1. M-Com Part – II, MMS, BMS, B.Com, BMM
Financial Management Notes compiled by Prof. M.B. Thakoor
_____ Ltd.
VERTICLE REVENUE STATEMENT FOR THE YEAR ENDED ………….
Particulars Amount Amount Amount
Gross Sales 22 x
Less : Return Inward 2x
Add. : Sales Tax / Excise x 3x
NET SALES 19 x
Less : Cost of Sale /
Cost of Goods Sold
Material consumed X
Opening Stock
Add. : Purchases 2x
Less : Return Outward x X
Add : Carried Inward X
Import duty X
4X
Less : Closing Stock X
Material Consumed 3X 3X
Add : Manufacturing Expenses
Direct Wages X
Direct Expenses X
Power & fuel X
Depreciation on Factory Asset X
Other Factory expenses X
5X
Add. : Opening Stock of W.I.P. X
6X
Less : Closing Stock of W.I.P. X
5X
Less : Sale of factory Scrap X
Manufacturing Expenses 4X
COST OF PRODUCTION 7X
Add.: Opening Stock of Finished goods X
8X
Add.: Purchase of Finished goods 2X
Less : Purchase Return X X
9X
Less : Closing Stock of Finished Goods X
Cost of Sale / Cost of Goods Sold 8X 8X
Gross Margin / Gross Profit 11 X
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2. M-Com Part – II, MMS, BMS, B.Com, BMM
Financial Management Notes compiled by Prof. M.B. Thakoor
Add. : OPERATING INCOME
1) Discount Received X
2) Commission Received X 2X
13 X
Less : OPERATING EXPENSES
1) Administrative Expenses X
2) Financial Expenses X
(Other than interest)
3) Selling and Distribution Exp. X 3X
OPERATING NET PROFIT / 10 X
NET OPERATING PROFIT
Add.: Non Operating Income
1) Profit on Sale of Fixed Asses X
2) Income from Investment X 2X
12 X
Less : Non-Operating Expenses
1) Loss on Sale of Fixed Asset X
2) Loss of Fire / Theft / Accident X
3) Goodwill written off X
4) Preliminary Expenses Written X
Off
5) Advertisement Expenses X 5X
Written Off
Earning Before Interest & Tax (EBIT) 7X
Less: Interest on loan / Debenture X
Earning Before Tax (EBT) 6X
Less : Provision for Taxation X
Earning After Tax (EAT) 5X
STATEMENT OF RETAINED EARNING
Particulars Amount Amount Amount
Opening Balance X
Add.:Earning After Tax (EAT) 5X
6X
Less : Appropriations
i) Transfer to General Reserve X
ii) Transfer to Sinking Fund X
iii) Transfer to any other fund X
iv) Preference Dividend X
v) Equity Dividend X 5X
BALANCE C/FD. TO NEXT YEAR OR
RETAINED SURPLUS OR RETAINED EARNING 1X
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3. M-Com Part – II, MMS, BMS, B.Com, BMM
Financial Management Notes compiled by Prof. M.B. Thakoor
NAME OF THE COMPANY
VERTICAL BALANCE SHEET AS ON …………
Particulars Amount Amount Amount
TOTAL FUNDS EMPLOYED BY
OR
SOURCES OF FUNDS
A) Shareholders Funds or
Owners Funds or
Proprietors Funds
Paid up capital
Preference Share Capital xxx
Equity Share Capital xxx xxx
Add : Reserve And Surpluses
i) Profit and Loss a/c. (cr.Bal.) xxx
ii) General Reserve xxx
iii) Reserve Fund xxx
iv) Dividend Equalisation Fund xxx
v) Share Premium xxx
vi) Capital Reserve xxx
vii) Capital Redemption Reserve xxx
viii) Other Reserve xxx
ix) Sinking Fund xxx xxx
Less : Losses
i) Profit & Loss a/c. (Debit Bal.) xxx
ii) Misc. Expd.
(not written or not adjusted)
iii) Preliminary Expenses xxx
iv) Disc. on issue of share & deben. xxx
v) Deferred Advertisement exp. xxx
vi) Share issue expenses xxx xxx xxx
(A) / shareholder’s funds / Owners
funds / Proprietors funds OR
Shareholders equity /Owners equity / xxx
Proprietors Equity
(B) Loan Funds or Long Term Loans &
Commitment
i) Long Term Loans -
a) Secured Loans
i) Debenture xxx
iv) Term Loan from Bank xxx
v) Loans from Financial Institutions xxx
iii) Public Deposit xxx
b) Unsecured Loan
i) Short Term Loans xxx Xxx
Total funds employed by or sources of Xxx
funds
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4. M-Com Part – II, MMS, BMS, B.Com, BMM
Financial Management Notes compiled by Prof. M.B. Thakoor
Note: Do not consider any provision against an asset or liability in reserve. For ex.
Prov. For Deprn. / Dep. Reserve / Sinking Fund / Worksmen compensation fund.
Particulars Amount Amount Amount
TOTAL FUNDS EMPLOYED AS
OR
APPLICATION OF FUNDS OR
REPRESENTED BY
A) Fixed Assets:-
(i) Intangible:-
a. Goodwill xxx
b. Patents & Trade Mark xxx
c. Lease tend right xxx
d. Copy Rights xxx
xxx
Less Written Off xxx xxx
(ii) Tangible:-
a. Land & Bldg. xxx
b. Plant & Machinery xxx
c. Furniture & Fixture xxx
d. Motor Car xxx
e. Live Stock xxx
Gross Block (At cost) xxx
Less: Provision for Dep. (upto date) xxx
Net Block xxx
Add: Capital Work in Progress xxx
A)Total Fixed Asset xxx
B) Investments (Long Term) xxx
Total C/fd. Xxx
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5. M-Com Part – II, MMS, BMS, B.Com, BMM
Financial Management Notes compiled by Prof. M.B. Thakoor
Total B/fd. (A + B) xxx
C) WORKING CAPITAL /
NET CURRENT ASSETS
(i) Current Assets:-
(A) Quick Assets:
Cash & Bank xxx
Debtors xxx
Bill receivable xxx
Short term investment xxx
Int. accrued on investment xxx xxx
(B) Non quick assets
Stock in trade xxx
Prepaid expense xxx xxx
i) Current Assets xxx
Less: ii) Current Liabilities:-
(A) Quick Liabilities
Creditor xxx
Bill payable xxx
O/s. Expenses xxx
Provision for Taxes xxx
Proposed Dividend xxx
Unclaimed Dividend xxx
Accrued interest on loan taken xxx xxx
Short Term Loan xxx
(B) Non Quick Liabilities:
Bank Overdraft xxx xxx
ii) Current Liabilities xxx
(i – ii ) = working capital = C xxx
OR Net Current Assets
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