Comparative Income Statement Format Class 12

Expenses 50 000 6 25 60 000 6 672 selling distributionexpenses 25 000 3 12 35 000 3.

Comparative income statement format class 12. Based on the above comparative income statement of abc limited it can be analyzed how an increase in sales 25 over the previous year has impacted the net profit increased by 100 in absolute terms over the previous year and how various lines items have contributed. Comparative income statement format of abc limited for the period ended 2016 and 2017. Take a look at each example of a comparative income statement. Each percentage shows the relation of the individual item to its respective total.

Format ofcommon size income statement. Absolute change current year s figure previous year s figure 300000 300000 0 0 300000 x 100 0. Format of comparative income statement 2 common size statement the statement wherein figures reported are converted into percentage to some common base is known as common size statement. Then create columns for each accounting period with the most current closest to the left.

It should be noted. A general purpose set of financial statements usually includes a balance sheet income statements statement of owner s equity and statement of cash flows. For the preparation of comparative and common size income statement the extent and format of statement of profit and loss is to be studied. The various tools used for analysis of financial statements are.

Comparative income statement particulars 2009 rs 2010 rs absolute change rs of increase or decrease sales less cost of goods sold gross profit less operating expenses net profit before tax less income tax net profit after tax 10 00 000 5 00 000 12 50 000 6 50 000 2 50 000 1 50 000 25 30 5 00 000 50 000 6 00 000 60 000 1 00 000 10 000 20 20. Comparative income statement or comparative statement of profit and loss shows the. Recall that horizontal analysis calculates changes in comparative statement items or totals. Financial statements of two years are compared horizontal analysis 2.

The easiest way to create a comparative income statement is to list the accounts in the left column. Following is the balance sheet of b ltd. A comparative incomestatement shows increase ordecrease in absolute figures of theincomes expenses. Comparative income statement the income statement shows the netprofit or net loss due to businessoperations.

12 50 10 00 20 00 3 00 20 00 26 67 40 00 16 67 75 00 3 00 1. Comparative income statement example. Following is the balance sheet. Absolute change and percentage change in long term borrowings is.

The comparative financial statements of synotech inc will serve as a basis for an example of horizontal analysis and vertical analysis of a balance sheet and a statement of income and retained earnings.