Question - 01

From the following informations of Narsimha Company Ltd. prepare a comparative income statement for the year 2004-2005.

2004

Gross sales Rs. 7,25,000

Sales Return Rs. (-25,000)

Net Sales Rs. 7,00,000

Cost of goods sold Rs. (-5,95,000) = 1,05,000.

Other Expenses  

Selling & Distribution Expenses Rs. 23,000

Administrative Expenses Rs. 12,700

Total Expenses Rs. 35,700

Operating income profit Rs. 69,300

Other income Rs. 1,200 = 70,500.

Non operating exp. Rs. 1,750

Net profit Rs. 68,750

2005 

Gross sales Rs. 8,15,000

Sales Return Rs. 15,000

Net Sales Rs. 8,00,000

Cost of goods sold Rs. 6,15,000 = 1,85,000

Other Expenses  

Selling & Distribution Expenses Rs. 24,000

Administrative Expenses Rs. 12,500

Total Expenses Rs. 36,500

Operating income profit Rs. 1,48,500

Other income Rs. 8,050 = 1,56,550

Non operating exp. Rs. 1,940

Net profit Rs. 1,54,610

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