Liabilities
Capital:
Opening Balance
Profit and Loss A/c
Capital Introduced
-Drawings
Liabilities:
O/S Salary
Creditors/Ac Payables
Loan from bank of India
In the books of ABC ltd
Balance Sheet As on 31/03/2012
Amount Amount Asset Amount Amount
Assets:
400,000.00 Furniture 160,000.00
350,000.00 Computer 86,000.00
180,000.00 Building 488,000.00
-219,000.00 734,000.00
711,000.00
Debtors/A/c Receivables 60,000.00
Prepaid Insurance Expenses 25,000.00
Bank 7,000.00
Investment 150,000.00
Closing Stock 40,000.00
10,000.00 282,000.00
45,000.00
250,000.00
305,000.00
1,016,000.00 1,016,000.00
In t
Bala
Liabilities Rs
Capital
Shyam 100,000.00
Murlidhar 200,000.00
Profit and Loss A/c 30,000.00
Sundry Creditors
SSK and Associates 47,000.00
Less paid from Bank -47,000.00
Horizontal Format
In the books of Krishna Book Stores
Balance Sheet as on 1st January 2012
Amount Rs Asset Rs Amount Rs
Shop Premises 200,000.00
100,000.00
200,000.00 Bank 100,000.00
Less: Purchase of Stores and Stationary -85,000.00
30,000.00 Add: Cheque Collection 45,000.00
Add: Cheque Collection 15,000.00
Less: Paid to creditors -47,000.00 28,000.00
- Inventory 85,000.00
Less: Cost of goods sold -60,000.00
Add: Purchase 47,000.00 72,000.00
Sundry Debtors 45,000.00
Less : Cheque collection -15,000.00 30,000.00
330,000.00 330,000.00
Vertical format
In the books of Krishna Book Stores
Balance Sheet as on 1st January 2012
Particulars Amount Amount
Owners Fund/Capital A/c
Shyam 100,000.00
Murlidhar 200,000.00
Profit and Loss A/c 30,000.00 330,000.00
Liabilities:
Non Current Liabilities:
Current Liabilities
Sundry Creditors
SSK and Associates 47,000.00
Less paid from Bank -47,000.00 -
Total Liabilities 330,000.00
Assets:
Non Current Assets:
Shop Premises 200,000.00
Current Assets
Bank 100,000.00
Less: Purchase of Stores -85,000.00
and Stationary
Add: Cheque Collection 45,000.00
Add: Cheque Collection 15,000.00
Less: Paid to creditors -47,000.00 28,000.00
Inventory 85,000.00
Less: Cost of goods sold -60,000.00
Add: Purchase 47,000.00 72,000.00
Sundry Debtors 45,000.00
Less : Cheque collection -15,000.00 30,000.00
Total Assets 330,000.00
res
012
Horizontal Format
Vertical format
In the books of Moonlight Ltd
Income Statement as on 31 March 2012
Particulars Amount Amount
Revenue from operations :
Sales 340,000.00
Sales Return' -14,000.00 326,000.00
Other income:
Interest on ivestments 14,000.00
Rent received 24,000.00
Discount received 8,000.00 46,000.00
Total Revenue 372,000.00
Expenses:
Purchases of stock in trade
Purchases 170,000.00
Purchase return -14,000.00 156,000.00
Changes In Inventories of FG
Opening Stock 50,000.00
-Closing Stock -30,000.00 20,000.00
Employee Benefit Expenses
Wages 20,000.00
Salaries 40,000.00 60,000.00
Finance Cost
Interest on Bank Loan 10,000.00 10,000.00
Other Expenses
Freight 4,000.00
Carriage 6,000.00
Repairs 5,000.00
Bad Debts 8,000.00
Salesman commission 24,000.00
Advertising 16,000.00 63,000.00
Total expenses 309,000.00
Net Profit Before Tax 63,000.00
Provision for tax payable 25,200.00
Net Profit After Tax 37,800.00
Determine whether assets /liabilities or equity will be e
Particulars Assets
■ On 1.3.2012, Parvati invested Rs 70,000 in her Up
business, which were deposited in bank current account.
Account affected Bank-Rs 70000
■ On 3.3.2012, Parvati took a loan of Rs 30,000 from Up
Bank of India @ 20% p.a.
Account affected Bank-Rs 30000
■ On 5.3.2012, Parvati bought furniture for Rs 25,000 Up/Down
and computer for Rs 20000.00
Account affected Furniture-Up Rs 25000
Computer-Up Rs 20000
Bank-Down Rs 45000
■ On 9.3.2012, Parvati purchased goods worth Rs Up/Down
30,000.
Account affected Goods/Stock in Trade-UP Rs 30000
Bank-Down Rs 30000
■ On 15.3.2012, all goods were sold at Rs 60,000, of Up/Down
which Rs 20,000 were on credit
Account affected Goods/Stock in Trade-Down Rs 60000
Bank-Up Rs 40000
■ On 28.3.2012, paid salary of Rs 15,000 and telephone Down
bill of Rs 1,500.
Account affected Bank -Rs 16500
■ On 29.3.2012, Parvati paid Rs 15,000 for her son’s Down
tuition fees.
Account affected Bank-Rs 15000
■ On 31.3.2012, Parvati paid interest to bank. Down
Account affected Bank-Rs 500
# Interest expense, salary expense and telephone bill expense directly effect the Capital Ac becaus
They will first effect profit and loss ac as a LOSS and then will be trfrd to Capital A/c
Interest Calculation for 1 month Rs 30000* 20% * 1/12
500
s or equity will be effected in the following:
Increase/Decrease
Liabilities Equity
Up
Capital-Rs 70000
Up
Bank Loan-Rs 30000
Up
Creditors-Up Rs 20000
Down
Profit and Loss-Rs 16500
Down
Capital-Rs 15000#
Down
Capital-Rs 500#
e Capital Ac because:
A/c
=Rs 500
Horizontal Format
In the books of Shiva
Trading A/c
Dr
Particulars Amount Rs
To Opening Stock 10,000.00
To Purchases 90,000.00
To gross Profit C/d 47,500.00
147,500.00
Profit and Loss A/c
Dr
Particulars Amount Rs
To rent 2,750.00
To Salaries 6,000.00
To insurance 2,000.00
To petty Expenses 1,500.00
To office expenses 1,475.00
To machinery expenses 2,500.00
To fuel and lubricant expenses 1,275.00
To net Profit before tax 30,000.00
47,500.00
tal Format Vertical format
oks of Shiva In the books of Shiva
ding A/c Income Statement as on 31 Ma
Cr Particulars
Particulars Amount Rs
By Sales 132,500.00 Revenue from operations :
Sales
By closing stock 15,000.00
147,500.00 Other income:
nd Loss A/c Total Revenue
Cr
Particulars Amount Rs Expenses:
By Gross Profit B 47,500.00 Purchases of stock in trade
Purchases
Changes In Inventories of FG
Opening Stock
Closing stock
Employee Benefit Expenses
Salaries
47,500.00
Finance Cost
Other Expenses
rent
insurance
petty Expenses
office expenses
machinery expenses
fuel and lubricant expen
Total expenses
Net Profit Before Tax
Vertical format
In the books of Shiva
ncome Statement as on 31 March 2012
Amount Amount
operations :
132,500.00
132,500.00
132,500.00
ock in trade
90,000.00
-
entories of FG
10,000.00
-15,000.00 -5,000.00
fit Expenses
6,000.00
6,000.00
2,750.00
2,000.00
1,500.00
1,475.00
2,500.00
1,275.00 11,500.00
102,500.00
30,000.00
