NMIMS Financial Accounting & Analysis June 2021 Solved Assignment

Financial Accounting & Analysis 1. Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation Assets, Liabilities and Equities. 1. Purchased Furniture for Rs675000 2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account 3. Goods purchased on credit from Aman Enterprises for Rs105000 4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000 5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business's bank account 2. Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by arranging gift hampers for the customer's loved ones. The inflows arises from the sale of gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is confused on how to record these inflows. She would like to understand from you about the concepts Revenue from operation and other income, so that she can record the information so as to prepare the profit and loss statement of the enterprise. Define, share examples, and elaborate on your understanding towards the terms Revenue from Operation and Other Income. 3. The following information is given with respect to the ratio's of two companies Aman Ltd Roger Ltd Current ratio 2:01 1.60:1 Quick Ratio 1.35:1 1:01 Return on investment 15% 13% Debt Equity Ratio 2.5:1 1:01 a. Define the concepts of Current and Quick ratio&rsquos and also, reflect on your understanding towards the financial performance of the companies by looking to the above information 2marks for defining and 3 marks for interpretation and reasoning. b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies 2marks for defining and 3 marks for interpretation and reasoning.