New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
financial accounting for managers

Financial Accounting For Managers 3rd Edition Sanjay Dhamija - Solutions

Reliability is one of the key attributes of financial statements. Do you agree with the statement?
The Indian business and investor community received a shock on 7th January 2009 when Mr. Ramalinga Raju, CEO of Satyam Computer Limited (Satyam), by a letter to the board of directors admitted falsification of account to the tune of over ₹ 70,000 million. Satyam at that time was the fourth
Briefly describe the regulatory environment to ensure that the financial statements are reliable.
Define the term ‘financial shenanigans’. Is it necessarily illegal?
As per a report published in the Economic Times dated 23rd June 2011 titled ‘No standards, so real estate numbers remain a riddle’ in absence of any regulations in this regards, revenue recognition by real estate companies places question marks over the accuracy of reported revenue numbers and
Revenue recognition is one of the most vulnerable accounting areas. Describe some of the methods of manipulating revenue recognition.
Explain the following financial shenanigan techniques:1. ‘Big bath’ accounting2. ‘Cookiejar’ accounting3. Channelstuffing4. Roundtripping
What steps would you suggest for the management to take to prevent financial shenanigans?
How will you detect presence of financial shenanigans in the financial statements?
Financial shenanigans are short-term measures’. Comment.
Based upon the given Trial Balance and the additional information, prepare the statement of profit and loss of Shivam Industries Limited for the year ended 31st March 2017:Trial Balance of Shivam Industries Limited as on 31st March 2017Additional Information1. Stock in hand on 31st March 2017 ₹
Bharti Airtel Limited was promoted by Mr. Sunil Mittal in the year 1995. With the opening of telecom sector in India, the company launched its mobile services under the brand name ‘Airtel’ in Delhi and Himachal Pardesh. The company now has a presence in all the 22 telecom circles in India.
‘Financial accounting information is primarily used by the external users whereas management accounting information is exclusively used by internal users’. Explain.
What are the key differences between financial accounting and management accounting?
Identify three primary financial statements and state their purposes.
The accounting and disclosure requirements are greatly influenced by the regulations. Briefly explain the accounting environment in India.
Mr. Smart Lal commenced his trading business in the name of Exotica Trading Company on 1st April 2017 with a capital of ₹ 1,000,000 and a loan from the State Bank of India amounting to ₹ 500,000. At the end of the first year, the summary of his business transactions recorded on cash basis are
Explain the following accounting principles with suitable examples: 1. Accounting period 2. Separate entity 3. Money measurement 4. Substance over form 5. Historical cost 6. Dual aspect
Curewell Pharmaceutical Limited is facing a law suit wherein it may be liable to pay a fine of ₹ 10 million. The lawyer of the company has advised that there is a high probability of the company losing the law suit. How should the company record this transaction in the books of accounts? What
A business enterprise recorded cash sales of ₹ 15.5 million and credit sales of ₹ 7.8 million during the year 2016– 17. The cash purchases during the year were ₹ 13 million whereas credit purchases amounted to ₹ 4 million. The enterprise also paid ₹ 3 million towards various expenses
‘Gains are recorded if reasonably certain, whereas losses are recorded even if reasonably probable’. Explain the statement and identity the accounting principle.
Hindustan Unilever Limited (HUL), incorporated in 1933, is a part of the Unilever Group. The company is present in various segments including home and personal care, food and beverages, and water. The Company used to prepare and present its financial statements on a calendar year
Shivam Limited borrowed a sum of ₹ 50 million from the State Bank of India on 1st August 2016 for a period of one year. The loan matured on 30th July 2017 and was duly repaid on due date with interest amounting to ₹ 5 million. The company maintains its books on financial year basis. In which
Alto Limited bought a building for ₹ 30 million in the year 2014–15 which is being used for office purposes. Due to fall in the real estate prices in the area, the company ascertains that the current market price of the same has fallen to ₹ 23 million. At what value the building should be
As per consistency principle, accounting policies once chosen cannot be changed. Do you agree?
