Question:
From the following information, prepare a Comparative Statement of Profit and Loss of YX Ltd. for the year ended 31st March, 2025:
Particulars 2024-25 (Rs) 2023-24 (Rs) Revenue from Operations 30,00,000 20,00,000 Other Income (% of Revenue from Operations) 60% 50% Employee Benefit Expenses 12,00,000 6,00,000 Tax Rate 40%
From the following information, prepare a Comparative Statement of Profit and Loss of YX Ltd. for the year ended 31st March, 2025:
| Particulars | 2024-25 (Rs) | 2023-24 (Rs) |
| Revenue from Operations | 30,00,000 | 20,00,000 |
| Other Income (% of Revenue from Operations) | 60% | 50% |
| Employee Benefit Expenses | 12,00,000 | 6,00,000 |
| Tax Rate | 40% |
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Find Other Income as 50% of Rs. 20,00,000 and 60% of Rs. 30,00,000. Then work out profit before tax, tax at 40% and profit after tax. Percentage change is change divided by the 2023-24 figure.
Updated On: Oct 26, 2026
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Solution and Explanation
Step 1: What a Comparative Statement shows:
A Comparative Statement of Profit and Loss puts two years side by side. It shows the absolute change in rupees and the percentage change.
Absolute Change = 2024-25 amount - 2023-24 amount.
Percentage Change = Absolute Change / 2023-24 amount x 100. The earlier year is always the base.
Step 2: Working Note 1 - Other Income:
Other Income is given as a percentage of Revenue from Operations.
2023-24: 50% of Rs. 20,00,000 = Rs. 10,00,000.
2024-25: 60% of Rs. 30,00,000 = Rs. 18,00,000.
Step 3: Working Note 2 - Totals, profit and tax:
Total Revenue 2023-24 = 20,00,000 + 10,00,000 = Rs. 30,00,000. Total Revenue 2024-25 = 30,00,000 + 18,00,000 = Rs. 48,00,000.
Total Expenses are only Employee Benefit Expenses: Rs. 6,00,000 and Rs. 12,00,000.
Profit before Tax 2023-24 = 30,00,000 - 6,00,000 = Rs. 24,00,000. Profit before Tax 2024-25 = 48,00,000 - 12,00,000 = Rs. 36,00,000.
Tax at 40%: 2023-24 = 40% of 24,00,000 = Rs. 9,60,000. 2024-25 = 40% of 36,00,000 = Rs. 14,40,000.
Profit after Tax: 2023-24 = 24,00,000 - 9,60,000 = Rs. 14,40,000. 2024-25 = 36,00,000 - 14,40,000 = Rs. 21,60,000.
Step 4: Working Note 3 - Changes:
Revenue from Operations: 10,00,000 / 20,00,000 x 100 = 50%. Other Income: 8,00,000 / 10,00,000 x 100 = 80%.
Total Revenue: 18,00,000 / 30,00,000 x 100 = 60%. Employee Benefit Expenses and Total Expenses: 6,00,000 / 6,00,000 x 100 = 100%.
Profit before Tax: 12,00,000 / 24,00,000 x 100 = 50%. Tax: 4,80,000 / 9,60,000 x 100 = 50%. Profit after Tax: 7,20,000 / 14,40,000 x 100 = 50%.
Step 5: Comparative Statement of Profit and Loss of YX Ltd.:
For the years ended 31st March, 2024 and 31st March, 2025
Final Answer:
Profit before Tax rises by Rs. 12,00,000 (50%) and Profit after Tax by Rs. 7,20,000 (50%).
A Comparative Statement of Profit and Loss puts two years side by side. It shows the absolute change in rupees and the percentage change.
Absolute Change = 2024-25 amount - 2023-24 amount.
Percentage Change = Absolute Change / 2023-24 amount x 100. The earlier year is always the base.
Step 2: Working Note 1 - Other Income:
Other Income is given as a percentage of Revenue from Operations.
2023-24: 50% of Rs. 20,00,000 = Rs. 10,00,000.
2024-25: 60% of Rs. 30,00,000 = Rs. 18,00,000.
Step 3: Working Note 2 - Totals, profit and tax:
Total Revenue 2023-24 = 20,00,000 + 10,00,000 = Rs. 30,00,000. Total Revenue 2024-25 = 30,00,000 + 18,00,000 = Rs. 48,00,000.
Total Expenses are only Employee Benefit Expenses: Rs. 6,00,000 and Rs. 12,00,000.
Profit before Tax 2023-24 = 30,00,000 - 6,00,000 = Rs. 24,00,000. Profit before Tax 2024-25 = 48,00,000 - 12,00,000 = Rs. 36,00,000.
Tax at 40%: 2023-24 = 40% of 24,00,000 = Rs. 9,60,000. 2024-25 = 40% of 36,00,000 = Rs. 14,40,000.
Profit after Tax: 2023-24 = 24,00,000 - 9,60,000 = Rs. 14,40,000. 2024-25 = 36,00,000 - 14,40,000 = Rs. 21,60,000.
Step 4: Working Note 3 - Changes:
Revenue from Operations: 10,00,000 / 20,00,000 x 100 = 50%. Other Income: 8,00,000 / 10,00,000 x 100 = 80%.
Total Revenue: 18,00,000 / 30,00,000 x 100 = 60%. Employee Benefit Expenses and Total Expenses: 6,00,000 / 6,00,000 x 100 = 100%.
Profit before Tax: 12,00,000 / 24,00,000 x 100 = 50%. Tax: 4,80,000 / 9,60,000 x 100 = 50%. Profit after Tax: 7,20,000 / 14,40,000 x 100 = 50%.
Step 5: Comparative Statement of Profit and Loss of YX Ltd.:
For the years ended 31st March, 2024 and 31st March, 2025
| Particulars | 2023-24 (Rs) | 2024-25 (Rs) | Absolute Change (Rs) | Percentage Change (%) |
|---|---|---|---|---|
| Revenue from Operations | 20,00,000 | 30,00,000 | 10,00,000 | 50 |
| Other Income | 10,00,000 | 18,00,000 | 8,00,000 | 80 |
| Total Revenue | 30,00,000 | 48,00,000 | 18,00,000 | 60 |
| Less: Expenses | ||||
| Employee Benefit Expenses | 6,00,000 | 12,00,000 | 6,00,000 | 100 |
| Total Expenses | 6,00,000 | 12,00,000 | 6,00,000 | 100 |
| Profit before Tax | 24,00,000 | 36,00,000 | 12,00,000 | 50 |
| Less: Tax at 40% | 9,60,000 | 14,40,000 | 4,80,000 | 50 |
| Profit after Tax | 14,40,000 | 21,60,000 | 7,20,000 | 50 |
Final Answer:
Profit before Tax rises by Rs. 12,00,000 (50%) and Profit after Tax by Rs. 7,20,000 (50%).
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