Accountancy 4 Marks Question

From the following Statement of Profit and Loss of PP Ltd. prepare a Common Size Statement of Profit and Loss for the year ended 31.3.2021 and 31.3.2022:

Particulars	2021-2022 (₹)	2020-2021(₹)
Revenue from operations	20,00,000	10,00,000
Other Income	5,00,000	5,00,000
Expenses	10,00,000	7,00,000
Tax Rate 50%

From the following Statement of Profit and Loss, prepare Common-size Statement of Profit and Loss and give comments:

	Particulars	Note No.	31st March, 2023 (₹)	31st March, 2022 (₹)
I.	Income
	Revenue from Operations (Net Sales)		12,50,000	10,00,000
II.	Expenses
	Purchases of Stock-in-Trade		8,70,000	7,20,000
	Change in Inventories of Stock- in-Trade		(20,000)	30,000
	Depreciation and Amortisation Expenses		30,000	20,000
	Other Expenses		50,000	30,000
	Total		9,30,000	8,00,000
III.	Profit before Tax (I - II)		3,20,000	2,00,000
IV.	Income Tax		96,000	60,000
V.	Profit after Tax (III - IV)		2,24,000	1,40,000