NMIMS GLOBAL ACCESS

SCHOOL FOR CONTINUING EDUCATION

COURSE: Financial Accounting and Analysis
Internal assignment for December 2021Examination

1. The net profit before taxes as per -------------------------------------------------------------------------

-----------------------------------------------flow operating activities.

TABLE BELOW

Loss on sale of asset 95780

dividend income 26000
interest income 35000
finance cost paid on debentures 12000
gain on sale of investment 45000
Depreciation on fixed assets 85000
Amortisation Expenses 110000

Ans 1.
Introduction
An income statement shows you how much cash is going in and out of your company in a given
period of time. Proof of income with asset report and salary statement is one of the three most
important tax summaries for your independent venture bookkeeping and guarantees that you can
keep going. A club can use an income articulation to find out how much money it has in the
entire business. If you examine a company's financial position, you can get an idea of how the
company is handling its obligations and balancing its tasks.

The ability of a club to create coins for commitment reimbursement and advice on labor costs.
An income articulation close to the monetary record and the wage proclamation was a
fundamental piece of monetary announcement from about 1987 onwards. The CFS enables
traders to find out how offices work, where their assets are coming from, and how they oversee
them. . This proportion of monetary solidity is important when choosing a company's monetary
strength. A framework called a liquidity study can also be used by lessees to estimate revenue or
the amount they have available to cover costs and pay off obligations. The income statement has
three basic components: work assignments, sports business, and sports finance.Design and
application:

• Cash flow from operating activities:

Business income statements contain a labor activity income fragment that depicts how cash is
derived from ongoing normal business activities and then spent. This presumably consists of the
net profit from the assessment form and the changes in net benefits and the adjustment to the
current capital. The work to be developed is also reflected in the partial flow of functional
exercises. Since the resources develop from one term to the next, cash outflows are recorded. At
the point in time when the obligation increases from one length to another, an income is recorded
as income. Income from work activities includes changes in warehouse expenses, receivables
from obligations, debit resources, and transactions entered into and granted.

• Cash flow from investing in sport:

The part of the income statement you can see how much money was raised or spent through
various support increase exercises in a given period of time. This is one of the basics of
displaying money. There are many ways in terms of contribution: acquiring property, storing
resources, and advancing inventory or goods. When a company's income is negative it is always
a sign of a lackluster presentation. This is most likely due to enormous amounts of money
pouring into the long-term wellbeing that involves innovative work.

• Cash flow from fundraising activities:

This shows how brilliantly the exchange of cash is used to run a business when the coin
skimming is declared. It is shown in the Funding Activities (CFF) section as the organization's
revenue from funding. It's associated with winning, speculating, and winning. The monetary
premium income gives traders information about the financial strength of an association and how
its administration deals with the nature of its capital.

Particular Amount Logical Reasoning

Loss on saleof 95780 Investment activity will reflect changes in this area. The
difference between the amount received at the time of sale or
an asset
disposal and the book value is called the loss.

Dividend 26000 It is recorded in your income articulation under "Incomes from

financing exercises". This portion of the income articulation
income
sums up all of your organization's raising money exchanges,
including stock, obligation, and profit exchanges.

Interest income 35000 The premium pay from ventures identifies with contributing
exercises. Because of the association with the organization's
capital ventures and on the grounds that the resources are
accounted for under premium on speculations, any speculation
pay should likewise be accounted for under venture action.
Finance cost 12000 Components of the cash flow statement include bond issuance
charges as part of the revenue announcement and changes to
paid on
currency assets as part of the balance sheet.
debentures.
Gain on sale of 45000 The venture movement, which is important for an income
articulation, shows the drawn out property pay item, while the
investment
functional games section shows a web benefit rebate.

Depreciation on 85000 In the income explanation of the fragment working exercises and
different costs, comprising of deterioration and amortization, the
fixed assets
devaluation isn't cash compelling

Amortization 110000 There is no money cost related with the deterioration. The
backhanded income guarantee incorporates it as a non-cash cost;
Expenses
in this manner it is supported through benefit or misfortune.
Other non-cash charges incorporate obligation increments and
aggregated revenue charges..

