Assets Liability Capital

Cash 53138 53,138

bank balance 28565 28,565
Long Term loan 8000 8000
Land 9736 9,736
building 7200 7,200
deprecition 1 -1330
Plant and machine 86000 86,000
depreciation2 -62000
accounts payble 23152
advance 7325
linterset 400
current lia 43
IR payable 4030
short term investment -15700 15,700
Inventry raw material 7893 7,893
work in progress 4195
cash -7893
-4195
prepaid tax 8
account receiav 121
208,232
Total 113,738 Total 81,703

Balacesheet 31st march 2016

Rs. Rs.
Capital

Personal Loan
Bank Loan-1
Bank Loan-2
Total 0 Total 0
 Profit/Loss

-1330

-62000
-23152
-7325
-400
-43
-4030

-98280 109,952
81,703
 Assets Liability Capital
Cash 600000 Personal Loan 800,000 1,500,000
Inventory (900000+5100000) 6000000 Bank Loan-1 1,000,000 300,000
Bank 800000 Bank Loan-2 500000
500000 Accounts Payable 5100000
Building 1000000
Furniture 300000
Total 9,200,000 Total 9,200,000

Assets Liability Capital

Cash 600000 Personal Loan 800,000 1,500,000
Inventory (900000+5100000) 6000000 Bank Loan-1 1,000,000 300,000
Bank 500000 Bank Loan-2 500000
500000 Accounts Payable 5100000
Building 1000000
Furniture 300000
Mini Truck 300000
Total 9,200,000 Total 9,200,000

Assets Liability Capital

Cash 600000 Personal Loan 800,000 1,500,000
Inventory (900000+5100000) 6000000 Bank Loan-1 1,000,000 300,000
Bank 500000 Bank Loan-2 500000
100000 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000
Mini Truck 300000
Total 8,800,000 Total 8,800,000

Assets Liability Capital

Cash 600000 Personal Loan 800,000 1,500,000
Inventory (900000+5100000) 6000000 Bank Loan-1 1,000,000 300,000
Bank 350000 Bank Loan-2 500000
100000 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000
Mini Truck 300000

Total 8,650,000 Total 8,650,000

Assets Liability Capital

Cash 600000 Personal Loan 800,000 1,500,000
Inventory (900000+5100000) 6000000 Bank Loan-1 1,000,000 300,000
Bank 350000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000
Mini Truck 300000
Prepaid Insurance 50000

Total 8,600,000 Total 8,600,000

Assets Liability Capital

Cash 6200000 Personal Loan 800,000 1,500,000
Inventory (900000+5100000) 6000000 Bank Loan-1 1,000,000 300,000
Bank 350000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000
Mini Truck 300000
Prepaid Insurance 50000
Account Receivable 1400000

Total 15,600,000 Total 15,600,000

Assets Liability Capital

Cash 6200000 Personal Loan 800,000 1,500,000
Inventory 3000000 Bank Loan-1 1,000,000 300,000
Bank 350000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000
Mini Truck 300000
Prepaid Insurance 50000
Account Receivable 1400000

Total 12,600,000 Total 12,600,000

Assets Liability Capital

Cash 6200000 Personal Loan 800,000 1,500,000
Inventory 3000000 Bank Loan-1 1,000,000 300,000
Bank 350000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000
Mini Truck 300000
Prepaid Insurance 50000
Account Receivable 1400000
Intrest Receivable/ Accrued 10000

Total 12,610,000 Total 12,610,000

Assets Liability Capital

Cash 6200000 Personal Loan 800,000 1,500,000
Inventory 3000000 Bank Loan-1 1,000,000 300,000
Bank 250000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 1000000 Outstanding Commision 50000
Furniture 300000 Interest Outstanding 50000
Mini Truck 300000
Prepaid Insurance 50000
Account Receivable 1400000
Intrest Receivable/ Accrued 10000

Total 12,510,000 Total 12,510,000

Assets Liability Capital

Cash 6200000 Personal Loan 800,000 1,500,000
Inventory 3000000 Bank Loan-1 1,000,000 300,000
Bank 250000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 900,000 Outstanding Commision 50000
Furniture 270000 Interest Outstanding 50000
Mini Truck 270000
Prepaid Insurance 50000
Account Receivable 1400000
Intrest Receivable/ Accrued 10000

Total 12,350,000 Total 12,350,000

 Profit/Loss

In the month May 2017, Jatin purchased stores and

inventory of Rs. 60,00,000. 15% of the purchase (Rs.
9,00,000) is through cash and remaining 85% is on
credit through account payables.

