VERTICAL FINANCIAL STATEMENTS

Q.1) Following is the Balance sheet of RST Ltd. as on 31st March 2019. Prepare a vertical balance
sheet
Liabilities Rs. Assets Rs.
Share capital 1,50,000 Goodwill 20,000
Share Premium Account 5,000 Land and Building 80,000
General Reserve 60,000 Plant (at cost less dep.) 44,000
Profit and Loss account 17,000 Furniture (at cost less dep.) 3,000
6% Debenture 50,000 Investment (Trade) 80,000
Bank Loan (Long Term) 35,000 Debtors 70,000
Bank Overdraft 20,000 Stock 60,000
Sundry Creditors 60,000 Cash at Bank 40,000
Provision for Taxation 10,000 Prepaid expenses 5,000
Preliminary expenses 5,000
Total Rs. 4,07,000 Total Rs. 4,07,000

Q.2) Following is the Balance Sheet of PQR Ltd as on 31st March, 2019
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 taxation 20,000 Cash at Bank 80,000
Preliminary Expenses 10,000
8,14,000 8,14,000
Convert the above Balance Sheet in vertical form

Q.3) The following items appear in the Books of LMN Ltd., an on 31st March 2019. Prepare
Vertical Balance Sheet
PARTICULARS Rs. PARTICULARS Rs.
Cash 48,600 Debentures 2,50,000
Land and Building at cost 8,00,000 Bank Overdraft 52,000
Deposit and payments in advance 62,000 Equity Share Capital 10,00,000
Stock 2,72,800 Profit and Loss Account 2,17,000
Creditors 4,05,750 Unclaimed dividend 86,250
General Reserve 1,00,000 Trade Investment 20,000
Debtors 5,23,000 Advance-Tax 1,00,000
Bills Receivable 22,600 Provision for taxation 2,64,000
Plant and Machinery at W.D.V 5,44,000 Bills payable 18,000

Q.4) Convert the following Balance Sheet and P & L A/c. of RCB Ltd in to vertical format
Liabilities Rs. Assets Rs.
Equity Share Capital (Rs.10/-) 40,000 Building 26,000
General Reserve 10,000 Plant & Machinery 8,000
Profit & loss Account 1,000 Furniture 12,000
Loans 15,000 Stock 30,000
Creditors 9,000 Debtors 7,000
Bills Payable 10,000 Bills Receivable 11,000
Provision for taxation 15,000 Cash 2,000
Bank 3,000
Discount on issue of share 1,000
Total Rs. 1, 00,000 Total Rs. 1,00,000
 P & L Account of RCB Ltd.
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
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 Transfer 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

Q.5) Convert the following revenue accounts of UVW LTD. into suitable form for analysis.
Particulars Rs. Particulars Rs.
To Opening Stock 75,000 By Sales:
To Purchases 2,20,000 Cash 1,00,000
To Wages 40,000 Credit 3,25000
To Factory Overheads 20,000 4,25,000
To Salaries: Factory 8,000 Less: Returns 5,000 4,20,000
Office 7,000 By Closing Stock 1,30,000
Sales 6,000 By Interest on Investments 5,000
To Electricity: Factory 1,000 By Profit on sale of Assets 18,000
Office 1,000 By Royalty 2,000
To Audit Fees 4,000
To Discount 3,000
To Bad debts 7,000
To Advertising 6,000
To Showroom Expenses 4,000
To Delivery Expenses 5,000
To Depreciation:
Plant 10,000
Office Furniture 5,000
Delivery van 15,000
To Loss on sale of van 5,000
To Debenture Interest 10,000
To Directors Fees 12,000
To Legal Charges 6,000
To Rates and Taxes 1,000
To Traveling Expenses 2,000
To Provision for tax 40,000
To Net Profit c/d 62,000
5,75,000 5,75,000
Q.6) The following is the Profit and loss account of MNO Ltd. for the year ended 31st October,
2019
PARTICULARS RS. PARTICULARS RS.
To Opening stock 76,500 By Sales 5,10,000
To Purchases 3,15,250 Less: Returns 10,000 5,00,000
To Freight & 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 Dividend on shares 3,750
To Interest 1,200 By Profit on sale of shares 3,900
To Rent 2,700
To Printing & Stationery 2,500
To Advertising 4,700
To Discount 2,400
To Depreciation 9,300
To Insurance 1,000
To Electricity 350
To Salesmen's Traveling exp. 2,000
To Bad Debts 3,400
To Telephone expenses 750
To Legal Charges 2,000
To Director's fees 4,400
To Income Tax 48,000
To Loss on sale of Bond. 3,500
To Provision for claim for damages 1,650
To Net Profit 83,750
Rs. 6,07,650 Rs. 6,07,650
Convert the above profit and loss A/c. of the company into a vertical revenue statement.
ADDITIONAL INFORMATION: Break-up of depreciation:
Factory Building 3,000 Office Premises 2,000
Plant and Machinery 1,000 Furniture and Fixtures 300
Loose Tools 1,000 Delivery Van 2,000

Q.7) The follg is the balance sheet of MAN Ltd. as at 31.3.2019. Prepare a vertical balance sheet
Liabilities Rs. Assets Rs.
Preference Share Capital 36,000 Land 25,000
Ordinary Share Capital 87,000 Plant & Machinery 3,01,000
Share Premium 40,000 Vehicles 58,000
General Reserve 40,000 Investments (Pension Funds) 3,000
Profit & Loss Account 20,000 Debtors 21,000
Depreciation Reserve: Stock 42,000
Plant & Machinery 1,82,000 Bills Receivable 26,000
Vehicles 24,000 Prepaid Expenses 2,000
Long-term Loans 6,000 Bank 7,000
Bank Overdraft 10,000 Cash 1,000
Creditors 15,000 Preliminary Expenses 6,000
Unpaid taxes 38,000 Capital work-in-progress 10,000
Dividends (unclaimed) 3,000 Underwriting Commission 3,000
Pension Fund payable within
one year 1,000
Pension Fund (Long Term) 3,000
Total Rs. 5,05,000 Total Rs. 5,05,000