Vertical Statement by mnmgroup

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									CA.CS. Naveen –Rohatgi-9867451833                  SYBMS-Management aacounting



Vertical Balance sheet

Illustration 1 :

Following is the Balance Sheet of Yuvraj Singh as on 31st March 2005
     Liabilities         Rs.             Assets              Rs.
Share Capital         3,00,000 Goodwill                     40,000
Share Premium           10,000 Land                       1,60,000
General Reserve       1,20,000 Plant                        88,000
Profit & Loss A/c.      34,000 Furniture                     6,000
11% Debentures        1,00,000 Trade investments          1,60,000
Bank Loan               70,000 Accounts Receivable        1,40,000
Bank Overdraft          40,000 Inventories                1,20,000
Sundry Creditors      1,20,000 Prepaid Expenses             10,000
Provision for           20,000 Cash at Bank                 80,000
taxation                         Preliminary Expenses       10,000

Total                  8,14,000 Total                        8,14,000
Convert the above Balance Sheet in vertical form and find out the value of:
1. Fixed Assets, 2. Intangible Assets, 3. Fictitious Assets, 4. Quick Assets, 5.
Current Assets, 6. Net worth, 7. Long term liabilities, 8. Quick liabilities,
9.Working Capital

Illustration 2

The following is the balance sheet and the profit and loss account of Reliance
Ltd., for the year ended 31st March 2009.
               Balance Sheet as at March 31, 2009 (in thousands)
           Liabilities           Rs.                   Assets                            Rs.
Equity Share Capital              500 Trade Investments                                   200
Dividend Equalisation              70 Patents                                              30
General Reserve                   110 Land and Building (at cost)                         320
Profit and Loas A/c               190 Plant and Machinery (at cost)                       650
6% Debentures                     250 Cash at Bank                                         88
Bank Overdraft                    150 Stock:
Staff Provident Fund               80 Materials                          90
Creditors                         210 Finished Goods                    160
Unpaid Dividend                    10 Work-in-progress                   60              310
Proposed Dividend                  60 Sundry Debtors                   230
Provision for Taxation            170 Less : Reserve for Doubtful Debts 8                222
Provision for Depreciation on     250 Bills Receivable                                    30
plant and Machinery                    Staff Provident Fund                               80

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Always bear in mind that your own resolution to succeed is more important than any
other one thing.
CA.CS. Naveen –Rohatgi-9867451833                  SYBMS-Management aacounting


                                         Investments
                                         Deposits with Customs                             30
                                         Authorities
                                         Advance for purchase of                           60
                                         Machinery
                                         Preliminary Expenses                              30

                                 2,050 Total Rs.                                         2,050
Total Rs.

Illustration 3
The following is the balance sheet of Tata Ltd., for the year ended 31st March
2009.
                       Balance Sheet as at March 31, 2008
           Liabilities           Rs.                  Assets                Rs.
Share capital                  6,50,000 Goodwill                             25,000
Capital Reserve                   2,500 Land                               1,29,000
General Reserve                1,20,410 Premises                           1,50,000
Contingency Reserve              42,500 Plant                              2,34,395
Profit and loss a/c              18,777 Furniture                              8,575
5% debenture                   1,57,500 3% G.P. notes                        71,400
Sundry Creditors                 73,900 Stock                              1,96,770
Proposed Dividend                75,000 Debtors                            2,03,942
Provision for tax                25,000 Cash and bank                      1,21,280
                                         Advance tax                         23,675
                                         Preliminary expenses                  1,550



Total Rs                       11,65,587 Total Rs                               11,65,587

Rearrange the above balance sheet in to vertical format and calculate the
following (a) Current asset (b) quick assets (c) Intangible asset (d) Fictitious
asset (e) fixed assets (f) proprietors fund ( h) working capital (i) Total funds
employed (j) Secured loan


Illustration 4

IThe following is the balance sheet of Vishwa computers Ltd., for the year
ended 31st March 2009.



                                                                                     2
Always bear in mind that your own resolution to succeed is more important than any
other one thing.
CA.CS. Naveen –Rohatgi-9867451833                  SYBMS-Management aacounting


                       Balance Sheet as at March 31, 2009
         Liabilities             Rs.                  Assets                        Rs.
Creditors                     2,08,000   Cash                                        10,000
Income received in            20,000     Inventory                                 1,70,000
advance                                  Machinery                                 4,20,000
Provision for taxation        50,000     Advances                                    14,000
Provision for depreciation:              Furniture                                 2,10,000
Land and building             60,000     Goodwill                                  1,54,000
Machinery                     70,000     Investments                                 98,000
Furniture                     80,000     Bank balance                                56,000
General reserve               2,46,000   Preliminary expenses                        40,000
10% debenture                 1,54,000   Land and building                         5,08,000
12% Preference share          1,00,000   Debtors                                   2,20,000
Public deposit                1,00,000   Bills receivable                            50,000
Bank overdraft                1,04,000   Patents                                   1,20,000
Equity capital                5,00,000   Discount on issue on                        22,000
Bills payable                  40,000    debenture
Profit and loss account       2,60,000
Capital redemption reserve 1,00,000

