NMIMS assignments April 2022:Contact us for unique assignments at assignmentssolution@gmail.com

 

Essentials of Financial Accounting

 

Q1. Vardhaman Traders purchased a piece of machinery on 4.4.2019 for Rs 250000 and paid Rs50000 on the carriage of the machinery to bring it to the factory premises. The management decides that charging depreciation per the WDV method will make more sense.

It was decided that –

The depreciation would be charged @15% on the WDV method

The useful life of the machinery is five years

The machinery has been disposed of after 3 years at a value of

Rs200000

Required-

Discuss the concept of charging depreciation through the WDV method. Calculate the closing WDV and depreciation for all the first three years. Calculate the profit and loss, if any, on the disposal of the asset Is this possible for any business entity to change the method of charging depreciation (10 Marks)

Q2. The objective, needs, location, and relevance are key factors that help decide whether to open a departmental store or branch. Similarly, “when it comes to departmental accounting and branch accounting there are various key points which draws the thin line of demarcation between the two types of accounting” Distinguish between departmental and branch accounting (any five points) (10 Marks)

Q3a. AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of 5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharma will record the transaction in the books of original entry Reflect by preparing the Balance Sheet how the transaction will be reflected in the books of accounts by following the correct classification of current and non-current items. Give reason for such classification (5 Marks) –

3.b. Mr. Keyur received a dividend @Rs34 per share, on account of 5000 shares held of a publicly-traded company. Pass the journal entry for such a receipt. Reflect by preparing the relevant financial statement how the transaction will be reflected in the books of accounts and discuss how this receipt is going to impact the Balance sheet, in any case. (5 Marks)