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Assignment: Financial ManagementTopic: Budgeted Financial Statement
SHAHEEN College of Commerce Sargodha
Department of commerceUniversity Of Sargodha
Business PlanSHAHEEN College of commerce SGD
Balance SheetAt Zero Stage
Assets AmountsCurrent Assets:Cash 300,000
Non-current Assets:Furniture 186,000Generator 60,000Office Equipment 40,000Total Assets 5,86000 Liabilities AmountsCurrent Liabilities:Account Payable 100,000Long Term LiabilitiesOwner Equity 486000Total Liabilities 586,000
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Furniture:I.com’s Room’s Chairs: =Room 2 =2*50=100Chair price Rs.1000 each 100*1000 =100,000B.com Room’s Chairs: =Room 1 =1*50=50Chair price Rs.1000 each 50*1000 =50,000Teacher’s chairs:3 chairs 2000 each 3*2000 =6000White Board:3 boards 3000 each 3*3000 = 9000Dais:3 daises 7000 each 3*7000 =21000
Total Furniture: 186000
Working Notes For Zero point Balance sheet
Office Equipment:Office Chairs 10 each 2000 10*2000 =20,000Table: 1 each 1000 =1000Principal Chairs 1 each 8000 =8000Other like clock, pictures etc. =2000Total office equipment 40,000
Accounts payable:Furniture's purchase on credit and a/p can occurred Rs.100,000
Shaheen College of commerceIncome Statement
For the year ended December 31,2014Revenue: 3900,000Less: C.G.SSalaries 1,824,000Rent 600,000Fuel 345,600Water supplies 12,000Electricity Bill 240,000Telephone Bill 15,000Other Expenses 50,000Depreciation:Furniture 18,600Office equipment 4,000Generator 6,000Total Expenditure and cost 3,115,200Earnings Before Interest & Tax 784,800Interest -----Earnings Before Tax 784,800Tax -----
Net Profit 784,800
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Shaheen college of commerce
Statement of cash flows
For the year ended December 31,2014
Balance Opening 300,000 A/P 100,000
Add:Deperication 28,600
Add Earning 784,000 Cash in hand 1013400
Total 11,13,400 Total 11,13,400
SHAHEEN College of commerce SGDBalance Sheet
As on December 31,2014Assets Amounts
Current Assets:Cash in hand 1013400
Non-current Assets:Furniture 186,000(-)Depreciation 18,600 167400Generator 60,000(-)Depreciation 6,000 54000Office Equipment 40,000(-)Depreciation 4,000 36000Total Assets 1270800
Liabilities AmountsCurret Liabilities:Account Payable ---------Long Term LiabilitiesOwner Equity 486000Retain earning 784800Total Liabilities 1270800
Working Notes For the year 2014Salaries:4 Teachers at salary 12000/M =12000*4*12 =5760004 …………………….....18000/M =18000*4*12 =8640002 …………………………10000/M =10000*2*12 =240,000Security guard 5000/M 5000*1*12 =60,000Clerk 7000/M 7000*1*12 =84000 Total salaries = 1824000 Revenues:I.com each student fee 1200/A = 200*12000 =2400000Total students 200(100 morning & 100 Evening) B.com each student fee 15000/A =100*15000 =1500000Total student 100(50 Morning & 50 Evening) Total Revenues = 3900000Rent:Building rent 50,000/M =50000*12 =600000(Agreement for Three year Rent will be same)Fuel:Litter 240/M@120/L =240*120*12 =345600Water Supply:1000/M =1000*12 =12000Electricity Bills:Electric Month 20000/M =20000*12 =240000Depreciation on assets:By using Straight line method.Furniture @10%/Y 186000*10% =18600Office equipment@10%/Y 40000*10%=4000Generator @10%/Y 60000*10% =6000 Total depreciation on assets = 28600
Shaheen College of commerceIncome Statement
For the year ended December 31,2015Revenue: 3,645,000Less: C.G.SSalaries 1,824,000Rent 600,000Fuel 351,360Water supplies 11,000Electricity Bill 250,000Telephone Bill 15,000Other Expenses 40,000Depreciation:Furniture 16,740Office equipment 3,600Generator 5,400Total Expenditure and cost 3,117,100Earnings Before Interest & Tax 527,900Interest -----Earnings Before Tax 527,900Tax 42232Net Profit 4,85,668
Shaheen college of commerce
Statement of cash flows
For the year ended December 31,2015
Balance Opening 1,013,400 A/P -------
Add: Depreciation 25,740
Add: Earning 485,668
Less: A/R 100,000
