Prepare Comparative Statement Of Profit and Loss From the Following Information:-Accountancy

Q.4. Prepare Comparative Income Statement from the Following Information:

Particulars	2015-16	2016-17
Manufacturing expenses	35,000	80,000
Opening stock	30,000	60% of closing stock
Sales	9,60,000	4,50,000
Returns outwards	4,000(out of credit purchase)	6,000(out of cash purchase)
Closing stock	150% of opening stock	1,00,000
Credit purchases	1,50,000	150% of cash purchase
Cash purchases	80% of credit	40,000
Carriage outward	10,000	30,000
Building	1,00,000	2,00,000
Depreciation on building	20%	10%
Interest on bank overdraft	5,000	_
10% debenture	2,00,000	2,00,000
Profit on sales of copyright	10,000	20,000
Loss on sale of personal car	10,000	20,000
Other operating expenses	20,000	10,000
Tax rate	50%	40%

 

Comparative Income Statement

for the years ended March 31, 2016-2017 

Particulars	Note No.	2015-16 (Rs.)	2016-17 (Rs.)	Absolute  Change	Percentage Change
1. Revenue from Operations		9,60,000	4,50,000	(5,10,000)	(53.13)
2. Other Income		10,000	20,000	10,000	100
3. Total Revenue (1 + 2)		9,70,000	4,70,000	(5,00,000)	(51.55)
4. Expenses
(i) Purchases of Stock-in-Trade		2,66,000	94,000	(1,72,000)	(64.7)
(ii)Change in Inventories		(15,000)	(40,000)	(55,000)	(366.7)
(iii)Finance Costs		25,000	20,000	(5,000)	(20)
(iv) Depreciation and Amortisation Expenses		20,000	20,000	–	–
(v)Other Expenses		30,000	40,000	10,000	33.33
Total Expenses		3,26,000	1,34,000	(1,92,000)	58.90
5. Profit before Tax (3 – 4)		6,44,000	3,36,000	(3,08,000)	47.83
Less: Income Tax		3,22,000	1,34,400	(1,87,600)	58.26
6. Profit After Tax		3,22,000	2,01,600	1,20,400	37.39

Calculation for Net Purchases and Change in Inventory :

Net Purchases of stock in Trade = Cash Purchases + Credit Purchases - Purchases Returns

for the year 2013 = 120000 + 150000 - 4000 = Rs 266000

for the year 2014 = 40000 + 60000 - 6000 = Rs 94000

Change in Inventory = Opening Stock - Closing Stock

for the year 2013 = 30000 - 45000 = Rs (15000)

for the year 2014 = 60000 - 100000 = Rs (40000)

Calculation for Finance Cost:

Finance Cost = Interest on Debentures + Interest on Bank Overdraft

Finance Cost for the year 2016 = 5,000 + 20,000

= Rs 25,000

Finance Cost for the year 2017 = 0 + 20,000

= Rs 20,000

Calculation for Other Expenses:

Other Expenses = Carriage outward + Other operating expenses

Other Expenses for the year 2016 = 10,000 + 20,000

= Rs 30,000

Other Expenses for the year 2017 = 30,000 + 10,000

= Rs 40,000 

Chapter-4 Analysis of Financial Statements-II

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