Question

B) Evaluation questions – marked (5)
(Q. No. 1 to 8 are strictly in order of Illustrations)
Based on Common Size Income Statement
1. From the following Statement of Profit and Loss of Star Ltd. for the years
ended 31st March, 2015 and 2016, prepare a Common Size Statement.
A
Particulars
Note
No.
2015-16
2014-15
Revenue from Operations
Employee Benefit Expenses
Other Expenses
Tax rate 40%
25,00,000
10,00,000
2,00,000
20,00,000
7,00,000
3,00,000​

Answer 1

    Common Size Income Statement

_____________________________________

Particulars          2015      2016     2015%  2016%  _____________________________________

Rev from oper.   25  Lac  10 Lac      100      100

Employee Exp      2  Lac    2 Lac          8       20

Other Exp              7  Lac    3 Lac        28      30

Profit before tax  16  Lac   5 Lac         64      50

Tax                       6.4  Lac    2 Lac        25.6   20

Profit after tax   9.6 Lac     3 Lac         36.4   30  

Explanation

PBT = Revenue from Operation- Total Expenses

PAT = Profit before tax - Tax

Each Items% 2015 = Each items /Revenue from op 2015x100

Each Items% 2016= Each items /Revenue from op 2016x100