Question

From the following information, prepare a Common Size Statement of Profit and Loss of Beatnik Ltd. for the year ended 31st March 2024.

Particulars	2023–24 (₹)	2022–23 (₹)
Revenue from Operations	80,00,000	40,00,000
Purchase of Stock in Trade	8,00,000	4,00,000
Other Expenses	80,000	40,000

 

Hint:

In Common Size Statement of P and L, all figures are expressed as a percentage of total revenue.

Answer 1

Common Size Statement expresses each item as a percentage of Revenue from Operations. The formula is \( \frac{Item}{Revenue~from~Operations} \times 100 \). For instance:
Purchase of Stock in Trade: \( \frac{8,00,000}{80,00,000} \times 100 = 10% \)
Other Expenses: \( \frac{80,000}{80,00,000} \times 100 = 1% \)This methodology is consistent for the 2022–23 period as well.Final Answer: As detailed in the common size table provided above.