question_answer

Prepare common size statement of profit and loss from the following statement of profit and loss:

	Particulars	31st March, 2016 Amt (Rs.)	31st March, 2017 Amt (Rs.)
I.	Income
	Revenue from Operations (Net sales)	40,00,000	40,00,000
	Other Income	40,000	44,000
	Total	40,40,000	40,44,000
II.	Expenses
	Purchases of Stock-in-trade	26,00,000	28,00,000
	Changes in Inventories of Stock-in-trade	2,00,000	1,92,000
	Employees Benefit Expenses	3,20,000	3,92,000
	Other Expenses	4,70,000	3,60,000
	Total	35,90,000	37,44,000
III.	Profit (I - II)	4,50,000	3,00,000

Additional Information
	31st March, 2016	31st March, 2017
Other Expenses Include	Amt (Rs.)	Amt (Rs.)
Provision for Tax	4,50,000	3,00,000

Answer:

                                                Common Size Income Statement for the year ending 31st March, 2016 and  2017

	Particulars	Absolute Amount		Percentage of Revenue from Operations (Net sales)
		2016 (Rs.)	2017 (Rs.)	2016 (%)	2017 (%)
I.	Revenue from Operations (Net sales)	40,00,000	40,00,000	100.00	100.00
II.	Other Income	40,000	44,000	1.00	1.10
III.	Total Revenue (I + II)	40,40,000	40,44,000	101.00	101.10
VI.	Expenses
	(a) Purchases of Stock-in-trade	26,00,000	28,00,000	65,00	70,00
	(b) Changes in Inventories of Stock-in-trade	2,00,000	1,92,000	5.00	4.80
	(c) Employees Benefit Expenses	3,20,000	3,92,000	8.00	9.80
	(d) Other Expenses (4,70,000 - 4,50,000)	20,000	60,000	0.50	1.50
	(3,60,000 - 3,00,000)
	Total Expenses	31,40,000	34,44,000	78.50	86.10
V.	Profit before Tax (III - IV)	9,00,000	6,00,000	22.50	15.00
	(-) Provision for Tax	(4,50,000)	(3,00,000)	(11.25)	(7.50)
VI.	Profit after Tax	4,50,000	3,00,000	11.25	7.50