Sr No Date Business Activity

1 1-Jan-19 You started a business with 1cr as equity and 50 lacs as loan @ 13% P.A as
interest payable in 20 years
2 2-Jan-19 You invested 25 Lacsin FD for 2 years. Interest rate 10% paid anually
3 2-Jan-19 You bought a machinery at a cost of 15 lacs with a usefull life 10 years and
salvage value of 0
4 2-Jan-19 You paid rent of 12 lacs anually, which includes 9 lacs of rent for 2019 and
deposit of 3 lacs
5 3-Jan-19 You receive 30 lacs as consulting income for 2 years
6 8-Jan-19 You receive 50 telivisons at a cost of 25 thousand. 50% paid in cash and 50% to
paid next year
7 13-Jan-19 Spent 30 thousand on marketing expenses
8 18-Jan-19 Sell 25 telivisions at 50 thousand each
9 23-Jan-19 Hire three workers at a salary of 12 lacs in total to be paid in 70% in cash and
30% to be paid next year
10 31-Dec-19 Interest Income and Expense paid. Asset depreciated.

Prepare the Income Statement, Balance Sheet and Cash Flow Statement as on 31-12-2019
 Income Statement Balance Sheet
Liability Mo-0 Mo-1 Assets Mo-0
consulting income 1500000 debt @ 13% 5,000,000 cash
sales 1250000 defferd revenue 1,500,000 fixed deposits @ 10%
interest income 250,000 ACCOUNTS PAYABLE 625,000 MACHINERY
salaries payable 360,000 rent deposits
inventory
dep 150,000
rent expenses 900,000
marketing expenses 30,000
cogs 625000
salaries 1,200,000 shareholders equity 10,000,000
interest expenses 650,000 reatained earnings (555,000)
pat (555,000) total liability 16,930,000 total assets

check

840,000
 CASH Cash Flow Statement
Mo-1
12,155,000 10,000,000 net income (555,000)
2,500,000 5,000,000 add: dep 150,000
1,350,000 (2,500,000) change in inventory (625,000)
300,000 (1,500,000) change in def revenue 1,500,000
625,000 (1,200,000) change in accounts payable 625,000
3,000,000 change in salaries payable 360,000
(625,000)
(30,000) cfo 1,455,000
1,250,000
(840,000) fixed deposits (2,500,000)
(650,000) rent deposits (300,000)
16,930,000 250,000 machinery (1,500,000)
12,155,000 cfi (4,300,000)

- equity 10,000,000
debt 5,000,000
cff 15,000,000

net change in cash flow 12,155,000

cash bop -
cash eop 12,155,000