Which of the following transactions are subject matter of accounting: 1. Purchase of 200 kg of goods by the firm on credit for ₹ 100,000. 2. Resignation of one of the key salesman of the firm. 3. A pharmaceutical company has filed application for patent of a new drug. 4. A construction
Thanks to your help Roney is able to present the recasted and duly tallied Trial Balance to the Chief Accountant. The Chief Accountant informed him some additional transactions that need to be recorded. 1. Stock in hand as on 31st March 2017: ₹ 988,500. 2. Depreciation to be provided at the
Eighth Wonder & Co is engaged in cosmetics business. The trial balance and additional information as on 31st March 2017 are given below. You are required to prepare the profit and loss account for the year and the Balance Sheet as on that date. Trial Balance of Eighth Wonder & Company as
From the following Trial Balance of SSS Limited, prepare the profit and loss account for the year ended 31st March 2017 and a Balance Sheet on that date: Trial Balance of SSS Limited as on 31st March 2017 Additional Information:1. Goods costing ₹ 5,000 were distributed as free samples during
Financial statements of companies are much more detailed and structured. Why?
Ramesh, a fresh graduate, has recently joined his first job in a bank. His supervisor has asked him to find certain information from financial statements of a company. Please help him by suggesting which financial statement will contain the following information: 1. Inventory in hand at the end of
Identify financial statements which include the following information: 1. Shares issued during the year 2. Other income earned during the year 3. Trade receivables at the end of the year 4. Depreciation on assets charged during the year 5. Accumulated depreciation on assets 6. Dividend
Explain the key requirements as laid down by Ind AS 1 relating to the presentation of financial statements.
Write a short note on various financial statements which are required to be prepared by a company.
The statement of profit and loss is a flowbased statement whereas the balance sheet is a static statement. Explain.
Asian Paints was set up in the year 1942 and is India’s leading paint company with a group turnover of ₹ 170.85 billion. The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 16 countries and
For better understanding of financial statements, it is important to go through the notes to accounts. Do you agree?
In each of the following cases ascertain the amount to be charged as expenses in the statement of profit and loss for the year 2016–17: 1. Premises taken on rent on 1st August 2016 by paying a deposit of ₹ 10 million. Quarterly rent of ₹ 300,000 paid on 1st August and 1st November each. Rent
Ascertain the impact of the following transaction on the profit and loss statement for the financial year 2016–17: 1. The company borrowed ₹ 100 crore from the State Bank of India the rate of 12% per annum on 1st July 2016. The interest is payable quarterly on the first day of October,
The details of income and expenses of SDTV Limited for the year 2017 is given below:You are required to prepare the statement of profit and loss for the company using suitable heads for income and expenses. Also, indicate the cash operating profit, operating profit and pretax profit separately.
Identify the main accounting principles having a bearing on the preparation of the statement of profit and loss.
HCL Technologies Limited is a leading IT solution provider company with operations is 32 countries and 116,000 employees. The global revenue of the company exceeded USD 7.2 billion. HCL Technologies provides solutions built around digital, IoT, cloud, automation, cybersecurity, analytics,
Classify the following incomes into operating income, other income, exceptional income or extraordinary income: 1. Interest earned by a bank. 2. Interest earned by a manufacturing company on the fixed deposits it kept with the bank. 3. Sale of scrap arising out of manufacturing process. 4.
Cipla is a leading global pharmaceutical company, dedicated to highquality, branded and generic medicines. We are trusted by healthcare professionals and patients across geographies. Cipla was founded in the year 1935 and has presence in 80 countries. The company has over 23,000 employees and a
‘Interest paid is an expense whereas dividend paid is an appropriation of profit’. Explain.
Classify the following expenses under various heads of statement of profit and loss as per Schedule III of the Companies Act, 2013: 1. Staff welfare expenses2. Interest paid 3. Payment to contract labour 4. Goods purchased for trading 5. Auditors’ fees 6. Depreciation on property, plant and
Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods company. HUL has over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers. The
Explain the accounting for different types of employees’ cost.
Mahaveer Limited earned a PAT of ₹ 33.80 million for the year 2017. The share capital of the company is made up of eight million equity shares of ₹ 2 each and one million preference shares of ₹ 100 each carrying dividend at the rate of 10%. The company had six million equity shares
Tech Mahindra Limited made a profit of ₹ 743 crore for the year 2009–10 after making a provision of ₹ 131 crore towards taxes and ₹ 130 crore towards depreciation and amortization. The company also incurred ₹ 160 crore as interest and finance charges. Calculate the pretax profit,
Differentiate between basic earnings per share and diluted earnings per share.
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world’s largest manufacturer of twowheelers, based in India. In 2001, the company had achieved the coveted position of being the largest twowheeler manufacturing company in India and also, the ‘World No.1’ twowheeler company in
On the basis of the following information, prepare the profit and loss account for the Jack Paints Limited for the year 2016–17. Show EBITDA, EBIT and PBT separately. Particulars Gross sales Excise duty Interest earned Dividend received Profit on sales of fixed assets Exceptional
‘Deferred tax assets and deferred tax liabilities arise due to timing difference between taxable income and reported income’. Explain the statement with suitable examples.
