f lr^fta t

t, AflJrl,l'll lNc
Mll,l lj0l
!rnr(l(ri l0l (l {rll liltl)
I lnr'r J ('lt'rt, lloi/4
I$lr
'{ur[!: 'l)
ti!ltlr'rttt)t'triitt,rtt)),nrli,\d.\ln)nilnktkhl.n,J'qwttt lll l4t' 4e Nh ttotttk)a tutt
l\lt
U i:rrt/'t t'qtt'tlntI

I tir(trrl,llitrllr .iro* \lr! r(c.uurlry cdl.d,tx itriomlrknr l|,lc'n

thr tlrLr!1! JL!i r!r llr. rrrit) 1U,lIi.. "frio!nrl dlnior''!'i'n' 6
!,-il,\jil,!rrll,:trr.tr1.,'rrLllixllllrrlrrrlrtcr!ir':rl'nrn(rLitolli)rt!lt'?i'ri'{'1r'
ri) | x,li'r| ii'rritrr \ar !trrBr! nr rr r!,.nt d(nlE\ Ittl'| 1" 1()'tA:fi dl,ili lk $!tt
|r !c ltil lL ,i,tlr,r)lr0
(iil lr''rl(.\r., !l n,rrl.r,:l rr('r.d or| ilvstntni t'!rji8 rl'c 'ucnr 6n chl'.1''$6}inl
rdrRl.d 4 m l'l.tn'.oi llntilinlxd tlrt nrnolnl lu! yd brtn I.
'ol 'i!'d'
pollcy Itom lh!
(, i, l,,ni,,it rl,( t.,, .Lnrcnrttj Urc (i1rt "llc
) h&1 'hllo!$l iB d'ptt{ilrrion
.,lr:,rr hiM:e ,n.tlnd L, rir. ,rnrirrr'ii,1c rdlird rio disciotl'! lo rt c'fd *l!t'
r1.]r,.r. ritl. ,rr rlt ,iwrrllrJrdn.rb

:"lltltll"nir,i:r,r,,f,{.r,onrr,rIIrSll.'lrl(lr:'lr'1t'rc'frDlctc'l'!nn'],V ch:m:l
l,iijrlr I \ri,x.i l)rr rr.!\ {l:1,.in ii .l,90,lnru $rLr Jin'ihrt ft'6{10)0
:j 1'P' rJ Ji drl lrt I xrrr:Lr irnr \ trrrir ll i'Ir'llr(
! l,ur\ :j,..1 'r"rl1+!{LN lt lir,ri}Ir I14 .JJ:
: 5, lr' ' " " 'ii'r'! Iirr' /-ir
i li.i.,,'111.1..r-!-Llr, \1.,,tr;,,rr i ,r11:.rrr.r l.rnJ dcluirc i I|' &DLni i'lD
"l.rrLrr
:i,c 1.." I
l! I,r,!1, "r,.' 'ri!.r1' l 'ri! ii ;!.i-'],(l
i',,\rir.lrf!, tr.iir r.., I i. I., r',,,1ri..rrx l; t,$y) tot latat\lr'a
llhtxi.l: ,|
(ir ),ui.r[.'r ri r i,lit:. ), !t:n!'.lrrf!
rl,r |ti!r{, rr:4 lnlr'r( ri:c, rilli !
' r.l1',r1lr!!, lr{iailrr.t.:lIllrdr I l.:r:l ,l

l.inj(,1t.$r)r11 ,; ,Jjr;:t. ,t, .i:lr Da ltr adllo*tr\'

ii) A,r!.,ri1t,f :,.r nitt ::! !rtnl,lttL.[,lE !q' ll, J!'f i]'l
( ii) !ri,,r.uruN $lujln(ril-l}, 10,4114.
"iolnr{
Iir\ I.r.rrir!r,r Li!rfllllJlll.d lir 'l 1i.10,01)il
tir) lrlrrlr:lr.trucd Il.l,l)l,Uon d.! prirbic.

CamScanner
 rrt'r,rrl'rr-' ,.r!."' t r l|!r'\\tb2 t4:lr, ! !!''l 1r'$'1;c'1 r' rl:t tt'rh 'l
,.ti.),,,,t,t.:,,r,1,,.,:!r,",.r,i,rn,!r-,JnIr*'1rl.,1lflulll, l_r'l1l)rr,

l !,,1 r:'trr l:r. / 1 r!.rrr I! l, r{dr. r.tatr lrl'.r, n;rtr llrc "{ 6f d1'
, ._,.,.1, ,_it Il : ..,
' fll,i .r ] r r f .. r-., r r t,li.bttt :.:?li .,, r4':rrti i€ rcluDaJ

r :i .'r''J" 1iilnl 4r {!tl al

"
i: . ,i: ; !,l,. rL.il,: \ rFr,il rn i J4f il,rrrn I
'll,
r1 {iL,:(n.d nrluri,l l.r,{{r {,nr'rJ n.ril nJi,,. tlDar Jr,}P,ht L, cd}h,.rr.iN,

i ' r.r , ".".r'rr!,1,r:ljj' |,,nr f-1rqnl Dnf ilrr.B ll i l,,/:,'i.l.rfl ri p.rr,rP,i:'

l,) lL,,lt (,$:. r:,rr! rtr..:,Nrn.lJri.

l' l.i;iN.rii:.(1,'i,L!..,.r,.L,.nIln,n,llit,l,,krc l r.r,?r,ri, ll )$ .i.1r:drilJ+,

l' t). L
\.r.1trj l;,..i r r,'\ i;: i i. r.r1 L|1.lir
li.h.irr^ nr.ir,r,:,rD:,.lr., ri f.rlii.rl,.r.ailrt,.r..lyqmtsritrlrptnnilil)r,r.!
r i:i trii.f r..,.|1..:., !ir::ir1ilrL,r,-tr:l:rr!ir iJ!.rluf i (] nr t,if(rj,rlrlti .l
lr'i.lJ.,nLr !!r !t^,,r r-r'w,,1r irf.a,,,-r ,r:r.f, l]E cnhlrn] rr$ rlic ra,r. ,.lral.:]. (!
l!alL:r.: r1),r: !l::! i.r r':r', .rr rt:.r:j!h:j !i!r.i{.4:
i,!.:,., 1lrr.l, l
ll/rfrr,!\ '.i,rr.,:,, !,. ::., : 1,. I
'.!:^li r ::, rr:l
:,!,ir\, r, ,r' j:i,:,
:.1,i,. i1

