While preparing Comparative Statements, what will be the percentage increase or decrease in revenue from operations if the amount in the year 2021-22 was ₹40,00,000 and it was ₹50,00,000 in the year 2020-21?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 20% Decrease
Base year 2020-21 = ₹50,00,000; current year 2021-22 = ₹40,00,000
Change = ₹40,00,000 − ₹50,00,000 = −₹10,00,000 (decrease)
Percentage change = 10,00,000 / 50,00,000 × 100 = 20% decrease
The percentage is always worked on the figure of the earlier year.