Вы находитесь на странице: 1из 30

PROBLEM 2.

JOSHI INVESTED 10000 CASH


BROUGHT A CAR FOR CASH Rs 8000
FILLEDPETROL for RS.1000
ADV PAYMENT OF RS.1000
BROUGHT OFFICE SUPPLIES ON CREDIT RS 3000
RECEIVED CASH FOR SERVICES PROVIDED 8000
BILLED CUSTOMERS FOR SERVICES RS.6200
PAID OFFICE RENT RS4000
PAID AMT DUE IN PETROL EXPENSES
COLLECTED PAYMENT FROM CUSTOMERS BILLED IN (g)
PROVIDED SERVICES TO THE CUSTOMER IN 9(d)

ASSETS
CASH CAR OFFSUPPL TRADE RECEIVABLE
10000
2000 8000
1200 8000
2200 8000
2200 8000 3000
10200 8000 3000
10200 8000 3000 6200
6200 8000 3000 6200
6000 8000 3000 6200
10900 8000 3000 1300
10900 8000 3000 1300

BALANCE SHEET
ASSETS AMT
CASH 10900
CAR 8000
OFFICE SUPPLIES 3000
TRADERECEIVABLE 1300
TOTAL 23200

LIAB AND EQUITY


EQUITY 20200
TRADEPAYABLE 3000
TOTAL 23200

INCOME STATEMENT
REVENUE AMT AMT
REVENUE FR SALES
CASH SALES 8000
CREDIT SALES 6200
UNEARNED REVENUE 1000
15200 15200

EXPENSES
FUELEXPENSES 1000
RENT EXPENSES 4000
5000 5000
PROFIT 10200
LIAB EQUITY
LOAN PETROL ADV TRADEPAYBL
10000
10000
200 9000
200 1000 9000
200 1000 3000 9000
200 1000 3000 17000
200 1000 3000 23200
200 1000 3000 19200
1000 3000 19200
1000 3000 19200
3000 20200

STATEMENT OF CHANGES IN EQUITY

BEGINNING CAPITAL 10000


PROFITFORTHEYEAR 10200
20200

CASH FLOW STATEMENT


OPERATING ACTIVITIES
CASH COLLECTION 13900
FUEL EXPENSES -1000
RENT PMT -4000
8900 8900

INVESTING ACTIVITY
PURCHASEOFCAR -8000 -8000

FINANCING ACTIVITY
ISSUE OF SHARE CAPITAL 10000 10000
CASHANDCASHEQUIVALENT 10900
ASSETS
CASH
100000
120000
115000

STATEMENT OF CHANGES IN EQUITY

BEGINNING CAPITAL
PROFITFORTHEYEAR

PROFITTO SALESRATIO
41.33%
LIAB
LOAN

20000
20000 5000

MONEYCARE COMPANY
PROFITANDLOSS STATEMENT

REVENUE AMT
REVENUEFROMSALES 70800
CASH SALES 8700
CREDIT SALES 62100
INTEREST RECEIVED 460
TOTAL 71260

EXPENSES
RENT 5000
SALARY EXP 14000
COMPUTERRENTAL 12000
DATABASECHARGES 11000
TOTAL 42000
PROFIT 29260

100000 CASH FLOW STATEMENT


29260 OPERATING ACTIVITIES
129260 RENT
CASH COLLECTION
ADV MONEY
PUR OF OFFICE SUPPLIES
SALARY EXP
DATABASE
LEASE RENTAL
RENT DEPOSIT

INVESTING ACTIVITY
INT RECD

FINANCING ACTIVITY
ISSUEOFSHARES
LOAN FR BANK

CASH BALANCE
EQUITY

100000
100000
9

BALANCE SHEET
ASSETS AMT AMT
CASH BALANCE 39760
OFF SUPPLIES 1800
TRADE RECEIVABLE 46700
RENT DEPOSIT 70000
158260 158260
LIAB&EQUITY
CAPITAL 100000
PROFIT 29260 129260

