Accounting Answers

Directions: Prepare a bank reconciliation using the Adjusted Balance Method for the following given transaction.

Rancor Company provided the following information for the month of December:

      Balance per bank statement          ₱ 4,000,000

      Balance per cash book                  2,700,000

      Outstanding checks                     600,000

      Deposit in transit                        475,000

      Service charge                           10,000

      Proceeds of bank loan                    940,000

      Defective check (Debit memo)        50,000

      Credit memo                            435,000

Example of Adjusted Balance Method:

Adjusted Balance Method

In this method, both the records of the depositor and the bank should be brought to the corrected balance. Both balances are not correct; hence, the accounts must be adjusted to the correct balance. The pro-forma bank reconciliation statement appears as follows:

Unadjusted book balance xxxx

Add: Items credited by the bank but not recorded by the books xxxx

Total xxxx

Less: Items deducted by the bank but not recorded by the book (xxxx)

Adjusted book balance xxxx

Examples of price charges per minute by AT&T for long-distance telephone calls within the United States at different times of the day and week are as follows:

  Washington Phil. D.C. Washington, D.C.

D.C. to Phil. to St. louis to L. A.

Peak (8am - 5pm

Monday - Friday) $0.21 $0.22 $0.24

Evenings 5pm - 11pm

Monday - Friday $0.13 $0.13 $0.14

Nights & weekends $0.11 $0.11 $0.12

 a. Are there differences in incremental or outlay costs per minute for AT&T for telephone calls made during peak hours compared to telephone calls made at other times of the day?

b. Why do you think AT&T charges different prices per minute for telephone calls made during peak hours compared to telephone calls made at other times of the day?

2. At the cose of the year a company has mventory ot S 150,000 and cost of goods solkd tor

$ 975,000. If the company's turnover ratio SS, detemine the opening balance of the mventory

Choose any 1 Listed Company of your Choice

Download the latest available Annual Report of that Company.

Address the below from the downloaded Annual Report

(1) About the Company

(2) Management

(3) Shareholding Pattern

(4) Business Overview & Risks

(5) Financial Analysis

 - Revenues

 - Profits

 - Networth

 - Debt / Borrowings + Debt : Equity Ratio

 - Working Capital Cycle

 - Cash Ratio

 - MV : BV

 - EPS

 - PE Ratio

 - Sector PE

(6) Cash Flow Analysis (Operating+Investing+Financing)

The demand for tickets to an ethioian camparada film is given by D(p)=200,000-10,000p,where p is price of tickets. If the price of tickets is 12,calculate price elasticity of demand for tickets and draw demand curve

A Corporate customer, A Retail Bank customer, A customer, Mr Raju who has a Savings Bank account with ‘Indian Bank’ Chennai, A corporate customer

For each of the 4 items listed above, as an advisor, what will be your high-level advice

on the process involved and the benefits to the payer and the beneficiary

Assume that you are one of the advisors to customers on Payment options.

a. There are multiple Electronic Payment options available in India. What electronic

payment option will you recommend for the following

1. A customer, Mr Raju who has a Savings Bank account with ‘Indian Bank’ Chennai wants

to make a one-off payment of Rs 10,000 urgently to Mr Alex who has a Savings Bank

account with Citi Bank Mumbai.

2. A corporate customer, ABC automobiles Limited that has a Current account with ‘Bank

of India’ Bangalore wants to pay a sum of Rs 1 crore urgently to another company called

XYZ automobiles who has a current account with State Bank of India, New Delhi.

Assume that you are one of the advisors to customers on Payment options.

a. There are multiple Electronic Payment options available in India. What electronic

payment option will you recommend for the following

1. A Corporate customer (ABC automobiles Limited) wants to pay dividend of varying

amounts to its 10,000 shareholders. ABC Automobiles maintains a current with SBI,

Kolkatta.

2. A Retail Bank customer (Mr Gupta) wants to make monthly repayment (EMI of Rs

15,000 per month) towards Housing Loan taken from Punjab National Bank, Pune

whereas the customer has his Savings Bank account with HSBC Bank, Mumbai

The organization structure of a Bank’s Treasury unit involves designing of its operations

across Front office, Mid-office, and Back office. Describe each of these three operating

arms in terms of its nature, purpose / objectives, and the skills / qualifications of the

people employed in these 3 operating arms

Historically, only larger Banks had the strength of providing Treasury products &

services. Now even smaller banks are into it in a strong way. Enumerate and describe at

least 5 purposes for which a Bank Treasury exists