Financial Accounting & Analysis
1. Prepare the journal by recording the following transactions:
| 3-Dec | Mrs. Veena started business by introducing cash Rs5000 and Rs 500000 as transfer from her saving bank account in the business |
| 5-Dec | She Purchased furniture worth Rs 60000, 50% payment made through the bank account of the business and the rest amount is payable |
| 7-Dec | She purchased goods for sale, costing her Rs 315000 and made the payment through the business bank account |
| 8-Dec | She sold off the entire goods at Rs 500000 |
| 10-Dec | She paid rent, electricity, salary to employees Rs10000 of each type of expense through the bank account |
2. Preparing the profit and loss account is a lengthy but at the same time interesting task. You need a lot of information to prepare the profit and loss statement. Discuss any five essential components out of the total eight components which contributes in preparing the profit and loss statement.
3. Following are the particulars available for Z and X, LLP
| Particulars | (Rs in ‘000) |
| Retained earnings | 860 |
| Accounts receivable | 250 |
| Supplies | 150 |
| Salaries payable | 150 |
| Equipment | 1500 |
| Unearned revenue | 200 |
| Accounts payable | 540 |
| Cash | 550 |
| Prepaid insurance | 300 |
| Common stock | 1000 |
a. Prepare T Form Balance Sheet out of the details as shared in the table.
b. Define and calculate the current ratio, Discuss the significance of this ratio.
NMIMS Solutions December 2022
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