Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2022 Examination

Assignment Marks: 30

Instructions:
 All Questions carry equal marks.
 All Questions are compulsory
 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.
 All answers to be written individually. Discussion and group work is not advisable.
 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.
 Students should write the assignment in their own words. Copying of assignments from
other students is not allowed.
 Students should follow the following parameter for answering the assignment questions.

1. Analyse the following transactions for Surprise Ltd. using the concept of Accounting
Equation comprising of Assets, Liabilities and Equity
1.Commenced business with cash of ₹ 5,00,000.
For Theoretical Answer
Assessment Parameter Weightage
Introduction 20%
Concepts and Application
related to the question
60%
Conclusion 20%
For Numerical Answer
Assessment Parameter Weightage
Understanding and usage
of the formula
20%
Procedure / Steps 50%
Correct Answer &
Interpretation
30%
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2022 Examination
2. Purchased equipment for cash ₹ 2,00,000.
3. Purchased furniture worth ₹50,000 on credit from IndiMart.
4. Purchased raw materials for ₹25,000 against cash from XYZ Suppliers.
5. Deposited cash of ₹ 1,25,000 in the current account.
6. Sold goods for ₹75,000 and received a cheque against the same.
(10 Marks)
2. Cash flow statement complements the income statement and the balance sheet
summarizing all cash inflows and outflow transactions in the company within the given
financial year. However, there are two different methods of preparing the cash flow
statement – direct and indirect.
Enlist the differences between Direct and Indirect method of cash flow statement.
(10 Marks)
3. Following information is available for Companies Ace Ltd. and Pace Ltd.: (₹ in lacs)
Particulars Ace Ltd. Pace Ltd.
Long term Debt 625 700
Equity 2100 2850
Current assets 450 550
Current liabilities 300 375
Net Profit 115 178
Revenue (net) 355 452
a. Compute Debt-equity ratio, current ratio for both companies. (5 Marks)

Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2022 Examination
b. If face value of equity shares of both companies ₹10 each, calculate the Earnings per
share ratio for both companies, advising which company is recommended for investment.
(5 Marks)