Reference no: EM132815149

Question - You are lucky enough and got Rs. 1,000,000 as an inheritance. You are planning to start a new business but problem is you are running short of Rs. 500,000. You have to arrange this amount by way of loan. After collecting the required amount, you are ready to start a business. Now you have started business and it's been 5 years since its start.

Requirements -

a) Describe what kind of business did you start?

b) How did you spend your initial amount in your venture creation?

c) Determine the product that you launched?

d) What kind of non-current assets will you purchase?

e) Imagine, between you and your business accounting department in which you hire a person as an accountant, there is a debate regarding recognizing non-current assets. Your accountant was saying that non-current assets should be recognized as an asset but you are not convinced. Now you need to convince your company's accountant that it should not be recognized as an asset. How will you do this?

f) One year after the launch of your business, customer's complaints were so much high that has created frustration among your customers. What could be the possible implication of these complaints on your company's financial statements.

g) There was an incident that some of the inventory has caught fire and damaged after the financial year (You need to assume any specific year) How will you analyze this event from accounting perspective.