Particulars I. Sources of Funds : 1. Owners' Funds : A). Capital : i). Equity Shares Capital ii).

Preference Share Capital Total Capital Add : B). Reserves and Surplus : i). Capital Reserve ii). Capital Redemption Reserve iii). Share Premium iv). General Reserve v). Profit & Loss A/C Cr. Balance vi). Sinking Fund / Other Funds Total Reserves and Surplus Less : C). Losses & Fictitious Assets : i). Profit & Loss A/C Dr. Balance ii). Misc. Expenditure not written off Preliminary Expenses Share issue Expenses Discount on issue of Shares & Debentures Deferred Revenue Expenditure Total Losses & Fictitious Assets Total Owners' Funds 2. Borrowed Funds : A). Secured Loans : i). Debentures or Bonds ii). Loans from Banks iii). Loans from other Financial Institutions

Rs.

Rs. l

Rs.

1000 1000

Total Secured Loans B). Unsecured Loans : i). Public Deposits (Fixed Deposits from Public) ii). Other Loans Total Unsecured Loans Total Borrowed Funds Total Funds Available / Capital Employed

II. Application of Funds : 1. Net Fixed Assets : A). Tangible : i). Land and Building (Cost) Less : Depreciation ii). Leaseholds (Cost) Less : Depreciation iii). Plant & Machinery (Cost) Less : Depreciation iv). Furniture & Fittings (Cost) Less : Depreciation v). Vehicles (Cost) Less : Depreciation Net Tangible Assets B). Intangible : i). Goodwill ii). Patents, Trademarks & Designs Net Intangible Assets C). Capital Work-in-Progress : Total Net Fixed Assets 2. Long Term Investments : i). Trade Investments ii). Investments in Immoveable Properties

iii). Investments in Capital of Partnership Firms 3. Working Capital : Quick Assets : a). Cash & Bank b). Debtors (Net) c). Bills Receivable d). Accrued Income e). Short Term / Marketable Investments Total Quick or Liquid Assets Add : i). Inventory ii). Pre-Payments (Prepaid Expenses, Advance Tax etc..) Total Current Assets Less : Quick Liabilities a). Creditors b). Bills Payable c). Advances Received d). Outstanding Expenses e). Accrued Interest f). Provision for Taxation g). Unclaimed Dividend h). Proposed Dividend Total Quick Liabilities Add : Bank Overdraft Total Current Liabilities Net Current Assets or Working Capital Total Assets or Total Funds Employed

Sample Income Statement

Sunny Sunglasses Shop produced the below profit and loss statement for the accounting period of 2010.

Sunny Sunglasses Shop Profit and Loss Statement For the Year Ending December 31, 2010

Profit and Loss Statement|Sample Income Statement

Ratios

Ratio Balance Sheet Ratios

Formula Current Assets

1. Current Ratio Current Liabilities Quick Assets 2. Liquid Ratio Quick Liabilities Absolute Liquid Assets 3. Absolute Liquid Ratio Liquid Liabilities Proprietor's Funds 4. Proprietary Ratio Fixed Assets + Current Assets Funds entitled to fixed rate of interest or dividend 5. Capital Gearing Ratio Funds not so entitled to fixed rate of interest or dividend Stock 6. Stock - Working Capital Ratio Working Capital Long Term Debts 7. Debt Equity Ratio Shareholders' Funds OR Long Term Debts Shareholders' Funds + Long Term Debts Revenue Statement Ratio Gross Profit x 100 8. Gross Profit Ratio Net Sales Expenses Ratios Cost of Goods Sold x 100 9.a Cost of Goods Sold Ratio Net Sales Total Operating Expenses x 100 9.bOperating Expenses Ratio Net Sales Relevent Group of Expenses x 100 9.cGroup of Expenses Ratio Net Sales Individual Expenses x 100 9.dIndividual Expenses Ratio Net Sales Cost of Goods Sold + Operating Expenses x 100 10. Operating Cost Ratio Net Sales Operating Net Profit x 100 11. Net Profit Ratio Net Sales

OR Net Profit (Before Tax) x 100 Net Sales Cost of Good Sold 12. Stock Turnover Ratio Average Stock Combined Ratios 13. Return on Capital Employed or Investment 14. Return on Total Resources Fixed Assets + Current Assets Net Profit (After Tax) x 100 15. Return on Proprietors' Funds Proprietors' Funds Net Profit (After Tax) - Preference Dividend x 100 16. Return on Equity Capital Equity Share Capital Net Profit (After Tax) - Preference Dividend 17. Earning Per Share No. of Equity Shares Equity Dividend Paid x 100 18. Dividend Payout Ratio Net Profit (After Tax) - Preference Dividend Market Price of Share 19. Price Earning Ratio Earning Per Share Net Profit Before Tax + Interest 20. Interest Coverage Ratio Fixed Interest Net Credit Sales 21. Debtors' Turnover Ratio Average Creditors + Average Bills Payable Net Credit Purchases 22. Creditors' Turnover Ratio Average Debtors + Average Bills Receivable Average Debtors + Average Bills Receivable x 12 / 52 / 365 23. Average Collection Period Net Credit Sales Average Creditors + Average Bills Payable x 12 / 52 / 365 24. Average Payment Period Net Credit Purchases Sales 25. Fixed Assets Turnover Ratio Fixed Assets Fixed Assets 26. Fixed Assets to Turnover Ratio Sales Net Profit Before Tax + Interest x 100 Capital Employed Net Profit Before Interest & Tax x 100

Dividend Per Share x 100 27. Dividend Yield Ratio Market Value Per Share