Question

Give the Performa of an income statement and balance sheet in vertical form.

Answer 1

$\text{Income Statement}\text{for the period ended...}\begin{array}{ccc}\text{Particulars}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Sales (Gross)}& & \\ \text{(-) Returns}& & \\ \text{Net Sales}& & \\ \text{Cost of Goods Sold}& & \\ \text{Opening Stock}& & \\ \text{Purchase}& & \\ \text{(-) Returns}& & \\ \text{Carriage Inwards}& & \\ \text{Wages}& \underset{–}{}& \\ \text{Cost of Goods Available for Sale}& \underset{–}{}& \\ (-)\text{Closing Stock}& & \underset{–}{}\\ \text{Gross Profit}& & \underset{–}{}\\ \text{Operating Expenses}& & \\ \text{(a)Selling Expenses}& & \\ \text{Advertising}& & \\ \text{Discount}& & \\ \text{Allowances}& & \\ \text{Bad Debts and Provisions}& & \\ \text{Carriage Outwards}& & \\ \text{Total Selling Expenses}& \underset{–}{}& \\ \text{(b)~General and Administration Expenses}& & \\ \text{Salaries}& & \\ \text{Rent and Rates}& & \\ \text{Insurance}& & \\ \text{Depreciation}& & \\ \text{Postage}& & \\ \text{Repair}& & \\ \text{General Expenses}& & \\ \text{Total Operating Expenses}& \underset{–}{}& \underset{–}{}\\ \text{Net Income from Operations (Operating Profit)}& & \underset{–}{}\\ \text{Other Income (Non-operating Gains)}& & \underset{–}{}\\ \text{Interest Earned}& & \\ \text{Commission Earned}& & \\ \text{Profit on Sale of Fixed Assets}& \underset{–}{}& \\ (-)\text{Deductions (Non-operating Expenses)}& \underset{–}{}& \\ \text{Interest Paid}& & \\ \text{Loss by Fire}& & \\ \text{Net Non-operating Gains}& \underset{–}{}& \underset{–}{}\\ \text{Net Income (Net Profit)}& & \underset{–}{}\end{array}$

$\text{Balance Sheet}\text{for the period ended...}\begin{array}{ccc}\text{Particulars}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Current Assets}& & \\ \text{Cash in Hand}& & \\ \text{Cash at Bank}& & \\ \text{Bills Receivable}& & \\ \text{Accrued Income}& & \\ \text{Debtors}& & \\ \text{Stock}& & \\ \text{Prepaid Expenses}& & \\ \text{Total Current Assets}& & \\ (-)\text{Current Liabilities}& & \\ \text{Bank Overdraft}& & \\ \text{Outstanding Expenses}& & \\ \text{Bills Payable}& & \\ \text{Trade Creditors}& & \\ \text{Income Received in Advance}& & \\ \text{Total Current Liabilities}& & \\ \text{Net Working Capital}& & \\ \text{(Current Assets and Current Liabilities)}& \underset{–}{}& \\ \text{Fixed Assets}& & \\ \text{Furniture and Fixtures}& & \\ \text{Patents}& & \\ \text{Plants and Machinery}& & \\ \text{Building}& & \\ \text{Land}& & \\ \text{Goodwill}& & \\ \text{Total Fixed Assets}& & \\ \text{Total Assets (After Paying Current Liabilities)}& \underset{–}{}& \underset{–}{}\\ \text{Capital Employed}& & \underset{–}{}\\ \text{Long Term Liabilities}& & \\ \text{Loan}& & \\ \text{Mortgage}& & \\ \text{Total Long Term Liabilities}& & \\ \text{Net Assets (being the difference between total)}& & \\ \text{(assets and long term liabilities)}& \underset{–}{}& \underset{–}{}\end{array}$

$\begin{array}{ccc}\text{Particulars}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Capital (Proprietor)}& & \\ \text{Capital in the Beginning}& & \\ (+)\text{Capital Introduced During the Current Year}& & \\ \text{Interest on Capital, Salary etc}& & \\ \text{Profit for the Current Year}& & \\ (-)\text{Drawings During the Current Year}& & \\ \text{Interest on Drawings}& & \\ \text{Loss for the Current Year}& & \\ \text{Total Capital of the Proprietor at the End of the Year}& & \end{array}$