Total                          20,92,000 Total                                    20,92,000




Vertical Profit and loss account
Illustration 5: Convert Profit and loss account of Deepika into vertical format

          Profit & Loss Account for the year ending March 31, 2002
      Particulars         Rs.              Particulars            Rs.
To opening Stock                By Sales                         2,000
  Materials          90         By Stock
  Finished Goods 120               Material                 90
  Work in Progress 40      250     Finished Goods         160
To Purchase of Material    850     Work in Progress         60     310
To Wage                    280 By Dividend of Investment            30
To Power                    40 By Sale of Scrap                       8
To Factory Expenses        110
To Office Salaries          80
To Misc. Expenses           90
To Selling Expenses        120
To Advertisements           80

                                                                                     3
Always bear in mind that your own resolution to succeed is more important than any
other one thing.
CA.CS. Naveen –Rohatgi-9867451833                 SYBMS-Management aacounting


To Preliminary                  5
Expenses
To Debenture Interest          15
To Depreciation:
   Plant             60
   Factory Building 12         72
To Provision for
Taxation                     170
To Proposed Dividend          60
To Balance of Profit         126
Total Rs.                  2,348 Total Rs.                               2,348

Illustration .6
The following is the profit and loss account of Hot-Shot Ltd., for the year ended
31st March 2002.

      Particulars            Rs.              Particulars                     Rs.
To Opening Stock            50,000 By Sales
To Purchases              1,10,000    Cash                    33,000
To Wages                    30,000    Credit                1,72,000
To Factory Expenses         20,000                          2,05,000
To Office Salaries           4,000    Less : Returns           5,000       2,00,000
To Office Rent               2,400 By Closing Stock                          60,000
To Postage and                 500 By Dividend on Investments                 1,000
Telegram                           By Profit on Sale of Plant                 2,000
To Directors’ Fee              600
To Salesmen’s                2,000
Salaries
To Advertising               1,000
To Delivery Expenses         2,000
To Debenture Interest        2,000
To Depreciation:
Office Furniture             1,000
Plant                        3,000
Delivery van                 2,000
To Loss on Sale of Car         500
To Income-Tax               17,500
To Net Profit               14,500

Total Rs.                           Total Rs.
                           2,63,000                                  2,63,000
You are required to prepare vertical income statement from the above so as to
facilitate the income statements analysis.
                                                                                     4
Always bear in mind that your own resolution to succeed is more important than any
other one thing.
CA.CS. Naveen –Rohatgi-9867451833                 SYBMS-Management aacounting



Illustration .7

Convert the profit and loss account into vertical format of Ranbaxy ltd

             Profit and Loss Account for the year ended 31-3-2004
           Particulars           Amount              Particulars                     Amount
                                    Rs.                                               Rs.
To Opening Stock                   76,250 By Sales               6,02,350
To Purchases                     3,15,250 Less: Returns             10,000               5,92,350
To Freight and Carriage             7,000 By Closing Stock                                 98,500
To Staff Salaries                  20,000 By Interest on Bonds                              1,500
To Sales Salaries                  15,300 By Dividends on Shares                            3,750
To Interest on Debentures           1,200 By Profit on Sale of Shares                       3,900
To Rent                             2,700
To Printing and Stationary          2,500
To Advertising                      4,700
To Sales Discount                   2,400
To Depreciation                     9,300
To Insurance                        1,000
To Electricity                        350
To Salesmen’s Travelling            2,000
Expenses                            3,400
To Bad Debts                          750
To Telephone Expenses               6,400
To Legal Charges                   48,000
To Directors Fees                   3,500
To Loss on Sate of Bonds            1,650
To Provision for Claim for       1,76,350
Damages
To Net Profit                    7,00,000                                                7,00,000

Illustration 8

Present the following profit and loss of Shahrukh Ltd. Into Vertical Form:
         Particulars                 Rs.           Particulars              Rs.
To Opening Stock.                   20,000 By Sales       1,80,000
To Purchases                      1,09,000 Less: Returns       10,000    1,70,000
To Wages                             3,000 By closing stock                30,000
To Gross Profit                     68,000
Total Rs                          2,00,000 Total Rs                      2,00,000
To Salaries                         16,000 By Gross Profit b/d             68,000
To Rent, Rates, Taxes                8,000 By Profit on Sale of Plant       2,000

                                                                                     5
Always bear in mind that your own resolution to succeed is more important than any
other one thing.
CA.CS. Naveen –Rohatgi-9867451833                 SYBMS-Management aacounting


To Printing                         1,000
To Postage                          1,000
To Misc, Expenses                   4,000
To Advertisement                    2,000
To Office Expenses                  4,000
To Interest                         3,000
To Loss on Sale of Assets           1,000
To Provision for taxation          15,000
To Net Profit                      15,000
Total Rs.                          70,000   Total Rs.                        70,000
To General Reserve                 10,000   By Balance b/d.                   2,000
To Dividend                         6,000   By Net Profit                    15,000
To Balance c/d.                     1,000
Total Rs.                          17,000   Total Rs.                        17,000




                                                                                     6
Always bear in mind that your own resolution to succeed is more important than any
other one thing.

								
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