Question

From the following information, prepare a Comparative Statement of Profit and Loss of X Ltd. for the year ended 31^st March, 2024.

Hint:

A Comparative Statement highlights the financial performance across two periods using absolute and percentage change, aiding trend analysis and decision-making.

Answer 1

Step 1: Calculate Cost of Revenue from Operations

For 2023–24:
Revenue = 40,00,000
Cost = 60% of Revenue = 0.60 × 40,00,000 = 24,00,000

For 2022–23:
Revenue = 20,00,000
Cost = 50% of Revenue = 0.50 × 20,00,000 = 10,00,000

Step 2: Calculate Profit Before Tax (PBT)

2023–24:
PBT = Revenue – Cost – Employee Benefit Expenses
⇒ 40,00,000 - 24,00,000 - 8,00,000 = 8,00,000

2022–23:
PBT = 20,00,000 - 10,00,000 - 6,00,000 = 4,00,000

Step 3: Calculate Tax

Tax Rate = 25% for both years
2023–24 Tax = 25% of 8,00,000 = 2,00,000
2022–23 Tax = 25% of 4,00,000 = 1,00,000

Step 4: Calculate Profit After Tax (PAT)

2023–24: 8,00,000 - 2,00,000 = 6,00,000
2022–23: 4,00,000 - 1,00,000 = 3,00,000

Comparative Statement of Profit and Loss of X Ltd.

for the year ended 31^st March, 2024

Particulars	2023–24	2022–23	Abs. Change	% Change
Revenue from Operations	40,00,000	20,00,000	20,00,000	100%
Cost of Revenue	24,00,000	10,00,000	14,00,000	140%
Employee Benefit Exp.	8,00,000	6,00,000	2,00,000	33.33%
Profit Before Tax	8,00,000	4,00,000	4,00,000	100%
Tax	2,00,000	1,00,000	1,00,000	100%
Profit After Tax	6,00,000	3,00,000	3,00,000	100%