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Model Test Papers M.461

22. (a) COMPARATIVE STATEMENT OF PROFIT AND LOSS OF SRCC LTD.

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 (Sales) 12,00,000 16,00,000 4,00,000 33.33
II. Expenses
(a) Purchases of Stock-in-Trade 7,00,000 9,00,000 2,00,000 28.57
(b) Change in Inventories of
Stock-in-Trade 40,000 50,000 10,000 25.00
(c) Employees Benefit Expenses 1,48,000 1,71,000 23,000 15.54
(Indirect)
Total Expenses 8,88,000 11,21,000 2,33,000 26.24
III. Profit before Tax (I – II) 3,12,000 4,79,000 1,67,000 53.53
IV. Less: Tax @ 50% 1,56,000 2,39,500 83,500 53.53
V. Profit after Tax (III – IV) 1,56,000 2,39,500 83,500 53.53

Note: Cost of Revenue from Operations = Purchases of Stock-in-Trade + Change in Inventories of Stock-in-Trade

For the year ended 31st March, 2017 = ` 7,00,000 + ` 40,000 = ` 7,40,000
For the year ended 31st March, 2018 = ` 9,00,000 + ` 50,000 = ` 9,50,000

Thus, Employees Benefit Expenses (% of Cost of Revenue from Operations):
For the year ended 31st March, 2017 = 20% of ` 7,40,000 = ` 1,48,000

For the year ended 31st March, 2018 = 18% of ` 9,50,000 = ` 1,71,000.

(b) Gross Profit = Revenue from Operations – Cost of Revenue from Operations
Gross Profit (2016–17) = ` 12,00,000 – ` 7,40,000 = ` 4,60,000

Gross Profit (2017–18) = ` 16,00,000 – ` 9,50,000 = ` 6,50,000

Gross Profit
Gross Profit Ratio = ¥ 100
Revenue from Operations

` 4,60,000
Gross Profit Ratio (2016–17) = ¥ 100 = 38.33%
` 12,00,000

` 6,50,000
Gross Profit Ratio (2017–18) = ¥ 100 = 40.63%.
` 16,00,000