. r,l1 tr frji::iLIt . :r.rt,r'r r:, :!r,. t(tI r]tr: rh4 c!t: narturtr:i., o,r Eil , l,lyrh :ll rnd
ri,.. r r.. I :,, .,1 ,. - ail ft ii,l.rtri. rlr!:_iirrltiDn
!.rrr a\Fl.rnr *,r : r..\initi.x. ! J.Ir{rrrt,ntr.\tLnr r rr{.rsjt rrr hlrh re.n!.t.nd :
c1l::n7 ta.i.rir
"
.
lhr '.i:i .r ,'la: f.|ij:r!jt r ri. in.,nt r. J!i) l. jt,t,". rr j! !.rr $t TI ,l2r,Oot). -i!. i:''
i r,lrr,or {ltutj $}i ri. .itr.ornt rI. .d nrn) cit,rmlcd &Jr if nrl{ir{.. $ilt h!!. i
En*jrx:,,.,,:1!iir,Lr.,,'li.r'J.ir..jr.\i..rjr]!ExiLijlorlijo,oAor{r,rin8hols
urh. Eln.jaIi:li.

! li.r:.::. llj Jti:...1i.i rr[6I]'r,t{ 1j:. t. jt,r* irit rndd81, rq tllc yo, nrl;*!d.
(,) l('l I ht .lrils
5rnLtillr-luir ri I
r;1r Iriirr,f,1.trlr,x:i.rjT:r j :r t tr. riruni.il rtrlr\fu u lrli.r $ s. li,&t lxux
r d
.:i,!:r'r! I r,r;1 r.1l,"ii.tr
i'i,l 1,.. J,,trr i,,:r-,. rt.llrltIDrIll;r -lnrit

[p ca,ns"uor".
(,. (0l A,ort!!ill. ri,r l,.!tr,!tln'r,t r, ir,,lllr rtt r6ra.d dntirrl f(dn hr or?nln ltrsir"
$.i\. l! -1,'r, i'!:rL {n {.i.rrnk h'!r rirllltl
,,,, ;,.;.,r., ri; i.;r ,i.*;.;,,.li,.,,l,..l.ii,.lli.r,ror.r rr 50.i,' r,o0 d'ndcd 'nto 200,0(,0. t,
....,"..,r rL.r..ir',...".r,,'1,.rr'''.r"'\rujrr^nJr'r'qt'la2o6/rb1'at
"

lli I! (i,.lt!l,ng ll I 0i rirtr.Dn!n)

11. l rJll ll: l,
(rn lir ile,rlr lt i .
i' i,',.r:".. ,.. . I
'r'.qi.. ,'r'c1 xrl lor'du) r0 luro orstlch lm o0o rh!''r
l:: l;':...; , :"..',,.,,":,lot
--,.,,".,..,.,., 'r .d rs 0!o rru.ci wdycr,,d,cd Dn ,nnury ?0, ?026
l,'.:.':,';i:..: .:'.'..;'l;:i,;",;.;;,"l i: 1'.r r.' \ s!r. hrd' 'dr mon'v wu
^rr,r,"

:;i:,;: .,;,;.. .'".,*,,,', ' '(. ,r,' in rr! s'J!.r''{ "

{J r
'M&:Jr
rori';!'t

&!:r-lt.]i.!s-\19,i:ilf llll!.isr t.l

?. lar!'l !t;;c oNrull $l(l ,trtLr ll,. qu({llon3 llloi' follt'P:
lU Elui cod |itr) I . ir! ir.J l)r.*$rt Ytr! $ lh lhc follow;ng'hi'l Anl&r'i3 ti l0 Juft 1012:

1t.:,50,000
I t\ , rl 'f L ,\r I I lu lir.r, i)
J.'.._r I I J'0.00o
\!.rJfi rrl ((tLr'n.1r nl.A&r, tr,0{r,009
l,i.n!t ) ll JrLlI:O: i 6,J0,000
P',rr[e5 oi I{r\a \t!i.]ri'l! il,tu,l)!'c,
s,(trr.fi10
r.5u.000
r.irl.0a0
1.10.044
6.5 .fi10
r:,r..l.8.ort tto,iri:ri:,.! C\.!lt!3J 1.01r,000
:.5C.troo
:,q0,000
n.00,000
9.00,0i10
:,J0.000
(:pihl rl ' r:nt i!,:'-r-r rl)rl5,rl M!n crchi TIL 40.00.000
Slrrr"- iI
. 6.00.000
8.00.0{0
4J0.0ff)
Llrril :0ll Jl6i.) :0.00,0m
rJ0.0@
6.r.00.00t)
-ih t,r(oo,tmo
- 111.1.60.0040

'ftrr oiinir inrrdor) !:' l0 Jun tlr:: \rl.' 1160').000 I]E mdrin8 diteclor is €ntillcd lo I
ro rirsici rr 5q;,';, rcr il.o.,,c irn!,.l)iJlirB his cornnhslon. Sundq a!!ct! includl r"or;nB
J.i..!:,i,.J.1'lr. lt'-).if ilJ atr *lirh u, rlj\\$.c{ of 59'" h ln hc ndf for t!1i dlblr. Thc dittdors
r.rrir:n(,Ltrlr r Ji!i,,! \l r, i9! I)rltii-nior i, rrr bc .n:r!l.d fdr iglihincry 3J lD|n xni for
.Ji'.r) Il.'.l.l.risr r, l', on 'c otiPisl 6il. {{'*! nt lft ndE lr\c'ltn( h to b( opilrl'r'{
lrcon,. lr\ !({ re:ori':U'r ll !o lE t'Nri.].J iUr.

