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)

4. Expenses

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

Finance Costs

Depreciation and Amortization Expenses

Other Expenses

Total 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.

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