Question

Construct a PERSONAL (not business) income statement and a balance sheet. MS Excel is recommended for this work, but it is acceptable to submit a Word document if you are more comfortable using it.

The income statement should:

Include at least one source of income and least six different expense items.

Income and expenses should each be totaled and the difference between income and expenses should be shown as the "bottom line."

The balance sheet should include:

At least five different items on each side of the (assets and liabilities) balance sheet.

The items should be shown in proper format (most liquid assets at top, least liquid at the bottom, current liabilities at the top, long-term debt at the bottom) and

Total assets, total liabilities, and net worth should be calculated.

DO NOT enter your actual, personal financial data for the spreadsheet you submit. The purpose of the assignment is for you to generate the tools to properly assess your financial situation.

Answer 1

Solution:-

Personal income statement Expenses Incomes Mortgage payment various loans Food, Groceries, and others Traveling expenses Entertainment & leisure expenses Life and health insurance premiums School fee 40,000 Income from Salary 2,00,000 20,000 10,000 10,000 20,000 15,000 Taxes 55,000 Bottom line (Balancing figure) 30,000 2,00,000 2,00,000 Personal Balance Sheet Liabilities Assets 10,000 Bank balance 5,000 Investments in shares 15,000 Jewellery 40,000 Car 1,50,000 House Credit card dues Taxes outstanding Loan from friends Car loan 10,000 40000 30000 65000 Housing loan 200000 Net worth (Assets-outside liabilities) Total Liabilities 1,25,000 3,45,000 Total Assets 3,45,000