You visited Subway that’s 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

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Financial Accounting and Analysis
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Financial Accounting and Analysis
Question 1
You visited Subway that’s 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.
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.
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)
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