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A simple method of tracing periodic changes in the financial performances of a company is to prepare comparative statements. Comparative financial statements will contains item at least for two periods. Changes-increases and decreases in income statement and balance sheet over period can be shown in two ways: 1. Aggregate changes 2. Proportional changes Drawing special column for aggregate amount or percentage or both of increases and decreases can indicate aggregate changes. Recording percentage calculation in relation to a common base in special columns on the other hand shows relative or propotional changes. For Example, in the case of profit and loss account, sales figure is assumed to be common base and all other items are expressed as percentage of total assets or total funds.
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837 516 419 750 2522 729 236 965 1557 11 5967
1756 1368 90 826 4040 1723 310 2033 2007 222 9898
16.60 136.35 7.20 31.36 14.30 110.67 84.01 28.90 -45.45 1918.18 43.74 65.88
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PARTICULARS INCOME: Sales Other income TOTAL EXPENDITURE: Consumption of raw material Excise Duty General Expense Interest and Financial charges Depreciation TOTAL Profit Before Tax Add:/ LESS: Extra ordinary Items LESS: Provision for Taxation Profit after Tax LESS: Prior years' Tax adjustment Net Profit
5888 89 5977
4340 15.51 98.63 931 7.83 65.66 3375 15.09 110.41 388 158.06 1151.61 382 26.17 156.38 9416 15.74 107.81 1142 10.23 89 -100.00 287 19.23 766 2.29 0 0.00 766 2.29 71.73 106.98 451.92 16.77 0.00 16.77
A simple method of tracing periodic changes in the financial performances of a company is to prepare comparative statements. Comparative financial statements will contains item at least for two periods. Changes-increases and decreases in income statement and balance sheet over period can be shown in two ways: 3. Aggregate changes 4. Proportional changes Drawing special column for aggregate amount or percentage or both of increases and decreases can indicate aggregate changes. Recording percentage calculation in relation to a common base in special columns on the other hand shows relative or propotional changes. For Example, in the case of profit and loss account, sales figure is assumed to be common base and all other items are expressed as percentage of total assets or total funds.
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