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    Fa 2 - Vertical Financial Statements

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    Eduwiz Mänagemënt Edücatîon
    The document contains financial statements including balance sheets and profit and loss accounts for various companies and manufacturing entities. It provides assets and liabilities for the balance sheets and income and expenses for the profit and loss accounts. It includes details such as capital, reserves, loans, current assets/liabilities, costs of production, sales, expenses, profits, and closing inventory values. The document contains vertical and horizontal financial statement formats and examples of how to convert between the two formats.

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    Fa 2 - Vertical Financial Statements

    Uploaded by

    Eduwiz Mänagemënt Edücatîon
    92 views7 pages
    The document contains financial statements including balance sheets and profit and loss accounts for various companies and manufacturing entities. It provides assets and liabilities for the balance sheets and income and expenses for the profit and loss accounts. It includes details such as capital, reserves, loans, current assets/liabilities, costs of production, sales, expenses, profits, and closing inventory values. The document contains vertical and horizontal financial statement formats and examples of how to convert between the two formats.

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    The document contains financial statements including balance sheets and profit and loss accounts for various companies and manufacturing entities. It provides assets and liabilities for the balance sheets and income and expenses for the profit and loss accounts. It includes details such as capital, reserves, loans, current assets/liabilities, costs of production, sales, expenses, profits, and closing inventory values. The document contains vertical and horizontal financial statement formats and examples of how to convert between the two formats.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    92 views7 pages

    Fa 2 - Vertical Financial Statements

    Uploaded by

    Eduwiz Mänagemënt Edücatîon
    The document contains financial statements including balance sheets and profit and loss accounts for various companies and manufacturing entities. It provides assets and liabilities for the balance sheets and income and expenses for the profit and loss accounts. It includes details such as capital, reserves, loans, current assets/liabilities, costs of production, sales, expenses, profits, and closing inventory values. The document contains vertical and horizontal financial statement formats and examples of how to convert between the two formats.

    Copyright:

    © All Rights Reserved
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    of 7

    FYBFM SEM II

    FINANCIAL ACCOUNTING II

    1. VERTICAL FINANCIAL STATEMENTS

    1. Balance sheet of X & Co. as on 31st March, 2015 (Proprietor X)


    Liabilities
    Proprietors funds:
    Capital
    Reserves

    Long term loans:


    Secured
    Unsecured
    Current liabilities:
    Creditors
    Provision for taxation

    Rs.

    Rs.

    Assets
    Fixed assets:
    7,00,000
    Land
    3,00,000 10,00,000 Buildings
    Plant & machinery
    Investment
    Current assets:
    3,00,000
    Stock-in-trade:
    2,00,000 5,00,000 Raw materials
    Stores and spares
    Work-in-process
    1,00,000
    Finished goods
    35,000
    1,35,000
    Debtors
    Prepaid expenses
    Cash & bank balances
    16,35,000 Rs.

    Rs.
    1,00,000
    3,60,000
    6,60,000 11,20,000
    30,000

    50,000
    5,000
    5,000
    1,00,000
    1,60,000
    3,00,000
    20,000
    5,000
    4,85,000
    16,35,000

    2. M/S. VENUS MANUFACTURERS Balance sheet as at 31st March, 2015


    Liabilities
    Outstanding expenses
    Sundry creditors
    Bills payable
    Capital:
    Balance
    Less: Drawings

    Rs.

    Rs.
    11,700
    90,000
    60,000

    4,40,000
    38,000
    4,02,000

    Add: Net profit for the


    year

    94,619

    4,96,619

    Assets
    Cash on hand
    Cash with bank
    Sundry debtors
    Bills receivable
    Closing stock
    Prepaid expenses
    (Insurance)
    Loose tools

    10,000

    Less: Depreciation

    1,000

    Furniture
    Less: Depreciation
    Plant and machinery
    Less: Depreciation
    Building
    Add: Extension

    4,000
    400
    1,00,000
    10,000
    50,000
    12,000
    62,000
    2,800

    Less: Depreciation

    Rs.

    1 | Page

    6,58,319

    Rs.

    Land
    Rs.

    Rs.
    1,000
    16,000
    4,18,019
    20,000
    20,000
    1,500

    9,000
    3,600
    90,000

    59,200
    20,000
    6,58,319

    FYBFM SEM II

    FINANCIAL ACCOUNTING II

    3. Manufacturing, Trading and Profit and Loss account for the year ended 31st March, 2015
    Particulars
    Rs.
    Particulars
    Rs.
    To Opening stock (Raw materials) 40,000
    By Closing stock (Raw materials) 80,000
    Add: Purchases
    Cost of production c/d
    2,42,000
    2,05,000
    Less:
    Returns
    2,00,000
    5.000
    Packing materials *
    15,000
    Wages
    55,000
    Carriage inwards
    9,000
    " Depreciation - plant
    3,000
    3,22,000
    3,22,000
    Rs. Opening stock (Finished goods) 10,000
    Rs. Sales 4,10,000
    To
    By
    Cost of production for the year 2,42,000
    Less: Returns 10.000
    4,00,000
    b/d
    " Gross profit c/d
    1,68,000
    " Closing stock (Finished goods) 20,000
    4,20,000
    4,20,000
    Rs. Salaries
    Rs. Gross profit b/d
    To
    22,000
    By
    1,68,000
    Insurance
    2,500
    " Miscellaneous income
    5,000
    " Rent
    7,000
    " Printing and stationery
    4,000
    " Rates and taxes
    3,000
    " Office expenses
    4,000
    ' Interest and bank charges
    8,000
    " Salesmens travelling expenses 10,000
    " General expenses
    1,000
    Audit fees
    2,000
    " Advertisement
    6,000
    " Legal charges
    36,000
    " Interest on loan
    25,000
    " Provision for doubtful debts
    7,000
    " Depreciation on furniture
    1,200
    Net profit c/d
    34,300
    Rs.
    1,73,000
    Rs.
    1,73,000
    4. From the particulars given below, prepare in vertical format a statement showing cost of
    production and gross profit.
    Particulars
    Rs.
    Purchase of Raw Material
    6,000
    Opening Stock
    Raw Material
    6,000
    Finished Goods
    10,000
    Work in Progress
    2,000
    Carriage on Raw Material
    300
    Raw Material - Returns
    500
    Repairs - Plant Machinery
    300
    Factory Rent and Taxes
    500
    2 | Page

    FYBFM SEM II
    Depreciation Factory Building
    Electric Power Consumed
    Sales
    Manufacturing Wages
    Sales - Returns
    Depreciation on Plant and Machinery
    Factory Insurance
    The Closing Stock on 31-12-2014
    Raw Material
    Work in Progress
    Finished Goods

    FINANCIAL ACCOUNTING II
    150
    1,000
    22,000
    2,000
    600
    400
    250
    3,000
    2,500
    10,000

    5. Manufacturing, Trading and Profit and Loss Account for the year ended 31st March 2015
    Rs.
    Rs.
    Rs.
    Rs.
    To Opening stock:
    By Cost of production
    Raw materials:
    40,000
    transferred to:
    Purchases
    11,00,000
    Trading a/c
    12,30,900
    Less: Returns
    10,000
    10,90,000 Closing stock:
    " Wages
    72,000
    Raw materials
    20,000
    " Carriage inward
    6,000
    " Power and fuel
    17,200
    Water charges "
    6,300
    Stores
    2,000
    " Repairs to machinery
    3,200
    " Depreciation
    14,200
    (Machinery & factory
    assets)
    Rs.
    12,50,900
    Rs.
    12,50,900
    To Cost of production
    12,30,900 By Sales
    14,80,000
    "b/d
    Gross profit c/d
    2,35,100
    Less: Returns
    14,000
    14,66,000
    Rs.
    14,66,000
    Rs.
    14,66,000
    To Salaries
    48,000
    By Gross profit b/d
    2,35,100
    " Rent
    2,400
    " Discount
    500
    " Advertisement
    expenses " Bad debts
    5.000
    1.000
    " Carriage outward
    7,600
    Printing and
    4,000
    "stationery
    General expense
    35,800
    " Insurance
    6,200
    Provision for doubtful
    debts
    22,450
    " Provision for discount
    on debtors
    8,531
    Net profit transferred
    to capital a/c
    94,619
    Rs.
    2,35,600
    Rs.
    2,35,600
    3 | Page

