Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business

Financial Accounting & Analysis

 

1. For the following transactions, analyze the accounting transactions using the accounting equation framework:

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

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.

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.

b. Define the term Net book value; Accumulated depreciation calculate the net book value and cash proceeds from sale of investment.

 

Business Economics

 

1. Assume that a consumer consumes two commodities X and Y and makes five combinations

for the two commodities:

TABLE BELOW

Combination	Units of X	Units of Y
A	25	3
B	20	5
C	16	10
D	13	18
E	11	28

 

Calculate Marginal rate of Substitution and explain the answer.

2. Elaborate the term Total Revenue and Marginal revenue also calculate TR and MR in the given table

Price	Output (In Units)	Total Revenue	Marginal Revenue
20	1
18	2
16	3
14	4
12	5

 

3.a. From the given Demand Schedule for air tickets, calculate elasticity of demand.

Price of Air Ticket (Per Ticket)	Quantity Demanded (Tickets per month)
1,00,000	5,000
1,20,000	3,500

 

3.b. Elaborate the term Elasticity of Supply and explain any three factors that determines elasticity of supply.