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Model Test Papers M.171

(b) COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars Note 31st March, 31st March, Absolute Change Percentage
No. 2017 2018 (Increase/ Change (Increase/
Decrease) Decrease)
` ` ` %
I. Revenue from Operations 50,00,000 70,00,000 20,00,000 40.00
II. Expenses:
(a) Employee Benefit Expenses 20,00,000 35,00,000 15,00,000 75.00
(b) Depreciation and Amortisation 5,00,000 8,00,000 3,00,000 60.00
(c) Other Expenses 12,00,000 16,00,000 4,00,000 33.33
Total Expenses 37,00,000 59,00,000 22,00,000 59.46
III. Profit before Tax (I – II) 13,00,000 11,00,000 (2,00,000) (15.38)
IV. Less: Tax @ 40% 5,20,000 4,40,000 (80,000) (15.38)
V. Profit after Tax (III – IV) 7,80,000 6,60,000 (1,20,000) (15.38)
Revenue from Operations
22. (a) Working Capital Turnover Ratio =
Working Capital
` 4,00,000 (WN 1)
= = 20 Times.
` 20,000 (WN 2)
Working Notes:
1. Let Revenue from Operations = ` 100, Gross Profit = ` 20
Cost = ` 100 – ` 20 = ` 80
If Cost is ` 80, then Revenue from Operations = ` 100
If Cost is ` 3,20,000, then Revenue from Operations = ` 3,20,000 × ` 100/` 80 = ` 4,00,000.
2. Capital Employed = Non-current Assets + Working Capital
` 1,00,000 = ` 80,000 + Working Capital
Working Capital = ` 1,00,000 – ` 80,000 = ` 20,000.
Current Assets
(b) Current Ratio =
Current Liabilities
` 96,250
= = 2.41 : 1.
` 40,000
Working Notes:
1. Gross Profit = ` 3,00,000 × 25/100 = ` 75,000.
2. Cost of Revenue from Operations = Revenue from Operations – Gross Profit
= ` 3,00,000 – ` 75,000 = ` 2,25,000.
Cost of Revenue from Operations
3. Inventory Turnover Ratio =
Average Inventory
` 2,25,000
4 =
Average Inventory
Average Inventory = ` 2,25,000/4 = ` 56,250
Opening Inventory + Closing Inventory
Average Inventory =
2
X + + X ` 20,000 Let Opening Inventory = X
` 56,250 =
2 Closing Inventory = X + ` 20,000