The Companies Act 1956 was the first Act which governs the various Companies registered in India

1

• Financial Accounting and Analysis
• info_at_answersheets.in
• 91 95030-94040

2

• Financial Accounting and Analysis
• Question 1
• You visited Subway thats the fast food
  restaurant to purchase a Combo worth Rs 499. The
  restaurant paid for the raw material and
  utilities amounting Rs105 for each sale. In
  addition to that, the restaurant also paid for
  certain expenses in cash in total Rs 50 per sale.
  Discuss how these financial transactions will be
  recorded by way of journal entry, and also,
  discuss the various stages of the whole
  accounting process. (10 Marks)
• Question 2
• The Companies Act 1956 was the first Act
  which governs the various Companies registered in
  India. However, in the year 2013, the Act was
  amended holistically to bring more transparency
  in terms of accountability, presentation and
  disclosure aspects in relation to various
  financial information of a company.

3

• However one of your friend is of the
  opinion that there is only one difference between
  the two Act , that is , the presentation of
  financial statements , previously it was governed
  by Schedule VI and now Schedule III governs
  it.Now, you are assigned with the task of
  convincing your friend that there is a huge
  difference between the two Acts, by briefing him
  on atleast five other points of differences
  between the two. (10 Marks)
• Question 3
• The following information pertains to the Income
  statement of Beta Ltd.
•  

4

• a. Redraft the information in the vertical form
  of Income statement and also, calculate Earnings
  After Taxes (EAT ) (5 Marks)
• b. Calculate the gross profit ratio and operating
  profit ratio. Discuss, how they differ from each
  other? (5 Marks)

5

• www.answersheets.in
• info.answersheets_at_gmail.com
• info_at_answersheets.in
• 91 95030-94040