Financial Accounting and Analysis December 2020

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Financial Accounting and Analysis

December 2020 NMIMS Solved Assignments

1st Semester NMIMS Dec 2020 – Rs. 3000/- Only

2nd Semester NMIMS Dec 2020 – Rs. 3000/- Only

3rd Semester NMIMS Dec 2020 – Rs. 3000/- Only

4th Semester NMIMS Dec 2020 – Rs. 2500/- Only

Q1. Karagiri is a Pune based startup that works with 800 families across India. The startup is in the business of handloom saris. They converted the pandemic period in to an opportunity. The business owners realized that accounting is essential to permit informed judgements and decisions by the user of accounts. In the light of given definition of accounting, discuss about users and uses of accounting information.

Q2. Mr. Kohli is planning to invest in the share market. He wants to study the Balance Sheet of Amul Industries. He wants your guidance in finding the various elements of the Balance Sheet of Amul Industries. Kindly discuss the same

Q3. Discuss for question (a) and (b)
– Define and identify the type of Income / Expenses
– Treatment of the Income / Expenses in the Profit and Loss account, Impact of the Income / Expenses in the Balance Sheet
a. You purchased 10 shares of L& T Company last year. On 5th March 2019, the company has declared a dividend Rs 50 per share. The income is earned but not yet collected in your account during this financial year.
b. On 5th March 2019, Mehta Brothers received 100% advance for goods, to be supplied in the next month. The Cost of the goods was Rs50000. They usually sells the goods at 10% mark up.

Previous Semester Sep20

Q1. With the given information prepare the statement of Profit and Loss of the company in vertical format.

TABLE BELOW

Depreciation and amortisation expenses

295600

Purchase of stock in trade

10450

Employees benefit costs

959139

Other expenses

565000

Revenue from sale of product

5000000

Other operating revenues

2500000

Cost of material consumed

1050000

Finance cost

525000

Also share your opinion on the statement – “Revenue from operations and earnings before interest, taxes, depreciation and amortization differs from each other”. How?

 

Q2. Cash flow statement is different as it classifies financial information into three major heads which allow the stakeholders in effective decision making. Discuss the broad heads as defined under AS 3 cash flow statement. What can be the potential benefits of preparing a cash flow statement? Elaborate

 

Q3. These selected condensed data are taken from a recent balance sheet of Sambhav Realities (Rs in crores)

 

PARTICULARS

AMOUNT

Cash

29.3

Debtors

20.5

Inventory

28.7

Prepaid expenses

24

Outstanding payments

15.5

Trade payables

30.7

Unpaid taxes

25

Loan taken for construction of building for 11 months

50

 

  1. Discuss about current assets and current liabilities, classify the above into current assets and current liabilities (5 Marks)
  2. Calculate the working capital and current ratio (5 Marks)

Previous June20 Question

Q1. Ms. Sandipa is the accounts executive for a company called SS Enterprises. Her job description requires her to supervise the process of recording of the transactions of business and to ensure that all accounting assumptions are taken care of. However, her junior executive is confused about the concepts of the accounting period assumption and the Separate entity assumption.
Elaborate how Sandipa can explain the concepts to her junior with the help of suitable example.

Q2. Marry Kom is planning to invest in the share market. She has a profile of risk seeker investor but she believes that before investing it’s important to understand market ratios effectively. Discuss any five market ratios with their importance that Marry Kom should look into before undertaking any investment decision

Q3. The following information is available in relation to Britannia Baby Company. The Company has profit before taxes of Rs 50 lacs.
a. Classify and give reasons for the cash flows falling under the operating activities
b. Classify and give reasons for the cash flows falling under the investing activities

 

Particulars

Amount Rs in (Lacs)

1. Tangible assets purchased during the year

75

2. Depreciation charged on these tangible assets for the year @ 10%

?

3. Stock sold for the year

95

4. Loan given to Big Boy Company

150

5. Interest received from Big Boy company for the said loan @11.5%

?

6. Shares purchased of a company called as Arvind Mills

10

7. Dividend Received from Arvind Mills

1

8. Taxes paid for the year @ 30%

?

Also share your opinion on the statement – “Revenue from operations and earnings before interest, taxes, depreciation and amortization differs from each other”. How?

 

Q2. Cash flow statement is different as it classifies financial information into three major heads which allow the stakeholders in effective decision making. Discuss the broad heads as defined under AS 3 cash flow statement. What can be the potential benefits of preparing a cash flow statement? Elaborate

 

Q3. These selected condensed data are taken from a recent balance sheet of Sambhav Realities (Rs in crores)

 

PARTICULARS

AMOUNT

Cash

29.3

Debtors

20.5

Inventory

28.7

Prepaid expenses

24

Outstanding payments

15.5

Trade payables

30.7

Unpaid taxes

25

Loan taken for construction of building for 11 months

50

 

  1. Discuss about current assets and current liabilities, classify the above into current assets and current liabilities (5 Marks)
  2. Calculate the working capital and current ratio (5 Marks)

April NMIMS Solution Question

Q1. Ind AS norms are converged with the International Financial Reporting Standards, but these are not equivalent to IFRS. Further, there are key differences between the requirements of INDIAN GAAP, IFRS and Ind AS. Discuss five key differences among these reporting standards. (10 Marks)

Q2. Mehra & Sons purchased a second hand light motor Vehicle at a cost of Rs 2 lacs. Additionally, various accessories costing Rs50000 were also purchased along with the Vehicles which are required to be replaced on a yearly basis. Mr. Mehra wants to write off the overall outflow in Income statement Discuss, whether he is correct or not? Discuss the need to differentiate between the capital and revenue items? How these items are to be treated in the financials of the company? Give reasons supporting the same (10 Marks)

Q3a. All India Insurance Company received an insurance premium of Rs 50 lacs on an insurance policy whose coverage extends till the mid of the next accounting year. (5 Marks)

Q3b. Additionally, the company has a monthly salary expense of Rs 25 lacs. For the accounting year ended on March 31, 2019 the company paid 275 lacs on account of salary. The salary for the month end is paid in the first week of April 2019. Discuss the treatment of both of these payments in the books and disclosures in the financial statements, as on 31st March 2020 ( 5 Marks)