Question

From the following Statement of Profit and Loss of Nutan Ltd. for the years ended 31^st March, 2023 and 2024, prepare a Comparative Statement of Profit and Loss:

Particulars	2022–23 (₹)	2023–24 (₹)
Revenue from Operations	5,00,000	6,00,000
Other Income	20,000	30,000
Expenses	4,00,000	5,00,000
Tax Rate	40%	40%

Hint:

In a comparative income statement, always calculate both absolute and percentage changes to highlight year-on-year performance trends.

Answer 1

Particulars	2022–23	2023–24	% Change
Revenue from Operations	5,00,000	6,00,000	20%
Other Income	20,000	30,000	50%
Total Revenue	5,20,000	6,30,000	21.15%
Less: Expenses	4,00,000	5,00,000	25%
Profit Before Tax	1,20,000	1,30,000	8.33%
Less: Tax (40%)	48,000	52,000	8.33%
Profit After Tax	72,000	78,000	8.33%

We compare each figure across years and calculate both absolute and percentage changes. This aids in understanding trends, identifying performance improvements, and areas requiring attention.