From the following balance extracted from the books of accounts of Solid Steels Limited as on 31st March 2017, prepare the statement of profit and loss. The closing stock as on 31st March 2017: Particulars Amortisation Bank charges Contribution to employees funds Depreciation on tangible
Explain the different measures of profit.
Star Limited has an authorized capital of ₹ 600 million divided into 60 million equity shares of ₹ 10 each. The trial balance of the company for the year ended 31st March 2017 is as follows: Additional InformationYou are required to prepare the profit and loss statement for the year ended 31st
The share capital of the Jack Paints Limited consists of 96 million equity shares of the face value ₹ 10 each. In addition, the company also has given stock options to its employees which can be converted into 5.80 million equity shares on exercise. Based upon the profits arrived in Problem 5
What is the basic principle behind accounting for research and development expenses?
In continuation of Case 5.1 given in Chapter 5, you are required to prepare the balance sheet of Asian Paints Limited for the year ended 31st March 2017. The relevant information extracted from the books of accounts of the company are stated below:Case 5.1In each of the following cases ascertain
‘The balance sheet represents the financial position of an enterprise on a particular date’. Explain.
The authorized share capital of Super Growth Limited consisted of 10 million equity shares of the face value ₹ 10 each and one million 10% preference shares of the face value ₹ 100 each. Out of this, the company allotted one million equity shares at par to the promoters for cash. The company
Easy Going Financial Services Limited with an authorized share capital of ₹ 100 million (10 million equity shares of ₹ 10 each) issued seven million equity shares for subscription at par. Applications were received for 6.9 million shares with application at the rate of ₹ 5 each and the
In continuation of Case 5.2 given in Chapter 5, you are required to prepare the balance sheet of HCL Technologies Limited for the year ended 31st March 2017. The relevant information extracted from the books of accounts of the company are stated below: Case 5.2HCL Technologies Limited is a leading
Define the terms asset, liability and equity.
Pee Ess Limited with an authorized share capital of ₹ 50 million divided into five million equity shares of ₹ 10 each made a public issue of two million equity shares at par. The company called the full face value of the shares in three instalments. All the shareholders paid the amount due
How will you classify the following items in the balance sheet of a company: 1. Goodwill 2. Sundry creditors 3. Provisions for doubtful debts 4. Instalments of longterm loans due for repayment within the next 12 months 5. Securities premium account 6. Deferred tax assets (Net) 7. Current
Use the trial balance and additional information given in Case 5.3 in Chapter 5, and prepare the balance sheet of Cipla Limited as on 31st March 2017.Case 5.3Cipla is a leading global pharmaceutical company, dedicated to highquality, branded and generic medicines. We are trusted by healthcare
In the balance sheet of High Tech Tools Limited on 31st March 2017, the equity appeared as follows: The company decided to issue bonus shares to the existing shareholders in the ratio of 5:1 by capitalizing the securities premium account and a part of the general reserves. For this purpose, it was
How do you differentiate current liabilities from noncurrent liabilities?
How would the following transactions be disclosed in the balance sheet::1. The company has incurred ₹ 320 Crore on the construction of a building that is yet to be completed. 2. An advance of ₹ 10 Crore has been given to the material supplier for which the goods are yet to be received. 3. The
Use the trial balance and additional information given in Case 5.4 in Chapter 5 and prepare the balance sheet of HUL Limited as on 31st March 2017.Case 5.4Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods company. HUL has over 35 brands spanning 20 distinct categories
How does the valuation of current assets differ from that of noncurrent assets?
The equity of Sooper Staar Limited as per the last two balance sheets are given as follows: Based upon the above information identify the reasons for changes in the share capital and reserves and surplus of the company during the year 2016–17. Particulars Share capital 120 million shares
As on 31st December 2011, All Stars Limited has a loan outstanding from the State Bank of India amounted to ₹ 250 million. The loan is secured against mortgage of the land, building, plant and machinery owned by the company. The loan attracts interest at 12% per annum payable half yearly on 1st
In continuation of Case 5.5 given in Chapter 5, the summarized balance sheets of Hero Honda Motors Limited and Tech Mahindra Limited for the year ended 31st March 2017 are given below:Case 5.5Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world’s largest manufacturer of
As on 31st March 2017, the breakup of borrowed funds of Sabse Taza Retails Limited is as follows: The term loan is secured against the mortgage of company’s fixed assets, whereas the working capital loan is secured by way of hypothecation of its current assets. Public deposits are unsecured
Differentiate between a liability, provision and contingent liability.
