PREPARED BY

Name:- Vidhi A. Desai Class:- T.Y.B.B.A. Seat:- 302 Roll no:- 7 Class:- 2005-06

COLLEGE
Christ College, Rajkot

SUBMITTED TO
Saurashtra University

GUIDED BY

Dr. Swati Doshi

DECLARATION
I, the undersigned Vidhi A. Desai, a student of T.Y.B.B.A. here by declare that the project work presented in this report is my own work and has been carried out under the supervision of Dr. Swati Doshi of Christ College, Rajkot. This report has not been previously submitted to any other University for any other examination.

Date: Place: Rajkot Vidhi Desai
2

A.

PREFACE
Small Scale Industry is a pillar of the Indian Economy. Most of the business carried out in china is that of small-scale units. In India due to liberalization & globalization on the competition has to be faced by small-scale industry of India and thus S.S.I. are paralyzed. Today, there is a need of substituting the traditional management techniques by the scientific system of management. Proper implementation of such a technique provides necessary to the small-scale industries in the right direction in right time.
3

I am happy to submit this project report on small-scale industry under the prescribed syllabus of Saurashtra University, Rajkot. The preparation of this report is a modest way of helping students to develop entrepreneurship skills ability & aptitude fro making this report. I got a golden chance to acquire practical knowledge of forming such a unit. I have tried to cover all the points precisely.

ACKNOWLEDGEME NT
Successful accomplishment of any work requires cooperation, help & guidance from many people. I had a wonderful opportunity to make this
4

B. 5 .Y. Swati Doshi for letting me have this opportunity in the form of this repot to have an insight about product project report.B. Date: Place: Vidhi Desai A.Product Project Report on CANDLES as a part of my practical training in T. I would also like to thank my parents & friends who have helped me knowingly or unknowingly in preparing this report. First of all I would like to thank our guide Dr.A.

Total Project Fund 16.Sales Forecast ( 5 years ) 6 .Fixed Assets 13.Interest on Borrowed Capital 18.INDEX 1.Promoter’s background 4.Total Working Capital Requirement 15.Annual Cost of Production 20.Production Capacity Schedule 11.Organization structure 5.Cost of Production 14.Justification of location 6.Product details 7.Project at a Glance 3.Depreciation 19.Introduction 2.Sources of Finance 17.Staff & Labour details 12.Manufacturing process 10.Raw materials 9.Market potential 8.

Projected Balance Sheet (3 years ) 28.Break – Even Analysis 22.Projected Operating Statement ( 3 years ) 27.Risk factors 26.21.Particulars of Raw Materials consumed 30.Particulars of Finished Goods 31.Schedule of Fixed Assets 7 .Rate of Return on Capital Employed 24.Cost of Capital 23.Projected Cost Sheet ( 3 years ) 29.Profitability 25.

financial & other guidance also. New avenues have opened up for new business activity. Therefore. of India is providing various help for establishment and its growth. 8 . the Govt. It is proving with technical. In this progressive economic scenario.INTRODUCTION India is a nation on move. There is aroma of all round profession in the air. Its liberalized and open economic policies have shown result. one sector that has emerged as the most happening sector is the smallscale sector.

The main objective of selecting this product is that there is a large demand for the candles in every occasions & festivals as India is called the country of festivals.Location of the unit: “AV Industries” Metoda GIDC.Name of the Company: AV Industries 2. 9 . PROJECT AT GLANCE 1.

Registered Office: Applied for 4. Desai 8. 3.Registration No: Applied for 6.2720000/- 10 . Investment in Fixed Capital: Rs.674400/13. Investment in Working Capital: Rs. Name of the Product: Candles 9.Plot No.2778700 /11. 1881 Rajkot. Sources of Finance: Ownership Capital 12.Brand Name: ‘INDIGO’ 5. Name of the Partners: Vidhi A. Cost of Project: Rs.Size of unit: Small – scale 10. Desai Ashok C. Form of Organization: Partnership firm 7.