9,200,000

Profit/Loss

He also purchased a home delivery mini truck worth

Rs. 3,00,000 for the office use.

9,200,000

Profit/Loss

Janit also hired some staff for the sales and

technical service. The staff salary for the entire year
is Rs. 4,00,000. However, the extra commission of
Rs. 50,000 due to the sales staff is unpaid at the end
of the financial year. This is expected to be paid
-50000 during the year 2018-19.
-400000
8,800,000

Profit/Loss

The electricity expenses, telephone expenses, and

other operating expenses for the financial year is Rs.
1,50,000. All expenses paid through bank.
-50000
-400000
-150000
8,650,000

Profit/Loss

Jatin took a business insurance of Rs. 50,00,000 for

an annual premium of Rs. 50,000. In the first year
he paid premium worth Rs. 1,00,000 for the two
years (i.e., 2017-18, and 2018-19).
-50000
-400000
 an annual premium of Rs. 50,000. In the first year
he paid premium worth Rs. 1,00,000 for the two
years (i.e., 2017-18, and 2018-19).

-150000
-50000
8,600,000

Profit/Loss

In the financial year Jatin had a sales of Rs.

70,00,000. 80% of the sales is through cash and
remaining 20% is through credit. The credit sales is
-50000 expected to be realised in the Month of May 2018.
-400000
-150000
-50000
7000000

15,600,000

Profit/Loss

At the end of the year (31st March 2018) there is Rs.

30,00,000 worth stores and inventory is in the
-50000 warehouse. You are required to tell Mr. Jtin how the
-400000 business doing at the end of the first year.
-150000
-50000
7000000
-3000000
12,600,000

Profit/Loss

. The interest due on the company bank account is

-50000 Rs. 10,000, however, interest is yet to be received or
-400000 credited to the company bank account.
-150000
-50000
7000000
-3000000
10000
12,610,000

Profit/Loss

In the year Jatin made an interest payment of Rs.

1,00,000 for the loan. Remaining interest is
 In the year Jatin made an interest payment of Rs.
-50000 1,00,000 for the loan. Remaining interest is
outstanding. (Note: Total interest is 10% on
-400000 15,00,000 i.e., 150000. If 100000 is paid and 50,000
-150000 is outstanding)
-50000
7000000
-3000000
10000
-150000
12,510,000

Profit/Loss

The company prefers to charge depreciation at a

rate of 10% every year. (Building: 10% of 10,00,000;
Furniture: 10% of 300000; and, Minitruck: 10% of
300000)
-50000
-400000
-150000
-50000
7000000
-3000000
10000
-150000
-160000
12,350,000
 Income statement for the Year Ending 2017-18 Balance Sheet as on 31-03-2018
Revenue (Sale proceeds) 405100 Assets Rs. Rs.
Less: Cost of Goods Sold (COGS) Non Current Assets:
Opening stock 7893 Building 1000000
Add: Purchase 273940 Less: Depreciation 100000 900,000
Less: Closing stock 7584 274249 Furniture 300000
Gross Profit 130851 Less: Depreciation 30000 270000
Less: Operating Expenses Mini Truck 300000
Salary -2614 Less: Depreciation 30000 270000
Commision expenses -7100 Current Asets:
Electricity, telephone, and others Cash 6200000
Insurance expenses -50000 Bank 250000
Earnings Before Interest, Tax,
Depreciation and Amortisation Inventory 3000000
(EBITDA) 71137
Less: Depreciation -160000 Accounts Receivable 1400000
Less: Amortisation 0 Interest Accrued 10000
Earnings Before Interest, Tax (EBIT) -88863 Prepaid Insurance 50000
Less: Interest Expenses -150000 Total Assets ₹ 12,350,000.00
Earning Before Tax (EBT) -238863 Equity and Liabilities Rs. Rs.
Add: Other Income 10000 Capital 1,800,000
Earning Before Tax (EBT) -228863 Add: Profit -160204.1
Less: Tax (@30%) -68658.9 Non-Current Liability
Net Profit or Profit After Tax (PAT) -160204.1 Personal Loan 800,000
Bank Loan-1 1,000,000
Bank Loan-2 500000
Current Liability:
Accounts Payable 5100000
Outstanding Commision 50000
Interest Outstanding 50000
Tax Payable -68658.9
Total Liabilities and Equity ₹ 9,071,137.00
 1720
1370 510
860

