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
| 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 60% Correct Answer & Interpretation 20% |
Q1. Analyse the following transactions for Surprise Ltd. using the concept of Accounting Equation comprising of Assets, Liabilities and Equity. (10 Marks)
- Commenced business with cash of ₹ 5,00,000.
- Purchased equipment for cash ₹ 2,00,000.
- Purchased furniture worth ₹50,000 on credit from IndiMart.
- Purchased raw materials for ₹25,000 against cash from XYZ Suppliers.
- Deposited cash of ₹ 1,25,000 in the current account.
- Sold goods for ₹75,000 and received a cheque against the same.
Q2. Prepare a vertical balance sheet from the following information: (10 Marks)
| Liabilities | Rs. | Assets | Rs. |
| Share capital | 1,50,000 | Goodwill | 20,000 |
| Share Premium Account | 5,000 | Land and Building | 80,000 |
| General Reserve | 60,000 | Plant (at cost less dep.) | 44,000 |
| Profit and Loss account | 17,000 | Furniture (at cost less dep.) | 3,000 |
| 6% Debenture | 50,000 | Investment (Trade) | 80,000 |
| Bank Loan (Long Term) | 35,000 | Debtors | 70,000 |
| Bank Overdraft | 20,000 | Stock | 60,000 |
| Sundry Creditors | 60,000 | Cash at Bank | 40,000 |
| Provision for Taxation | 10,000 | Prepaid expenses | 5,000 |
| Preliminary expenses | 5,000 | ||
| Total Rs. | 4,07,000 | Total Rs. | 4,07,000 |
Q3. A) Prepare a comparative income statement for any company extracting their P&L statement for the years 2020-21 & 2021-22. Analyse the incline and decline in the different elements in the P&L Statement and provide detailed insights. (5 Marks)
Q3. B) Prepare a trend analysis statement for any the same company extracting their P&L statement for the years 2019-20, 2020-21 & 2021-22. Analyse the incline and decline in the different elements in the P&L Statement and provide detailed insights.
(5 Marks)
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