Jankalyan society. Qualification: B. “Samudragupt”. Road no. Desai 40. 1 11 .1. Rajkot . “Samudragupt”.360001 Age: 20 yrs.B.A Experience: nil Contribution: 25% Responsibility: Production & Personnel Department Partner 2 Name: Address: Ashok C. Desai 40. Jankalyan society. Road no.PROMOTERS BACKGROUND Partner 1 Name: Address: Vidhi A.

360001 Age: 48 yrs. 12 . Experience: 28yrs Contribution: 75% Responsibility: Marketing & Finance Department. Qualification: Businessman.Rajkot .

All these factors easily available at cheaper cost best suits the factory site. labour. which is followed by availabilities of infrastructure facilities with Raw Materials. facilities.JUSTIFICATION OF LOCATION Best location is one. Raw Material is of prime importance for the smooth functioning of 13 . Govt. These factors must be taken into due consideration before deciding location of the unit so that any difficulties might not rise-up in future. transportation. (a) Raw Material – The first & foremost factor that affects the factory location is availability of Raw Materials. if available & marketing etc.

Making candles is 99% manual work and therefore the need for semi-skilled & unskilled workers arises. (b) Supply of Labour – Labour supply must also be cheap & readily available in ample amount so that the work does not break down due to labour inadequacy. (c) Transport Facilities – A good transportation facility is very well required so that raw materials reach in time to the unit & finished goods to the market – be it to the wholesalers or to the retailers. In this unit 60% of the total cost is material cost. At present the target market for my product is Gujarat & 14 . Metoda has railways & roadways facility. Here the labour is cheaply available. The wax & thread rolls are easily available in Metoda so this site has been selected. which help to cater all markets.any production unit. A good deal of proper & cheap transport facility is needed.

Fax. Banking. Insurance. etc must be available at cheaper & regular interval. Telephone. PRODUCT DETAILS The brand name under which “AV” industry is going to manufacture the 15 . Postal. (d) Infrastructure Facility – For smooth functioning of any unit even the infrastructure facilities must be properly available. Water.Maharashtra whereby Roadways & Railways facility is easily available from Metoda. Fuel. These are all available in Metoda.

candles is “INDIGO”. which will be used. 16 . Later on. These candles can be used during marriages. Indigo candles will be available in red light brown & yellow colors. festivals. is of good quality as the making of candles is related to quality consciousness rather than quantity. perfumed and aromatherapy candles will also be manufactured. to decorate the hotels and restaurants as the wick.

Your customers. Therefore demand for candles will increase. especially religious and marriages. your market share. as the new concept is very catchy. These days the artificial lighting concept as vanished and now people prefer natural lightening during festivals and occasions. 17 .MARKET POTENTIAL Market Potential is the scope of your product occupying space in existing market. share in whole industry – all these aspects are covered under the head Market Potential. your contribution in the market already existing. As all the classes of people can afford the candles the sales will definitely increase.

The raw materials used in making candles are:• Paraffin Wax-Wax is very essential for candle making. Ensure that you buy it from quality 18 .RAW MATERIALS The raw materials are the base for the products without which the final product is not possible. This can be purchased at a candle making supply store and comes in the form of granulated wax.

You can get color dyes from the candle making supply stores and the use of these dyes depends on the size of your candle. chips and liquid form. Moulds come in all shapes and sizes and you can put them to best use by your creative efforts.Shop around to find out different designs of candle making moulds. It also helps the candles release from their molds by causing the wax to shrink as it cools. Apply your creative ideas and use different or blended colors to your candles. 19 • . You can find these dyes in block. You are limited only by your imagination. Moulds.suppliers. • Color Dyes and Stearic acid Use stearic acid to harden the candle. Color dyes are highly concentrated and must be used sparingly. as it can have a bearing on the final product.

The most common candle-making wick is braided cotton that has been treated chemically to improve the quality of burning. Choose a wick that is suitable for the size and shape of candle you are making. Wick .Use handy metal spoons or ladle to stir the wax and pour it out. • 20 . If the wick is too small. the candle will not burn well whereas a large wick will cause a smoky flame.• Ladle and Spoons .There is a wide range of wick types and sizes available in the market.

