Question

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

Answer 1

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

 

Income statement for the period ended ….
Particulars	Amount ₹	Amount ₹
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