question_answer

From the following information given, prepare common size statement of profit and loss.

Particulars	2016 Amt (Rs.)	2017 Amt (Rs.)
Revenue from Operations	10,00,000	12,50,000
Depreciation and Amortisation	20,000	30,000
Changes in Inventories of Stock-in-trade	30,000	50,000
Other Expenses	30,000	50,000
Purchases of Stock-in-trade	7,20,000	8,70,000
Tax	50,000	50,000

Answer:

                                                            Common Size Statement                                                             For the Year ended 2016 and 2017

	Particulars	Absolute Amounts		Percentage of revenue from Operations (Net Sales)
		2016 (Rs.)	2017 (Rs.)	2016 (%)	2017 (%)
I.	Revenue from Operations (Net Sales)	10,00,000	12,50,000	100.00	100.00
II.	Expenses
	(a) Purchases of Stock-in-Trade	7,20,000	8,70,000	72.00	69.60
	(b) Changes in Inventories of Stock-in-Trade	30,000	(20,000)	3.00	(1.60)
	(c) Depreciation and Amortisation	20,000	30,000	2.00	2.40
	(d) Other Expenses	30,000	50,000	3.00	4.00
	Total Expenses	8,00,000	9,30,000	80.00	74.40
III.	Profit Before Tax	2,00,000	3,20,000	20.00	25.60
	(-) Tax	(50,000)	(50,000)	5.00	4.00
IV	Profit after Tax	1,50,000	2,70,000	15.00	21.60