Once the temperature reaches 190 degrees. While the wax melts. Tie the wick to the center of the pencil or dowel.MANUFACTURIN G PROCESS CandleMaking Paraffin wax melts at 130 degrees. 21 . combine the mixture into the pot with the paraffin wax. Suspend the wick in the center of the mold with the help of small weight on the other end. measure the size of wick required for your mold. Add stearic acid and color in another pot and allow them to dissolve.

The color must be well distributed and the fragrance it emits must be pleasant without being overpowering. 22 . The characteristics of a good candle are absence of bubbles or lines and long and even burning of the flame. Wax melting is one of the dangerous aspects of candle making. it will contract and a small well will form around the wick. if it is cold it is time to remove it from the mold. As the wax cools.Stir and blend them together completely while maintaining the temperature at 190 degrees. Safety is critical in candle making especially when it comes to wax melting. Keep attending to your pans once you heat wax. Touch the candle. Finally pour the contents into the mold and let the mixture cool.

Capacity Capacity a. Daily 1000 Units 600 Units Production 23 . Particulars Installed Utilized no. Capacity in 100% 60% % b.Production Capacity Schedule Sr.

No. Particulars no. Yearly Production (b * e) Installed Capacity 25 days Utilized Capacity 25 days 25000 units 300 days 15000 units 300 days 300000 units 180000 units 24 . Monthly Production (b * c) e. of working days in a year f.Sr. c. No. of working days in a month d.

Staff & Labour details Factory Staff: Semi-Skilled workers 3 Unskilled workers 2 Managers: Salesman: Delivery boy: Watchman: Peon: 1 1 2 1 1 10 25 .

26 .

) Area 1000 5000 Rate Amou (Rs. mt. ft.) Building (sq.) nt 8100 8100 810 00 00 300 1500 000 1500 000 Quant Equipments ity Aluminum 1200 mould 8 1500 0 Designer block 4 100 400 Stove 3 500 1500 Enamel vessels 8 50 400 Other Assets Furniture Delivery Van Computer 5000 5000 0 0 2500 2500 00 00 3500 3500 0 0 1430 0 1 1 27 3350 00 .Total Fixed Assets Particulars Land (sq.

Cost Of Production Amoun Particulars t 12000 Raw Materials 0 19800 Staff & Labour 0 21240 Other Expenses & Utilities 0 Total 530400 28 .

) 360000 102000 96000 116400 67440 29 .) 30000 8500 8000 9700 5620 0 Yearly (Rs.Total Working Capital Requirement Particulars Raw Materials Wages Utilities Other expenses Total Investment: 0 Monthl y (Rs.

) y Amt y Amt Qty Amt Wax(kg 25 225 300 3000 s) 90 10 900 0 00 0 0 Cotton thread( 75 150 900 1800 mts) 2 30 60 0 0 0 0 Colors 12 30 600 360 7200 (gms) 2 0 240 00 0 00 0 Total: 120 0 300 00 1200 00 30 .Raw Materials Requirements Require Require ment ment Requirem /Day /Month ent /Year Rate/ Particul Unit(R Qt Qt ars s.

Staff & Labour Salary No. of Amount/ Amou Particulars Rate Pers month nt ons 6600 1 5500 Manager 5500 0 1200 Salesman 1 1000 1000 0 Delivery 1200 boy 2 500 1000 0 Peon 1 500 500 6000 Watchma 6000 n 1 500 500 Semiskilled labour 7200 0 3 2000 31 6000 .

Unskilled labour 2 1000 2000 2400 0 Total Salary: 16500 1980 00 Other Expenses Particulars Postage & stationary Telephone Transport 32 Amount / Amount / Month Year 200 2000 1200 2400 24000 14400 .

Insurance Miscellaneous expenses Contingency Selling expenses Packing expenses Total: 300 200 300 500 5000 9700 3600 2400 3600 6000 60000 116400 33 .

