LONE FOREST CAFÉ (B)

In addition to preparing the balance sheet described in Lone Forest Cafe (A), Mr. Mathur, the
accountant, agreed to prepare an income statement. He said that such a financial statement
would show Ankit how profitable operations had been and thus help him to judge whether it
was worthwhile to continue operating the restaurant.
In addition to the information given in the (A) case, Mr. Mathur learned that cash received
from customers through March 30 amounted to ₹ 434,800 and that cash payments were as
follows: Salaries to partners* ₹ 231,500
Wages to part-time employees 54,800
Interest 5400
Food and beverage suppliers 100,160
Telephone and electricity 32,700
Miscellaneous 2550
Rent payments 75000
Prepare an income statement for the period of the cafe’s operations through March 31, 2020