No.

I
1.

(A)

+ (B)

- (C)

2.
(A)

CHAPTER 1 (MANAGEMENT ACCOUNT)

ANALYSIS & INTERPRETATION OF FINANCIAL STATEMENT
In The Books Of ___________________
VERTICAL BALANCE SHEET
As On ______________________
PARTICULARS
Rs.
SOURCES OF FUNDS
SHAREHOLDERs FUNDS / OWNERs FUNDS/ OWNED
FUNDS/ PROPRIETORs FUNDS
SHARE CAPITAL :
Equity share capital / Capital of Proprietor or Partner
Preference share capital
LESS : Calls in Arrears / Drawings of Proprietor /
Partner
ADD : Forfeiture of Shares or Fresh Capital by Prop. /
Partner
(A)
RESERVES & SURPLUS :
Capital Reserve
Capital Redemption Reserve
Security Premium / Share premium
Investment Allowance Reserve
Development Rebate Reserve
General Reserve
Other Reserve
Profir & Loss Account (Cr.)
Sinking Fund / Other Funds
LESS : Fund Investment
(B)
MISCELLANEOUS EXPENSES / FICTITIOUS ASSETS
Profit & Loss A/c (Dr.)
Misc. Expenditure not w/of
Preliminary Expenses
Formation Expenses
Underwriting commission
Share Issue Expenses
Discount on issue of shares or denetures
Deferred Revenue Expenditure
(C)
(Net Worth) (A + B C) (1)
BORROWED / LOAN / OWED FUNDS :

XX
XX
(XX)
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
(XX)
XX
XX
XX
XX
XX
XX
XX
XX
XX
(XX)
XX

SECURED LOANS :
Debentures
Bonds
Loan from Banks
Loan from Financial Institutions
(A)

(B)

Rs.

UNSECURED LOANS :
Public Deposits
Directors Loan

[1]

XX
XX
XX
XX
XX

(B)
(A + B) (2)

II
1.
(A)

(B)

2.

Total Funds Available / Capital Employed ( 1 + 2)

APPLICATION OF FUNDS
FIXED ASSETS (NET)
TANGIBLE :
(i) COST (GROSS BLOCK):
Land & Building
Leasehold Premises
Freehold Premises
Plant & Machinery
Furniture & Fittings
Office Equipment
Vehicles
COST (i)
Less :
(ii) DEPRECIATION
Building
Premises
Plant & Machinery
Other Fixed Assets
DEPRECIATION (ii)
(net block / WDV) (i ii) (A)
INTANGIBLE :
Goodwill
Patents
Trademarks & Designs
Copy right
(B)
(A + B) (1)
CAPITAL
WORK
IN
PROGRESS
(2)

XX
XX
XX
XX
XX

XX
XX
XX
XX
XX
XX
XX
XX

XX
XX
XX
XX
(XX)
XX
XX
XX
XX
XX
XX
XX
XX

3.

4.
(A)

LONG TERM INVESTMENTS :

Invst. In govt. securities (shares,debentures, bonds)
Invst. In immovable property
Invst. In Capital of Partnership Firm
Long Term loans given
Sinking Fund Investments
Lease Fund Investments
(3)
WORKING CAPITAL (NET CUURENT ASSET) :
CURRENT ASSETS :
(i) QUICK ASSETS :
Cash in hand
Bank balance

[2]

XX
XX
XX
XX
XX
XX
XX

XX
XX
XX

Debtors (net)
Bills Receivable
Short term loans & Advances given
Accrued income or Income Receivable
Short term or Marketable or Liquid investments

XX
XX
XX
XX
XX
(i)

(ii) NON QUICK ASSETS :

Stock / Inventory
Stock of Raw Material
Stock of Work in Progress
Prepaid Expenses
Advance for goods
Advance Tax
(ii)
(i + ii) (A)

- (B)
CURRENT LIABILITIES :
(i) QUICK LIABILITIES :
Creditors
Bills Payable
Advances Received
Outstanding Expenses
Provision for Taxation
Proposed dividend
Unclaimed dividend

XX
XX
XX
XX
XX
XX
XX
XX

XX
XX
XX
XX
XX
XX
XX
XX
(i)

(ii) NON QUICK LIABILITIES :

Bank Overdraft
Income received in Advance
(ii)
(i + ii) (B)
Net Current Assets / Working Capital (A B) (4)
Total Assets or Total Funds Employed (1+2+3+4)

XX
XX
XX
(XX)
XX
XX

VERTICAL REVENUE STATEMENT (PROFIT & LOSS)

FOR THE YEAR ENDED ______________________
No.
1.