) 4000 3000 1000 8000 Yearly (Rs.UTILITIES Particulars Gas Fuel Power Total Monthl y (Rs.) 48000 36000 12000 96000 34 .

Total Project Fund Particulars Fixed Capital Working Capital Raw material ( 1 m) 30000 Staff & Labour (1 m) 11000 Utilities (1 m) 8000 Others (1 m) 9700 58700 Total Capital 277870 Invested: 0 Amount (Rs.) 272000 0 35 .

a. (p.) 55578 166722 .Sources of Finance Particulars Own Capital % Of Total Amou Capital nt 2778 100% 700 2778 Total Capital: 700 Interest on Own Capital Details Vidhi Desai Ashok Desai 36 Amou Rate nt (%) 6946 75 8 8 Interest Rs.

2084 025 Total Interest On Capital: 222300 Depreciation @ SLM Rate Amou Particulars (%) nt 1500 Building 10 00 Equipments 15 2250 1400 Computer 40 0 Furniture 15 7500 3750 Delivery Van 15 0 2112 Total Depreciation 50 37 .

Annual Cost Of Production Particulars Raw Materials Staff & Labour Salaries Other Expenses Depreciation Interest on Capital Utilities Amoun t (Rs.) 12000 0 19800 0 11640 0 21125 0 22230 0 96000 96395 Total Capital Invested: 0 38 .

Sales Forecast Rat Capa Production(U Sales(Un e Amou Ye city nits)/ its)/ (S.P nt ar (%) annum annum ) (Rs.5 000 2100 2 70 210000 210000 10 000 2600 3 80 240000 260000 10 000 10. 2782 4 90 270000 265000 5 500 3245 5 100 300000 295000 11 000 39 .) 1425 1 60 180000 150000 9.

BREAK EVEN ANALYSIS 40 .

Fixed Cost Amou nt Particulars (Rs.) 21125 Depreciation 0 22230 Interest on Capital 0 10200 Salary (wages) 0 Other expenses (60%) 69840 Preliminary Expenses 20000 Utilities (40%) 38400 66379 Total Fixed Cost: 0 Variable Cost Particulars 41 Amou .

nt (Rs.) 36000 Raw Materials 0 Salary (labourers) 96000 Other expenses (40%) 69840 Utilities (60%) 57600 56016 Total Variable Cost: 0 Fixed cost per unit 663790 = 180000 = Rs.68/Variable cost per unit = 560160 180000 = Rs. 3. 3.112/- 42 .

BEP (in Rs. 3.11 = Rs.6.6.Total cost per unit = 3. Contribution Per Unit = Sales Price Variable Cost per unit per unit = 9.11 = Rs.39/2.5 – 3.39 = 103880 units.96 + 3.5 43 .) = BEP * Sales Price per unit = 103880*9. BEP (in Units) = Fixed Cost _ Contribution per unit = 663790 6.80/- 1.

986860/4. BEP (in %) = Fixed Cost _ * Utilized Capacity Contribution = 663790 864840 = 46.= Rs.72% 44 *60 . P/V Ratio = Contribution * 100 Sales = 864840 * 100 1425000 = 60.05% 5. Gross Profit Ratio = Gross Profit Net Sales = 873000 1425000 – 203700 = 0.69% 6.

) Sales 1425000 360000 96000 46560 45 .7.65% Profitability & Ratio Analysis Particulars Less: Variable Expenses Raw Materials Salary (labourers) Other Expenses Amount (Rs. Net Profit Ratio = Net Profit *100 Sales =322870 * 100 1425000 = 22.

Return on investment = EBIT * 100 Total project fund = 100 46 423350 * .(40%) Utilities (60%) Less: Fixed Expenses Preliminary Expenses Depreciation Salary (Wages) Other Expenses (60%) Utilities (40%) Less: Interest on Capital 57600 Contribution 560160 864840 20000 211250 102000 69840 38400 EBIT EBT 441490 423350 222300 201050 70370 130680 Less: Tax EAT 8.

