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CS Executive · Corporate Accounting and Financial Management · Financial Statement Analysis

Sundaram Textiles Ltd had revenue from operations of ₹8,00,000 in 2023-24 and ₹9,20,000 in 2024-25. In a comparative income statement, what is the percentage increase in revenue?

The revenue increase is 15%. The absolute rise is ₹1,20,000 (9,20,000 minus 8,00,000), and dividing it by the previous year's revenue of ₹8,00,000 gives 15%. Using the current year as base would wrongly give 13.04%.

  1. A13.04%
  2. B15%Correct
  3. C12%
  4. D8.70%

Explanation

Increase = 9,20,000 - 8,00,000 = ₹1,20,000. Percentage = 1,20,000 / 8,00,000 x 100 = 15%. The figure 13.04% arises from wrongly using the current year (9,20,000) as the base.

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