From the followings balances extracted from the books of SDTV Limited and additional information prepare the balance sheet of the company for the year ended 31st March 2017: Additional Information1. All the investments are longterm in nature. The management estimates that there is a diminution
The details of investments of High Power Electricity Limited as on 31st March 2017 are given as follows: The Regular Electrical Supply Limited is a subsidiary of the company. All other investments are current is nature. The current repurchase price of the mutual funds units is ₹ 122 million. How
Engineers India Limited (EIL) was set up in 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects. Its range of services include project management consultancy (PMC), project implementation services (PMS), engineering, procurement and
The extracts from the books of account of Victoria Limited as on 31st March 2017 are given as follows. Prepare the balance sheet of the company as on 31st March 2017. Make suitable assumptions as required. What are your key observations based upon the balance sheet relating to compositions of the
Muscle Power Builder Limited is engaged in the construction business. It follows proportionate completion method for booking revenue and accordingly revenue is booked according to the stage of completion. The details of the payments received from customer and the revenue booked based upon
High Growth Fertilizers Limited is engaged in the manufacture and distribution of fertilizers in India. During the year 2016–17, the company made a profit of ₹ 693.27 Crore. The Board proposed a dividend @ 300% on the Equity Shares. The dividend attracts distribution tax @ 15% of the amount
‘Revenue is recognized when earned and not necessarily when received’. Explain.
During the year 2017–18, the invoice value of goods sold by Avon Corporation amounted to ₹325 million. The company offered trade discount aggregating to ₹10 million. In addition, Goods and Services Tax (GST) @ 18% of the invoice price was collected by the company and paid to the government.
Asia Computers Limited is a newly established company in the information technology sector. The company has plans to gradually enter BPO and software development activities. In the initial phases, the company plans to concentrate on the following revenue generating activities: 1. Sale of
Discuss the principles of revenue recognition from sales of goods.
Fair White Limited is a FMCG company largely catering to domestic markets. During the year 2016–17, it received its maiden export order for $ 2 million for supply of fairness cream to USA. The order was duly executed on 1st November 2016. The supplier was allowed a credit period of 90 days for
Desire Limited is in the business of manufacturing high fashion accessories. The company sold certain goods with an invoice price of ₹25 million to one of its customer offering him a discount of 2% on the invoice price. The customer is allowed three months credit; however; a discount of 1% is
Strong Structure Limited was awarded a contract for construction of a flyover by the Government of Delhi on 1st October 2014. The contact consideration was fixed at ₹280 crore. The flyover was competed on 31st December 2016 with the following details: The company uses the percentage of
Super Fast Internet Railway Ticketing Company Limited provides service of booking railway tickets through the Internet. The company made investment for setting up of infrastructure for providing such services including computers, servers, printers, manpower, etc. The company has been given access
Asian Paints is India’s largest and Asia’s third largest paint company. It manufactures a wide range of paints for decorative and industrial use. For the year 2003–04, the company reported a total income of ₹17,641.39 million and a net profit of ₹1,477.87 million. The breakup of the
How is the treatment of cash discount different from that of trade discount or quantity discount?
In which financial year, will revenue be recognized in each of the following cases: 1. Advance received from a customer on 31st December 2016. The goods are manufactured and invoiced on 1st April 2017. 2. Goods sent to a commission agent on 15th January 2017. Goods sold by the commission agent on
Ram Bharose Limited, a steel trader follows a very liberal credit policy of allowing 120 days to its customer to pay against their purchases. This policy has helped the company in attracting new customers but at the same time results in a high incidence of bad debts. As on 31st March 2017, the
Shine Info Limited is engaged in software development business. It received a contract for developing and implementing software for credit risk management for a leading bank on 1st January 2016. The contact consideration was fixed at ₹130 million. The work was completed on 15th February 2018 with
How are the indirect taxes (excise duty, sales tax, value added tax, service tax) treated while recording revenue?
MMTC Limited was established in the year 1963. It is a leading international trading company in India. It was awarded the status of ‘five star export house’ by the government of India for its contribution to exports.For the year 2004–05, the auditors of the company issued a qualified report
Explain method of revenue recognition from services using proportionate completion method.

Showing 1300 - 1400 of 1520

First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved