Financial Management

Notes Compiled by Prof. M.B. Thakoor

M/S ___________________________ LTD. VERTICAL BALANCE SHEET AS ON ________________ PARTICULARS TOTAL FUNDS EMPLOYED BY OR SOURCES OF FUNDS
(A) PROPRIETORS FUNDS OR SHAREHOLDERS FUND OR OWNERS FUNDS

AMT AMT AMT

PAID UP CAPITAL
Preference Share Capital Equity Share Capital ADD: RESERVES AND SURPLUSES 1. Profit and Loss A/c XXX 2. General Reserve A/c XXX 3. Reserve Fund A/c XXX 4. Dividend Equalisation Fund A/c XXX 5. Share Premium A/c XXX 6. Capital Reserve A/c XXX 7. Capital Redemption Reserve A/c XXX LESS: LOSSES 1. Profit & Loss A/c (Debit Balance) XXX 2. Preliminary Expense XXX 3. Disc. On Issue of Share & Deb. XXX 4. Deferred Advertisement Expenses XXX (B) LOAN FUNDS OR LONG TERM LOANS AND COMMITMENTS : 1. Secured Loans 2. Debentures 3. Term Loan from Bank 4. Other Unsecured Loan a. Fixed Deposit b. Loan and Adv. from subsidiary c. Short Term Loan & Advances

XXX XXX

XXX

XXX

XXX

XXX XXX
XXX XXX XXX

XXX XXX XXX

XXX

TOTAL FUNDS EMPLOYED / SOURCES OF FUNDS (A + B)

(1)

XXX XXX

Notes Compiled by Prof. M. B. Thakoor

Financial Management

Notes Compiled by Prof. M.B. Thakoor

(2)

Notes Compiled by Prof. M. B. Thakoor

Financial Management

Notes Compiled by Prof. M.B. Thakoor

M/S ___________________________ LTD. VERTICAL BALANCE SHEET AS ON ________________ PARTICULARS TOTAL FUNDS EMPLOYED AS OR APPLICATION OF FUNDS OR REPRESENTED BY (A) FIXED ASSETS (1) INTANGIBLE:
(a) (b) (c) (d) Goodwill Patents & Trade Marks Copy Rights Lease Hold Mining Rights

AMT AMT AMT

Less: Written Off

XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

(2) TANGIBLE:
(a) (b) (c) (d) (e) (f) Land & Building Plant & Machinery Motor Car Furniture & Fixture Lease Hold Premises Live Stock

GROSS BLOCK (AT COST) XXX Less: Prov. For Depreciation XXX XXX NET BLOCK (1+2) (3) CAPITAL WORK IN PROGRESS (A) FIXED ASSETS [(1+2)+3] (B) INVESTMENTS (AT COST) [LONG TERM] (1) In Government & Trust Securities (2) In shares, debentures or bond (3) In Immovable Properties (4) In Capital of Partnership Firm (5) In Subsidiary Companies
(3)

XXX XXX XXX XXX XXX XXX XXX XXX XXX

Notes Compiled by Prof. M. B. Thakoor

Financial Management

Notes Compiled by Prof. M.B. Thakoor

(C) WORKING CAPITAL (I) CURRENT ASSET (A) QUICK ASSETS:

(1) (2) (3) (4) (5) (1) (2) Cash and Bank XXX Debtors XXX Less: R.D.D. XXX XXX Bill Receivable XXX Short Term Investment XXX Interest Accrued XXX XXX on Investment Stores and Spares Stock in Trade (a) Raw Material (b) W.I.P. (c) Finished Goods Prepaid Expense Loose tools XXX XXX XXX XXX XXX XXX XXX XXX

(B) NON-QUICK ASSETS:

(3) (4)

(A)+(B) TOTAL CURRENT ASSETS LESS: (II) CURRENT LIABILITIES (A) QUICK LIABILITIES
i) Creditors ii) Bills Payable iii) Outstanding Exp. iv) Short Term Loan v) Provision for taxation vi) Proposed Dividend vii) Unclaimed Dividend viii) Interest Accrued but not due XXX XXX XXX XXX XXX XXX XXX XXX XXX

XXX

(B) NON-QUICK LIABILITIES (i) Bank Overdraft XXX

(A)+(B) TOTAL CURRENT LIABILITIES WORKING CAPITAL = I II i.e. CA CL REPRESENTED BY / FUNDS EMPLOYED AS / APPLICATION OF FUND
(4)

XXX XXX XXX

Notes Compiled by Prof. M. B. Thakoor

Financial Management

Notes Compiled by Prof. M.B. Thakoor

M/S. ____________________ LTD

VERTICAL REVENUE STATEMENT FOR THE YEAR ENDED

AMT GROSS SALES LESS: Returns & Allowances NET SALES Opening Stock Add: NET PURCHASES i.e. Purchases Less Return Outwards Add: Expenses incidental to purchases (a) Carriage Inward (b) Import Duty (c) Freight (d) Octroi duty (e) Loading & Unloading Charges Add: MANUFACTURING EXPENSES (a) Wages & Salaries (b) Depreciation on Plant & Machinery (c) Depreciation on Factory Assets (d) Expenses which are debited to Manufacturing A/c Less: CLOSING STOCK GROSS MARGIN LESS: OPERATING EXPENSES (i) Office and Administrative Exp. (ii) Finance Expenses (Other than interest on loan & Deb.) (iii) Selling & Distribution Exp. OPERATING NET PROFIT C/F
(5)

AMT AMT 20X 2X 18X XXX

XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

XXX

XXX

XXX XXX XXX X X X 3X 15X 7X 11X

Notes Compiled by Prof. M. B. Thakoor

Financial Management

Notes Compiled by Prof. M.B. Thakoor

OPERATING NET PROFIT B/F ADD: NON-OPERATING INCOME

LESS: NON-OPERATING EXPENSES

15X X 16X X 15X

Earnings Before Interest & Tax (i.e. EBIT) OR Net Profit Before Interest & Tax LESS: INT. ON LOAN & DEBENTURES EARNINGS BEFORE TAX LESS: PROVISION FOR TAXATION EARNING AFTER TAX

X 14X X 13X

STATEMENT OF RETAINED EARNINGS

OPENING BALANCE OF P & L APPROPRIATION A/C 2X ADD: EARNING AFTER TAX LESS: APPROPRIATIONS (i) TRANSFER TO GENERAL RESERVE (ii) PROPOSED DIVIDEND ON PREF. SHARES (ii) PROPOSED DIVIDEND ON EQUITY SHARES RETAINED EARNING (CARRIED FORWARD TO RESERVES & SURPLUSES) X X X

13X 15X

3X 12X

(6)

Notes Compiled by Prof. M. B. Thakoor