PARTICULARS

Rs.

GROSS SALES :
Cash
Credit
Gross sales
Less : Sales return / Return Inward

2.

Net Sales (1)

LESS : COST OF GOODS SOLD :
Opening stock of finished goods
Add : Purchase of Finished goods
Less : Purchase returns / Return Outwards

[3]

Rs.

XX
XX
XX
(XX)
XX
XX
XX
(XX)
XX

Add : Direct Expenses

Wages and Salary
Depreciation on Plant & Machinery
Depreciation on Factory Assets
Carriage / Carriage Inward / Carriage on Purchases
Fright / Fright Inward / Freight on Purchases
Royalties
Factory Expenses
Manufacturing Expenses
Productive Wages / Direct wages
Power and Fuels
Gas and water
Heating and Lighting
Import duty
Custom duty
Excise duty
Dock charges
Works Managers Salary
Foremens Salary
Supervisors Salary
Coal and Gas
Primary Materials
Primary Packing Materials
Design Expenses
Repairs of Factory Assets

3.
4.

5.
6.
(A)

Less :
Closing Stock of Finished Goods
Sale of factory Scrap
Goods destroyed by Fire / theft
Goods distributed as Free Samples
Goods Withdrawn by Proprietor / Partner
Cost of Goods Sold (2)
Gross Profit (1 2) (3)
Add : OPERATING INCOME
Discount received
Commission received
Bad debts recovered
(4)
Gross Operating Profit (3 + 4) (5)
Less : OPERATING EXPENSES :
OFFICE & ADMINISTRATIVE EXPENSES :
Salaries and wages
Depreciation on Office Assets
Staf salaries
Rent
Rates and taxes
Insurance

[4]

XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
(XX)
(XX)
XX
XX
XX
XX
XX
XX

XX
XX
XX
XX
XX
XX

Electricity charges
Legal charges
Audit fees
Printing and stationery
Postages and telegrams
Telephone charges
Directors remuneration or fees
Repairs and renewals
Sundry / general / miscellaneous expenses
Other office and administrative expenses
(B)

(C)

7.
8.

9.
10.

(A)

XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX

(B)

XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX

SELLING & DISTRIBUTION EXPENSES :

Salesmens salary
Depreciation on Delivery Van
Commission to salesmen
Rent of Shop
Show-rooms rent
Exhibition expenses
Trade fair Expenses
Advertisement & Publicity
Travelling & Conveyance
Carriage outward / carriage on sales
Freight outward / freight in sales
Packing and wrapping charges
Bad Debts (Normal)
Discount Allowed
FINANCE CHARGES :
Cash discount
Bad debts (Abnormal)
Bank charges
Interest Paid
(C)
Total Operating Expenses (A + B + C) (6)
Net Operating Profit (5 6) (7)
Add : NON OPERATING INCOME :
Interest received on investments
Dividend received / Share transfer fees
Profit on sale of Investments
Profit on sale of Assets
Compensation received / awarded by court
(8)
(7 + 8) (9)
Less : NON OPERATING EXPENSES :
Lose by fire / theft
Loss on sale of investments
Loss on sale of Assets
Fines

[5]

XX
XX
XX
XX
XX
(XX)
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX

Penalties
Donations
Charity
Preliminary expenses w/of
Formation expenses w/of
Underwriting commission w/of
Compensation paid by order of court
11.
12.
13.
14.
15.
16.

XX
XX
XX
XX
XX
XX
XX
(10)
(9 10)

Net Profit Before Tax

(11)
Less
:
Income
Tax
(12)
Net Profit After Tax
(11
12) (13)
Balance b/f
from last year (P & L of Last year)
(14)
Profit Available for Appropriation
(13 + 14)
(15)
Less : APPROPRIATION :
Transfer to Reserves
Proposed equity dividend
Proposed preference dividend
(16)
Retained Earnings (15 -16 )

[6]

(XX)
XX
(XX)
XX
XX
XX
XX
XX
XX
(XX)
XX