    FYBFM SEM II

    FINANCIAL ACCOUNTING II

    6. Rearrange the following profit and loss account in vertical form.


    Profit and loss account for the year ended 31st March 2015
    Particulars
    Rs.
    Particulars
    To Opening Stock
    40,200
    By Sales
    19,40,000
    Purchases less returns
    16,50,260
    Less returns 4800
    Electricity Power
    28,100
    Closing stock
    Carriage Inward
    5,120
    Rs.
    Wages
    35,212
    Gross Profit c/d
    2,03,408
    Rs.
    19,59,300
    To Rates and taxes
    2,500
    By Gross profit b/fd
    Salaries
    38,240
    " Bad debts recovered
    " Lighting
    6,210
    " Office rent
    6,000
    " Travelling expenses of
    2,220
    salesmen
    Insurance
    1,000
    " Advertising
    39,550
    " Bad debts
    16,050
    Discount
    5,705
    " General expenses
    11,265
    " Postage and telegram
    3,000
    " Depreciation:
    Plant
    3,916
    Furniture
    1,560
    " Audit fees
    1,200
    Loss on sale of machinery
    33,250
    " Net profit c/d
    33,742
    Rs. 2,05,408
    Rs.
    7. Convert the following final accounts in the vertical form:
    Balance Sheet as on 31st March 2015
    Liabilities
    Rs.
    Rs.
    Assets
    Outstanding
    25,100
    Cash on hand
    expenses
    Sundry creditors
    69,000
    Income receivable
    Income reed, in
    4,000
    Sundry debtors
    advance
    Bank
    overdraft
    80,000
    Loan to Nayan
    Loan from Ganga
    80,000
    Investments
    Capital a/c Balance
    2,00,000
    Stock
    Less: Drawing
    38,000
    Prepaid expenses
    1,62,000
    Furniture
    Add: Net profit for
    Less: Depreciation
    the year
    20,400
    1,82,400
    Office equipments
    Less: Depreciation
    Delivery van
    4 | Page

    Rs.

    6,000
    900
    8,000
    1,200
    24,000

    Rs.
    19,35,200
    24,100
    19,59,300

    19,59,300
    2,03,408
    2,000

    2,05,408

    Rs.
    2,000
    9,000
    97,000
    40,000
    26,000
    1,50,000
    2,000
    5,100
    6,800

    FYBFM SEM II

    Rs.

    4,40,500

    FINANCIAL ACCOUNTING II
    Less: Depreciation
    2,400
    21,600
    Plant and machinery 90,000
    Less: Depreciation
    9,000
    81,000
    Rs.
    4,40,500

