Question

Prepare a ‘Common Size Statement of Profit and Loss’ of Neurosci Ltd. for the year ended 31^st March, 2023 from the following information: \[ \begin{array}{|l|r|r|} \hline \text{Particulars} & 2022\text{--}23 (\text{₹}) & 2021\text{--}22 (\text{₹}) \\ \hline \text{Revenue from operations} & 40,00,000 & 20,00,000 \\ \text{Purchase of stock in trade} & 4,00,000 & 2,00,000 \\ \text{Other expenses} & 40,000 & 20,000 \\ \text{Tax rate} & 50\% & 50\% \\ \hline \end{array} \]

Hint:

A Comparative Statement shows the absolute and percentage changes over time, whereas a Common Size Statement presents all items as a percentage of a common base (revenue from operations here).

Answer 1

\[ \begin{array}{|l|r|r|} \hline \textbf{Particulars} & \textbf{\% of Revenue (2022--23)} & \textbf{\% of Revenue (2021--22)} \\ \hline \text{Revenue from operations} & 100.00\% & 100.00\% \\ \text{Purchase of stock in trade} & 10.00\% & 10.00\% \\ \text{Other expenses} & 1.00\% & 1.00\% \\ \text{Profit before tax} & 89.00\% & 89.00\% \\ \text{Tax (50\%)} & 44.50\% & 44.50\% \\ \text{Profit after tax} & 44.50\% & 44.50\% \\ \hline \end{array} \]