23% Risk Factors 47 .2778700 = 15.

Every new business requires to determine its risk factors involved in the business. The unit will operate in competitive market where other units have already achieved a good name in the market. As the product is new the main risk is that whether market will readily accept the product or not. It will prove success if it properly marketed. 2. Following are some of the risk factors the new business may face:1. 48 . It may take time to beat the competitors market.

) s.Projected Operating Statement for first three years Particulars SALES: [A] 1st 2ndYe 3rd Year ar Year Amt(R Amt(R Amt(R s.) 14250 21000 26000 00 00 00 Less: Cost Of Operations Raw Materials Direct Wages: Semiskilled Unskilled 36000 42000 48000 0 0 0 72000 84000 96000 24000 28000 32000 49 .) s.

Less: Closing Stock of Finished Goods 20370 20370 0 0 67900 COST OF OPERATIONS: 65970 73570 67590 [B] 0 0 0 GROSS PROFIT [A] [B]: Less: Indirect Expenses 10200 Salaries 0 21125 Depreciation 0 11640 Other Expenses 0 Preliminary Expenses 20000 44965 0 11900 0 21125 0 13580 0 20000 48605 0 13600 0 21125 0 15520 0 20000 52245 0 76530 13643 19241 0 00 00 Earning Before 31565 87825 14016 Interest & Tax: [C] 0 0 50 (Gross Profit .Indirect Expenses) Less: Interest on Borrowed Capital 50 .

Interest) Less: Tax (35%) Net Profit After Tax: [E] (EBT .Earning Before Tax: [D] (EBIT .Tax) 31565 87825 14016 0 0 50 11048 30739 49058 0 0 0 20517 57086 91107 0 0 0 Projected Trading Account 51 .

(1 Year)
st
Particulars To Purchase A/c Wax Cotton thread Color (red) (Brown) 2700 00 1800 0 2400 0 2400 0 2400 3600 0 00 Amt (Rs.) Particulars Amt (Rs.) 1425 By Sales A/c 000

(Yellow) To Expenses A/c Direct 9600 wages 0 9600 1920 Utilities 0 00 Gross 8730
52

Profit

00 1425 000 1425 000

Projected Profit and st Loss Account (1 Year)
Particulars To Salary A/c 6600 Managers 0 1200 Salesman 0 Watchman 6000 Delivery boy 1200
53

Amt (Rs.)

Particulars By Gross Profit

Amt (Rs.) 8730 00

0 Peon To Depreciation A/c: 1500 Building 00 750 Furniture 0 375 Delivery van 00 1400 Computer 0 Equipments To Indirect expenses: Postage stationery Telephone Exps Transport Insurance 2112 2250 50 1020 6000 00

2400 2400 0 1440 0 3600
54

6000 6000 Packing 0 Contingency 3600 Miscellaneou 1164 s Exps 2400 00 To Income Tax A/c 110 480

Exp. Selling

3228 NET PROFIT 70 8730 00 8730 00

55

) Assets FIXED ASSETS: 6946 75 Land 2084 025 Building Less: Depreciatio n Other equipments 56 Amt (Rs.Projected Balance st Sheet (1 Year) Liabilities Capital Accounts: Vidhi Desai Ashok desai Secured Loans: Amt (Rs.) 8100 00 1500 000 1500 00 1500 0 1350 000 Unsecured Loans: - .

Accounts Payable: Provisions: - Less: Depreciatio n Delivery Van: Less: Depreciatio n 2250 2500 00 3750 0 5000 0 7500 3500 0 1400 0 1275 0 2125 00 Net Profit: 3228 70 Furniture Less: Depreciatio n Computer Less: Depreciatio n Accounts Receivables : Debtors 57 4250 0 2100 0 2000 .

in hand: Cash Balance Preliminary Exps: 3101 570 2000 00 2128 20 4000 0 3101 570 58 .00 Bank Balance: ICICI Bank A/c Cash .

