SEP 2021 NIMS ASSIGNMENT HELP Alfa and Gamma Ltd with Head

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Essentials of Financial Accounting

1. Alfa and Gamma Ltd with Head Office in Madhya Pradesh opened a branch at Mumbai. For the financial year 2019- 2020, various business operations were undertaken. Details of the same are as under.

Opening stock of goods at the beginning of the year 7 lakhs
Goods supplied to the branch 20 lakhs
Rent paid on monthly basis for the branch 0.5 lakhs
Selling and admin expenses paid for the year 5 lakhs
Cash remitted by the branch through the bank account
37 lakhs
Closing stock at the year end 2 lakhs

Pass the relevant journal entries to record the transactions in the books and reflect on the amount in the General profit and loss account, with respect to the branch account (10 Marks)

Note: Passing journal entries 6 marks

Coming up with the correct entry and amount of General profit and loss account 4 marks

2. Smile Therapist provides a lot of services in relation to acupressure, online counselling, yoga and pranayama during this pandemic situation. The outflows were limited to online marketing, electricity and broadband connectivity. There was a huge inflow on account of the various consultancy and therapies provided by the entity. The owner of the entity, Mrs. Surekha wants to account for the money received from the various services rendered. She approaches you to understand about how to account for all these financial inflows and outflows. Discuss in the light of given scenario, the various steps in relation to accounting cycle. (10 Marks)

3. Miss Aarti sold goods worth Rupees 7.5lacs for Rs 8.5 lacs on credit to Mr. Aaram, as on 20th March 2021. Mr. Aaram agreed that he will make the payment after 4 weeks in the next accounting period.

a. Discuss whether such amount should be recognized in the books of accounts or not. And if this transaction needs to be recognized then at what amount the transaction will Be recognized and as per the applicability of which concept, and why? (5 Marks)

b. When the goods are sold on credit in the above case discuss the impact of above Transaction as per the double entry system of accounting. (5 Marks)

For Nmims answersheets contact
[email protected]
+91 95030-94040