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