Question

From the following information of Kumar Ltd. prepare a Comparative Statement of Profit and Loss for the years ended 31st March, 2024 and 2025:

Particulars	2024-25	2023-24
Revenue from operations	Rs 60,00,000	Rs 40,00,000
Cost of revenue from operations	50% of revenue from operations	50% of revenue from operations
Other Expenses	Rs 15,00,000	Rs 10,00,000
Tax Rate	50%	50%

Hint:

Cost of revenue is half of revenue in both years. Add other expenses, find profit before tax, take 50% tax, then show the rupee and percent change of each line.

Answer 1

Step 1: Understand the Statement:
A comparative statement puts two years side by side in one table.
For every item it shows the amount of each year, the change in rupees and the change in percent.
Here the earlier year is 2023-24 and the later year is 2024-25.

Step 2: Key Formulae:
1. Absolute change = Amount of 2024-25 - Amount of 2023-24.
2. Percentage change = (Absolute change / Amount of 2023-24) x 100.
3. Total Expenses = Cost of Revenue from Operations + Other Expenses.
4. Profit Before Tax = Revenue from Operations - Total Expenses.
5. Profit After Tax = Profit Before Tax - Tax.

Step 3: The Comparative Statement:
Comparative Statement of Profit and Loss of Kumar Ltd. for the years ended 31st March 2024 and 2025

Particulars	2023-24 (Rs)	2024-25 (Rs)	Absolute Change (Rs)	Percentage Change (%)
Revenue from Operations	40,00,000	60,00,000	20,00,000	50
Less: Expenses
Cost of Revenue from Operations	20,00,000	30,00,000	10,00,000	50
Other Expenses	10,00,000	15,00,000	5,00,000	50
Total Expenses	30,00,000	45,00,000	15,00,000	50
Profit Before Tax	10,00,000	15,00,000	5,00,000	50
Less: Tax @ 50%	5,00,000	7,50,000	2,50,000	50
Profit After Tax	5,00,000	7,50,000	2,50,000	50

Step 4: Working Notes:
Cost of Revenue from Operations is 50% of revenue: 50% of Rs. 40,00,000 = Rs. 20,00,000 for 2023-24 and 50% of Rs. 60,00,000 = Rs. 30,00,000 for 2024-25.
Total Expenses of 2023-24 = Rs. 20,00,000 + Rs. 10,00,000 = Rs. 30,00,000.
Total Expenses of 2024-25 = Rs. 30,00,000 + Rs. 15,00,000 = Rs. 45,00,000.
Profit Before Tax of 2023-24 = Rs. 40,00,000 - Rs. 30,00,000 = Rs. 10,00,000.
Profit Before Tax of 2024-25 = Rs. 60,00,000 - Rs. 45,00,000 = Rs. 15,00,000.
Tax at 50% of Profit Before Tax gives Rs. 5,00,000 for 2023-24 and Rs. 7,50,000 for 2024-25.
Profit After Tax is Rs. 5,00,000 for 2023-24 and Rs. 7,50,000 for 2024-25.

Step 5: Reading the Result:
Revenue rose by 50%. Cost of revenue is 50% of revenue and other expenses also rose by 50%, so every item changed by 50%.

Final Answer:
Profit After Tax rose from Rs. 5,00,000 to Rs. 7,50,000, a change of Rs. 2,50,000 or 50%.