NMIMS Assignments April 2018: Contact us for answers at assignmentssolution@gmail.com

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2018 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.
1. The following trial balance has been extracted from the books of XYZ Ltd as on 31st
March 2017.
For Numerical Answer
Assessment Parameter Weightage
Formula 20%
Procedure / Steps 50%
Correct Answer &
Interpretation
30%
For Theoretical Answer
Assessment Parameter Weightage
Introduction 20%
Concepts and Application
related to the question
60%
Conclusion 20%NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2018 Examination
Particulars Debit (Rs.) Credit (Rs.)
Share Capital 1000000
Plant and Machinery 1600000
Sales 3540000
Purchases 1200000
Returns 20000 15000
Opening Stock 600000
Discount 7000 16000
Bank Charges 1500
Sundry Debtors 900000
Sundry Creditors 500000
Salaries 136000
9% Debentures 400000
Manufacturing Wages 200000
Carriage Inwards 15000
Carriage Outwards 24000
Debenture Interest 18000
Bad Debts Provision 10500
Rent, Rates and Taxes 200000
Advertisement 40000
Cash in hand 18000
Cash at bank 120000
10% Investment 300000
Goodwill 300000
Interest on Investment 30000
Factory Expenses 12000
General Reserve 100000
Last year profit 250000
Furniture 150000
5861500 5861500
The following additional information is available:
 Depreciation on Furniture, Plant and Machinery to be provided at 10% per annum
 Write off Rs. 10000 as bad debts and make a provision for doubtful debts at 5% on
sundry debtors
 Closing stock was Rs. 700000
You are required to-NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2018 Examination
a. Mention the formula to calculate gross profit and net profit
b. Prepare the profit and loss account for the year ended 31st march 2017 and Balance
sheet as on that date.
c. Comment on the position of financial statements as on date prepared by you.
(10 Marks)
2. A company acquired the following assets three years ago:
Asset Cost
(Rs.)
Scrap Value
(Rs.)
Useful Life
(Years)
Depreciation
Policy
Equipment 5000000 500000 5 Straight Line
Method
Building 8000000 1000000 30 Straight Line
Method
After using the assets for three years, the company decided to change its Depreciation
policy as follows:
 The useful life of the equipment was revised upwards to 8 years, keeping its
residual value at Rs. 500000.
 The useful life of the building was revised upwards to 40 years, keeping its
residual value at Rs. 1000000.
These changes have been implemented from the fourth year onwards.
a. You are required to analyze the impact of such changes in depreciation policy
on the financial statements of firms, and write a detailed note on the same..
b. How do you think future profits of this company will be impacted because of
these changes?
c. Are any disclosures regarding these required to be made?
(10 Marks)
3. Both A Ltd. and B Ltd. operate wholesale electronic stores throughout India. The
financial statements of each business for the year ended as on 31st March, 2017 are as
follows:NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2018 Examination
Balance Sheet as on 31st march, 2017 (Rs. in millions)
A Ltd. B Ltd.
Assets
Non-current assets
Property, plant and equipment (Cost less
depreciation)
Land and buildings 360.0 510.0
Furniture 87.0 91.2
Current assets
Inventories 592.0 403.0
Trade Receivables 176.4 321.9
Cash at Bank 84.6 91.6
Total assets 1,300.0 1,417.7
Equity and Liabilities
Share Capital of Rs.10 320.0 250.0
Retained Earnings 367.6 624.6
Non-current liabilities
Long term, borrowings 190.0 250.0
Current liabilities
Trade Payables 406.4 275.7
Provision for Taxation 16.0 17.4
Total equity and liabilities 1,300.0 1,417.7
Statement of Profit and Loss for the year ended as on 31st march, 2017 (Rs. in
millions)
A Ltd. B Ltd.
Revenue 1,478.1 1,790.4
Cost of Sales (1,018.3) (1,214.9)
Gross Profit 459.8 575.5
Operating expenses (308.5) (408.6)
Operating profit 151.3 166.9
Interest (19.4) (27.5)
Profit before tax 131.9 139.4
Taxation (32.0) (34.8)
Profit for the year 99.9 104.6
All purchases and sales were made on credit. A Ltd. and B Ltd. have declared a
dividend of Rs. 135 million and Rs. 95 million in respect of the year. The market
prices of a share of A Ltd. and B Ltd. are Rs. 6.50 and Rs. 8.20 respectively.NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2018 Examination
a. Both the companies have approached a particular bank for seeking long term loans.
Critically evaluate which of the two companies will get the loan at better terms and
conditions. (5 Marks)
b. As a potential investor looking for good investment opportunities in this sector,
which of the two companies do you find more attractive?
(5 Marks)
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