LIAB
LOAN 20000
UNEARNED REVENUE 9000 29000
TOTAL 158260

CASH FLOW STATEMENT


-5000
24100
9000
-1800
-14000
-11000
-12000
-70000
-80700 -80700

460 460

100000
20000
120000 120000
39760 39760
ASSETS
CASH PATENT

80000 120000

INCOME STATEMENT
REVENUE AMT AMT
REVENUEFR SALES 598500

EXPENSES
INCORPORATION EXP 2500
LABOUR AND DEV 25000
SPARE PARTS CONFIRMED 197000
INTERESTEXP 500
MANUFACTURING SALARY 145000
OTHER MANUFACTURING COST 62000
SGA 63000
DEPRECIATION EXP 8500
DIVIDENT 5000
PATENT WRITTENOFF 20000
IT EXP 22500
551000 551000
NET PROFIT 47500
BALANCE SHEET AS AT
ASSETS AMT AMT
CASH BALANCE 78400
EQUIPMENT 85000
LESS 8500 76500
PATENT 120000
LESS:WRITTENOFF 20000 100000
COMPONENTS 15100
270000

LIAB & EQUITY


EQUITY
SHARE CAPITAL 200000
SURPLUS 47500 247500 78400

LIABILITY
INCOME TAX PAYABLE 22500
LIAB
LOAN

OP STSOC 0
PURCHASED 212100
CL INV 15100
CONSUMED 197000

COST
USEFUL LIFE
SALVAGE VALUE

LOAN CAPITALOF 30000 WILL NOT COME IN PROFIT LOSS STATEMENT

INCOME Statement
REVENUE AMT AMT
REVENUEFR SALES 598500
EXPENSES
COSTS OF GOODS SOLD
SPARE PARTS CONFIRMED 197000
MANF SAL 145000
OTHERMNAF EXP 62000
DEP EXP 8500
412500 412500
GROSS PROFIT/MARGIN 186000
INCORPORATION COST 2500
LABOUR AND DEV 25000
SGA 63000
PATENT WRITTENOFF 20000
110500 110500

EARNINGS BEFORE INT AND TAXES 75500


INTEREST 500
PROFIT BEFOR TAXES 75000
INCOME TAX 22500
PROFITAFTERTAX(PAT) 52500
DIVIDEND 5000
SURPLUS 47500
EQUITY

200000

BALANCE SHEET AS
ASSETS AMT AMT
CASH 80000
PATENT 120000
200000 200000

EQUITY 200000 200000

85000
10 YRS
-
DISPENSERS INC
AMT AMT
OPERATING ACTIVITIES
SALES 598500
LABOURAND DEV -25000
SPARE PARTS -212100
INCORPORATION COST -2500
MANF PAYROLL -145000
OTHER MANF -62000
SELLIN GEN AND ADMIN COST SGA -63000
CASH FLOW FROM OPERATION CFO 88900 88900

INVESTING ACT
PURCHASEOFEQUIPMENT -85000

FINANCING ACTIVITIES
ISSUE OF SHARES 80000
LOAN TAKEN 30000
LOAN REPAYMENT -30000
INTEXP -500
DIVIDEND -5000
74500 74500
NET CHANGE IN CASH 78400
INCORPORATION COST
LABOURCHARGES

BALANCE AS AT-----
ASSETS

PRELIMINARY EXPENSE
LESS WRITTEN OFF

OP BAL OF CASH 0
CL BAL OF CASH 78400
INC IN CASH 78400

NOTE:
PATENT IS JUST AN ADJUSTMENT ONLY SO WE DID NOT SHOW IT IN CASH FLOW STATEMENT
DEPRECIATION IS ALSO A BOOK AJDUSTMENT BUT ACTUALLY YOU ARE NOT PAYING ANY TAX.
IN CASH FLOW STATEMENTS WE ARE CONCERNED ABOUT THE CASH TRANSACTIONS ONLY.

INCOME STATEMENT IS LIMITED TO CURRENT YEAR BUT CASH FLOW STATEMENT


IS NOT LIMITED BUT DEPENDS ON HOW MUCH CASH WE PAY OR RECEIVE
2500
25000

2500
500 2000

SO WE DID NOT SHOW IT IN CASH FLOW STATEMENT


MENT BUT ACTUALLY YOU ARE NOT PAYING ANY TAX.
ONCERNED ABOUT THE CASH TRANSACTIONS ONLY.

