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Convert following Trading Account and Profit and Loss Account into Vertical Income Statement: - Book Keeping and Accountancy

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प्रश्न

Convert following Trading Account and Profit and Loss Account into Vertical Income Statement:

Dr. Trading, Profit and Loss Account
for the year ended as on 31st March,2020 
Cr.
Particulars Amount ₹ Particulars Amount ₹
To Opening stock 20,000 By Sales 1,20,000
To Purchases 90,000 By Closing Stock 30,000
To Carriage inward 500    
To Wages 10,000    
To Gross Profit c/d 29,500    
Total 1,50,000 Total  1,50,000
To Office expenses 12,500 By Gross Profit b/d 29,500
To Selling expenses 10,000    
To Finance expenses 3,000    
To Net Profit c/d 4,000    
  29,500   29,500
खातेवही
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उत्तर

Vertical Income statement as on 31st March, 2020
Sr.No. Particulars Amount ₹ Amount ₹
1. Sales   1,20,000
2. Less: Cost of good sold    
  Opening Stock 20,000
  Add: Purchases 90,000
  Add: Wages 10,000
  Add: Carriage Inward 500
    1,20,500
  Less: Closing Stock 30,000 90,500
3. Gross Profit   29,500
4. Less: Operating Expenses    
     
  Admin Expenses 12,500
  Selling 10,000
  Finance Expenses 3,000
5. Total Operating Expenses   25,500
6. Net Profit   4,000
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संबंधित प्रश्‍न

Give one word/term/phrase for the following statement.

An asset which can be converted into cash immediately.


What do you mean by Analysis of Financial Statement?


JW Ltd. was a company manufacturing geysers. As a part of its long-term goal for an expansion, the company decided to identify the opportunity in rural areas. The initial plan was rolled out for Bhiwani village in Haryana. Since the village did not have a regular supply of electricity, the company decided to manufacture solar geysers. The core team consisting of the Regional Manager, Accountant and the Marketing Manager was taken from the Head Office and the remaining employees were selected from the village and neighbourhood areas. At the time of preparation of financial statements, the accountant of the company fell sick and the company debuted a junior accountant temporarily from the village for two months. The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.

Items Major Head/Sub-Head
Loose Tools Trade Receivables
Cheques in Hand Current Investments
Term Loan from Bank Other Long-term Liabilities
Computer Software Tangible Fixed Assets

Identify any two values that the company wants to communicate to the society. Also, present the above items under the correct major heads and sub-heads as per Schedule III of the Companies Act, 2013.


State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.


State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.


State whether following statement is true or false :
Government is not interested in analysis of financial statement.


Select the appropriate answer from the alternatives given below & rewrite the completed statement:
The methodical classification of financial statement is called _____________.


Select the appropriate answer from the alternatives given below & rewrite the completed statement

Cash proceeds from issue of debentures is _______________.


Answer the following in brief :
State any three limitations of Analysis of financial statement.


What is ‘analysis’ of financial statement?


Explain the limitations of analysis of financial statements.


The Common Size Statement requires _________.


Give one word/term/phrase for the following statement.

The statement showing financial position for different periods of previous year and current year.


Give one word/term/phrase for the following statement.

Activity related to acquisition of long term assets and investment.


State true or false with reason.

Dividend paid is not a source of fund


State true or false with reason.

The short term deposits are considered as cash equivalent.


State true or false with reason.

Ratio analysis measures profitability efficiency and financial soundness of the business.


Answer in one sentence only.

State the formula of Cost of goods sold?


Which of the following is a tool of Analysis of Financial Statements?


Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?

  1. Bills Receivable
  2. Securities premium reserve
  3. Calls in advance

Which of the following are not tools of Financial Analysis?

  1. Cash Flow Statement
  2. Income Statement
  3. Balance Sheet
  4. Ratio Analysis

It is technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two advantages of the technique identified.


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