Question

prepare comprative statement​

Answer 1

Answer:

A comparative statement has five columns. Following are the steps to be followed in preparation of the comparative statement:

i. Column 1: In this column, particulars of items of income statement or balance sheet are written.

ii. Column 2: Enter absolute amount of year 1.

iii. Column 3: Enter absolute amount of year 2.

iv. Column 4: Show the difference in amounts between year 1 and year 2. If there is an increase in year 2, put plus sign and if there is decrease put minus sign.

v. Column 5: Show percentage increase or decrease of the difference amount shown in column 4 by dividing the amount shown in column 4 (absolute amount of increase or decrease) by column 2 (year 1 amount). That is,

Percentage increase or decrease = [ Absolute amount of increase or decrease / Year 1 amount ] x 100