How to Make Projected Balance Sheets

First of all,we need to make Projected Profit and loss as figures of Balance Sheet are linked to Profit and loss

HOW TO MAKE PROJECTED B/S

Fixed Assets - For Dep Chart (Closing Value After Dep)

Loan - Interest Expense Chart (Loan Chart-Closing Value)

Fd  -From Interest Income Chart

Stock - P & L (Closing Stock)

Debtors - On Basic Of Sales

Creditors for Purchases -On Basis of Purchase

Creditors for Expenses -On Basis of Different Indirect expenses

Capital - Normal Same(if not to be introduced further)

Reserve Of Surplus Or P & L A/C -Last Year B/S + Curent Pat

Prepaid Exp - Normally Reduced

Advance From Customer - On Basis Of Sales

Advance From Supplier - On Basis Of Purchase

Expenses Payable
A) Salary Payable - On Basis Of Salary
B) Freight Payable - On Basis Of Freight

Provision For Tax - From P & L Tax

Vat Payable - On Basis Of Sale

Vat Receivable - On Basis Of Purchase

Rent Deposit - Normally Same (if new office/factory to be rented ,may be different)

Advance Salary -If onetime,then Nil,if recurring,then on basis of Salary

Assignment

Prepare projected P&L and Balance Sheet on the basis of following assumptions
Prepare working note for loan interest , Fd Interest and Depriciation

ASSUMPTIONS
Year 1
Sales Double
Existing Loan Repaid In 5 Yrs(In 5 Equal Principal Instalments+Interest),installment paid in the beginning of the next year
Assume 15% Inflation

Year 2
Sale 40% Increase As Compared To Projected Year
Machine To Be Installed For Rs 2000
Installation Charges Of Rs 500
Machine Will Be Installed After 5 Months (By 30 Aug)
Loan To Be Taken From Pnb @ 10% Of 1500 (60% Of Cost Of Project) (Repayble In 3 Years)
Fd To Be Broken After 3 Months(By 30 June)
Capital Increase By 500
Balance From Cash & Bank
Assume 15% Inflation
Assume Depreciation Rate on Machine is 15%

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