Accounting Answers

Following information relates to Process A account 10000 Units introduced at Rs 20000 Material consumed Rs 5000 Manufacturing expenses Rs 2000 Direct Labour charges Rs 6000 Units transferred to next process B- 9500 It is bound that wastage in this process is 3% There is no realizable value of scrap Prepare the process account reflecting the value at which output will be transferred to the next process.

This pandemic situations has drawn the attention of a lot of individuals to actively watch and participant in the Indian financial market. As a life-long learner, you also decide to understand the fundamentals of certain companies listed on the stock exchanges in India. One of your friends advised you to look in to the various techniques of financial analysis, as one of the way of evaluating the financials of business entities. You are done with getting an understanding about various techniques of financial analysis. Elaborate any five of the said techniques for financial analysis.

2. a. Josh Smith has compiled some of the data of his business in order to analyze his position. The data are as follows.

Account Amount

Cash 3200

Inventory 2800

Checking account 800

Accounts payables 700

Short-term notes payables 2100

i. Calculate Josh’s liquidity ratios.

ii. Several of Josh’s friends are doing different business. They have told him that they have current ratio and quick ratio of about 1.8 and 1.1 respectively. How would you analyze Josh’s liquidity relative to his friends?

iii. What problem might you find in comparing these ratios? 3

General accounting practice is based on the accrual concept. Explain what this means and describe how this compares with the financial manager's focus on cash.

1. The word trap suggests that there may be a way to escape. Do you think developing countries can escape all of the traps described in Chapter 4? Which ones would be most difficult to escape? How could the developed world be of assistance in these cases? Could developed countries do more?

Classify the following pairs of goods and services

as substitutes in production complements in

production, or neither.

a. Lumber and sawdust b. Condominiums and bungalows c. Cheeseburger and fries d. Cars and gasoline e. Cappuccino and latte

Mahesh wants to start his business and for that he decides that he will take loan for Rupees 7 Lakhs from the Bank of Baroda. He also decides to use his saving worth 3 lakhs in the bank account to start the business. Discuss how these two transactions will be recorded in the books of accounts by passing the relevant journal entries? How these transactions will be reflected in the Books of accounts (that' is in the financial statements)? Lastly,  conclude  your  answer  by  stating  the  applicability  of  which  accounting assumption/s you did the above mentioned accounting treatment/ recognition and presentation in the books of accounts. 

Classify the following pairs of goods and services 

as substitutes in production, complements in 

production, or neither. 

a. Lumber and sawdust 

b. Condominiums and bungalows 

c. Cheeseburger and fries 

d. Cars and gasoline 

e. Cappuccino and latte

A. Create a classified Statement of Financial Position in Report Form. (Please refer to the note below)

1. The following balances are lifted from the general ledger of Alpha Company as of July 31, 2021.

Accounts Payable -- 44,000.00

Accounts Receivable --150,000.00

Allowance for Doubtful Accounts -- 32,000.00

Alpha, Capital -- 670,000.00

Cash -- 455,000.00

Delivery Equipment -- 300,000.00

Furniture -- 31,000.00

Light and Water Expense -- 64,000.00

Loans Payable -- 130,000.00

Merchandise Inventory -- 110,000.00

Notes Payable -- 150,000.00

Prepaid Insurance -- 15,000.00

Rent Expense -- 128,000.00

Salaries Expenses -- 169,000.00

Salaries Payable -- 25,000.00

Service Revenue -- 330,000.00

Vat Payable -- 10,000.00

Note: Accounts Receivable is due on

December 31, 2021.

Accounts and Notes Payable are due on

January 31, 2022 and December 31,

2022 respectively. Bank loan is due in

18 months.