Question

The following information was extracted from the Statement of Profit and Loss of Chaman Ltd. for the year ended 31st March, 2025:

Prepare a Comparative Statement of Profit and Loss.

Hint:

Comparative statements show absolute and percentage changes year-over-year. Percentage change = (Change ÷ Previous Year) × 100. Negative changes are shown in brackets.

Answer 1

Chaman Ltd.

Comparative Statement of Profit and Loss

For the Year Ended 31st March, 2024 and 2025

Particulars	2023-24 (₹)	2024-25 (₹)	Absolute Change (₹)	Percentage Change (%)
I. Revenue from Operations	32,00,000	40,00,000	8,00,000	25%
II. Total Revenue	32,00,000	40,00,000	8,00,000	25%
III. Expenses:
Employee Benefit Expenses	16,00,000	20,00,000	4,00,000	25%
Other Expenses	4,00,000	2,00,000	(2,00,000)	(50%)
Total Expenses	20,00,000	22,00,000	2,00,000	10%
IV. Profit before Tax (II – III)	12,00,000	18,00,000	6,00,000	50%
V. Less: Tax @ 50%	6,00,000	9,00,000	3,00,000	50%
VI. Profit after Tax	6,00,000	9,00,000	3,00,000	50%

 

Working Notes

1. Absolute Change = Current Year − Previous Year

• Revenue from Operations = 40,00,000 − 32,00,000 = ₹8,00,000
• Employee Benefit Expenses = 20,00,000 − 16,00,000 = ₹4,00,000
• Other Expenses = 2,00,000 − 4,00,000 = (₹2,00,000)
• Total Expenses = 22,00,000 − 20,00,000 = ₹2,00,000
• Profit before Tax = 18,00,000 − 12,00,000 = ₹6,00,000
• Tax = 9,00,000 − 6,00,000 = ₹3,00,000
• Profit after Tax = 9,00,000 − 6,00,000 = ₹3,00,000

2. Percentage Change = (Absolute Change ÷ Previous Year) × 100

• Revenue from Operations = (8,00,000 ÷ 32,00,000) × 100 = 25%
• Employee Benefit Expenses = (4,00,000 ÷ 16,00,000) × 100 = 25%
• Other Expenses = (2,00,000 ÷ 4,00,000) × 100 = (50%)
• Total Expenses = (2,00,000 ÷ 20,00,000) × 100 = 10%
• Profit before Tax = (6,00,000 ÷ 12,00,000) × 100 = 50%
• Tax = (3,00,000 ÷ 6,00,000) × 100 = 50%
• Profit after Tax = (3,00,000 ÷ 6,00,000) × 100 = 50%

3. Calculation of Tax

• Tax Rate = 50%
• 2023–24: 12,00,000 × 50% = ₹6,00,000
• 2024–25: 18,00,000 × 50% = ₹9,00,000