PrtprJt lhc firr.,r! irl rhrEnren$ otthc ton:l:"rf ior tht.onr.rnlLl prriod.
i

[p cu.scun r".
 I

0 rn\ ..i r.,,,,r... r,4\ r, i i,,r,ri,c.l .r 4{,tyr.nd.r.dndJ.tl'.,iinftir!qnr( li $ltrt ,

/ ^Irr.ll 1., ,t,r.',1 n \i,.rrnt l.P.r rrrrlltr
t7
ll" \rr.!r , rlrl\r $,F rqrrn(rf.r 'f ,.,u ra! ,.rt c.It6lot Ir 5G,rrr,i{{' drrrl'd rnto 20o'o(to -
..,;.:, ii.,.ii,r,....,.,.,.\.,.i,r..,.,rri\,u.!in,,-,,'rl,7m0.F/,br.at
I'r t
lL ll i]l(r| l,ng ll I stirI.,'i{rhj
(!, ,'r,1. l\'l . 00o rt'rrtr
'll
i , : ill.l.l'-" ,.."t"";r,r r.'o:04! ,urc, rrrr rdr'@r, r0, rt'?rr' orenkh r{s
", "
,;:1.l;i:li,;, i'.;.;:;,;.,;,.,r u"ni, r.n o.r,ooa,-'*, rnr''.d on ,ldd'v r0',or'
i" 1..'.. 1:':- .:, :' .',;". j,"''."' .rror.J, Arr 'r'*r'ir *'r" h'd"dt 6on'v wrr
"i':" "

i''l1:'t:,':,:-i.",,".,',,,'.".", a,ih,6 're srJr'r'' r"rI"L1rc:rt ror:'i(*r

L!1,]!"1-:r:!.1.1'!r-!r:'jtr hd r - 1.1
l{(iLl li-(N . u tlutl, r tt Jtr4$r r ll' querl&fi llrol'_lrfolb[:
'
r

Uunr:a (:ortrt)rn} I nril.d Irftrcnlsr.nr silh lltc loPin$ irl Ailar'cd

(o! tril lii rl',I). m3!:
-rl(:.50,0d1
I t.u0,000
rjhroa !;itdi,,! ir!\r n;..10.r.J.orr()
\tr.lri.ry ((cr'il 1l 0{r'00), 1.1.00,0s.)
{,50,00r)
ln\.nrr) ll J!!] lO:li ilio
rr(n!.s of Iti* \tri.rini! :r.r,Jit
5,QO.tXlO
1,J0.000
1,10,0110
:.10,000
o.io.lrlQ
\1...11,trr('rt l\t!n;!i. ri.g O\oi.iJ 1.011,(r00
a50.000
:.q0,000
6.oop0o
9,00.0!o
?.t0.000
\i ir.r) i riJ iu,''ri r lrrrd !l TL'll''rclll Tr_.0.00rm
Sl!r,. a liri1 J
. 6.00.0s0
8,00,$0
1J0,0u)
l.i]'.ni' :tl: r",) :0.00.000
lili[l.! r i lxr,r..r,l'
J,J0.000

'tli. I r 6.00,mo
-. 6,r.00,001,
11. t.1,60.00co

Il:..,'J,n:'1,c'.,.a\ :. lO ruq.:ull *r'n.0tn.000 I]k n]s$ing dn'(tor is drlillsd lo r

:n; t,..\,j;.r'r,.i'erriior,.rrk.r...$nihs(orrF\{ionsroJr}$'ctrirrlud!rc'o'rnrs
;.r.,lrirc\.iTrlt/J.r['$n*hi.nlulx]ii'tr:rfc(DtJ%irlnbc!rid.fsh,tddcblt'Th'dittcrols
!' t).ft.' r.!n a 11 b( cfir?.d l llL\''r'rv U' lrdor'\i r'J
:.i... ,. '..r.
r.r-1o:!",.r, ",.,
i.r,t,l. ti5 g t" on rl'c ori!,' El Nir, J!+e Dl lft nJ\crt\c'tol F ro L'( dprlrl'r.q
lrrnrr rl1\ n(r;inr :d.r
.iu'l'i i! lo I'c troliilcil l'',r.

IrcF$c thc i'h,rcill $rre,Nntsof tl'ctddlntrf fot{Er.rtrti! prriod.

3

,]

Camscafiler

' I N.B. Thefsure in the
FINANCIAL ACCOUNTING
MBA T3O3
Semester: 191 (First Level)
Time: 3 (Three) Ilours
t ull Marks: 70
right margin in(licates thefull mark aJ each question' All pdrts of each questiatl hast be
an!* er e d s e q ue ntiallt'l

3
1. (a) Who are creditors and why do they use accountirg information?
3
ib; When do accounting infomation become relevant and reliable?
2
(c) What are the limitations ofconse atism constraint?
3
fixed asset at cosl?
ial Whut u.. tlr" urgr,11ents for and agaillst the recording ola tangible
3
(e) Briefly explain the components ofthe basic accounting equalion'

