CBSE Class 12 Accountancy sample paper 2023-24: question 33(a)
From the official CBSE sample question paper for 2023-24, section B-I, question 33(a), for 4 marks. Try it first; the hints and our step-by-step solution are below.
Q33(a) · 4 marks · Long answerAnalysis of Financial Statements
From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31st March 2022 and 31st March 2023, prepare a common size statement of profit & loss:
| Particulars | Note No. | 2022-23(₹) | 2021-22(₹) |
|---|---|---|---|
| Revenue from operations | 8,00,000 | 10,00,000 | |
| Gross Profit | 60% | 70% | |
| Other Expenses | 2,20,000 | 2,60,000 | |
| Tax Rate | 50% | 50% |
Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.
Hints
Open one hint at a time and try again before the next.
Hint 1
Gross profit 60% means cost of revenue is 40% of revenue.
Hint 2
Every item is shown as a percentage of revenue from operations of the same year.
Step-by-step solution
Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.
- 1 mark
Cost of revenue from operations = revenue × (1 − gross profit %): 2022-23 ₹ 8,00,000 × 40% = ₹ 3,20,000; 2021-22 ₹ 10,00,000 × 30% = ₹ 3,00,000. Tax at 50% of profit before tax.
- 3 marks
Common Size Statement of Profit and Loss of Zee Ltd.
Particulars 2021-22 (₹) 2022-23 (₹) 2021-22 (%) 2022-23 (%) Revenue from operations 10,00,000 8,00,000 100 100 Less: Cost of revenue from operations 3,00,000 3,20,000 30 40 Less: Other expenses 2,60,000 2,20,000 26 27.5 Total expenses 5,60,000 5,40,000 56 67.5 Profit before tax 4,40,000 2,60,000 44 32.5 Less: Tax (50%) 2,20,000 1,30,000 22 16.25 Profit after tax 2,20,000 1,30,000 22 16.25
Answer: PAT ₹ 2,20,000 (22%) in 2021-22 and ₹ 1,30,000 (16.25%) in 2022-23; expenses 56% and 67.5% of revenue
Where the marks are
- Cost of revenue from gross profit % (1 mark)
- Common size statement with percentages (3 marks)
Revise the chapter
- Chapter: Analysis of Financial Statements (notes, formulas, where marks are lost and every past question)
- Topic: Common-size Statements
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