Question -
Answer -
| Comparative Income Statement for the years ended March 31, 2016 and 2017 |
| Particulars | Note No. | 2015-16 (₹) | 2016-17 (₹) | Absolute Change
(₹) | Percentage Change |
| 1. Revenue from Operations | | 9,60,000 | 4,50,000 | (5,10,000) | (53.13) |
| 2. Other Income | | 10,000 | 20,000 | 10,000 | 100 |
| 3. Total Revenue (1 + 2) | | 9,70,000 | 4,70,000 | (5,00,000) | (51.55) |
| 4. Expenses | | | | | |
| a. Purchases of Stock-in-Trade | | 2,66,000 | 94,000 | (1,72,000) | (64.7) |
| b. Change in Inventories | | (15,000) | (40,000) | (55,000) | (366.7) |
| c. Finance Costs | | 25,000 | 20,000 | (5,000) | (20) |
| d. Depreciation and Amortisation Expenses | | 20,000 | 20,000 | – | – |
| e. Other Expenses | | 30,000 | 40,000 | 10,000 | 33.33 |
| Total Expenses | | 3,26,000 | 1,34,000 | (1,92,000) | 58.90 |
| 5. Profit before Tax (3 – 4) | | 6,44,000 | 3,36,000 | (3,08,000) | 47.83 |
| Less: Income Tax | | 3,22,000 | 1,34,400 | (1,87,600) | 58.26 |
| 6. Profit After Tax | | 3,22,000 | 2,01,600 | 1,20,400 | 37.39 |
| | | | | |
Working Notes:
1. Calculation of Net Purchases and Change in Inventory
2. Calculation of Finance Cost
Finance Cost = Interest on Bank Overdraft + Interest on Debentures
Finance Cost (2016) = 5,000 + 20,000 = ₹ 25,000
Finance Cost (2017) = 0 + 20,000 = ₹ 20,000
3. Calculation of Other Expenses
Other Expenses = Carriage outward + other operating expenses
Other Expenses (2016) = 10,000 + 20,000 = ₹ 30,000
Other Expenses (2017) = 30,000 + 10,000 = ₹ 40,000