(a) Can a business enter inlo a transaction in which only

the ieft side ofthe basic accounting
2
equation is affected? lfso, give an examPle
2020: 12
(b) xYZ Ltd. had the following transactions for the month ofNovember
Novernber 1: Sta ed business with Ik
200,000 cash as capital-
2: Deposited to a Bank Tk 120,000'
5: Bought office furniture for Tk 20,000 and paid cheque'
ftom Habib'
5; Bought goods Tk 50'000 in cash and Tk 40'000 on account
8: Sold goods lor cash Tk' 25,000'
l0: Sold goods on crcdit to Mr' AIi Tk 30,000'
12: Paid Habib on account Tk' 40'000'
I3: Paid for office stationery Tk' 1,000'
l5: Received from Mr' Ali Tk' 15,000
20: Paid office rent Tk 20.000'
25i Paid electricity bill Tk 5,000'
. 28: Received from Mr' AliTk 15000'
30: Paid salary bY cheque Tk 20'000'
Required:
(i) Jo,rnrali,/e lhe \o\ember tran'acliorls.
(ii) Prepare a trial balance on November 30, 2020'
:}
(a) Cive adjusting entries for each ofthe lbllowing:
(D Th; stori supplies accourt had a Tk 500 debit balance on January i A year-end
inventory showed Tk.300 ofunconsumed store slrpplies on hand
(ii) The prepaid insurance account had a fk 1,000 balance at the end of the accountirLlg
policies
period before adjustrnent for expired insurance An examination ofinsurance
. showed thal Tk.700 ofthe insurance expired'
l,4lThetrialbalanceofM/STamannaTradersatDecember3l,2020showsMerchandise
"'
i"";'i;,] Tk 50,000. Sales Tk.2.42,400, sales returns and allolvances' Tk 6'800' Sales
a-i.""r.ii *.+,e-oo, C"st of goods sold Tk' 130,000' Rental revenue Tk 9'000' Freight-out
ii.f,SOO, n"ni exFense Tk.8,800. Piepaid expenses Tk 45,000' Salaries
and wages
expens.s Tk.62,000 and Dra\Ving Tk 3,600.
 Requbed:
Prepare the closing Journa) entries for the above accounts.
6
(c) Presented below transactions are related to Rezaul Company, doring December 2020'
(i) On December 3, Rezaul Conpany sold Tk.5,70,000 of merchandise on account to
Shuhael Company, terms 1/10, n/30, FOB destilution. Rezaul paid Tk 400 for freight
charges. The cost ofthe rnerchandise sold was Tk.]50,000
(ii) On December 8, Shuhael Company was granted ail allowance of Tk20,000 for
merclandise purchased on Detember 3.
(iii) On December 13, Rezaul Company received the balance due frorn Shuhael
CompanY.
Requircd:
Prepare the joumal entries to record these transactions on the books of Rezaul Company uslng
a peryetual inventory system.
,l
4. (a) "Peeetual i ventory system is gro\iing in popuiariq and use" Explain'
frJ Jogen Company sells one product, Presented below is information for June for the Jogen
Company.
June i Inventory 500 units @ Tk 25 each
4 Sales 400 units @ Tk 40 each
15 Purchases 750 units @ Tk.30 each
18 Sales 600 units @ Tk.45 each
25 Purchases 750 units @ Tk.35 each
30 Sales 500 unirs @ Tk.48 each
A
Jogen uses the periodic inventory system. AII purchases and sales arc on account
physicai count indicates that the ending inventory fo, June is 500 unils'

Required:
(it cost flow
Compute the ending inventory and cost of goods sold usiFg FIFO and Average
assumptions.
(ii) Compute the gross prcfit using the periodic system 1

5. (a) Do you think that the prrpose of depreciation is to detennine the value of equipment? 2.

ExPlain
t2
(r) Shamim Ltd. purchased atruokala cost ofTk.450,000 The following facts apply:
Estimated salvage value ..-.............. .. Tk.50,000
Estimated life:
h1 years , ...,,. .. . ., ...,,. , ., , ,,..,..,..... - 4 yeals

In Kilometers driven .. 160,000 Kilometers.

.Reqrlirclrj Calculate lhe inrounl ofdeprecialion under:

(i) Straighr line method for four years.
(ii) Sun-of-the years' digit methods for four years-
(iji) Units ofoltlput methods assuming the truck is driven 60,000 Kilometers in the first year:
40,000 Kilometers in the second )ear; J5.000 Kilometers in the third year and 25,000
kilometers in the fourth year respectively.
(iv) Declining balance method for four yeals
 4
6. (d) Differentiate bitween shares and debentures' l0
(b) A limitcd company invited applications for 20'000 shares
ofTk l00 each at discount of6
Percent Payable as follows:
On first and final cail, Tk. 35.
On application, Tk. 20; on allotmen! Tk'39'
sh'ares and all of these were accepted. Ail
money
The applications received were for 18'000
payable was dulY received

Rco ircd:
'
(il Sho* rh" n""...nry io,lrnal enn ie\ lo record lhe abo' e lransaction''
iiil Prep-" th" cu.h u"count and the balance sheet of lhe company'

followl
l4
1 n.ua-il" * "u."totty
anal ans\"er the questions that

contained the following accounts at

The Trial Balance of Nahid wholesal€ Company
fiscal year:
December 3l, the end ofthe company's clrffent
NAHID WHOLESALE COMPANY
Trial Balance
Decernber 31, 2020

Accaunls Tiies
Tk.33,400
Cash
37,600
Account Receivable
1.00,000
Merchandise Inventory
92,000
Land
1,97,000
Bu;ldine.
Tk. 54,000
Accumulated Depreciation-Building
83,500
Equipment
42,40t)
Accumulated Depreciation-Equipfl ent
50,000
Notes Payabie
37,500
Accounls PaYable
2.97.800
Nahid, Capital
20,000
Nahid, Drawing
9,02,1p0
Sales
4,600
Sales Discounts
7,09,900
Cost of Goods Sold
69,800
Salaries Expense
19,400
Utilities Expense
s,900
Repair Expense
'/,200
Gas and Oil ExPense
3,500
lnsumnce ExPense
rk. lsfJlQ rk. !=.LB,!!Q
Total
Adjustment Data:
(i) Depreciation is Tk 20,000 on building and Tk 18,000 on equipment (Both
adfi inistralive expenses)
(ii) Ioterest otTk. 7,000 is due and unpaid on notes payable at December 31'
(iii) Salaries are 80% selling and 20% 'dm;nistrative'
(iv) Utiiities expense, repair expense, an; insura#e expense are 100% administrative
(v) Gas and oil expense is a selling expense.

