Comparative Income Statement shows increase or decrease in various items of Trading and Profit and Loss Account, in absolute terms and in percentage form, to know about the progress of the business.
Format of Comparative Income Statement
Comparative Income Statement of ….Ltd. for the year ending….31st, March 20….and 31st,March 20….
|Particulars||Note No.||Previous Year(`)||Current Year(`)||Absolute Change||Percentage change|
|1.Revenue from Operations|
|2. Other Income|
|3.Total revenue (1+2)|
Cost of Materials Consumed
Purchases of Stock-in-Trade
Changes in inventories of Finished Goods
Work-in-Progress and Stock-in-Trade
Employees Benefits Expenses
Depreciation and Amortization Expenses
|Profit before Tax(3 – 4)|
If Provision for Tax is also given, the format may be extended to show its subtraction and then showing Profit after Tax.
How to prepare Comparative Income Statement
The main steps in the preparation of Comparative Income Statement are:
1. Enter the items of income and expenditure in first column.
2. Enter the previous year’s figures in second column.
3. Enter the current year’s figures in third column.
4. Enter the absolute changes (current year figure- previous year figure) in fourth column.
5. Enter the percentage changes [(absolute change/ previous year figure) x 100] in fifth column.