Page 359 - VIRANSH COACHING CLASSES

Solution 3 :

Vertical Income statement as on 31/3/2019

Sr. No. Particular Amount (`) Amount (`)
1. Sales 11,00,000
2. (-) Cost of Goods Sold
Opening Stock 3,50,000
(+) Purchases 7,00,000
(+) Wages 50,000
11,00,000
(-) Closing Stock 2,00,000 9,00,000
3. Gross Profit 2,00,000
4. (-) Operating Exp.
Admin Exp. 1,00,000
Selling 50,000
Finance Exp. 20,000
5. Total Operating Exp. 1,70,000
6. Net Profit 30,000

4 : Convert following Trading and Profit and Loss Account into Vertical Income statement

Trading and Profit & Loss Account for the year ended 31st March 2020.
Particular Amount (`) Particular Amount (`)
To Opening Stock 2,00,000 By Sales 12,00,000
To Purchases 9,00,000 By Closing Stock 3,00,000
To Wages 1,00,000
To Gross Profit c/d 3,00,000

Total 15,00,000 Total 15,00,000
To Office Expenses 1,25,000 By Gross Profit b/d 3,00,000
To Selling Expenses 1,00,000
To Finance Expenses 30,000
To Net Profit c/d 45,000
Total 3,00,000 Total 3,00,000

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