Assignment 2:

Make a report on the Business and Financial Aspects of the major Financial Transactions. In particular,
the followings Financial Accounts / Heads should be covered with the points of discussion also
mentioned below:

a) Property Plant and Equipment

List the nature of major Fixed Assets the company owns? How they contribute in the Company’s
Operations. At what value the Fixed Asset is recognized / measured in the Financial Statement.
What accounting entries during the course of operations.

b) Stock in Trade / Inventory

List the Name / Nature of the inventory the company owns. How they are classified under the
Financial Statements (Raw Material / Work in progress / Finished Goods).

How they contribute in the Company’s Operations. At what value (invoice price / Invoice Price
with Directly Attributable costs) the inventory is recognized / measured in the Financial
Statement.

Whether they follow the perpetual inventory system / periodic inventory system.

What accounting entries are made at the time of Purchase / Production / Sales of those
inventories?

c) Trade Receivables

Whether the company sales its goods / offers its services on Credit / Cash. What’s the normal
Credit policy of the company? What accounting entry do they process at the time of sales or
when the receivables gets settled?

d) Prepayments

Does the company have any prepaid expenses? Nature of Such expense. How they contribute
the business. At what value they are recognized in the Financial Statements. What accounting
entries are made in the system?

e) Loans Payable (Long term / Short Term)

Does the Company have any long term loan? The purpose of the loan. What accounting entries
are made at the time of recognition and settlement of the loan?

f) Trade Payables

What are the major trade liabilities the company have? What’s the business need of such
liabilities? When the trade liabilities are settled. What accounting entries are made?
 g) Accrued Liabilities

Does the company have any accrued expenses? Nature of Such expense. How they contribute
the business. At what value they are recognized in the Financial Statements. What accounting
entries are made in the system?

h) Sales

The products the company Sales. Which products contribute more in the entities sales? More
business aspects. At what value the sales is recorded. What accounting entry is prepared at time
of sales?

i) Cost of Sales

What are costs are classified under the cost of sales? How they contribute in the company’s
operations. At what value they are recognized? What accounting entries are made in the
system?

j) Marketing and Selling Expenses

What are costs are classified under the cost of sales? How they contribute in the company’s
operations. At what value they are recognized? What accounting entries are made in the
system?

k) General and Administrative Expenses

What are costs are classified under the cost of sales? How they contribute in the company’s
operations. At what value they are recognized? What accounting entries are made in the
system?

Please note that while documenting the accounting aspect, cover all the topics that are discussed in the
class.

You can prepare the report of Ms Word or Power Point. Deadline for the submission is 17 December
2022 on LMS. Also submit the Hard Copies by 18 th December 22.