Question

From the following information, prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2024: \begin{center} \begin{tabular}{l r r} \toprule Particulars & 2023-24 (Rs ) & 2022-23 (Rs )
\midrule Revenue from operations & 8,00,000 & 4,00,000
Cost of revenue from operations & 4,00,000 & 2,00,000
Employee benefit expenses & 1,60,000 & 80,000
Tax Rate & 50 & 50
% Assuming Tax Rate applies to both years \bottomrule \end{tabular} \end{center}

Hint:

Comparative Statements show absolute and percentage changes between two periods. - Absolute Change = Current Year Amount - Previous Year Amount. - Percentage Change = (Absolute Change / Previous Year Amount) * 100. Ensure correct calculation of Profit Before Tax and Tax Expense before finding the final Profit After Tax changes.

Answer 1

1. Gross Profit: Revenue from operations - Cost of revenue from operations

For 2023-24: 8,00,000 - 4,00,000 = 4,00,000

For 2022-23: 4,00,000 - 2,00,000 = 2,00,000

2. Operating Profit: Gross Profit - Employee Benefit Expenses

For 2023-24: 4,00,000 - 1,60,000 = 2,40,000

For 2022-23: 2,00,000 - 80,000 = 1,20,000

3. Profit After Tax: Operating Profit × (1 - Tax Rate)

For 2023-24: 2,40,000 × (1 - 0.50) = 1,20,000

For 2022-23: 1,20,000 × (1 - 0.50) = 60,000