Question

Give the performa of income statement and balance in vertical form.

Answer 1

Income statement for the period ended ….
	Particulars	Amount Rs	Amount Rs
Sales (Gross)
Less: Returns
	Net Sales
Cost of goods sold
	Opening Stock
	Purchases
	Less: Returns
	Carriage Inwards
	Wages
	Cost of Goods Available for Sale
Less: Closing Stock
Gross Profit
Operating Expenses
(a) Selling Expenses
	Advertising
	Discount
	Allowances
	Bad-Debts and Provisions
	Carriage Outwards
	Total Selling Expenses
(b) General and Administration Expenses
	Salaries
	Rent and Rates
	Insurance
	Depreciation
	Postage
	Repairs
	General Expenses
	Total Operating Expenses
	Net Income from Operations (Operating profit)
Other Income (Non-operating gains)
	Interest Earned
	Commission Earned
	Profit on Sale of Fixed Assets
Less: Deductions (Non-operating expenses)
	Interest Paid
	Loss by Fire
	Net Non-operating Gains
	Net Income (Net profit)

Income statement for the period ended ….
	Particulars	Amount Rs	Amount Rs
Current Assets
	Cash in Hand
	Cash at Bank
	Bills Receivable
	Accrued Income
	Debtors
	Stock
Prepaid Expenses
Total Current Assets
Less: Current Liabilities
	Bank Overdraft
	Outstanding Expenses
	Bills Payable
	Trade Creditors
	Income Received in Advance
	Total Current Liabilities
	Net Working Capital
	(Current assets and Current liabilities)
Fixed Assets
	Furniture and Fixtures
	Patents
	Plants and Machinery
	Building
	Land
	Goodwill
	Total Fixed Assets
	Total Assets (After paying current liabilities)
Capital Employed
	Long-term Liabilities
	Loan
	Mortgage
	Total Long-term Liabilities
	Net Assets (being the difference between total assets and long-term liabilities)
Capital (Proprietor)
	Capital in the Beginning
Add: Capital Introduced During the Current Year
	Interest on Capital, Salary, etc.
	Profit for the Current Year
Less: Drawings During the Current Year
	Interest on Drawings
	Loss for the Current Year
	Total Capital of the Proprietor at the End of the Year