Less: supplies purchase 10,000 1,10,000 Cash in hand 1414808
Total 1414808 Total 1414808
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SHAHEEN College of commerce SGD
Balance Sheet
As on December 31,2015Assets Amounts
Current Assets:
Cash in hand 1414808
A/R 100,000
Supplies 10,000
Non-current Assets:
Furniture 167,400
(-)Depreciation 16,740 150660
Generator 54,000
(-)Depreciation 5,400 48600
Office Equipment 36,000
(-)Depreciation 3,600 32400
Total Assets 1756468
Liabilities Amounts
Current Liabilities:
Account Payable -----
Long Term Liabilities
Owner Equity 486000
Retain earning 1270468
Total Liabilities 1756468
Working Notes For the year 2015 Revenues: 185 student of I.com 12000/A fee =185*12000=2220000 95 students of B.com 15000/A fee= 95*15000 =1425000 Total Revenues = 3645000 Salaries: 4 Teachers at salary 12000/M =12000*4*12 =576000 4 …………………….....18000/M =18000*4*12 =864000 2 …………………………10000/M =10000*2*12 =240,000 Security guard 5000/M 5000*1*12 =60,000 Clerk 7000/M 7000*1*12 =84000 Total salaries = 1824000 Fuel: Litter 240/M@122/L =240*122*12 =351360 Water Supply: 916.6/M =916.6*12 =11000 Electricity Bills: Electric Month 20833/M =20833*12 =250000 Depreciation on assets: By using Straight line method. Furniture @10%/Y 167400*10% =16740 Office equipment@10%/Y 36000*10%=3600 Generator @10%/Y 54000*10% =5400 Total depreciation on assets = 25740 Accounts payable: Account payable are paid in this year. Tax: 527900*8%=42232
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Shaheen College of commerceIncome Statement
For the year ended December 31,2016Revenue: 42,00,0000
Less: C.G.S
Salaries 2,232,000
Rent 600,000
Fuel 36,000
Water supplies 11,000
Electricity Bill 260,000
Telephone Bill 16,000
Other Expenses 45,000
Supplies 5,000
Depreciation:
Furniture 15,066
Office equipment 3,240
Generator 4,860
Total Expenditure and cost 3552166
Earnings Before Interest & Tax 647834
Interest -------
Earnings Before Tax 647834
Tax 58305
Net Profit 589529
Shaheen college of commerce
Statement of cash flows
For the year ended December 31,2016
Balance Opening 1,414,808 A/P 500,000
Add: Depreciation 23,166 Add: Salaries 100,000
Add :Earning 589,529 Less: Land purchase 20,00,000
Add :A/R 50,000
Balance 677503
Total 2027503 Total 2027503
SHAHEEN College of commerce SGDBalance Sheet
As on December 31,2016Assets Amounts
Current Assets:
Cash in hand 677503
A/R 50,000
Supplies 10,000
Less: use supplies 5,000 5,000
Non-current Assets:
Furniture 150,660
(-)Depreciation 15,066 135594
Generator 32,400
(-)Depreciation 3,240 29160
Office Equipment 48,600
(-)Depreciation 4,860 43740
Total Assets 2945997
Liabilities Amounts
Current Liabilities:
Account Payable 500,000
Salaries payable 100,000
Long Term Liabilities
Owner Equity 486000
Retain earning 1859997
Total Liabilities 2945997
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Working Notes For the year 2016Salaries: 4 Teachers at salary 13000/M =13000*4*12 =624000 4 …………………….....19000/M =19000*4*12 =912000 2 …………………………12000/M =12000*2*12 =288000 Security guard 7000/M 7000*1*12 =84,000 Peon 7000/M 7000*1*12 =84,000 Accountant 11000/M 11000*1*12 =132000 Clerk 9000/M 9000*1*12 =108000 Total salaries = 22,32,000 Revenues: I.com each student fee 1300/A = 200*13000 =2600000 Total students 200(100 morning & 100 Evening) Increase in this year B.com each student fee 16000/A =100*16000 =160000 Total student 100(50 Morning & 50 Evening) Increase in this year Total Revenues = 42,00,000Rent: Building rent 50,000/M =50000*12 =600000 (Agreement for Three year Rent will be same)Fuel: Litter 240/M@125/L =240*125*12 =3,60,000Water Supply: 916.6/M =916.6*12 =11000Electricity Bills: Electric Month 21667/M =21667*12 =260000Depreciation on assets: By using Straight line method. Furniture @10%/Y 150660*10% =15060 Office equipment@10%/Y 32400*10%=3240 Generator @10%/Y 48600*10% =4860 Total depreciation on assets = 23166Tax: @9% 647834*9%=58305