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Home Questions FMSWB3J2MN
Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

Read the following information from the books of ABCD Ltd. and answer the question.

Particulars

2022
AMOUNT (₹)

2021
AMOUNT (₹)

Revenue from operations

12,00,000

10,00,000

Cost of materials consumed

6,60,000

6,00,000

Employee benefit expenses

1,20,000

1,20,000

Other expenses

96,000

50,000

What is the profit before tax for the year 2022?

Options:

₹2,30,000

₹3,24,000

₹7,70,000

₹8,76,000

Correct Answer:

₹3,24,000

Explanation:

The correct answer is option 2- ₹3,24,000.

Profit before tax in 2022 = Revenue from operations - Total expenses
                                       = 12,00,000 - 8,76,000
                                       = 3,24,000

 

COMMON SIZE INCOME STATEMENT

PARTICULARS

2021
(ABSOLUTE AMT)

2022
(ABSOLUTE AMT)

2021
(PERCENTAGE OF
REVENUE FROM OPERATIONS)

2022
(PERCENTAGE OF
REVENUE FROM OPERATIONS)

I Revenue from operations

10,00,000

12,00,000

100

100

Less: Expenses
a) Cost of materials consumed

6,00,000

6,60,000

60

55

b) Employee benefit expenses

1,20,000

1,20,000

12

10

c) Other expenses

50,000

96,000

5

8

II Total expenses (a+b+c)

7,70,000

8,76,000

77

73

Profit before tax (I-II)

2,30,000

3,24,000

23

27

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