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M.224 An Aid to Accountancy—CBSE XII

PART B

18. Payment made to Employees, e.g., salaries, wages, bonus, etc.
19. Interest received on calls-in-arrears by any company is shown as Financing Activity.
20. (a) It ignores qualitative factors; and also price level changes.
(b) (i) Long-term Borrowings; and
(ii) Long-term Provisions.
21. (a) Comparative Income Statement is the horizontal analysis of income statement
in which each item of Revenue and Expenses is analysed horizontally for two
accounting periods. This statement shows:
(i) Revenue and Expenses in absolute amounts;
(ii) Increase or decrease in absolute amounts; and
(iii) Proportional change.

(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 32,00,000 40,00,000 8,00,000 25
II. Expenses
(a) Employee Benefits Expenses 16,00,000 20,00,000 4,00,000 25
(b) Other Expenses 4,00,000 2,00,000 (2,00,000) (50)
Total Expenses 20,00,000 22,00,000 2,00,000 10
III. Profit before Tax (I – II) 12,00,000 18,00,000 6,00,000 50
IV. Less: Tax @ 40% 4,80,000 7,20,000 2,40,000 50
V. Profit after Tax (III – IV) 7,20,000 10,80,000 3,60,000 50
Or

COMMON-SIZE STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2018
Particulars Note No. Absolute (%) of Revenue
Amount (`) from Operations
I. Revenue from Operations 25,38,000 100.00
Other Income 38,000 1.50
Total Revenue 25,76,000 101.50
II. Expenses:
(a) Cost of Materials Consumed 14,00,000 55.16
(b) Other Expenses 5,00,000 19.70
Total Expenses 19,00,000 74.86
III. Net Profit before Tax (I – II) 6,76,000 26.64
IV. Less: Tax Paid 3,38,000 13.32
V. Net Profit after Tax (III – IV) 3,38,000 13.32