account pa 270574 218

it 6790
1569

it last year 4030 1086

9445
bad debts 121

6330
770
7100
 Assets Liability Capital
Cash 6200000 Personal Loan 800,000 1,500,000
Inventory 3000000 Bank Loan-1 1,000,000 300,000
Bank 250000 Bank Loan-2 500000
0 Accounts Payable 5100000
Building 900,000 Outstanding Commision 50000
Furniture 270000 Interest Outstanding 50000
Mini Truck 270000 Tax Payble 915000
Prepaid Insurance 50000 Retained Earnings -160204.1
Account Receivable 1400000
Intrest Receivable/ Accrued 10000
Total 12,350,000 Total 10,054,796

Assets Liability Capital

Cash 5000000 Capital 1,800,000
Inventory 3000000 Retained Earnings 2135000
Bank 1250000 Personal Loan 800,000
Marketable securities 200000 Bank Loan-1 1,000,000
Building 900,000 Bank Loan-2 500000
Furniture 270000 Accounts Payable 5100000
Mini Truck 270000 Outstanding Commision 50000
Prepaid Insurance 50000 Interest Outstanding 50000
Account Receivable 1400000 Tax Payble 915000
Intrest Receivable/ Accrued 10000
Total 12,350,000 Total 12,350,000

Assets Liability Capital

Cash 5000000 Capital 1,800,000
Inventory 4000000 Retained Earnings 2135000
Bank 1250000 Personal Loan 800,000
Marketable securities 200000 Bank Loan-1 1,000,000
Building 900,000 Bank Loan-2 500000
Furniture 270000 Accounts Payable 6100000
Mini Truck 270000 Outstanding Commision 50000
Prepaid Insurance 50000 Interest Outstanding 50000
Account Receivable 1400000 Tax Payble 915000
Intrest Receivable/ Accrued 10000
Total 13,350,000 Total 13,350,000

Assets Liability Capital

Cash 1900000 Capital 1,800,000
Inventory 4000000 Retained Earnings 2135000
Bank 1695000 Personal Loan 800,000
Marketable securities 200000 Bank Loan-1 1,000,000
Building 900,000 Bank Loan-2 500000
Furniture 270000 Accounts Payable 3050000
Mini Truck 270000 Outstanding Commision 0
Prepaid Insurance 50000 Interest Outstanding 0
Account Receivable 0 Tax Payble 0
Intrest Receivable/ Accrued 0
Total 9,285,000 Total 9,285,000

Assets Liability Capital

Cash 1900000 Capital 1,800,000
Inventory 4000000 Retained Earnings 2135000
Bank 1145000 Personal Loan 800,000
Marketable securities 200000 Bank Loan-1 1,000,000
Building 900,000 Bank Loan-2 500000
Furniture 270000 Accounts Payable 3050000
Mini Truck 270000 Outstanding Commision 0
Prepaid Insurance 50000 Interest Outstanding 0
Account Receivable 0 Tax Payble 0
Intrest Receivable/ Accrued 0

Total 8,735,000 Total 8,735,000

Assets Liability Capital

Cash 1900000 Capital 1,800,000
Inventory 3700000 Retained Earnings 1835000
Bank 1145000
Marketable securities 200000 Personal Loan 800,000
Building 900,000 Bank Loan-1 1,000,000
Furniture 270000 Bank Loan-2 500000
Mini Truck 270000 Accounts Payable 3050000
Prepaid Insurance 50000 Outstanding Commision 0
Account Receivable 0 Tax Payble 0
Intrest Receivable/ Accrued 0

Total 8,435,000 Total 8,435,000

Assets Liability Capital

Cash 1900000 Capital 1,800,000
Inventory 1000000 Retained Earnings 1835000
Bank 1145000
Marketable securities 200000 Personal Loan 800,000
Building 900,000 Bank Loan-1 1,000,000
Furniture 270000 Bank Loan-2 500000
Mini Truck 270000 Accounts Payable 3050000
Prepaid Insurance 50000 Outstanding Commision 0
Account Receivable 0 Tax Payble 0
Intrest Receivable/ Accrued 0
Total 5,735,000 Total 5,735,000

