shefali ltd. with the help of following information.

Particulars	2015-16	2016-17
Revenue from operations	6,00,000	8,00,000
Indirect expenses	25% of gross profit	25% of gross profit
Cost of revenue from operations	4,28,000	7,28,000
Other incomes	10,000	12,000
Income tax	30%

Particulars	Note No.	2015-16 (Rs.)	2016-17 (Rs.)	Percentage of Sales(2015-16)	Percentage of Sales(2016-17)
1. Revenue from Operations		6,00,000	8,00,000	100	100
2. Other Income		10,000	12,000	1.67	1.5
3. Total Revenue (1 + 2)		6,10,000	8,12,000	101.67	101.5
4. Expenses
(i) Cost of Revenue from Operations (COGS)		4,28,000	7,28,000	71.33	91
(ii) Other Expenses		43,000	18,000	7.17	2.25
Total Expenses		4,71,000	7,46,000	78.5	93.25
5. Profit before Tax (3 – 4)		1,39,000	66,000	23.167	8.25
Less: Income Tax		(41,700)	(19,800)	5.35
6. Profit After Tax		97,300	46,200	16.22	5.775

Working Notes:

Calculation for Other Expenses

Other Expenses = Indirect Expenses = % of Gross Profit

Gross Profit = Net Sales - Revenue from Operations

For 2016, Gross Profit = (6,00,000 - 4,28,000)

= Rs. 1,72,000

For 2017, Gross Profit = (8,00,000 - 7,28,000)

= Rs. 72,000 

For the year 2016 = 172000 × 25%

= Rs. 43,000

For the year 2017 = 72000 × 25 %

= Rs. 18,000

Chapter-4 Analysis of Financial Statements-II

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