Question:
From the following information, prepare a Comparative Statement of Profit and Loss of AX Ltd. for the year ended 31st March, 2025:
Particulars 2024-25 (Rs) 2023-24 (Rs) Revenue from Operations 50,00,000 25,00,000 Cost of Revenue from Operations 15,00,000 6,00,000 Other Expenses 5,00,000 4,00,000 Tax Rate 50%
From the following information, prepare a Comparative Statement of Profit and Loss of AX Ltd. for the year ended 31st March, 2025:
| Particulars | 2024-25 (Rs) | 2023-24 (Rs) |
| Revenue from Operations | 50,00,000 | 25,00,000 |
| Cost of Revenue from Operations | 15,00,000 | 6,00,000 |
| Other Expenses | 5,00,000 | 4,00,000 |
| Tax Rate | 50% | |
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Add cost of revenue and other expenses to get total expenses, subtract from revenue for profit before tax, take 50% tax. Then find the change and percent change of each line.
Updated On: Oct 26, 2026
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Solution and Explanation
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 AX Ltd. for the years ended 31st March 2024 and 2025
Step 4: Working Notes:
Cost of Revenue from Operations and Other Expenses are given in rupees for both years. The tax rate of 50% is applied to Profit Before Tax of both years.
Total Expenses of 2023-24 = Rs. 6,00,000 + Rs. 4,00,000 = Rs. 10,00,000.
Total Expenses of 2024-25 = Rs. 15,00,000 + Rs. 5,00,000 = Rs. 20,00,000.
Profit Before Tax of 2023-24 = Rs. 25,00,000 - Rs. 10,00,000 = Rs. 15,00,000.
Profit Before Tax of 2024-25 = Rs. 50,00,000 - Rs. 20,00,000 = Rs. 30,00,000.
Tax at 50% of Profit Before Tax gives Rs. 7,50,000 for 2023-24 and Rs. 15,00,000 for 2024-25.
Profit After Tax is Rs. 7,50,000 for 2023-24 and Rs. 15,00,000 for 2024-25.
Step 5: Reading the Result:
Revenue rose by 100%, but Cost of Revenue rose faster, by 150%. Other Expenses rose only by 25%. In total, Total Expenses and profit both rose by 100%.
Final Answer:
Profit After Tax rose from Rs. 7,50,000 to Rs. 15,00,000, a change of Rs. 7,50,000 or 100%.
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 AX 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 | 25,00,000 | 50,00,000 | 25,00,000 | 100 |
| Less: Expenses | ||||
| Cost of Revenue from Operations | 6,00,000 | 15,00,000 | 9,00,000 | 150 |
| Other Expenses | 4,00,000 | 5,00,000 | 1,00,000 | 25 |
| Total Expenses | 10,00,000 | 20,00,000 | 10,00,000 | 100 |
| Profit Before Tax | 15,00,000 | 30,00,000 | 15,00,000 | 100 |
| Less: Tax @ 50% | 7,50,000 | 15,00,000 | 7,50,000 | 100 |
| Profit After Tax | 7,50,000 | 15,00,000 | 7,50,000 | 100 |
Step 4: Working Notes:
Cost of Revenue from Operations and Other Expenses are given in rupees for both years. The tax rate of 50% is applied to Profit Before Tax of both years.
Total Expenses of 2023-24 = Rs. 6,00,000 + Rs. 4,00,000 = Rs. 10,00,000.
Total Expenses of 2024-25 = Rs. 15,00,000 + Rs. 5,00,000 = Rs. 20,00,000.
Profit Before Tax of 2023-24 = Rs. 25,00,000 - Rs. 10,00,000 = Rs. 15,00,000.
Profit Before Tax of 2024-25 = Rs. 50,00,000 - Rs. 20,00,000 = Rs. 30,00,000.
Tax at 50% of Profit Before Tax gives Rs. 7,50,000 for 2023-24 and Rs. 15,00,000 for 2024-25.
Profit After Tax is Rs. 7,50,000 for 2023-24 and Rs. 15,00,000 for 2024-25.
Step 5: Reading the Result:
Revenue rose by 100%, but Cost of Revenue rose faster, by 150%. Other Expenses rose only by 25%. In total, Total Expenses and profit both rose by 100%.
Final Answer:
Profit After Tax rose from Rs. 7,50,000 to Rs. 15,00,000, a change of Rs. 7,50,000 or 100%.
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