) 2100 By Sales A/c 000 (Yellow) To Expenses A/c Direct 1120 59 .Projected Trading Account nd (2 Year) Particulars To Purchase A/c Wax Cotton thread Color (red) (Brown) 3150 00 2100 0 2800 0 2800 0 2800 4200 0 00 Amt (Rs.) Particulars Amt (Rs.

wages Utilities To Gross Profit 00 1120 2240 00 00 1456 000 2100 000 2100 000 Projected Profit and nd Loss Account (2 year) Particulars To Salary A/c Managers 6600 60 Amt (Rs.) 1456 000 .) Particulars By Gross Profit Amt (Rs.

0 1400 Salesman 0 Watchman 6000 1400 Delivery boy 0 Peon To Depreciation A/c: 1500 Building 00 Furniture 7500 3750 Delivery van 0 1400 Computer 0 Equipments To Indirect expenses: Postage & stationery Telephone 2112 2250 50 1060 6000 00 2800 2800 61 .

Exps Transport Insurance Exp. Selling 00 1680 0 3600 7000 7000 Packing 0 Contingency 4200 Miscellaneou 1352 s Exps 2800 00 To Income Tax A/c 3073 90 6961 60 1456 000 1456 000 NET PROFIT 62 .

Projected Balance nd Sheet (2 Year) Liabilities Capital Accounts: Vidhi Desai Ashok Desai Secured Loans: 6946 75 2084 025 Amt (Rs.) Building Less: Depreciatio n Other 63 Unsecured Loans: - .) Assets FIXED ASSETS: Land 1350 000 1500 00 1275 1200 000 8100 00 Amt (Rs.

Accounts Payable: Provisions: - equipments 0 Less: Depreciatio n 2250 Delivery Van: Less: Depreciatio n 2125 00 3750 0 4250 0 7500 2100 0 1400 0 1050 0 1750 00 Net Profit: 6961 60 Furniture Less: Depreciatio n Computer Less: Depreciatio n Accounts Receivables : 64 3500 0 7000 0 .

Debtors Bank Balance: ICICI Bank A/c Cash .in hand: Cash Balance Preliminary Exps: 3474 860 5000 00 4000 00 3173 60 2000 0 3474 860 65 .

) 2600 By Sales A/c 000 (Yellow) To Expenses A/c Direct 1280 66 .) Particulars Amt (Rs.Projected Trading Account rd (3 Year) Particulars To Purchase A/c Wax Cotton thread Color (red) (Brown) 3600 00 2400 0 3200 0 3200 0 3200 4800 0 00 Amt (Rs.

wages Utilities To Gross Profit 00 1280 2560 00 00 1864 000 2600 000 2600 000 Projected Profit and rd Loss Account (3 year) Particulars To Salary A/c Managers 6600 67 Amt (Rs.) Particulars By Gross Profit Amt (Rs.) 1864 000 .

0 1600 Salesman 0 Watchman 6000 1600 Delivery boy 0 Peon To Depreciation A/c: 1500 Building 00 Furniture 7500 3750 Delivery van 0 1400 Computer 0 2250 2112 Equipments 0 50 To Indirect expenses: Postage stationery Telephone 1100 6000 00 3200 3200 68 .

Selling 0 1920 0 3600 8000 8000 Packing 0 Contingency 4800 Miscellaneou 1540 s Exps 3200 00 To Income Tax A/c 4905 80 8981 70 1864 000 1864 000 NET PROFIT 69 .Exps Transport Insurance Exp.

Projected Balance rd Sheet (3 Year) Liabilities Capital Accounts: Vidhi Desai Ashok Desai Secured Loans: 6946 75 2084 025 Amt (Rs.) Assets FIXED ASSETS: Land 1200 000 1500 00 8100 00 Amt (Rs.) Building Less: Depreciatio 70 1050 000 .

n Unsecured Loans: Other 1050 equipments 0 Less: Depreciatio n 2250 Delivery Van: Less: Depreciatio n 1750 00 3750 0 3500 0 7500 7000 7000 2850 0 1375 00 Accounts Payable: Provisions: - 8250 Net Profit: 8981 70 Furniture Less: Depreciatio n Computer Less: Depreciatio n 71 .