    Trading and Profit and Loss for the year ended 31st March 2015
    Particulars
    Rs.
    Rs.
    Rs.
    6,20,000
    Gross sales
    Less: Returns
    12,000
    6,08,000
    Net sales
    Less: Cost of goods sold
    Opening stock
    80,000
    Add: Purchases
    3,70,000
    Less: Returns
    10,000
    3,60,000
    Wages
    1,10,000
    Add: Outstanding
    10,000
    1,20,000
    Power and Fuel
    44,000
    Add: Outstanding
    4,000
    48,000
    Carriage inwards
    20,000
    6,28,000
    Less: Closing Stock
    1,50,000
    4,78,000
    1,30,000
    Gross Profit
    Less: Operating Expenses
    (1) Administrative Expenses:
    Salaries
    42,000
    Rent
    24,000
    Insurance
    12,000
    Bank charges
    500
    78,500
    (II) Selling and Distribution Expenses:
    31,000
    Salesmens
    Commission
    Carriage
    Outward
    14,000
    Bad Debts
    4,000
    Provision for Bad Debts
    7,000
    Discount
    1,000
    57,000

    5 | Page

    FYBFM SEM II

    FINANCIAL ACCOUNTING II

    8. Convert the following final accounts in the vertical format


    Rs.
    Rs.
    To Opening stock of
    60,000
    By Cost of production
    work-in-progress
    c/d
    " Closing
    " Raw materials
    Closing
    stockstock
    of of
    work-in-progress
    consumed:
    Opening stock
    1,20,000
    Add: Purchases 1,95,000
    Less: Returns 12,000
    1,83,000
    3,03,000
    Less: Closing stock
    90,000
    2,13,000
    " Carriage inward
    1,500
    " Wages
    73,500
    " Salary to factory staff
    9,600
    Motive power
    9,000
    " Factory taxes
    3,600
    Factory insurance
    4,500
    Less: Prepaid
    900
    3,600
    Rs.
    3,73,800
    To Opening stock
    By Sales
    of finished goods
    2,10,000
    Less: Returns
    " Cost of production b/d
    3,49,800
    Closing stock of
    finished goods
    " Gross profit c/d
    3,14,700
    Less: Goods sold but not
    adjusted
    Rs.
    8,74,500
    To Advertisement
    By Gross profit b/d
    expenses
    1,800
    " Discount
    " Salary
    10,800
    " Discount on creditors
    ' Bank charges
    300
    " Provision for doubtful
    " Discount
    2,400
    debts
    " Office rent
    10,800
    Insurance and taxes
    6,900
    " Miscellaneous expenses
    3,300
    " Printing and stationery
    4,200
    ' Interest on capital
    37,500
    " Discount on debtors
    1,197
    " Net profit transferred to
    2,41,851
    capital a/c
    Rs.
    3,21,048

    6 | Page

    Rs.

    Rs.
    3,49,800
    24,000

    Rs.
    6,90,000
    5,100
    1,95,000

    3,73,800

    5,400
    Rs.

    1,89,600
    8,74,500
    3,14,700
    1,800
    1,098

    6,84,900

    3,450

    Rs.

    3,21,048

    FYBFM SEM II
    Liabilities
    Bills payable
    Sundry creditors
    Add: Endorsed bill
    dishonoured

    FINANCIAL ACCOUNTING II
    Rs.

    Rs.
    15,000

    36,600
    6,000
    42,600

    Less: Discount
    @ 3% on Rs. 36,600
    Capital
    Less: Drawings
    Add: Interest on capital
    Net profit for the year

    1,098
    7,50,000
    21,000
    7,29,000
    37,500
    2,41,851

    Assets
    Cash in hand
    Bank of India
    Bills receivable
    Sundry debtors
    Add: Endorsed bill
    dishonoured

    41,502
    Less: Provision for
    doubtful debts

    Rs.

    63,000
    6,000
    69,000
    3,450
    65,550

    Less: Provision for


    discount

    1,197

    64,353

    Closing stock:
    Raw materials
    Finished goods
    Work-in-progress

    90,000
    1,89,600
    24,000

    3,03,600

    Rs.

    900
    36,000
    30,000
    3,60,000
    1,50,000
    10,64,853

    10,08,351

    Prepaid factory
    insurance
    Furniture
    Patents
    Plant & machinery
    Building
    Rs.

    7 | Page

    Rs.
    4,100
    1,03,000
    12,900

    10,64,853

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