Accounting Answers

A Corporate customer, A Retail Bank customer, A customer, Mr Raju who has a Savings Bank account with ‘Indian Bank’ Chennai, A corporate customer

For each of the 4 items listed above, as an advisor, what will be your high-level advice

on the process involved and the benefits to the payer and the beneficiary

Assume that you are one of the advisors to customers on Payment options.

a. There are multiple Electronic Payment options available in India. What electronic

payment option will you recommend for the following

1. A customer, Mr Raju who has a Savings Bank account with ‘Indian Bank’ Chennai wants

to make a one-off payment of Rs 10,000 urgently to Mr Alex who has a Savings Bank

account with Citi Bank Mumbai.

2. A corporate customer, ABC automobiles Limited that has a Current account with ‘Bank

of India’ Bangalore wants to pay a sum of Rs 1 crore urgently to another company called

XYZ automobiles who has a current account with State Bank of India, New Delhi.

Assume that you are one of the advisors to customers on Payment options.

a. There are multiple Electronic Payment options available in India. What electronic

payment option will you recommend for the following

1. A Corporate customer (ABC automobiles Limited) wants to pay dividend of varying

amounts to its 10,000 shareholders. ABC Automobiles maintains a current with SBI,

Kolkatta.

2. A Retail Bank customer (Mr Gupta) wants to make monthly repayment (EMI of Rs

15,000 per month) towards Housing Loan taken from Punjab National Bank, Pune

whereas the customer has his Savings Bank account with HSBC Bank, Mumbai

The organization structure of a Bank’s Treasury unit involves designing of its operations

across Front office, Mid-office, and Back office. Describe each of these three operating

arms in terms of its nature, purpose / objectives, and the skills / qualifications of the

people employed in these 3 operating arms

Historically, only larger Banks had the strength of providing Treasury products &

services. Now even smaller banks are into it in a strong way. Enumerate and describe at

least 5 purposes for which a Bank Treasury exists

In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues?

Foster’s stocks one raw material item, Drum 4, which forms the raw material content for their sole product, and the information below relates to this stock item for May 2016.

Opening stock

       100 units                                                      Price $20 per unit

Receipts of stock item

2-5-19                                    250 units                    Price $25 per unit

13-5-19                                   300 units                    Price $30 per unit

21-5-19                                   220 units                    Price $35 per unit

Issues to production

 6-5-19                                 200 units

19-5-19                                   300 units

30-5-19                                   250 units

            Required:

(a)   For Drum 4, calculate the value of closing stock as at 31 May 2019, and the cost of materials issued to production for the month of May, using perpetual methods of inventory valuation for:

FIFO

LIFO and AVCO  

Examples of the difference between cash flow statements prepared using the

direct method versus the indirect method;

Using examples explaining the difference between cash flow statements prepared using the direct method versus the indirect method;

Explain, using examples, the difference between cash flow statements prepared using the

direct method versus the indirect method.