Financial Accounting – Alaknanda Lonare

Vertical Balance Sheet and Vertical Revenue Statement

Schedule VI - Part I- Vertical Format of Balance sheet
Balance Sheet of ---name of the company--
As at ---- Date--

Particulars Notes Current Previous

No. Year Year
I) Equity and Liabilities:

1. Shareholder’s Funds
 Share Capital
 Reserves and Surplus

2. Non-Current Liabilities:
 Long Term Borrowings
 Deferred Tax Liabilities
 Long Term Provisions
 Other Long Term Liabilities

3. Current Liabilities:
 Short Term Borrowings
 Trade Payables
 Other current Liabilities
 Short term provisions
Total
II) Assets:

1. Non-Current Assets:
 Fixed Assets:
i. Tangible Assets
ii. Intangible Assets
iii. Intangible Assets under development
iv. Capital Work in progress

 Non-Current Investment
 Long term loans and Advances
 Other Non-Current Assets

2. Current Assets:
 Current Investment
 Inventories
 Trade Receivables
 Cash and Cash Equivalents
 Short term loans and Advances
 Other Current Assets
Total
Financial Accounting – Alaknanda Lonare

Schedule VI - Part II- Vertical Format of Income Statement

Income Statement of ---name of the company--
For the Year Ended -----Date----

Particulars Notes Current Previous

No. Year Year
I) Revenue from Operation

II) Other Income

III) Total Revenue (I+II)

IV) Expenses:
i. Cost of Material Consumed
ii. Purchase of Stock in trade
iii. Employee Benefit Expenses
iv. Finance Cost
v. Depreciation and Amortization Expenses
vi. Other Expenses

Total Expenses

V) Profit before exceptional and extraordinary items

and tax (III - IV)

VI) Exceptional Items

VII) Profit before Extraordinary items and tax (V-VI)

VIII) Extraordinary items

IX) Profit before tax (VII - VIII)

X) Tax Expenses

XI) Profit (Loss) for the period (IX - X)

XII) Earnings per Equity Share (in rupees)

 Basic
 Diluted

Q.1. From the following particulars, prepare a balance sheet of Mr.Venugopal as on 31st December 2018.

Capital 40,000 Drawings 4,400

Debtors 6,400 Creditors 4,200
Cash in hand 360 Cash at bank 7,200
Furniture 3,700 Plant 10,000
Net profit 2,660 Closing stock 14,800
Financial Accounting – Alaknanda Lonare

Q.2. Following is the profit and loss account of Sun Ltd. Prepare Income statement in vertical format.

Profit and loss Account for the year ended 31st March 2019
Particulars Amount Particulars Amount
To Cost of goods sold 4,63,000 By Sales 7,21,000
To Administrative Expenses 46,000 Less: Returns 11,000
To Selling Expenses 91,000 7,10,000
To Other Expenses: By Other Incomes:
 Interest Paid 4,000  Interest 3,000
 Loss on sale of fixed items 4,000  Discount 4,000
To Income tax 42,000  Profit on sale of land 3,000
To Net Profit 70,000
7,20,000 7,20,000

Q.3. Prepare Income statement and Balance Sheet of Mr.Venkat as on 31st March 2019 in vertical format.

Particulars Debit (Rs.) Credit (Rs.)

Venkat’s Capital 53000
Free hold premises 45000
Goodwill 20000
Plant and Machinery 17000
Opening stock 18000
Bills receivable and payable 4000 6000
Sundry debtors and creditors 16000 24000
Purchases and sales 80000 1,50,000
Returns 1000 2000
Carriage outwards 500
Freight, duty etc 1200
Manufacturing wages 22800
Office expenses 1800
Factory expenses 6000
Cash in hand 700
Salaries 24000
Discount 9000
Commission 2500
Stationery and printing 4500
Long term Loans 39000

2,74,000 2,74,000

Closing stock was valued at Rs.70,000.

Financial Accounting – Alaknanda Lonare

Q.4. From the following Trial Balance of Radhe Shyam Prepare Revenue Statement for the year ending
31st December, 2018 and Balance Sheet as on that date.

Debit Balances Amount (Rs.) Credit Balance Amount (Rs.)

Stock (1-1-2018) 2,00,000 Sundry Creditors 1,50,000

Purchases 7,50,000 Purchases Return 30,000

Sales Return 80,000 Sales 25,00,000

Carriage 75,000 Commission 33,000

Wages 3,65,000 Capital 17,00,000

Salaries 1,20,000 Interest on Bank Deposit 20,000

Repairs 12,000 Bills Payable 62,000

Trade Expenses 40,000

Rent and Taxes 2,40,000

Cash in Hand 57,000

Bills Receivable 40,000

Sundry Debtors 5,50,000

Plant and Machinery 16,00,000

Withdrawals (Drawings) 1,66,000

Bank Deposit 2,00,000

44,95,000 44,95,000

The Closing Stock on 31st December, 2018 was valued at Rs. 2,50,000.