Calculation of cash flow from operating activities:

Particulars Amount

Net Income 269244

(+) Depreciation on fixed assets 85000

(+) Amortization Expenses 110000

Net Cash provided by operating activities 4,64,244

Conclusion

The role of a cash flow in monetary bookkeeping can be clarified as an assertion of income,
which is a fiscal report that addresses how changes, deficiencies, and benefits shape money and
money counterparts. Current income of an association. Current pay of an affiliation. Routinely,
the working capital declaration is given to its customers as a part of an affiliation's exercises,
theories, and money related orchestrating. Specifically, the enunciation gives information on
cash got and administered, and the degree of coins that were exchanged during the hour of the
declaration.
Q2. Discuss the steps of performing trend analysis on the financial statement of any
company---------------------------------------------------------------------------------------------------------
----------------------------------- of balance sheet of company.

Ans 2:

Introduction
Trend analysis is the method of comparing financial data over time for an association. The level
of time can be communicated in more than one way relying upon the circumstance. During the
review, an amount and a level of trade will be determined and looked at. The monetary assertions
of a business are critical to any monetary subject matter expert. Three fundamental regions
should be united. What's as fiscal reports? These fuse the monetary characteristics of the
Company, its space of activity and its division strategies stood out from its adversaries. When in
doubt, there are six phases to making a productive spending plan report assessment. Accounting,
or Economic Statement Analysis (FSA for short), is the most well-known method of separating
an association's risk and advantage by investigating its money related information. Yearly and
quarterly reports, including advantage clarifications, robustness sheets, and coin stream
verbalizations, are gotten on this material.

Design and application:

A standard trend analysis of a company's monetary condition should include the following six
steps:

• Analyze economic characteristics of the industry : Identify the business cost chain, which is
the chain of huge games inside the formation of the association's work and items, in any case
their collecting and dispersal. By and large, techniques that join Porter's five powers or check out
monetary properties are used at this level..

• Determine techniques used by associations : Next, think about the association's thing or
organization, similarly as its creativity, generally speaking incomes, brand steadfastness and
control of critical worth. Thought should be paid to the different elements, to the compromise of
the store organization, to the common reach and to the improvement of associations.

• Examine the financial summaries of the organization to decide the best ones: Analyze the
huge money related real factors concerning accounting rules. An affirmation, examination and
request resource report account is essential for an eminent assessment. Whether or not this
bookkeeping report is a right depiction of the monetary situation of the association should be the
guideline challenge for the peruser. The basic piece of exploring the compensation clarification
is to ensure that it appropriately addresses its in everyday monetary show. Pay news can be used
to see the effect of business errands, hypotheses, and financial activities on the business' liquidity
work as time goes on.
• Analyze the performance and risk of the business : specialists can in every way that really
matters, give an expense for this component by giving an all around examination of the business
and its cash related records. Sensible stuff wraps monetary report extents essential to liquidity,
asset control, advantage, commitment the chiefs, peril/market supporting and assessing.
Fundamental concerns ought to be tended to regarding usefulness: how useful are the
association's exercises as a level of the association's assets, paying little psyche to how the
association supports those assets, and how useful are those assets. they are productive as a degree
of financial backers? Sorting out some way to disaggregate knowing the previous measures into
key outcome factors is moreover key. Finally, it is essential to study the current extents against
those of past occasions, in any case those of various associations or corporate standards.

• Forecast a organization's financial position: Financial administrations specialists need to

make ideal presumptions about the eventual fate of a business and look at how those
suppositions will impact each income and speculation. . Sporadically, expert forma budget
reports are made utilizing techniques that incorporate the portion of deals approach.

• Valuing the business: The most broadly perceived valuation procedure is the restricted pay
method. These can be either early benefits or additional weirdo strategies including free pay to
esteem holders or on a somewhat long administrator premise. Another possible street is to use a
general valuation or accounting measures including the introduced monetary worth.

These reports examine at least one back to back quarters of monetary records for a similar
organization, as their name recommends. Level investigation is the estimation of dollar or rate
changes in promotion articles or aggregates. Dissects and are utilized to spot changes in an
organization's presentation and become mindful of examples.

Here is the comparative analysis of Axis Bank:

Particulars March - 2019 March - 2020 Absolute Value Percentage

Change

Interest earned 747983165 791182705.00 43199548.00 6%

Other income 164486221 189685279.00 25199050.00 15%

Total income Rs.912469376.00 Rs.981867984.00 Rs.68398588.00 6.5%

Interest Expended 415312526.00 401288373.00 -14024132.00 -3%

Operating expenses 216144110.00 215608339.00 -535767.00 0%

Provision and contingencies 201704646.00 202044431.00 339796.00 0%

Expenditure total 833161262.00 818941143.00 -14220118.00 -2%

Net profit for the year 79308120.00 161926841.00 82618713.00 103%

Profit brought forward 178795708.00 213274681.00 34478977.00 19%

Profit Total 258103828.00 375201522.00 117097690.00 44%

Conclusion

• In a relative accounting report, information on resources, liabilities and value are

accommodated "or more times of a similar organization", "or multiple organizations in a similar
industry" and "or more auxiliaries of a similar organization". on a solitary page so they can be
effectively perceived and examined. Financial backers and partners can likewise effectively
contrast an office's monetary exhibition with last year by checking out a similar asset report,
which remembers two segments of sums for every thing for the accounting report.
Q3. Mr. Akbar provides you with the following information

