Income Statement for the year 2008

Revenues Or Incomes

Sales 122(Less)Sales Returns 20

Cost of Sales 102

Opening stock (+) 1000Purchases ( - ) 2000Clo0sing Stock 500

COST OF GOODS SOLD 2500

Gross Profit /Loss -2398

EXPENCES

Administrative Expences

Salaries 88Employee benefits 99Payroll taxes 25Insurance 45Rent 65Utilities 12Depreciation & amortization 56Office supplies 56Travel & entertainment 56Postage 35Equipment maintenance & rental 36

Interest 12Furniture & equipment 89Inbound and Outbound calls 65PC 23Maintanence 14Repairs 47Health Insurance 825Bank charges 26Dues 99Missllenious 69Training Expences 6Printing & Stationary 5

Sub total 1853

SELLING AND DISTRIBUTION

Traveling expences 85Shipment expences 25Sales men Salaries 65Advertising expences 45Depreciation 65Commission 56Other 45

Sub total 386

Total Operating Expences 2239

Net Operating Income -4637

Income Before tax -4637Taxes on Income 5Income After Tax -4642

Net Income -4642

Balance sheet of XYZ LTD for the year 2008

ASSETS

Current Assets

Cash 240Stock 452A/R 86Bank 200Prepaid Expences 100Shortterm investments 400

Total current Assets 1478

Other Current Assets

Loans and Advances 200Advance for Expences 422Dues 244Deposits 1222

Total other Current Assets 2088

Total Current Assets 3578

Fixed Assets

Buildings (Net of dep) 45Land 21Furniture and Fixtures 455Plant and Machinery 411Long term investment 211PC 455

Office equipments 44Vehicles 44

Total Fixed Assets 1686

Intangible Asstets

Goodwill 23Patents 34Total Assets 5321

Liabilities

Current Liabilities

A/P 211Short term notes 144Long term notes 411Accural payments 233Tax Pays 244Other Funds 455Payroll tax pays 44Pension plan pays 11Other Payments 44

Total Current Liabilities 1797

Long term Liabilities

Mortgage 544Other long term liabilities 455

Total long term liabilities 999

Share holders equityCapital 122

Retained Earnings 2403

Net Income 450

Total shareholders equity 2525

Total Liabilities 5321

IMPORTANT NOTES:

Calculation of ENDING Retained earnings

Begning Retained Earnings +Net income - Dividends

And also we can find

Assets = Liabilities + Ownerse Equity - Dividends

Book val;ue: Companies common stock equity on B/S = Total Assets - Liabilities , Preferred stock and intangible Assets such as goodwill

Ex Assets = 350000Liab = 80000Capital =210000

350000=80000+210000-X

350000-290000=XX=60000 (Rrtained earningds

Companies common stock equity on B/S = Total Assets - Liabilities , Preferred stock and intangible Assets such as goodwill

Bank Reconsiliation Statement

Balance as per Cash book Amt

Add

1 Cheques issued but not yet presented for payments2 Interest allowed by the bank3 Interest and dividend collected by the bank4 Direct payments into the bank by the customer5 Bills collected by the bank behalf of the customer

Sub total $0.00

Less

1 Cheques paid into the bank but not yet cleared2 interest and expences charged by the bank3 Direct payments by the bank4 Dishonor of a bill discounted with the bank

Sub total $0.00

Balance as per Passbook

Interest calculations their Formulas

1) Annual Intereat

A = P (1+ni)

Suppose yoEG

2) Compound interest

A=p(1+i/q)^nq

Suppose youEG :

3) Installment loan

M=pi/[q(1-[1+(i/q)^-nq

Income tax calculations

Calculations of Capital gains

Purchase rate * Selling year inflation rate /Purchsing year inflation rates

Purchase rate =Selling rate =P.Y Inf rate S.Y Inf rate

Purchase rate 24,000.00

Selling year Inflation rate 519.00

Purchasing year inflation rate 152.00

Total Value 81,947.37 Inflation index:1986-87= 1401987-88= 150

Selling rate 45,000.00 2006-07= 5192007-08= 551

Total value 81,947.37

Long term Capital Gains (36,947.37)

Tax on Gain = 20% (7,389.47)

Educational Cess 3% (221.68)

Net tax paid (7,611.16)