Question 8 Chapter 2 VK Publications Class 12 Part 2 - 2021

Question 8 Chapter 2 VK Publications Class 12 Part 2 – 2021

Table of Contents

The solution of Question 8 Chapter 2 VK Publications Class 12 Part 2: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

8. Prepare Comparative Statement of Profit and Loss from the following information:

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Particulars	Note No.	31st March,2015 (Rs.)	31st March, 2014 (Rs.)
Revenue from Operations		16,00,000	12,00,000
Purchase of Stock-in-Trade		7,20,000	4,80,000
Change in Inventories of Stock-in-Trade		80,000	1,20,000
Other Expenses		25% of Cost of Revenue from Operations	15% of Cost of Revenue from Operations
Tax Rate		35%	45%

The solution of Question 8 Chapter 2 VK Publications Class 12 Part 2: –

Comparative Statement of Profit and Loss For the years ended 31st March, 2014 & 2015

Particulars	Note	2016-2017 Rs.	2017-2018 Rs.	Absolute Change Rs.	Percentage Change %
1		2	3	4	5
		A	B	B – A = C	C/A X 100 = D

I. Revenue from Operations		12,00,000	16,00,000	4,00,000	33.33
II. Expenses
Purchase of Stock-in-Trade		4,80,000	7,20,000	2,40,000	50.00
Change in Inventories of Stock-in-Trade		1,20,000	80,000	40,000	33.33
Other Expense		90,000	2,00,000	1,10,000	122.22
Total Expense		6,90,000	10,00,000	3,10,000	44.93
III. Net Profit before Tax (I-II)		5,10,000	6,00,000	90,000	17.65
IV. Less: Tax @		2,29,500	2,10,000	19,500	8.50
V. Net Profit after Tax (III-IV)		2,80,500	3,90,000	1,09,000	39.03

Working Note:

Calculation of other expenses:
Cost Revenue from Operations = Purchase of Stock-in-Trade + Change in Inventories of Stock-in-Trade
For the year ended 31st March, 2014 = Rs. 4,80,000 + Rs. 1,20,000 = Rs. 6,00,000
For the ycar ended 31st March, 2015 = Rs. 7,20,000 + Rs. 80,000 = Rs. 8,00,000
Other Expenses:
For the years ended 31st March. 2014 = Rs. 6,00,000 x Rs. 15/100= Rs. 90,000
For the year ended 31st March, 2015 = Rs. 8,00,000 x Rs. 25/100= Rs. 2,00,000