2. CHAPTER 3 : Assignment # 1 with Answers

March 26, 2020

Hello Everyone..
Recap of the previous day's work...
Steps to Comparative Statements' (both for Statement of Profit & Loss and Balance Sheet) were explained through notes, formulas, examples and video.

Now with the knowledge and understanding of the topic, you will learn to Apply.
Sending you an Assignment to enhance your application skill.

ASSIGNMENT # 1

Ques. 1

Prepare Comparative statement of profit & loss

2018-19        2019 -20
Revenue from operations                            1600000      2000000
Employee benefit expenses                          800000       1000000
other expenses                                              200000        100000
Tax rate                                                          40%              40%

Ques. 2

Prepare Comparative statement of profit & loss

                                                                        2019-20      2018-19
Revenue from operations                                600000      500000
Other income(% of revenue from operations)     20%         20%
Employee benefit expenses (% of total revenue) 40%         30%
Tax rate                                                                 50%        50%

Ques. 3

Prepare Comparative balance sheet

                                                                              2020                     2019
I. Equity and Liabilities
Share capital                                                  400000                  300000
Reserves and surplus                                    150000                   100000
Long term borrowings                                     300000                  100000
Short term borrowings                                      70000                     50000
Trade payables                                                60000                     30000
Other current liabilities                                     110000                  100000
Short term provisions                                         10000                    20000

Total                                                               1100000                 700000
II.Assets
Fixed assets                                                    400000                  220000
Non current investments                                 225000                  100000
Current investments                                          80000                    60000
Inventories                                                      105000                     90000
Trade receivables                                             90000                     60000
Cash and cash equivalents                             100000                    85000
Short term loans and advances                       100000                    85000
(f)Other current assets

Total                                                              1100000                    700000

P.S. All the assignments to be done legibly in your registers. These will be marked.

Task 3:

Check the answers to the assignment #1 given below.

Answer to the Assignment # 1

1.
Comparative statement of profit and loss

for the year ended march 31st 2019 and 20
Particulars Note 2018-19 2019-20 absolute percentage

no. change change
I. Revenue from operations 1600000 2000000 400000 25%
II. Less expenses

a. Employee benefit expenses       800000      1000000 200000 25%
b. other expenses                         200000        100000         (100000)            (50)%
total expenses 1000000      1100000          100000              10%
III. profit before tax (I-II) 600000        900000          300000             50%
IV. less tax @ 40%   240000         360000          120000              50%
V. profit after tax 360000        540000          180000             50%

Comparative statement of profit and loss

for the year ended 31st march 2019 and 20
Particulars Note 2018-19 2019-20 absolute percentage

                                            no.                                                      change       change
I. Revenue from operations              500000            600000          100000        20%
II. Add Other Income                        100000            120000            20000        20%
III. Total revenue (I+II) 600000            720000          120000        20%
IV. Less employee benefit expense 180000 288000          108000        60%
V. Profit before tax           420000 432000            12000        2.86%
VI. Less tax 210000 216000              6000        2.86%
VII. Profit after tax (V- VI) 210000            216000              6000        2.86%

3. Comparative Balance Sheet

as on 31^st march 2019 & 2020

Particulars Note 2019 2020 Absolute %

                                         No.                             change    change
I. Equity and Liabilities
Share capital                           300000    400000        100000 33.33%
Reserves and surplus              100000    150000          50000 50%
Long term borrowings              100000    300000        200000 200%
Short term borrowings                50000     70000 20000 40%
Trade payables                           30000     60000 30000 100%
Other current liabilities              100000   110000 10000 10%
Short term provisions                  20000     10000 (10000) (50%)

Total                                         700000   1100000       400000     57.14%
II.Assets
Fixed assets                              220000       400000       180000 81.82%
Non current investments           100000       225000       125000       125%
Current investments                    60000         80000         20000 33.33%
Inventories                                   90000       105000        15000      16.67%
Trade receivables                        60000         90000         30000        50%
Cash and cash equivalents         85000        100000        15000      17.65%
Short term loans and advances 85000         100000        15000      17.65%
(f)Other current assets

Total                                          700000       1100000      400000      57.14%