Assets Liability Capital

Cash 1900000 Capital 1,800,000
Inventory 1000000 Retained Earnings 1835000
Bank 695000
Marketable securities 200000 Personal Loan 800,000
Building 900,000 Bank Loan-1 700,000
Furniture 270000 Bank Loan-2 500000
Mini Truck 270000 Accounts Payable 3050000
Prepaid Insurance 50000 Outstanding Commision 0
Account Receivable 0 Tax Payble 0
Intrest Receivable/ Accrued 10000

Total 5,295,000 Total 5,295,000

Assets Liability Capital

Cash 1900000 Capital 1,800,000
Inventory 1000000 Retained Earnings 1835000
Bank 695000
Marketable securities 200000 Personal Loan 800,000
Building 900,000 Bank Loan-1 700,000
Furniture 270000 Bank Loan-2 500000
Mini Truck 270000 Accounts Payable 3050000
Prepaid Insurance 50000 Outstanding Commision 0
Account Receivable 0 Tax Payble 0
Intrest Receivable/ Accrued 10000

Total 5,295,000 Total 5,295,000

Assets Liability Capital

Cash 5900000 Capital 1,800,000
Inventory 1000000 Retained Earnings 1835000
Bank 695000
Marketable securities 200000 Personal Loan 800,000
Building 900,000 Bank Loan-1 700,000
Furniture 270000 Bank Loan-2 500000
Mini Truck 270000 Accounts Payable 3050000
Prepaid Insurance 50000 Outstanding Commision 0
Account Receivable 3000000 Tax Payble 0
Intrest Receivable/ Accrued 10000

Total 12,295,000 Total 12,295,000

Assets Liability Capital

Cash 400000 Capital 1,800,000
Inventory 1000000 Retained Earnings 1835000
Bank 5695000
Marketable securities 700000 Personal Loan 800,000
Building 900,000 Bank Loan-1 700,000
Furniture 270000 Bank Loan-2 500000
Mini Truck 270000 Accounts Payable 3050000
Prepaid Insurance 50000 Outstanding Commision 0
Account Receivable 3000000 Tax Payble 0
Intrest Receivable/ Accrued 10000

Total 12,295,000 Total 12,295,000

Assets Liability Capital

Cash 400000 Capital 1,800,000
Inventory 1000000 Retained Earnings 1835000
Bank 5695000
Marketable securities 700000 Personal Loan 800,000
Building 810,000 Bank Loan-1 700,000
Furniture 243000 Bank Loan-2 500000
Mini Truck 243000 Accounts Payable 3050000
Prepaid Insurance 0 Outstanding Commision 0
Account Receivable 3000000 Tax Payble 0
Intrest Receivable/ Accrued 10000

Total 12,101,000 Total 12,101,000

Assets Liability Capital

Cash 400000 Capital 1,800,000
Inventory 1000000 Retained Earnings 4226200
Bank 5695000
Marketable securities 700000 Personal Loan 800,000
Building 810,000 Bank Loan-1 700,000
Furniture 243000 Bank Loan-2 500000
Mini Truck 243000 Accounts Payable 3050000
Prepaid Insurance 0 Outstanding Commision 0
Account Receivable 3000000 Tax Payble 1024800
Intrest Receivable/ Accrued 10000

Total 12,101,000 Total 12,101,000

 Profit/Loss

Taking all the information from

the closing Balancesheet of
Last year 2017-18. So this is
basically the balancesheet of
31-03-2018. The business of
this year will start on the 01-
04-2018. The next transaction
starts anarating this years
information.

10,054,796

Profit/Loss

To avoid ideal cash Jatin

transferred Rs.10,00,000 from
his cash to bank account and
invested Rs. 2,00,000 in the
marketable securities.

12,350,000

Profit/Loss

Jatin purchased stores and

inventory of Rs. 10,00,000 on
credit.

