NMIMS Solved Assignment Financial Accounting June 2025

NMIMS Solved Assignment Financial Accounting June 2025:  [Unique]
NMIMS Solved Assignment Financial Accounting June 2025 :

Assignment Marks: 20
Instructions
PLEASE NOTE: This assignment is application based, you have to apply what you have
learnt in this subject into real life scenario. You will find most of the information through
internet search and the remaining from your common sense. None of the answers appear
directly in the textbook chapters but are based on the content in the chapter
NMIMS Centre for Distance and Online Education (NCDOE)
Course: Financial Accounting
Internal Assignment Applicable for Jun 2025 Examination
l All Questions carry equal marks
l All Questions are compulsory
l All answers to be explained in not more than 1000 words for question Q1 and for question Q2(A)
and Q2(B) in not more than 500 words for each subsection. Use relevant examples, illustrations as
far as possible
l All answers to be written individually. Discussion and group work is not advisable.
l Students are free to refer to any books/reference material/website/internet for attempting their
assignments, but are not allowed to copy the matter as it is from the source of reference.
l Students should write the assignment in their own words. Copying of assignments from other
students is not allowed
Q1 You are given the following partial financial information for AlphaEx Ltd. for the
year ended March 31, 2024:
Required
Compute the Cost of Goods Sold (COGS) and Gross Profit for the year
ended March 31, 2024.
(2 marks)
1.
Prepare the Income Statement (from Net Sales down to Net Income) for the
year ended March 31, 2024. Clearly show each line item, including your
calculations for Cost of Goods Sold, Gross Profit, Operating Income, and Net
Income after tax.
(3 marks)
2.
Calculate the ending Retained Earnings on March 31, 2024, after the
company closes its Net Income into Retained Earnings. Show your computation
step by step.
(2 marks)
3.
Using the year-end balances, compute and interpret two financial ratios—for
example, the Current Ratio and the Debt-to-Equity Ratio. In a brief
paragraph, discuss what these ratios indicate about Alpha Ex Ltd.’s liquidity and
long-term solvency. (3 marks)
4.
1. Income Statement (Partially Reported)
Amount
(Rs.)
Net Sales: 9,00,000
Beginning Inventory (April 1, 2023): 60,000
Net Purchases: 3,20,000
Ending Inventory (March 31, 2024): 50,000
Operating Expenses (excluding depreciation): 1,40,000
Depreciation Expense: 30,000
Interest Expense: 20,000
Income Tax Rate: 25%
2. Balance Sheet (Selected Items as at March 31, 2024)
Cash & Cash Equivalents: 1,00,000
Accounts Receivable: 80,000
Inventory: 50,000
Property, Plant & Equipment (net): 4,00,000
Accounts Payable: 40,000
Long-Term Debt: 2,00,000
Common Stock: 1,50,000
Retained Earnings (at the beginning): 80,000
(10 Marks)
Q2 (A) A mid-sized manufacturing company has suffered significant losses over the past two
years, casting doubt on its ability to continue as a going concern. Critically examine
how the concept of going concern influences the accounting process in such a
situation. In your analysis, discuss the ethical and professional judgments an
accountant must make when deciding whether the business should continue applying
going concern assumptions in its financial statements.
(5 Marks)
Q2 (B) Financial accounting is based on fundamental principles and assumptions that guide
the preparation of financial statements. However, with the rapid advancement of
technology and the increasing complexity of modern business transactions, some
argue that traditional accounting frameworks may no longer be sufficient. Critically
evaluate the relevance of traditional financial accounting principles (such as the
historical cost principle, accrual basis, and consistency) in today’s business
environment. In your response, analyze potential modifications or alternative
approaches that could enhance financial reporting accuracy and decision-making for
stakeholders.
(5 Marks)

NMIMS Centre for Distance and Online Education (NCDOE)
Course: Financial Accounting & Analysis…..For old syllabus..
Internal Assignment Applicable for Jun 2025 Examination

l All Questions carry equal marks
l All Questions are compulsory
l All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in
not more than 500 words for each subsection. Use relevant examples, illustrations as far as
possible
l All answers to be written individually. Discussion and group work is not advisable.
l Students are free to refer to any books/reference material/website/internet for attempting their
assignments, but are not allowed to copy the matter as it is from the source of reference.
l Students should write the assignment in their own words. Copying of assignments from other
students is not allowed
l Students should follow the following parameter for answering the assignment questions

Q1 A small manufacturing company, Horizon Industries, has experienced rapid growth
and needs to organize its accounting records. The company currently tracks
transactions informally using spreadsheets. The owner has hired you as a consultant
to implement proper accounting procedures. Describe the sequential steps Horizon
Industries should follow to establish a formal accounting system. Explain the purpose
and role in generating financial statements. Additionally, identify which source
documents should be maintained for different types of transactions.
(10 Marks)
Q2 Meera Sharma recently decided to pursue her passion for landscaping by starting
Green Valley Landscaping Services in Pune, Maharashtra. After years of working for
a large landscaping company, she’s using her expertise and savings to establish her
own business in a growing residential area. The company offers residential and
commercial landscaping services including lawn maintenance, garden design,
irrigation system installation, and seasonal clean-up. Meera has rented a small office
space with an attached storage area for equipment and supplies near Koregaon Park.
As she begins operations, she needs to properly track all business transactions to
understand her financial position and plan for future growth.
Explain the accounting equation and its fundamental importance in financial
accounting. Analyze the following six transactions for Green Valley Landscaping
Services and show how each affects the accounting equation:
1. Meera invested Rs.15,00,000 cash to start the business
Purchased equipment worth Rs.5,00,000, paying Rs.2,00,000 in cash and
financing the remainder
2.
3. Provided landscaping services for Rs.2,75,000, receiving cash immediately
4. Paid Rs.75,000 for monthly rent
5. Purchased supplies for Rs.45,000 on account from Ganesh Garden Supplies
6. Paid Rs.30,000 toward the equipment loan to State Bank of India
(10 Marks)
Q3 (A) Vindhya Technologies Ltd, a mid-sized software development company based in
Bangalore, specializes in enterprise solutions and mobile applications. Below are
selected items from the company’s financial statements for the years ended March 31,
2024 and 2023 (all figures in Rs. lakhs):
Balance Sheet Items:
– Current Assets (2024): Rs.480; (2023): Rs.360
– Cash and Cash Equivalents (2024): Rs.180; (2023): Rs.140
– Current Liabilities (2024): Rs.220; (2023): Rs.190
– Total Assets (2024): Rs.1,200; (2023): Rs.950
– Total Liabilities (2024): Rs.500; (2023): Rs.400
– Inventory (2024): Rs.60; (2023): Rs.45
Income Statement Items:
– Net Sales (2024): Rs.1,500; (2023): Rs.1,250
– Net Profit After Tax (2024): Rs.225; (2023): Rs.170
– Cost of Goods Sold (2024): Rs.900; (2023): Rs.780
Additional Information:
– Average Total Assets for 2024: Rs.1,075
– Average Inventory for 2024: Rs.52.5
– Shareholders’ Equity (2024): Rs.700; (2023): Rs.550
Analyze Vindhya Technologies Ltd’s financial performance by calculating and
interpreting the Profitability and Liquidity categories of financial ratios. Calculate
and interpret two ratios for each category.
(5 Marks)
Q3 (B) Analyze Vindhya Technologies Ltd’s financial performance by calculating and
interpreting the Solvency and Efficiency categories of financial ratios. Calculate and
interpret two ratios for each category.
(5 Marks)