Queslions:
year ended
Prepare a classified income slatement and an owner's equity statement for the
December 31,2020, al1d a classified balance sheet as at December 31, 2020'
 FINANCIAL ACCOUNTING
MtsA 1303
Semester: 181 (First Level)
Time: 3 (Three) Hours
Full Marks: 70
[N.B.The ligurcs in the right morgin indicate fu]l marks_ Answer any four questions lrcn port A ond the
Cdse study in Patt B. All potts ofeach question mustbe onswered sequentidlly,l

1. (a) What does Accounting mean? What are the funotions of the three steps of accounting
process?
(b) Briefly explain the components ofaccounting equation with examplos. 3
(c) Biefly explain two main assumptioos olaccounting process. 4
(d) Who are th€ internal users ofaccornting information? What uses ofaccountirg 3
ioformation are made by them?

2. Rashed Jamafl is a Chartered Accountant. During the first rnonih of operarions ofhis business, 14
the following events and transactions occurred,
Marchl Iivested Tk.25,00,000 cash.
2 Hired a secretary-receptionist at a saiary ofTk.20,000 per month.
3 Purchased Tk.25,000 ofsupplies on account from Royal Company.
7 Paid office ren! ofTk.9,000 cash for the tuonth.
I I Completed a tax assignment and billed client Tk.35,000 for services provide.J.
12 Received Tk.3 5.000 advance on a management consulting engagement.
17 Received cash ofTk.52,000 for services completed fol Hamdard Ltd.
31 Paid secretary-receptionist Tk.20,000 salary for the month:
3i Paid 40% ofbalance due Royal Company.
Requiretl:
(a) Joumalize the March transaotiois.
(tr) Post to the ledger accounts.
(c) Prepa.e a tdal balanceonMarch3l,2019.

3. The trjal balance ofAhmed Traders Ltd. At Decornber 31. 2018. ;s as fo ows: 14

Ahmed l raders Ltd.

Tdal Balance
December 3l, 2018
Account Tilles Dehit Crcdir
Cash Tk.48,200
Accounts Receivable 38,600
Merchandise lnventory 95.000
 \

100,000
Land
207,000
Building
Tk.54.000
Accumuiated DePreciation-Building
95,500
Equipment
43,400
Accumutaled Depreciation-Equipment
60,000
Morgage Payable
34,500
Accounts Payable
250,000
Sharc Capital
78,800
Retained Eamings
i,105,100
Sales
4,800
Sales Discount
4,500
Sales Retum and Allowances
?05,900
Cost ofGoods Sold
69,800
Salaries
19,600
Utililies Expenses
3,000
Transportation-out
4,500
Telephone Expenses
s,900
Repair Expenses
3,500
Insurance Expenses
5,000
Advertising ExPenses
15.000
Gas and Oil Expenses
Total Tk.1-625-80Q rk.1.05,8!E

The following information is available at D{:'emher 3l- 20181

(i) Depr€ciation E{pense is ofTk. 10,000 on buildings and Tk 9,000 on equipmeni'
(ii) Inlerost ol'Tk. 8,000 is due and unpaid on Mo(gage pa]'able ai December 31'2018 '
(iii) Merchandise irrventory is actually on hnnd is Tk 94 200'
(ii) Salaries and rel€phone expenses are ?0o% sellil1g and 30% administrative-
(v) Utilities Expenses, Insurance Expenses, repair expenses are administralive'
(vi) Tk. i0,000 ofthe Mofigage Payable are payable next year'
(vii) Cas and Oil expenses are selling oxpense.

Requircd:
Prcpare a multi-step Income Stal€ment for the year 2018'

L
4. (u) Distinguish between perpetual and periodic inventory vaiuation systems-
10
The May 2019 inventory records ofPadna Ltd. showed ihe following
:
(1,.)
May 1 Begiming inventory 56,000 units @ Tk. 40
5 Sales 15,000 units

14 Purchases 6,000 units @ Tk. 50

18 Sales 18,000 units

25 Purchases -12,000 units @ Tk 48

30 Sales 25,000 units

 Required:
Using the pe.petual inventory method, compute the cost ofending inventory and cost
ofgoods sold balances with (i) FIFO, (ii) LIFO, and (iii) Average Cost methods

5. (a) Describe lrow the hislorical cost principle applies to plant assets . 2
(b) Wha! najor factors are considered in determiring what depreciaiion method to use? :1

(c) Winston plc porchased a new machine on July 1, 2017, at a cost of Tk.420,000 The 9
comDany estimated that the machine will have a residual value olTk.l6,000. The machine
is expected to be $sed for 16,000 workinghours during its 4-yeat life.

Required:
Compute the depreciation expense under the following methods for the year indicated
(i) Straight" Iine for 20 i 9.
(ii) Units-of-activ ity for 201 9, assum ing machine usage was 1 5,000 hours.
(iii) Declining-balance using double straightiine rate for 2018 and 2019.

6. (a) Briefly explain different lypes olcapital ' 4

(b) Altech Company Ltd. registercd u'ith an authorized capital at Ik. 120.000 d;vided intc 10
6,000 shares ofTk. 20 each. Ihe company issued 5,000 shares payable as follows:
On applicaticn Tk. 4
On allotrnent B

On 1"'ca1l 4
On fina1 call 4
Applications were received for frrll shares and alloned duly. AIJ money payable on
allotment were duly received. one sha.eholder holdirg 300 shares tailed to Pay the l't call
money. Another shareholder who was allotted 25 shares paid up in full with l" call Firal
call was nol made.

