Mid term exam question pattern

Total time duration = 3 hours

Total marks = 100 marks
Pass marks = 60 marks

1. Prepare journal entries on the books of Dynamic to record the transactions, open T accounts
and prepare trail balance for the month. 15 marks

2. i) Prepare a multi-step income statement. ii) Prepare statement of retained earnings. iii)
Prepare a classified balance sheet. 15 marks

3. i) Prepare year end adjusting entries for the above transactions. ii) Prepare 12 column
worksheet. iii. Discuss how the figures of income statements and balance sheet affected if the
company forgets to make adjusting entries. iv) Prepare Closing Entries and Opening Entries -30
marks

4. a. Compute the ending inventory and cost of goods sold under FIFO, LIFO and WAC, using
the periodic inventory procedure. b. Compute the amount of taxes saved if Company uses the
LIFO method rather than the FIFO method. 10 marks

5. i. Prepare all necessary journal entries to record the transactions related with sales and
collection ii. Prepare journal entries to recognize bad debts assuming that (a) bad debts expenses
is x% of credit sales and (b) amounts expected to be uncollectible are y% of the year end
accounts receivable. iii. What is the net realizable value of accounts receivable under each of the
above assumption. 10 marks

6. Explanation question 10 marks

7. Write short note (2 question) 10 Marks