Preparation of comparative statements

Preparation of comparative statements

A comparative statement has five columns. Following are the steps to be followed in preparation of the comparative statement:

i.            Column 1: In this column, particulars of items of income statement or balance sheet are written.

ii.            Column 2: Enter absolute amount of year 1.

iii.            Column 3: Enter absolute amount of year 2.

iv.            Column 4: Show the difference in amounts between year 1 and year 2. If there is an increase in year 2, put plus sign and if there is decrease put minus sign.

v.            Column 5: Show percentage increase or decrease of the difference amount shown in column 4 by dividing the amount shown in column 4 (absolute amount of increase or decrease) by column 2 (year 1 amount). That is,

Percentage increase or decrease = [ Absolute amount of increase or decrease /  Year 1 amount ] x 100

Format of comparative statement

Illustration 1

From the following particulars, prepare comparative income statement of Tharun Co. Ltd.

Solution

Comparative income statement of Tharun Co. Ltd for the years ended 31st March, 2017 and 31st March, 2018

Tutorial note: Computation of percentage increase for revenue from operations

Illustration 2

From the following particulars, prepare comparative income statement of Abdul Co. Ltd.

Solution

Comparative income statement of Abdul Co. Ltd for the years ended

31st March, 2016 and 31st March, 2017

Illustration 3

From the following particulars, prepare comparative income statement of Mary Co. Ltd.

Solution

Comparative income statement of Mary Co. Ltd for the years ended 31st March, 2016 and 31st March, 2017

* Note: Calculation of income tax:

For 2015-16: 2,00,000 x 20% = ₹ 40,000

For 2016-17: 3,20,000 x 50% = ₹ 1,60,000

Illustration 4

From the following balance sheet of Chandra Ltd, prepare comparative balance sheet as on 31st March 2016 and 31st March 2017.

Solution

Comparative balance sheet of Chandra Ltd as on 31st March 2016 and 31st March 2017

Illustration 5

From the following particulars, prepare comparative balance sheet of Malar Ltd as on 31st March 2016 and 31st March 2017.

Solution

Comparative balance sheet of Malar Ltd as on 31st March 2016, and 31st March 2017