Question - 02

Convert the following income statement into a comparative income statement of B.R.C. Comapany.

2004

Gross sales Rs. 30,600

Sales Return Rs. (-600)

Net Sales Rs. 30,000

Cost of goods sold Rs. (-18,200) 

Gross profit Rs. 11,800.

Less : Operating Exp. 

Administrative Expenses Rs. 3,000 

Selling Expenses Rs. 6,000

Total Expenses Rs. 9,700

profit from Operating Rs. 2,800

(+) Non operating income Rs. 300 = 3,100

(-) Non operating exp. Rs. 400

Net profit before tax Rs. 2,700

(-) Tax @ 50% Rs. 1,350

Net profit after tax Rs. 1,350.

2005 

Gross sales Rs. 36,720

Sales Return Rs. 700

Net Sales Rs. 36,020

Cost of goods sold Rs. 20,250 

Gross profit Rs. 15,770.

Less : Operating Exp. 

Administrative Expenses Rs. 34,000 

Selling Expenses Rs. 6,600

Total Expenses Rs. 10,000

profit from Operating Rs. 5,770

(+) Non operating income Rs. 400 = 6,170

(-) Non operating exp. Rs. 600

Net profit before tax Rs. 5,570

(-) Tax @ 50% Rs. 2,785

Net profit after tax Rs. 2,785.

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