Balance Sheet of XYZ Company
ASSETS
Amount (in Rs.)
Fixed Assets:
1) Land & Building
Rs. 20,00,000
2) Machinery/ Equipment.........
Rs.10,00,000
3) Plant
Rs. 10,00,000
Other Assets
Patents/ Goodwills.
Rs. 00,00,000
Total Fixed + Other Assets
Rs. 40,00,000 ---A
Current Assets (Assets or amounts to be used within 1 year)
4) Inventory/ Stock/ Raw Materials..
Rs. 50,000
5) WIP...
Rs. 20.000
6) Cash & Bank Balances.
Rs. 2,00,000
7) Investments/ Securities/ Bonds..
Rs. 5,00,000
8) Accounts or Bills Receivable/ Debtors
Rs. 5,00,000
Total Current Assets....
Rs. 12,70,000 ---B
Current Liabilities (amounts to be paid within 1 year)
9) Accounts or Bills Payable (within 1 year)
Rs. 1,00,000
10) Suppliers or Creditors (for 1 year)..Rs. 2,00,000
11) Bank Overdraft. Rs. 3,00,000
12) Oustanding Expenses/ Salary/ Wages
Rs. 2,00,000
13) Short-term Loan/ Cash Credit.. Rs. 1,00,000
14) Proposed Dividend...
Rs. 1,00,000
15) Tax
Rs. 1,00,000
Total Current Liabilities Rs. 11,00,000 ----C
Net Working Capital= Total CA- Total CL= B-C = Rs. 1,70,000 ------D
Total Assets = A+D= 40,00,000+1,70,000.= Rs. 41,70,000
Liabilities
1) Loans Payable/ Bank Loans.
Rs. 2,00,000
2) Long term Loans
Secured Loans
Rs. 10,00,000
Unsecured Loans...
Rs. 00000000
Debentures.
Rs.10,00,000
Reserves & Surplus
3) Retained Earnings (Profits/ loss from previous year)
Rs. 10,00,000
4) General Reserve.
Rs. 50,000
5) Capital Reserve
Rs. 50,000
6) Any other Reserve..
Rs. 70,000
Equity or Capital
7) Equity Capital
Rs. 5,00,000
8) Preference Capital
Rs. 3,00,000
_____________________________________________________________
Total Liabilities= . Rs. 41,70,000
***NOTES:
"Receivables" means----> It is "Asset", e.g., Bills Receivables etc.
"Payable" means----------> It is "Liability", e.g. Interest Payable, Bills Payable etc.
"Received" means---------> It is "Income" , e.g. Bills Received, Interest Received etc.
"Paid & Allowed" means''--------------> It is "Expense" e.g., Bills Paid, Discount Allowed, Interest Paid
Income Statement or Profit & Loss Account
Amount (in Rs.)
Income
1) Revenues/ Sales(Cash Sales+ Credit Sales) Rs. 20,00,000
2) Interest earned from bank/ debtors Rs. 2,00,000
3) other IncomeRs. 10,00,000
4) Comission/ Discount Received Rs. 2,00,000
Total Income Rs. 34,00,000
Expenses
1) Any(Machines/ Computers) Purchases
Rs. 5,00,000
2) Any(Phone or Electric Bills/ Interest) Payables
Rs. 2,00,000
3) Sales Promotion/ Advertising...
Rs. 1,00,000
4) Discount Allowed..
Rs. 1,00,000
5) Salaries/ Wages Paid
Rs. 2,00,000
6) Repairs.
Rs. 50,000
7) Postage & Telegram
Rs. 10.000
8) Travelling/ Conveyance Charges.
Rs. 1,00,000
9) Bad Debts..
Rs. 2,00,000
10) Rent Paid.
Rs. 50,000
11) Commission Allowed
Rs. 10,000
12) Miscellaneous (Misc.) Expenses.
Rs. 10,000
13) Depreciation
Rs. 50,000
14) Freight/ Surcharge
Rs. 10,000
Total Expense= add all expenses. Rs. 16,00,000
Operating Profit= Total Income Total Expenses= 34,00,000 - 16,00,000
=Rs. 22,00,000
(-) Interest Paid. Rs. 1,00,000
Profit Before Tax (PBT)= Rs. 21,00,000
(-) Tax Rs. 1,00,000
Net Profit or Profit After Tax (PAT)..= Rs. 20,00,000
----------------------X------------------------------
**Income Statement/ Profit & Loss Account (if you see COGS (that is Cost of
Goods Sold) in question)
Income
Sales.
Amount (in Rs.)
Rs.20,00,000
(-) Cost of Goods Sold/ COGS.
Rs. 5,00,000
Gross Profit= Sales- COGS=
Rs. 15,00,000
Expenses
Sales, General & Administrative Expeenses(SG&A)...=
Rs. 1,00,000
Overheads..=
Rs. 50,000
Depreciation=
Rs. 50,000
Any other Expenses( like bad debts, bills paid,postage, etc.)=
Rs. 2,00,00
Total Expenses=
Rs. 4,00,000
Operating Profit or PBIT= Gross Profit- Total Expenses=
Rs. 11,00,000
(-) Interest (at 7% given)= (7/100)x 11,00,000...
Rs. 77,000
_____________________________________________________________________
Profit Before Tax (PBT)
= Rs. 10,23,000
(-) Tax (at 5% given)= (5/100)x 10,23,000..
= Rs. 51150
Net Profit or Profit After Tax (PAT).= Rs. 971850
