ONLINE JAIN UNIVERSITY SUBJECT: ACCOUNTING & FINANCE

FORMAT:

In the books of ABC Limited

VERTICAL INCOME STATEMENT
As on 31st December, 2021

PARTICULARS AMOUNT AMOUNT

(Rs.) (Rs.)
Sales xxx
Less: Return xxx
NET SALES xxx
Less: Cost of goods sold xx
Opening stock xx
Add: Purchase xx
Add: Freight charges xx
Add: Carriage inward xx
Add: Wages xx
Add: Repairs/depreciation on plant and xx
machinery xx
xxx
Less: Closing stock
GROSS PROFIT xxxx
Less: Operating expenses

a) Office & Administration expenses

xx
Salaries
xx
Rent, rates and insurance
xx
Depreciation on furniture and
xx
fittings
xx
Printing and stationary
xx
Depreciation on office assets
xx xxx
b) Selling & distribution expenses:
Salaries to Salesmen
xx
Travelling/Van expenses
xx

PROF ABHILASHA N, Mail id: abhi.mysore1991@gmail.com

ONLINE JAIN UNIVERSITY SUBJECT: ACCOUNTING & FINANCE

Depreciation on Delivery van xx

Advertisement expenses xx
Carriage outward xx xxx
c) Financial Expenses:
Interest on debenture/loan xx
Bank charges xx
Bad debts xx xxx xxx

OPERATING NET PROFIT xxx

Add: Non-operating Income
xxx
Dividend received
xxx
Profit on sale of fixed asset
xxx
Profit on sale investment
xxx
Interest on investment xxx
xxx
Less: Non-Operating expenses
Loss on fire
xxx
Loss on sale of fixed asset xxx
Loss on sale of investment xxx
xxx
NET PROFIT BEFORE TAX xxx
Less: Income Tax xxx

NET PROFIT AFTER TAX xxx

Add: Opening profit & loss xxx
Less: Appropriation
xxx
Proposed/Interim Dividend
xxx
General Reserve
xxx
Provision for dividend

RETAINED EARNING/LOSS xxx

PROF ABHILASHA N, Mail id: abhi.mysore1991@gmail.com

 ONLINE JAIN UNIVERSITY SUBJECT: ACCOUNTING & FINANCE

In the books of ABC Limited

VERTICAL BALANCE SHEET
As on 31st December, 2021

PARTICULARS AMOUNT AMOUNT

(Rs.) (Rs.)
I. SOURCES OF FUNDS

1. Shareholders fund
a. Share Capital xx
Equity share capital xx
Preference share capital xx
Less: Calls in arrears xx
xxx
Add: Calls in advance
b. Add: Reserves & surplus xx
Securities Premium account xx
Profit and loss account (Profit) xx
General reserve account xx xxx
Capital reserve
c. Less: Fictitious assets/Loss
Miscellaneous expenses xx
Preliminary expenses xx
Discount on issue of share xx
Loss on issue of debenture xx xxx
Profit and loss account (Loss)
NETWORTH/SHAREHOLDERS FUND/
EQUITY (a + b- c) xxx
2. LOANS FUNDS:
Debenture xxx
Bank loan xxx
Government Bonds xxx xxx

Total Funds Employed/Capital Employed xxx

(1+2)

PROF ABHILASHA N, Mail id: abhi.mysore1991@gmail.com

 ONLINE JAIN UNIVERSITY SUBJECT: ACCOUNTING & FINANCE

II. APPLICATION OF FUNDS:

1. Fixed Assets:
xxx
Good will
Land & building xxx
Plant & machinery xxx
Furniture & fixtures xxx xxx

2. Long term Investment: xxx

Trade investment xxx xxx
Investment in Govt securities
3. Working Capital (a-b)
a. Current Assets: xxx
Debtors xxx
Bills receivables xxx
Cash and bank balance xxx
Prepaid expenses xxx
Closing stock
xxx
(a)
b. Current Liabilities: xxx
Creditors xxx
Provisions for taxation xxx
Proposed dividend xxx
Outstanding expenses xxx
Bills payable xxx
Bank overdraft
(b) xxx
Working Capital (a-b) xxx

Total Net Assets/Capital Employed xxx

(1+2+3)

PROF ABHILASHA N, Mail id: abhi.mysore1991@gmail.com

 ONLINE JAIN UNIVERSITY SUBJECT: ACCOUNTING & FINANCE

SHORT FORMAT:
INCOME STATEMENT

Sales
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Operating profit
Add: Non-operating income
Less: Non-operating expenses
Net profit before tax
Less: Tax
Net profit after tax

VERTIFICAL BALANCE SHEET

I.SOURCE OF FUNDS:
1. Shareholders fund
a. Capital
b. Add: Reserve and surplus
c. Less: Fictitious losses
Shareholders fund/Networth
2.Loan fund
CAPITAL EMPLOYED (1+2)

II.APPLICATION OF FUNDS:
1. Fixed assets
2. Investment
3. Working capital (CA-CL)
CAPITAL EMPLOYED (1+2+3)

PROF ABHILASHA N, Mail id: abhi.mysore1991@gmail.com