Required.
(i) Show the necessaryjournal entries to record the above transactions.
(ii)Prepare the cash account ard the balance sheet olthe company
 q"^,1,1".o'" """t'rrv'::i::::::l^T ::"^;:l'
iSlITll ji:;rTrnr)**"
1.
HilT;',:""JIi#rTL#,;"rt\i*[t**"*l*]$**""r
ffiJji1'isii*li.-"l'ffi ilrtil:"#*:l"*r
UfD' PARK
HAPPY T&AILS
lncome Statement 2or7
3 1'
uo, *"
q,l;l:'i;;*arch
Tk.90'000

?"nt t"u"nu"
Operaling
e\Penre> I k. 4.800
Adveai<rng 10,800
Sataries and
wages lJ50
r jrilities 800
oo,ij,|i!1ijLt^"u*r"'.s i'eqe 42.150

iJJ'''"u'lne '"P*'"' 4P ^
'
Nerincome .*lJIl5X,J::T::""':li,i::*-:l:JTl"J:I:
o,o, tto.,Eht M
.Mt::"*o,*.i".i
'na
o't'"' ao'u "o\e
in rhc
:X1"j,I"1"'ll'l'iil*"'']'i"'n'n'
::[::': ;"'''"1: ll *"'"n ,'
i*r,'1,:1";; ij riil: Jilfi lr}
iiliiiil
?0r7. r[.
"

6.100
Supplies l'500
prepaid lnsurance l2,0Oo
Notes Palable

-,11"!l1"sr$T
" Yf"?$[Tiit':**,,]X- .-,*',*,,*,, ",,,.,.
*'j'l;.i.l#:r*x*t*+ti,-.:'".ffi *tL*]", )' *"'n''
'"T;:1:"T: j'T1H:'::l;5:;Ht1"Tl'1"i'lJ'i"'r
o t-n'on'
nnt" P": ul'tt
i'
(uitiil
n*"**'
n"il;';i;,."
"""'*:':".:["JJT#::;,it:':Jt'i:":]:"lYHl*1311;*'""
to,l'il'in
tur txlrnn ncr re,.'lrs
 \1BA 1303
Semester: 171 (lst Lelel)
Time: 3 (Three) Hours
Total M arks: 70

IFigue in the right nargin indicatefull narks. Answer an]'Jbur questionslrom LsZ!1!ond the
Case Study flon P.irx B. lll parts ofedch question mu$t be ans'ered sequetitiallyl

PartAlTotal Marks; (14x4) = 561

1. (a) Graphically show \rhy acoounting is called an accounting information system.
(b) "Accounting informatiou should trave comparability snd consistency." Explain.
(c) What are the Iimitations of monetary unit assumption? 2
(d) lf an asset increases, whal are the three possible elfects on accounting equation? Give
examples
(e) Briefly expiain the statements that a business enterprise usually prcpares.

2. (a) Explain Cenerally Accepted Accounting Principles. 3

(b) State the accounting equation. and define its components. 3
(c) Joan Robinson opens her own law office on July l, 2017. During the fiml month ofopelations,
the following transactions occuned.
Tk. 11,000 in cash in the law practice.
1. Joan invested
rert on office space.
2. Paid Tk. 800 for July
3. Purchased office equipment on account Tk. 3,000.
4. Provided legalse icesto clients forcash Tk. 1,500.
5. Bonowed Tk. 700 cash from a bank on a note payable.
6. Perfonned legal services for cljent on account Tk. 2,000.
7. Paid monthly expenses: salaries Tk. 500. utilities Tk.300, and lelephone Tk. 100.
Ikstructions:
(i) Joumalize the Transaciions-
(ii) Post the journal erltries to the accounts on Cash A/C, SeN ice Revenue and Account Rece ivable
Account5.

3. (a) Cive adiusting.ioumal enlries fbr the following i

(i) Advertisement supplies used duringthe year Tk-5,000.

(ii) Depreciation of Office equipment Tk,1,000.
(iii) Fees earned but not billed for Tk.3,000.
(iv)Interest accrued Tk.500 on notes payable.
(v) Salaries accrued Tk.2,000.
(vi)Goods costing Tk.1,500 destroyed by Iirc and insumnce company admitted compensalion
claim ro lhe extenr of [k.1.000.
(vii) Provide 5% provision for doubtful debt on Tk.30,000.

DIBA 1303 171 Page# I

 income statement for
(b) Frcm the following information, prepare a multiple-step
20 1 7
Private Ltd for the year ended December 3 1 '
Tk.45,000,000
Gross Sales Revenue
250,000
Sales Returns and Allowances
350,000
Sales Discounts
2,500,000
Income T&{es on OPemtions
1,800,00
Administrative Salaries
4,000,000
Sales Salaries
160,000
Rent(Administiative)'
20,000
Utilities Expenses (Admrnistrarive)
80,000
Supplies Expenses ( Adrninistrative)
131,500
Delivery Expenses
30,000
Payroll Tax (Selling)
19,000
Automobile Expenses (Administrative)
1,990,000
Advefiising
170,000
Insurance(Ad fuistuative)
30,000
lnterest Revenue
460,000
Interest Expenses
35,000
Insurance (Selling)
36,000
Eutertainmerlt (Selling)
100,000
Dividend Revenue
7s,000
M iscellaneous Expenses{ Sel ling)
54,000
Miscellaneous E).penses ( Adminislrative)
29,7s0,000
Cost ofCoods Sold
15 backpacks at a cosi ofTk' 20 each The
(a) On September l, Reid Supply had an inventorv of
"' ;;r;;"y ;r", D'ut'ng S"pte'nu"'' tl'" followrrg transactions and
^;".p"tuul'i""ntorysy'itrn
events occulred.
n/j0
i.r,'. i"' prJr*O lo backpack' dt Tl 20eachliomllLnler'lernc2/]0 purchased on sept' 4 that
il;.; il;;i;;;"'.alt ofrr Loo io''tt" tutu'n of 5 backpaoks
defective.
were
s"- s Soii iO t*tpack: for Ik' l5 each ro oliver Books terms 2' l0
n/JO-
.