Started business with cash Rs15

Purchased goods for cash Rs 25

Sold goods to C on credit Rs 2

Paid salary for cash Rs15

Deposited cash into the bank account Rs100000

a. Identify the accounts being affected in the ------------------------------------type of accounts

identified - real, personal, or nominal

Ans (3 a)

Types of account: there are two types of accounts

• Personal A/C: a personal account is a type of account associated with the selected
character or an organization of people. These humans could be real human beings,
fabricated people, or representatives of real people. These persons can also be made up of
synthetic entities and partnership groups, companies and associations of persons.
• REAL A/C: “real accounts” must relate to real estate, property or assets. Bodily and
non-physical characteristics can be used to explain these characteristics. As a result, there
are kinds of real debts: physical and intangible.
▪ Tangible real Account
.

▪ Intangible actual Account

• Nominal account: Due to the use of minor invoices, we will pay income, expenses or profits.
Among them are A / C wages, A / C wages and A / C rent, among others.

Particulars Accounts types

Started business with cash Rs150000 the money account is a genuine record and a
capital record is an individual record, so these
two records could be impacted.

Purchased goodsfor cash Rs. 25000 The buying account is an ostensible record and
the money account is a genuine record, so these
 two records can be impacted..

Sold goods to C on credit Rs 20000 Sales accounts are nominal accounts

Paid salary for cash Rs15000 A money account is a genuine record and a
benefit account is an ostensible record, and
every one of the varieties will be impacted
therefore.

Deposited money into the bank account Money and bank bills are genuine bills and the
Rs100000 Real Account could be impacted accordingly.

Conclusion

Before we can recognize the golden rules of accounting, we must first understand the different
types of debt in the international arena. The account class applies to all types of standard
repositories, regardless of their structure. In other words, each account will belong to one of the
influencer groups listed above.

B. Disuss the rule of passing the journal entry ---------------------------------------------------------

------------journal entry?

Ans (3b).
Introduction

A bookkeeping exchange is any deal that can be evaluated in monetary terms. To follow these
exchanges, a credit and charge framework has been made. A charge is a bookkeeping thing that
builds the worth of a resource record or diminishes its worth. This strategy can likewise be
utilized to drain an obligation or value account. Normally, the left half of a diary passage is
utilized. A credit should build the worth of a bond or the steadiness of the head, since that is the
thing that its name suggests. Weight decrease is performed for a record that contains resources or
costs. It is available through the proper part of bookkeeping

1. Personal account: the beneficiary is debited and the donor is credited. This category includes
invoices such as debtors, lenders, etc.
2. Real account: incoming money is debited and outgoing money is credited. Some examples of
such debts include monetary and banking stability, inventory items, purchases, sales, etc.

3. Nominal account: credit all profits and gains and debit all losses and costs. Some examples of
the types of money you owe include depreciation, income, dividends, and hobbies.
Journal Entries:

1. Started the business with cash Rs150000:

particulars Dr Amt Cr Amt
Cash A/c ---- Dr 150000
To Capital A/c 150000

2. Purchased goods for cash Rs 25000:

particulars Dr Amt Cr Amt
Purchases A/c ---- Dr 25000
To Cash A/c 25000

3. Sold goods to C on credit Rs 20000:

particulars Dr Amt Cr Amt
Cash A/c ---- Dr 20000
To Sales A/c 20000

4. Paid salary for Cash Rs15000:

particulars Dr Amt Cr Amt
Salary A/c ---- Dr 15000
To Cash A/c 15000

5. Deposited Cash into the bank account Rs1,00,000:

particulars Dr Amt Cr Amt
Bank A/c ---- Dr 100000
To Cash A/c 100000
Conclusion:

To maintain the integrity of all of a company's transactions, it is important that they keep track of
them. If there is such a record, the company will have a record of these transactions and should
be kept on record. There are reliable guidelines in accounting that cover the event that a journal
passage is skipped. This helper can be used for a protocol, but decide on the type of protocol
beforehand.