YEAR-2010-11 T.Y.B.

COM-ACCOUNTS-III (FOR PRIVATE CIRCULATION ONLY) CHAPTER 1 - ANALYSIS & INTERPRETATION OF FINANCIAL STATEMENT
VERTICAL BALANCE SHEET
Particulars I. SOURCES OF FUNDS 1. Owners Funds/Proprietors Funds/ Shareholders Funds (a) Capital (I) Equity Share Capital / Capital of Proprietor or Partner (II) Preference Share Capital Amount Subscribed I Called-up (Ill) Less: Unpaid Calls / Drawings of Proprietor or Partner (iv) Add: Forfeited Shares / Fresh Capital by Prop. / Partner (b) Reserves and Surplus (i) Capital Reserve (ii) Capital Redemption Reserve (iii) Share Premium (iv) General Reserve (v) Other Reserve (vi) Profit & Loss A/c - Cr. balance (vii) Sinking Funds / Other Funds Less Fund Investments Less : Losses & Fictitious Assets Profit & Loss A/c - Dr. balance Less c) Misc. Expenditure not written off /Fictitious Assets Preliminary Expenses Share issue Expenses Discount on issue of shares or debentures Deferred Revenue Expenditure Net Reserves & Surplus (b - c) Own Funds or Net Worth (1) (Capital + Reserves & Surplus - Losses & Fictitious Assets) 2) Loan Funds/Borrowed Funds a) Long Term Loans/Secured Loans Debentures or bonds Loans from Banks Loans from Financial Institutions b) Short Term Loans/Unsecured Loans Public Deposits Short Term Loans Other Loans Owed Funds (a + b) (Long Term Loans + Short Term Loans) Total Funds Available I Capital Employed (Own Funds + Owed Funds) (1 + 2) Rs.

II. APPLICATION OF FUNDS 1.Fixed Assets Goodwill Patents, trademarks, copy writes Land and building Leaseholds Plant and Machinery Furniture and Fittings Vehicles ( For each item) Cost Less: Depreciation 2. Long Term /Trade Investments (I) Investments in Government Securities Shares, Debentures etc. Less Sinking Funds / Other Funds / Investments (ii) Investments in immovable properties (iii) Investments in Capital of Partnership Firms (iv) Long Term Loans given 3. Working Capital A) Current Assets Quick Assets (a) Cash and Bank (b) Debtors (Net) (c) Bills Receivable (d) Short Term Loans & Advances Given (e) Accrued Income (f) Short-term or Marketable Investments QUICK ASSETS Add (g) Inventory (h) Pre-payments (pre-paid expenses, advance for goods, advance A. Current Assets (a to h) Less :B) Current Liabilities Quick Liabilities (a) Creditors (b) Bills Payable (c) Advances Received (d) Outstanding Expenses (e) Accrued Interest (f) Provision for Tax (g) Unclaimed Dividend (h) Proposed Dividend (I) Short Term Loans Quick Liabilities (a to h) Add; (j) Bank Overdraft B. Current Liabilities (a to I) Net Current Assets or Working Capital A - B) Total Assets or Total Funds Employed (Fixed Assets + Investments + Working Capital) (1 + 2 + 3)

VERTICAL PROFIT & LOSS

Particulars SALES (a) Cash (b) Credit Less: Returns & Allowances Net Sales Less : Cost of Goods Sold (a) Opening Stock (RM) (b) Purchases (RM) (c) Freight, Octroi, Duty (d) Less: Closing Stock (RM) Raw Material Consumed (e) Direct Expenses (i) Factory Power (ii) Wages (iii) Other Manufacturing Expenses (f) Depreciation on Machinery on Factory Building on Patterns I Patents (g) Opening Stock : W-I-P (h) Less : Closing Stock : W-l-P (i) Less : Sale Scrap (j) Opening Stock (FG) (k) Purchases (FG) (I) Less : Closing Stock (FG) Cost of Goods Sold Gross Profit Less : Operating Expenses (A) Administration Expenses Office Salaries Office Rent, Rates and Taxes Insurance Electricity for Office Printing & Stationery Depreciation on Office Assets Postage and Telephones Directors Fees Legal Expenses Audit Fees Repairs Other Administration Expanses (B) Selling & Distribution Expenses Salaries to salesmen Rent of shop, show-rooms Depreciation on Delivery vans Exhibition, Trade Fair Advertisement or Publicity Travelling Van Expenses Sale Discount Commission Normal Bad Debts Selling & Distribution Expenses (C) Finance Charges Cash Discount Rs.

Bank Charge. Abnormal Bad debts Finance Charges. Interest Paid (a) Interest on Debentures or Bonds (b) Interest on Loans (c) Interest on Public Deposits (d) interest on Short-Term Loans interest Paid Finance Expenses Operating Profit Add: Net Non-operating income (a) Non-operating Income (i) Dividends on Shares (ii) Interest on Debentures, Loans etc. (iii) Profit on Sale of Fixed Assets /Investment (iv) Damages received (v) Royalty , Shares Transfer Fees Non-operating Income (b) Less: Non-operating Expenses (i) Loss on Sale of Fixed Assets / Investment (ii) Damages paid due (iii) Fine or penalty (iv) Preliminary Expenses w/off Non-operating Expenses Net Non-Operating Income Net Profit before Tax Less: Income Tax Net Profit after Tax Add : Profit & Loss Balance b/d Profit Available for Appropriations Appropriations Sinking Funds I Reserves Dividends Appropriations Retained Earnings

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