Comparative Statement of Profit and Loss

Statement of profit and loss /income statement shows profit earned or

loss incurred during the year.

It is the horizontal analysis of income statement which shows the

operating results for more than one accounting period so that the
changes in absolute amount and percentages from one period to
another are known.
 Format of statement of profit and loss for the year ended…............
Particulars Note no. Figures for Figures for the
the current previous
reporting reporting period
period

I. Revenue from Operations

II.Other Income
III.Total Revenue (I+II)
IV. Expenses
a)Cost of material consumed
b)Change in inventories of finished goods and Work-in-progress
c)Employees Benefit Expenses
d)Finance Cost
e) Depreciation and Amortisation Expenses
f)Other Expenses

Total Expenses
V.Profit before tax (III-IV)
Less: Tax

Profit after tax

From the following statement of profit and loss of Madhu Co. Ltd., prepare comparative
statement of profit and loss for the year ended March 31, 2014 and 2015:
Particulars Note 2013-14 2014-15
No. Rs. Rs.
Revenue from operations      
Employee benefit expenses 16,00,000 20,00,000

Other expenses 8,00,000 10,00,000

Tax rate 40 % 2,00,000 1,00,000
   
Solution:
Comparative statement of profit and loss of Madhu Co. Limited for the year ended March 31, 2014 and
2015:
 
Particulars Note No 2013-14 2014-15 Absolute
Increase (+) or
Percentage
Increase (+) or
Decrease (–) Decrease (–) %
(A)  (B) C=B-A D=C/A*100

I. Revenue from Operations   16,00,000 20,00,000 4,00,000 25

II. Other Income --- --- --- ---
III. Total Revenue (I+II)   16,00,000 20,00,000 4,00,000 25
IV. Expenses          
a) Cost of material consumed --- --- --- ---
b) Change in inventories of finished goods and Work-in- --- --- --- ---
progress        
8,00,000 10,00,000 2,00,000 25
c)Employees Benefit Expenses --- --- --- ---
d)Finance Cost --- --- --- ---
e) Depreciation and Amortisation Expenses        
f) Other Expenses        
2,00,000 1,00,000 (1,00,000) (50)

Total Expenses   10,00,000 11,00,000 1,00,000 10

V. Profit before tax (III-IV)   6,00,000 9,00,000 3,00,000 50
Less: Tax 2,40,000 3,60,000 1,20,000 50
Profit after Tax   3,60,000 5,40,000 1,80,000 50
 Illustration 1
Convert the following statement of profit and loss into the comparative statement of
profit and loss of BCR Co. Ltd.:

Particulars Note No. 2013-14 2014-15

Rs. Rs.

(i) Revenue from operations   60,00,000 75,00,000

(ii) Other incomes 1,50,000 1,20,000

(iii) Expenses 44,00,000 50,60,000
(iv) Income tax 35% 40%
Solution:
Comparative statement of profit and loss for the year ended March 31, 2014 and 2015:

Particulars Not 2013-14 2014-15 Absolut Percenta

e No   e ge
Increase Increase
(+) or (+) or
Decreas Decreas
e (–) e (–) %

I. Revenue from Operations

II. Other Income
  60,00,000
1,50,000
75,00,000
1,20,000
15,00,000
(30,000)
25
(20)
III. Total Revenue (I+II)   61,50,000 76,20,000 14,70,000 23.90

IV. Expenses
 
  44,00,000 50,60,000 6,60,000 15

Total Expenses   44,00,000 50,60,000 6,60,000 15

V. Profit before tax (III-IV)

Less: Tax
  17,50,000
6,12,500
25,60,000
10,24,000
8,10,000
4,11,500
46.29
67.18
Profit after Tax   11,37,500 15,36,000 3,98,500 35.03
Steps to prepare comparative statements

The following steps may be followed to prepare the comparative statements:

Step 1 : List out absolute figures in rupees relating to two points of time (as
shown in columns 2 and 3).

Step 2 : Find out change in absolute figures by subtracting the first year (Col.2)
from the second year (Col.3) and indicate the change as increase (+) or decrease
(–) and put it in column 4.

Step 3 : Preferably, also calculate the percentage change as follows and put it in
column 5.