RRENT YEAR BUT CASH FLOW STATEMENT


W MUCH CASH WE PAY OR RECEIVE
BALANCE SHEET AS AT
ASSETS AMT
NON CURRENT ASSETS
LAND
BUILDING
PLANT
MACHINERY
VEHICLES
FINANCIALASSETS
CAPITAL WORK IN PROGRESS
GOOD WILL
TECHNICAL KNOW HOW
LICENSE
PATENT
DEFERRED TAXASSET
CURRENT ASSETS
CASH
INVENTORY
TRADE RECEIVABLE
FINANCIAL ASSETS
OTHER CURRENTASSETS

LIABILITIES AND EQUITY


SHARE CAPITAL
OTHER EQUITY
RESERVES AND SURPLUS

NON CURRENT LIABLITY


LONG TERM BORROWINGS
DEBENTURE
BONDS
LOANS
FINANCIAL LIABILITIES

CURRENT LIABILITIES

TRADE PAYABLE
PROVISIONFORTAX
PROVISION FOR CONTINGENCY
FINANCIAL LIABILITIES
SHORT TERM BORROWINGS
PPE
LESS:ACC DEPRECIATION
BOOK VALUE

WORK IS NOT COMPLETE AS THE RESOURCE IS NOT YET USED FOR PRODUCTION SO NO DEPRECIATION IS CHARGED

INTANGIBLE ASSETS ARE SUBJECTED TO REDUCTION IN VALUE


GOODWILL IS MENTIONED ONLY IF IT IS PURCHAGED
LIKE ACQUISITION

INVENTORY IS REPORTED AT LOWER OF COST AND NET REALISABLEVALUE


X
X
X
1

NO DEPRECIATION IS CHARGED

LICENSE X
LESS AMMORTIZATION X
BOOK VALUE X

TR X
LESS:CREDIT LOSSES

SHARES
1.EQUITY SHARE
2.PREFERENCE SHARE
RIGHT TO RECEIVE
DIVIDEND
PAYMENT

CUMULATIVE DIVIDEND GETS ADDED FOR PAST PERIOD


NONCUMMULATIVE NON CUMULATIVE DIVIDENDS OF PAST ARE NOT PAID FOR PAST RECORDS
PARTICIPATING
NON-PARTICIPATING
COST OF A 100000
RESIDUAL 10000
LIFE 5 YEARS
STRAIGHT LINE METHOD

18000

YEAR COST DEP VALUE ACC DEP


1 100000 18000 18000
2 100000 18000 36000
3 100000 18000 54000
4 100000 18000 72000
5 100000 18000 90000

WRITTEN DOWN VALUE METHOD


DEP RATE IS 25%
WDV COST DEP VAL ACC DEP
1 100000 25000 25000
2 100000 18750 43750
3 100000 14062.5 57812.5
4 100000 10546.875 68359.375
5 100000 7910.15625 76269.53125

STRAIGHT LINE METHOD

IN SECOND YEAR ALSO THE DEPRECIATON


AMT WILL BE SAME THAT IS 180000
2)WDB
INCOME STATEMENT
2ND YEAR
REVENUE REVENUE

EXP EXP
DEPRECIATION 14062.5 DEPRECIATION
BALANCE
82000
64000
46000
28000
10000

BAL
75000
56250
42187.5
31640.625
23730.46875

INCOME STATEMENT BALANCE SHEET


REVENUE ASSETS
NON CURRENT ASSETS
EQUIP 100000
LESS ACC DEP 18000
82000
EXP
DEPRECIATION 18000
ME STATEMENT

BALANCE SHEET 3RD YEAR


ASSETS ASSETS
NON CURRENT ASSETS NON CURRENT ASSETS
EQUIP 100000 EQUIP
LESS ACC 43750 LESS ACC DEP
56250
18750
2ND YEAR BALANCE SHEET
ASSETS
NON CURRENT ASSETS
EQUIP 100000
LESS ACC DEP 36000
64000
100000
57812.5
42187.5
PROBLEM NO 6.8 PAGE 253
JULY 1 2007
COST 34000
RV 2000
LIFE 5
DEP FOR 9 MONTHS
COST OF D 6400 4800

PROBLEM NO 6.8 PAGE 254

COST 600000
LIFE 7 PROFITANDLOSS STATEMENT
RV 40000 REVENUE
RATE 25% REVENUE SALES
CASH REVENUES 3000000 EXPENSES
CASH EXPENSES 2000000 PROFIT B4 DEP AND TAXES(PBDT)
DEPRECIATION
PROFIT B4 TAXES(PBDT)
PROV FOR TAX
DEP VALUE 80000 PAT(PROFIT AFTER TAX)
AMT WDB METHOD Dep rate for taxing was allowed to be 25%
3000000 PBDT 1000000
2000000 DEPRECIATION 150000
1000000 PBT 850000
80000 NOTE:
920000 IF THE INCOME TAX DEPT PROVIDE YOU A SIMILAR RATE AS RATE OF
255000 DEPRECIATION THEN YOU CAN USE ONLY ONE METHOD TO COMPUTE
665000