Financial Accounting and Analysis NMIMS assignment June 2024

Description

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2024 Examination
Assignment Marks: 30
Instructions:
 All Questions carry equal marks.
 All Questions are compulsory
 All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as possible.
 All answers to be written individually. Discussion and group work is not advisable.
 Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
 Students should write the assignment in their own words. Copying of assignments from other students is not allowed
 Students should follow the following parameter for answering the assignment questions

Q1. Often it happens that while running a business there is an inflow and outflow of revenues and expenses of more than one accounting period. Such transactions, which affects more than one accounting period requires adjustment. Such adjustment are reflected in the books of accounts.
Discuss about adjustment entries, point out the type of adjustment, which may arise in the due course of business and reflect on how adjustment entries impacts the financial statement. (10 Marks).

Q2. The revenue from operations and earnings before interest, taxes, depreciation, and amortization are distinct metrics with separate implications for our business performance. It is crucial to understand the difference between these two figures as they provide unique insights into our operational efficiency and profitability. Discuss the statement by differentiating the difference between these two terms, Revenue from operation and earnings before interest, taxes, depreciation, and amortization. With the given information, prepare the statement of Profit and Loss of the company in vertical format. (10 Marks)
Depreciation and amortization 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

Q3. Following is the information available for Paraam Industries Pvt Ltd for the month of August
Amount
Withdrawal of cash from the bank, as on 10th August 2023
Rs. 200000
Balance in the business bank account as on 6th Aug 2023
Rs. 500000
Purchased Computer for personal use using business fund as on 15th August 2023
Rs. 50000
Paid for school fees for the kid from the business bank account as on 11th August 2023
Rs. 3000
For the given information-
a) Discuss the rules in relation to debit and credit as applicable for the account type being assets, liabilities, expenses and gains. (5 Marks)
b) Pass journal entry for the transactions. Explain why the personal expenses and business expenses of owner are treated differently (5 Marks).