Answer

Assets Liabilities

Description Description

Current Assets

Cash 51000 3000 Note Payable 50000 50000

30000 20000 30000 80000

Account Receivables 0 200000 0 600

Advertising 10000 0 Rent Payable 0 60000

Total Current Assets 91000 223000 80000 190600

80000

Fixed Assets

249000 289000

Security Deposit 100000 100000

Balance SheetIndian Heritage

As at 31st July 2009

As on 01st Aug 2008 (In Rs.)

As on 31st Jul 2009 (In Rs.)

As on 01st Aug 2008 (In Rs.)

As on 31st Jul 2009 (In Rs.)

Current Liabilities

Invertory (Raw Materials)

Accounts Payable (Raw Material+Bike)

Interest Payable

Total Current Liabilities

Long term debt

Equipment & Furniture (Furniture+AC +Invertor+Pump+Board+Kitchen Eq.+Interor Work + Wall Colouring+Bike)

Total Fixed Assets 349000 389000

Total Assets 440000 612000 Total Liabilities 80000 270600

Accounts payable due to loss (Unpaid amount)

Note:

1. The Expenses of the restaurant are high as compared to revenue, so the restaurant is running at loss.

2. They have lot of liabilities to be paid and they need to increase their revenue in order to overcome the liabilities and make the business profitable.

3. Till Apr-09, their revenue was low compared to the expenses incurred by the restaurant (Revenue approx. Rs. 80000 per month and Expenses approx. Rs. 149383 per month). From May-09, their revenue has started increasing and we have assumed that the expenses remain the same. Hence the restaurant should continue to do business so as to increase their revenue.

Owners Equity / Capital Expenses Revenue

Description Description Description

360000 360000 579000 For Aug-08

-355100 420000

Gas 108000 For May-09

Coal 120000 For June-09

Electricity 120000 For July-09

Transportation 24000

60000

Advertisement 10000

1441000

Indian HeritageIncome Statement

From 01-Aug-08 to 31-Jul-09

As on 01st Aug 2008 (In Rs.)

As on 31st Jul 2009 (In Rs.)

Value in Rs. From Aug-08 to Jul-09

Operating Expenses

Owner Investment

Cost of Goods Sold (Raw Material Consumed)

Retained Earning

Wages(Staff Salary)

From Sep-08 to Apr-09

Admin & General (Telephone +Stationaries)

Total Operating Expenses

Fixed Expenses

360000 4900 Rent 360000

Interest 1600

336500 Total Fixed Expen 361600

Total Expenses 1802600 Total Revenue

Total Loss -355100

Total Owners Equity

Accounts payable due to loss (Unpaid amount)

1. The Expenses of the restaurant are high as compared to revenue, so the restaurant is running at loss.

2. They have lot of liabilities to be paid and they need to increase their revenue in order to overcome the liabilities and make the business profitable.

3. Till Apr-09, their revenue was low compared to the expenses incurred by the restaurant (Revenue approx. Rs. 80000 per month and Expenses approx. Rs. 149383 per month). From May-09, their revenue has started increasing and we have assumed that the expenses remain the same. Hence the restaurant should continue to do business so as to increase their revenue.

Revenue

Value in Rs.

77500

640000

170000

280000

280000

Indian HeritageIncome Statement

From 01-Aug-08 to 31-Jul-09

1447500

3. Till Apr-09, their revenue was low compared to the expenses incurred by the restaurant (Revenue approx. Rs. 80000 per month and Expenses approx. Rs. 149383 per month). From May-09, their revenue has started