;::i. r
;, ili; i; ;;ffi;t;i;;lc'ikor'counr' each toHerreroriiceSupprl rcrm'r' J0

Sepl. l4 P,id Hunter in full'

Initruction:
transactions for Reid suppiy using perpetuai
inventoly syslem.
iou*uiir" tt" s"ptu,.,ter
Perkius Iac lor the month ended october
(b) You are provided with the following information for 10
31.2011. Peri(ins uses aperiodic methg!lEllIlg}l --;--
Datc
Units irnit Cost lor selling Price --..
'tk. 25
October I tt,.,ihn;Dp ;n\erllor\ 60
120
Ociober 9
Saie 100
October 1l
October I 7 Purchase 70 LL
60 40
Octobcr 2:l 28
80
October 25
110 40
October 29 Saie
Instructia s:
goods sold. (iii) gross profil and (iv) gross proflt
rate
Calcuiate (i) enaling invenlory, (ii) cost of
under each ofthe following methos'
(i) LIIO (ii) FIFI (iii) Average Cost

BA l3a3 Ptge #2
-l7l
5. (a) Erplain the concepl ofdeprrciati,rn xnd how to cL,nrpul.
(b) E\plain hoq,1lr accounl lor the disposal ofe piant assel
(c) In recent years, Darnell Company purchased three machines. Because ofheavy tunrover in the
accounting depa,lment, a different accorintant was in charge of selecting the depreciation
method for each machine. and each selected a different method. Information concemiDg the
machines is summarized below.
\ia.hine Acquired Cost Sihage Useful Life in Deprcciation
Method
L 1/11/l l Tk. 105000 Tk.5000 t0 Stmighr li[e
2 lrt,/12. I80000 10000 8 Declinins-balaoce
t1lU14 125000 15000 6 Unils-of-a!tivilv

For the declining-balance method, the company uses the double-declining rate. For the units-of-
activity method, toiai machine hours are expected to be 25,000. Actual hours ofuse in the first
3 years were 2014,2,0001 2015,4,500 hoLlrs; and 2016, 5,500 hours.

I structions:
Compute the amount ofaccumulated depreciaiion on each machine al December 31, 2014

6. (a) Distjnguish between reserve capital and capital reserye. 4

(b) Amana Ltd. was regislered with an authorized capital ofTk.50,00,000 divided iDto 2,00.000 share
ofTk.2s each. The company issued 85,000 shares on JLrly 1, 2017 payable as followsr 10
On applicationTk. 7
On allotnlenl Tk. 9 (including Tk. I as per premium)
On I st call Tk. 6
On tllal call Tk. 4
Applications werc received fo. 1,00,000 shares till Augusi 5, 2017 of whicil 85,000 shares we.e
allotted. Excess application money for 10,000 sharcs was refitncied on August 25,2017 to the
applicants to whom shares were not allotted and the remaining balance ofapplication money for 5,000
shares was adjusted to the share allotfient accounl. A11 the cails were )nade and money was received.
Reqaire.l:
Show joLrmal entries and relevant matlers in the BaLance shee!.

MBA BA3 171

 \
-
t
Part B lTotal Marks: 141

ICase Study- ComPulsorf, ]

7. Read the foltqving case carefuli, snd answer the questions those followr

During March 2018, Arif has just completed the firsi month's operations of his business called l''I/
yarieties Store at \\hich he sells Soft Drinks, Chocolales, Berger, Sandwiches and Telephone cail scrvice'
He began the business wifh Tk.200,000 in cash and rented a shop for five years in front of Bangladesh
Open University main campus. The rental agreement requires a Tk. 10,000 monthly rent payment Adf
paid the first month's reDt and also purchased some fumiture for Tk. 25'000, paying cash' He estimated
the fumiture would have a four-year life, after which he could sell them lor Tk- 1.000.

Duing the month, he purchased food, soft drinks, and chocolate costing Tk. 60,000. all ofwhich was paid
for by month's end, excepting food costing Tk. 2,000 which was purchased during the last week of the
month. He also paid electric bills Tk. I ,500 and the of pari time heiper, Tk 5,000 and he withdrew
'aages
Tk. 2,000 of earnings of the business each week for 4 weeks to pay petsonal expenses. He took in Tk'
15,000 from telephone call service during the month and sold Tk. 120,000 of food and drinks' all of
which was collected in cash. Excepting Tk. 5,000 he had not collected from Maruf Store for food, drinks,
and lelephone call service.

when he closed on daily operalion ai 5 pm, he was able to return to the Berger, Sandwiclres supplier
some unsold food for which he received a Tk. 500 cash refund. Howevet he had lo take home for
consumption by him a number of Chocolate, some Berger and Sardwiches that cost Tk' 200 and could
have been sold for Tk. 300.

Questiot s:

(aJ Show the effects ofthe above transactions on the accounting equation using a tabular folm'
fr) Pr€pare a month end balance sheet for the business

t|R.4 1303 t71

 8c
t/ Financial Accounting
MBA I3O3
Semester 161 (1.r Levei)
Time : 3 (Three) Hours
Iotal Marks: 70
[Figures in the right margin indicatefull marL,s Ansy,er a yfout questionsfrom part
A a d the
Case stud1fr.rn part B. All parts ofeach que"io,
ii,
t" i"r_")l"a'sJquentiattyl

I (u) \l/ho ore credilo-s ard uhy oo he) lt"e d.counring

(b)
inlormationl
Br;efly explain $e componenrs ofdccourring eqLLtion with l
examole.. 3
(") Whar is rhe main rlreme of econorrc entity aisLmptionl
2.
(d) Explain when accounting ilrformation become relwart
aod re]iable. 3
(e) Briefly discnss the rules ibr debiting and crediting ofaccounts.
3
2. (a) Shou,the difference between event and trallsaction.
(b) Why is Jor:rnal ca1led the Bookofp me Entry? 2
(c) 2
Frontier Park was sraded_on Aplil 1. by Minhaz. The following
seiected events and 10
tralrsactlons occured during April.
April I Minhaz irvested Tk. 400.000 cash in the business.
4 Purchased land costing Tk. 3,00,000 for cash.
8 Incurreu adrenisirg er rense fo- [l. l.g00ona,counL.
11 Patd salaries to emplo),ees Ik. 15.000.
12 Hired Park Manager at a salarl,ofTk. 40,000 per
month. effective, May l.
13 P-id i k. 15.0o0 cash toraonelearinsuranie policy.
t7 \\ ithdre$ Tt 1.000 cash for personal u.e.
20 Received Tk. 5,700 in cash for admission fees.
25 Sold 100 eoupon oook. lor lk. 25 each.
book conrains ,0 corrpons
_tach
ihal enriLle the holder Io one admi)siol to ine park.
30 Received Tk 8,900 in cash admission lecs.
'30 Paid Tk. 900 on
balance owed for advertisjng incurred on April 8.
Requbedi
Joumalize the April transactions.