13,350,000

Profit/Loss

In the last week of April 2018

Jatin received the accrued
interest from the bank, paid
outstanding interest on loan,
paid the sales commission, paid
the tax liability, received all
money due from the debtors for
the sales of 2017-18, and paid
50% of the money due to the
suppliers/creditors.
 In the last week of April 2018
Jatin received the accrued
interest from the bank, paid
outstanding interest on loan,
paid the sales commission, paid
the tax liability, received all
money due from the debtors for
the sales of 2017-18, and paid
50% of the money due to the
suppliers/creditors.
9,285,000

Profit/Loss

The staff salary, electricity

expenses, telephone expenses,
and other operating expenses
for the financial year is Rs.
5,50,000. All expenses paid
and there is no outstanding
expenses.

-550000
8,735,000

Profit/Loss

Mr. Jatin used Rs. 3,00,000

worth of supplies from the
store to furnish his own house.

-550000
8,435,000

Profit/Loss

The closing inventory value is

Rs. 10,00,000 that is available
in the warehouse at the end of
the financial year 2018-19.

-2700000
-550000
5,735,000

Profit/Loss

Jatin repaid the bank loan

worth Rs. 3,00,000. All interest
(i.e., 150000) for the year
2018-19 is also paid to the
bank. Interest income for the
10000 year is Rs. 10,000.
-150000
-2700000
-550000
5,295,000

Profit/Loss

Jatin had a cash sales of Rs.

40,00,000 which is completely
realised, and Rs. 30,00,000 on
credit for the year 2018-19.
10000
-150000
-2700000
-550000
5,295,000

Profit/Loss

Jatin had a cash sales of Rs.

40,00,000 which is completely
realised, and Rs. 30,00,000 on
7000000 credit for the year 2018-19.
10000
-150000
-2700000
-550000
12,295,000

Profit/Loss

At the end of the year Jatin

transferred Rs. 50,00,000 to
 At the end of the year Jatin
transferred Rs. 50,00,000 to
bank from cash account and
7000000 invested Rs. 5,00,000 in
marketable securities.
10000
-150000
-2700000
-550000
12,295,000

Profit/Loss

-144000 Not mentioned in the case, but

we have to account for the
-50000 prepaid insurance and
7000000 depreciation.
10000
-150000
-2700000
-550000
12,101,000

Profit/Loss

From the 2nd year Stateent worksheet if

we consider the calculated tax payable
(1024800) and 100% reatined profit
(2391200) then the equation will look
like.since we are considering the final
profit to be added in the retained
earnings, we do not need individual
income or expenses items on the
profit/loss coulumn. These figures are
already taken care of in the income
statement.

12,101,000
 Income statement for the Year Ending 2018-19 Balance Sheet as on 31-03-2019
Revenue (Sale proceeds) 7000000 Assets Rs. Rs.
Less: Cost of Goods Sold (COGS) Non Current Assets:
Opening stock 3700000 Building 900000
Add: Purchase 0 Less: Depreciation 90000 810,000
Less: Closing stock 1000000 2700000 Furniture 270000
Gross Profit 4300000 Less: Depreciation 27000 243000
Less: Operating Expenses Mini Truck 270000
Salary Less: Depreciation 27000 243000
Commision expenses -550000 Current Asets:
Electricity, telephone, and others Cash 400000
Insurance expenses -50000 Bank 5695000

Earnings Before Interest, Tax,

Depreciation and Amortisation 3700000 Inventory 1000000
(EBITDA)
Less: Depreciation -144000 Accounts Receivable 3000000
Less: Amortisation 0 Interest Accrued 10000
Earnings Before Interest, Tax (EBIT) 3556000 Markatable securities 700000
Less: Interest Expenses -150000 Total Assets ₹ 12,101,000.00
Earning Before Tax (EBT) 3406000 Equity and Liabilities Rs. Rs.
Add: Other Income 10000 Capital 1,800,000
Earning Before Tax (EBT) 3416000 Add: Profit (2017-18) -160204.1
Less: Tax (@30%) 1024800 Less: Withdrwal 300000
Net Profit or Profit After Tax (PAT) 2391200 Add: Profit (2018-19) 2391200 3,730,996
Non-Current Liability
Personal Loan 800,000
Bank Loan-1 700,000
Bank Loan-2 500000
Current Liability:
Accounts Payable 3050000
Outstanding Commision 0
Interest Outstanding 0
Tax Payable 1024800
Total Liabilities and Equity ₹ 9,805,795.90