Question

From the following information, prepare a comparative statement of profit and loss of Nexa Ltd. for the year ended 31st March, 2025.

Particulars	Note No.	2024-25 (Rs)	2023-24 (Rs)
Revenue from operations		10,00,000	5,00,000
Cost of revenue from operations		50% of Revenue from operations	50% of Revenue from operations
Employee benefit expenses		2,00,000	1,00,000
Tax Rate		25%	25%

Hint:

Build cost of revenue at 50%, then profit before tax and tax at 25%. Every item doubles, so every change is 100%.

Answer 1

Step 1: Understanding the Question:
A Comparative Statement of Profit and Loss shows the profit and loss account of Nexa Ltd. for two years side by side.
It adds the change in each item, in rupees and in percent. The base year is 2023-24.

Step 2: Key Formulae:
Absolute Change = Figure of 2024-25 - Figure of 2023-24.
Percentage Change = (Absolute Change / Figure of 2023-24) x 100.

Step 3: Working Notes:
Cost of revenue from operations is 50% of revenue.
2023-24: 50% of Rs. 5,00,000 = Rs. 2,50,000.
2024-25: 50% of Rs. 10,00,000 = Rs. 5,00,000.
Total expenses = Cost of revenue + Employee benefit expenses.
2023-24: 2,50,000 + 1,00,000 = Rs. 3,50,000.
2024-25: 5,00,000 + 2,00,000 = Rs. 7,00,000.
Profit before tax = Revenue - Total expenses.
2023-24: 5,00,000 - 3,50,000 = Rs. 1,50,000.
2024-25: 10,00,000 - 7,00,000 = Rs. 3,00,000.
Tax is 25% of profit before tax.
2023-24: 25% of 1,50,000 = Rs. 37,500.
2024-25: 25% of 3,00,000 = Rs. 75,000.
Profit after tax = Profit before tax - Tax.
2023-24: 1,50,000 - 37,500 = Rs. 1,12,500.
2024-25: 3,00,000 - 75,000 = Rs. 2,25,000.

Step 4: Absolute and percentage change:
Revenue from operations: change = 10,00,000 - 5,00,000 = Rs. 5,00,000; percentage = 5,00,000 / 5,00,000 x 100 = 100%.
Cost of revenue from operations: change = 5,00,000 - 2,50,000 = Rs. 2,50,000; percentage = 2,50,000 / 2,50,000 x 100 = 100%.
Employee benefit expenses: change = 2,00,000 - 1,00,000 = Rs. 1,00,000; percentage = 1,00,000 / 1,00,000 x 100 = 100%.
Total expenses: change = 7,00,000 - 3,50,000 = Rs. 3,50,000; percentage = 3,50,000 / 3,50,000 x 100 = 100%.
Profit before tax: change = 3,00,000 - 1,50,000 = Rs. 1,50,000; percentage = 1,50,000 / 1,50,000 x 100 = 100%.
Tax: change = 75,000 - 37,500 = Rs. 37,500; percentage = 37,500 / 37,500 x 100 = 100%.
Profit after tax: change = 2,25,000 - 1,12,500 = Rs. 1,12,500; percentage = 1,12,500 / 1,12,500 x 100 = 100%.

Step 5: Comparative Statement of Profit and Loss:
Comparative Statement of Profit and Loss of Nexa Ltd. for the year ended 31st March 2025

Particulars	2023-24 (Rs)	2024-25 (Rs)	Absolute Change (Rs)	Percentage Change (%)
Revenue from Operations	5,00,000	10,00,000	5,00,000	100
Less: Cost of revenue from operations	2,50,000	5,00,000	2,50,000	100
Employee benefit expenses	1,00,000	2,00,000	1,00,000	100
Total expenses	3,50,000	7,00,000	3,50,000	100
Profit before tax	1,50,000	3,00,000	1,50,000	100
Less: Tax @ 25%	37,500	75,000	37,500	100
Profit after tax	1,12,500	2,25,000	1,12,500	100

Final Answer:
Every item doubled in 2024-25, so each shows a 100% rise. Profit after tax rose from Rs. 1,12,500 to Rs. 2,25,000.