Question

From the following information, prepare a Comparative Statement of Profit and Loss of Smart Ltd. :
\begin{tabular}{|l|r|r|} \hline Particulars & 2023-24 (Rs) & 2022-23 (Rs)
\hline Revenue from operations & 24,00,000 & 20,00,000
Cost of materials consumed & 6,00,000 & 4,00,000
Employee benefit expenses & 4,00,000 & 2,00,000
Tax Rate 50\% & &
\hline \end{tabular}

Hint:

To prepare a Comparative Income Statement: 1. List items vertically (Revenue, Expenses, PBT, Tax, PAT). 2. Show amounts for the Previous Year (Base Year) and Current Year. 3. Calculate Absolute Change (Current Year - Previous Year). 4. Calculate Percentage Change ([Absolute Change / Previous Year Amount] * 100). Ensure calculations are done for each line item, including totals and profits.

Answer 1

Smart Ltd.
Comparative Statement of Profit and Loss
for the years ended 31st March, 2023 and 2024
\begin{tabular}{|l|r|r|r|r|} \hline Particulars & 2022-23 & 2023-24 & Absolute Change & Percentage Change
& (Rs) & (Rs) & (Rs) & (\%)
& (A) & (B) & (C = B - A) & (D = C/A * 100)
\hline I. Revenue from Operations & 20,00,000 & 24,00,000 & 4,00,000 & 20.00
II. Expenses: & & & &
\quad Cost of Materials Consumed & 4,00,000 & 6,00,000 & 2,00,000 & 50.00
\quad Employee Benefit Expenses & 2,00,000 & 4,00,000 & 2,00,000 & 100.00
\quad Total Expenses & 6,00,000 & 10,00,000 & 4,00,000 & 66.67
III. Profit Before Tax (I - II) & 14,00,000 & 14,00,000 & 0 & 0.00
IV. Less: Tax Expense (50\%) & 7,00,000 & 7,00,000 & 0 & 0.00
\hline V. Profit After Tax (III - IV) & 7,00,000 & 7,00,000 & 0 & 0.00
\hline \end{tabular}
Calculations:
Absolute Change = Current Year Amount - Previous Year Amount.
Percentage Change = (Absolute Change / Previous Year Amount) * 100.
Example (Revenue): Abs Change = 24L - 20L = 4L. \% Change = (4L / 20L) * 100 = 20\%.
Example (Total Expenses): Abs Change = 10L - 6L = 4L. \% Change = (4L / 6L) * 100 = 66.67\%.
Profit Before Tax (2022-23) = 20L - 6L = 14L. Tax = 50\% of 14L = 7L. Profit After Tax = 7L.
Profit Before Tax (2023-24) = 24L - 10L = 14L. Tax = 50\% of 14L = 7L. Profit After Tax = 7L.