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Essentials of Financial Accounting

1. Zeno Pharma is operating in Mumbai. It has 2 departments namely A & B. There is interdepartment transfer between two department. Compute Stock reserve and discuss the entry to pass for creating stock reserve & disclosure in Balance Sheet. Discuss the accounting arrangement to be done with respect to Memorandum Stock Account and Memorandum Markup Account. If goods are transferred from A department to B department worth Rs 50000 at Cost price & If goods are transferred from A department to B department at Cost Price plus 20% & in both cases the unsold stock is 6000. (10 Marks)

2. XYZ company purchased Machine worth Rs 500000 and paid installation Rs100000. Depreciation to be charged at 20% p.a Calculate depreciation and Show depreciation Account & Machinery Account for 2 Years and show how amount is reflected in Balance sheet

a) Using Straight Line Method & interprete it

b) Using written down value Method & interprete it. (10 Marks)

3.a. Arvind Enterprise sold goods worth Rs 10000 @ 10 % T.D to Mr Ram and 2% C.D is allowed only if payment is received within 15 days. Discuss how the journal entry passed and how the amount will be reflected in ledger Account if payment is received within 15 days and above 15 days & Interprete it ( 5 Marks)

3.b. Arvind Enterprise deposited cash in to Bank Rs 100000. Identify the type of account as ( Personal , Real and Nominal Account). Discuss the rule of passing journal entry applicable here and pass journal entry & show how the amount will be posted to ledger A/c & Trial Balance (5 Marks)

For Nmims answersheets contact
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+91 95030-94040