Accounts Receivables : Debtors Bank Balance: ICICI Bank A/c Cash .in hand: Cash Balance Preliminary Exps: 3676 870 7000 00 5000 00 4426 20 3676 870 72 .

) 2nd 3rd Year Year Amt( Amt(R Rs.) Less: Closing Stock 73 .Projected Cost Sheet for the first three years Particulars Raw Materials Consumed: Opening Stock Add: Purchases 3900 00 3900 00 3000 0 3000 0 4250 00 4550 00 3500 0 3500 0 4850 00 5200 00 4000 0 1st Year Amt( Rs.) s.

Cost of Raw Materials Consumed: [A] Add: Direct Wages to Workers Semi-Skilled Unskilled Add: Direct Expenses Utilities PRIME COST: [B] 3600 00 4200 00 4800 00 2400 0 7200 0 9600 0 9600 0 5520 00 2800 0 8400 0 1120 00 1120 00 6440 00 3200 0 9600 0 1280 00 1280 00 7360 00 Factory Overheads: Salaries Depreciation: Building Other equipments 6000 1500 00 2250 1582 6000 1500 00 2250 1582 6000 1500 00 2250 1582 74 .

Stationery & Postage Depreciation: Furniture Computer Contingency Transport Interest on owned capital 7200 0 3600 2400 0 2400 2400 7500 1400 0 3600 1440 0 2223 00 3662 00 7200 0 3600 2800 0 2800 2800 7500 1400 0 4200 1680 0 2223 00 3740 00 7200 0 3600 3200 0 3200 3200 7500 1400 0 4800 1920 0 2223 00 3818 00 75 .FACTORY COST: Administrative Overheads: Salaries Insurance [C] 50 7102 50 50 8022 50 50 8942 50 Telephone Miscellaneous Exps.

COST OF PRODUCTION: [D] Add: Opening stock of finished goods Less: Closing stock of finished goods COST OF GOODS SOLD: [E] Selling & Distribution Overheads: Salaries Packing Expenses Depreciation on Delivery Van Selling Expenses 1076 450 2037 00 8727 50 1762 50 2037 00 2037 00 1176 250 1276 050 2037 00 6790 0 1411 850 2400 0 6000 0 3750 0 6000 1275 00 1000 250 2400 0 7000 0 3750 0 7000 1385 00 1314 750 2400 0 8000 0 3750 0 8000 1495 00 1561 350 COST OF SALES: 76 .

Add: Profit SALES: 4247 50 1425 000 7852 50 2100 000 1038 650 2600 000 Schedule of Raw material consumed Particulars Year Year Year 1 2 2 (Amt (Amt (Amt 77 .

) Opening Balance Add: Purchase during the year Less: Closing Stock Raw Materials Consumed: 390 000 300 00 360 000 ) 300 00 425 000 350 00 420 000 ) 3500 0 4850 00 4000 0 4800 00 Schedule of Finished Goods Particulars Year Year Year 1 2 3 (Qty (Qty ) ) (Qty) 300 3000 00 0 180 210 2400 000 000 00 150 210 2600 78 Opening Balance Add: Goods manufactured Less: Sales during .

the year Closing Stock: 000 300 00 000 300 00 00 1000 0 Schedule of Written Down Value of Fixed Assets Gross Openi Particulars ng + Additi on 8100 Land 00 1500 Building 000 Other equipment 1500 s 0 Block Depreciation Total Accu Durin Total mula g the ted Year 8100 00 1500 1500 000 00 1500 0 79 Net Block Writte n Down Value 81000 0 13500 00 - 2250 12750 .

Furniture Delivery Van Computer 5000 0 2500 00 3500 0 5000 0 2500 00 3500 0 - 7500 42500 3750 21250 0 0 1400 0 21000 80 .

Sign up to vote on this title
UsefulNot useful