Question

From the following information, prepare a Comparative Statement of Profit and Loss of Y Ltd.: % Table for Profit and Loss \[ \begin{array}{|c|c|c|} Particulars & 31.03.2023 (\( \text{\rupee} \)) & 31.03.2022 (\( \text{\rupee} \))
\text{Revenue from operations} & 40,00,000 & 32,00,000
\text{Purchase of stock-in-trade} & 24,00,000 & 20,00,000
\text{Change in inventories (25\% of purchase)} & 6,00,000 & 5,00,000
\text{Other expenses} & 2,00,000 & 1,60,000
\text{Tax rate} & 40\% & 40\%
\end{array} \]

Hint:

For Comparative Statements: Calculate percentage change for each item. Use journal entries to reflect adjustments like inventory and expenses.

Answer 1

% Journal Entries Journal Entries: \[ \begin{array}{|c|c|c|} Date & Particulars & Amount (\( \text{\rupee} \))
\text{31.03.2023} & \text{Inventory Adjustment A/c Dr.} & 6,00,000
& \quad \text{To Profit and Loss A/c} & 6,00,000
\text{31.03.2023} & \text{Purchase A/c Dr.} & 24,00,000
& \quad \text{To Cash A/c} & 24,00,000
\text{31.03.2023} & \text{Other Expenses A/c Dr.} & 2,00,000
& \quad \text{To Cash A/c} & 2,00,000
\text{31.03.2023} & \text{Profit and Loss A/c Dr.} & 16,00,000
& \quad \text{To Tax A/c} & 6,40,000
& \quad \text{To Reserves A/c} & 9,60,000
\end{array} \]