P/L Account

Table 2.4 BHARAT CHEMICALS LIMITED

(Rs000) Profit and Loss Account for the year ended 31 December,19X1 Revenues Sales other non-operating sources Expenses Cost of goods sold General and administrative Selling expenses Interest Depreciation Non-operating expenses Provision for tax Net Profit (after tax) Appropriation of Profit Provision for dividend Transfer to reserve and surplus

1,810 190
1,220 120 100 40 200 40 140

2,000

1,860 140 40 100 140

Account form of balance sheet Table 2.1 BHARAT CHEMICALS LIMITED

Balance Sheet (Account Form) as on 31 December,19X1 Equity and Liabilities Share Capital (200,000 at Rs 10 paid Up each share) Reserves and Surplus Long-Term Loans Debentures(unsecured) From financial institution Current Liabilities and Provision Bank borrowing* Creditors: For goods For expenses Assets Fixed Assest Land,building,plant machinery etc. Less; Depreciation Net Block Investments Current Assets Stocks Debtors Cash and bank balances Interest receivable Loans and advances Other Assets (Rs000)

2,000 500 300 200 50 50 20

2,200 200 2,000 700

Customers advances Unclaimed dividend Provision for dividend Provision for taxation

30 20 40 140

345 110 100 5 50 40

Total Liabilities & Equity 3,350 Total Assets 3,350 * In published annual accounts,companies in India do not show bank borrowing in current liabilities.It is included in loan funds which also comprises long-term borrowing.