Question
What is Comparative Statement of Profit & Loss? How is it prepared?
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Answer
Statement of Profit and Loss shows the net profit or net loss of that year. A comparative statement of profit and loss shows the net profits for a number of years so that changes in absolute data in terms of money as well as in terms of percentages may be known. Comparative statement of profit and loss provides the following informations:The form of comparative statement of profit and loss also consists of five columns.In the first column items of Statement of Profit & Loss are shown. In the second column the data for previous year is shown and in the third column the data for current year is shown, In the fourth column the increase or decrease in absolute data is shown in terms of rupee amounts. Fifth column shows the increase or decrease in various items in the form of percentages.
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