Description

Financial Accounting

Sep 2025 Examination

Q1. Apply the accounting cycle to a mid-sized technology company that is transitioning from manual to automated accounting systems. How would you ensure the accuracy and consistency of financial records throughout each stage of the cycle, and what challenges might arise during this transition? (10 Marks)

Ans 1.

Introduction

For a mid-sized technology company shifting from manual accounting to automated systems, managing the accounting cycle effectively is vital to ensure accuracy, consistency, and regulatory compliance. The accounting cycle includes a series of steps that guide financial reporting, from recording transactions to preparing final statements. During this transition, maintaining data integrity and ensuring smooth integration of old and new systems is a major concern. The switch offers benefits such as increased efficiency and real-time reporting but also brings potential risks like software misconfiguration, data migration errors, and employee adaptation challenges. Applying the accounting cycle correctly in an automated

Its Half solved only

Buy Complete assignment from us

Price – 290/  assignment

NMIMS Online University Complete SolvedAssignments  session SEPT  2025

buy cheap assignment help online from us easily

we are here to help you with the best and cheap help

Contact No – 8791514139 (WhatsApp)

OR

Mail us-  [email protected]

Our website – www.assignmentsupport.in

Q2. A firm’s trial balance as at 31st March 2024 shows: – Opening Inventory: Rs.3,00,000 – Purchases: Rs.12,00,000 – Sales: Rs.18,00,000 – Sales Returns: Rs.60,000 – Wages: Rs.1,50,000 (includes Rs.30,000 paid in advance for next year) – Carriage Inward: Rs.40,000 – Carriage Outward: Rs.25,000 – Administrative Expenses: Rs.1,20,000 (Rs.10,000 outstanding) – Rent Paid: Rs.90,000 (includes Rs.20,000 prepaid) – Depreciation on Equipment: To be provided at 12% p.a. on Rs.5,00,000 (equipment purchased 1st July 2023) – Bad Debts: Rs.12,000 – Provision for Doubtful Debts (1st April 2023): Rs.18,000 – Sundry Debtors: Rs.2,00,000 – Additional Provision required: 6% of closing debtors after bad debts – Accrued Commission Income: Rs.15,000 (not yet recorded) – Capital: Rs.8,00,000 – Drawings: Rs.1,20,000 – Closing Inventory (physical count): Rs.2,50,000 Required: Prepare the Income Statement for the year ended 31st March 2024, incorporating all necessary adjustments, and compute the closing value of Sundry Debtors to be shown in the Balance Sheet. Show all workings and justify each adjustment. (10 Marks)

Ans 2.

Introduction

The income statement is one of the fundamental financial reports prepared by a business to present its revenues, expenses, and resulting profit or loss for a particular period. In financial accounting, it is important to not only record direct financial transactions but also to consider necessary adjustments before finalizing the accounts. These adjustments may include provisions for doubtful debts, depreciation, prepaid or outstanding expenses, and accrued income. For a firm with a mix of direct and indirect incomes and expenses, each component must be analyzed and adjusted to ensure that financial results reflect the true state of affairs. Furthermore, the valuation of sundry debtors after adjusting for bad debts and required provisions is essential for the accuracy of the balance sheet and overall financial reporting.

Concept and Application

When preparing an income statement, accountants must follow the accrual basis of

Q3 (A)  Create a comprehensive framework for a multinational corporation to ensure the effective application of accounting concepts and conventions (such as consistency, conservatism, disclosure, and materiality) in its financial reporting, especially during periods of financial uncertainty. Justify how your framework would maintain stakeholder trust and regulatory compliance. (5 Marks)

Ans 3a.

Introduction

Multinational corporations (MNCs) operate in diverse financial, regulatory, and economic environments. During periods of financial uncertainty, the effective application of fundamental accounting concepts such as consistency, conservatism, disclosure, and materiality becomes essential. These principles are crucial in ensuring that financial statements are transparent, comparable, and compliant. By implementing a structured framework that embeds these conventions into internal processes, MNCs can enhance the reliability of their reporting, fulfill regulatory expectations across jurisdictions, and reinforce

Q3(B) Formulate a comprehensive approach reporting for a conglomerate with multiple subsidiaries to present consolidated financial statements, including the statement of changes in equity, that align with both Indian and international financial reporting standards, and address challenges related to minority interests and cross-border operations. (5 Marks)

Ans 3b.

Introduction

Conglomerates with multiple domestic and international subsidiaries face significant challenges in consolidating financial statements, particularly in aligning with Indian Accounting Standards (Ind AS) and International Financial Reporting Standards (IFRS). The preparation of consolidated financial statements, including the Statement of Changes in Equity, must reflect economic substance, ensure transparency, and address complexities such as minority interests and currency translation. A structured and unified approach is necessary to present a coherent financial picture while managing the intricacies of cross-border