NMIMS Financial Accounting and Analysis assignment June 2022

50% Off

NMIMS Financial Accounting and Analysis assignment June 2022

190.00499.00

Clear

Description

NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Financial Accounting & Analysis

Internal Assignment Applicable for June 2022 Examination

1. For the following transactions, analyze the accounting transactions using the accounting
equation framework (10 Marks)

1. Introduced Rs500000 through a cheque by the Owner as the Initial capital in the
business
2. Purchased goods on credit from Ms. Ritu at Rs 40000
3. Paid Rs 10000 as salary to the employees
4. Invested Rs200000 in a fixed deposit account
5. Paid school fees of the kid Rs 25000, from the business’s bank account.
Note: (2*5 = 10 marks) 1 marks for analyzing each transaction and 1 mark for
correct journal entry

Answer 1: Introduction:

The fundamental accounting equation is debatably the foundation of all accounting, specifically the double-entry accounting system and the balance sheet. Double-entry accounting is the concept that every transaction will affect both sides of the accounting equation equally, and the equation will stay balanced at all times. Double-entry accounting is used for journal entries of any kind.

A journal is the company’s official book in which all transactions are recorded in chronological order. Although many companies use accounting software nowadays to book journal entries, journals were the predominant method of booking entries in the past.

In every journal entry that is recorded, the debits and credits must be equal to ensure that the accounting equation (Assets = Liabilities + Shareholders’ Equity) remains in balance. When doing journal entries, we must always consider factors:

  1. Which accounts are affected by the transaction
  2. For each account, determine if it is increased or decreased
  3. For each account, determine how much it is changed
  4. Make sure that the accounting equation stays in balance

2. You started learning the course of financial accounting and analysis in the MBA
Program. You learned about commonly used accounting terms. Discuss about any five
terms which are commonly used by the different users of accounting information for the
sake of understanding the financial statements
Student may define and describe about any five terms
(10 Marks)

Answer 2: Introduction:

Financial statements are a collection of summary-level reports about an organization’s financial results, financial position, and cash flows. They include the income statement, balance sheet, and statement of cash flows.

Financial Statements are useful for the following reasons:

  • To determine the ability of a business to generate cash, and the sources and uses of that cash.
  • To determine whether a business has the capability to pay back its debts.
  • To track financial results on a trend line to spot any looming profitability issues.
  • To derive financial ratios from the statements that can indicate the condition of the business.

3. From the given information
Amount in Lakhs
cost of goods sold 580
opening stock 40
closing stock 70
creditors at the beginning of the year 60
creditors at the end of the year 100
cash purchases 45
Original cost of equipment sold 400
Gain on the equipment sold 50
Accumulated depreciation on the equipment 80

Calculate:
a. Total purchases, credit purchases and payment to creditors (5 Marks)

Answer 3a: Introduction:

A creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future. A business that provides supplies or services to a company or individual and does not demand payment immediately is also considered a creditor, based on the fact that the client owes the business money for services already rendered. After a creditor has supplied the goods/services, a fee is regularly expected at a later date agreed upon in advance.

b. Define the term Net book value, Accumulated depreciation calculate the net book value
and cash proceeds from sale of investment (5 Marks)

Answer 3b: Introduction:

Net book value (NBV) refers to the historical value of a company’s assets or how the assets are recorded by the accountant. NBV is calculated using the asset’s original cost – how much it cost to acquire the asset – with the depreciation, depletion, or amortization of the asset being subtracted from the asset’s original cost.

Additional information

Solution Type

Normal, Customize

Reviews

There are no reviews yet.


Be the first to review “NMIMS Financial Accounting and Analysis assignment June 2022”

Beware of other fake website similar to our website name

X
Need Help? Chat with us