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