3. (a) Explaio why accurate valuatiox ofinventory is impoftant

in a[ organization.
(b) Mita Traders has the following inventory, purchases
and sales daia for the month of
4
March: I0
Inventorv March I 200 units ATk R oo Tk.1,600
Purchases March I0 500 units (@Tk. 9.00 Tk.4,500
March 20 400 units @Tk. 9.50 Tk.3,800
March 3 0 300 units @lk. 10.00 Tk.3,000
Sales March l5 500 units
March 25 400 units
Required:
Under perpetual inventory system, detennine
the cost of il1venlory on haDd at
March I l. 2017 and cost uf goods sold for
March usins the (i) FIFO; (ii) LrFO;
and (iii) Average Cost rnethods

MBA 161 t303

4. The following is the Trial Balance ofTdsha Wholesale Company:
Trisha Wlolesale Company
Trial Balance
December 31, 20i 6
AcLounl Titles L)t Ct
Tk.25,400
Accounts Receivable . 37,600
Merchandise Inventory 90,000
92,000
1,97,000
Accumulated Depreciation, Buildings Tk.54-000
F^IihhF.t 83,500
Accumulated Depreciation, Equipment 42,100
N^tFc Prvrhle 50,000
Accounts Payable 37,500
2,6'7,800
10,000
9,04,100
4,600
Cosl of Goods Sold 7,09,900
69,800
I liilirieq FYhenqeq 19,400
5,900
Gas and Oil Expense 7,200
Insurance Expense .. _1":00
Tk. 13.55.800 l}fi*t'!0!

Additional Dala:
(i) Delreciation is Tk. 10,000 on buildings and Tk. 9,000 on equlpment.
(ii) Interest Tk. 7,000 is due ard ulpaid on notes payable at December 3l, 2016.
(iii) Merchandise inventory is actually on hand is Tk.89,200.
(iv) Salaries are 80% seliing a1ld 20o% administrative
(v) Utilities expense. repai expense and insumilce expense are 100% administrarile'
(vi) Tk. 15,000 ofthe notes payable are payable next year.
(vii) Gas and oil expense is a selling expense.

Requircd:
(a) Prepare a multiple-step Income Statement for the year 2016. 8
(b) Prepare a classified Balance Sheet at December 31,2016. 5

MBA 16r ll0l Page # 2

 s"..

5. (a) Explain why the recognition of deprecialion expense is necessary to match revenue 2
and expense properly.
(b) What does the balance of the accumDlated deprcciation account represent? Does it 3
represent lunds available to purchase new plant assets? Why?
(c) Dhaka Hardware Company has a glant paint mixer that costs Tk- 12,600,000 plus 9
Tk. 16,000 io install. The estimated salvage value ofthe plant mixer at the end ofits
usefu1 life of 15 years is estimated to be Tk. 76,000. The company estimates that the
machine can mix 850,000 cans of paini during its iifetime. Compute the second
year's depreciation expense, using the follorving methods:
(i) Skaight-linemethod.
(ii) Sum-of--the-years' digits.
(iii) Units of production, assrLming that ihe machine mixes 51,000 cans of paint
durhg second year.

6. Padma Textile Mills L!d. was regjstered on 1"' July 20i6 lvith a nominal capital of Tk-20,00,000 1,1

divided into 1,00,000 share of Tk.20 each. The company issued 75,000 shares on July 1.2016
payable as follows of*,hich 60,000 shares were taken up by the public :

On applicatior Tk.4
O" alLornenr Tt 6
On ist call Tk. :l
Or, fir,alcall fL.6
On i'r August these shares were allotled and allotment mone) duly received by 31" August. The
{irst call was made on 1" September and the cail money on all sharcs with the exception of 500
shares was received by 30'h September. The 1"'call also included of30o share final call money as
advance. 'Ihe final call was made on 1'r october and the amount due with exception of 600 shares
was received by 3l'r Ocrobe(.

Requbed:
Show necessaryjournal eDh ies, bark account and the balance sheet.

l\,18A l6l 1103 Page # i

 PatlLllotal Marks; (14x1): l4l
[Case Study - Compulsory] \
'7. Read the {olloiving case carefully and ans}ver the questions those follow:
ideal Trading Con-rpany Limited presents you with the following Trial Balance as al 30 i4
lune 20161
Account Titles Dr Cr.
Preliminary Expeuses Tk.2,50,000
l,and and Building (Cost Tk.40,00,000) 31,00,000
Machinery (Cost Tk.45,00.000) 34,00,000
Inventory (1 July 2015) 6,50,000
Purcl,ases 33,00,000
Salaries Expenses s,00.000
General Expenses 1.50,000
Directors'Fees 1,30,000
Auditors' l-ees 1.20,000
Direct Labor 6,00,000
Manufacturing Overhead 2,00,000
TrnNportation- in 2,50,000
Advertising Expenses 2,00,000
Suldry Assets 6,00,000
Goodwill 9,00,000
Cash at Bank 2,50,000
Share Capital (Ful1y paid 40,000 shares of Tk. 40,00,000
Tk.100 each)
Share Premium 6,00,000
General Reserve 8,00,000
Income Statement 4,50,000
Bank Loan (Taken on 1 .Iaouary 2016 at 6%) 20,00,000
Accorftts Payable 3,50,000
Sales 64,00,000
Tk.146"00,000 1ir.1,1.60,000N

Othei Information:
The ending inventory on 30 June 2016 was Tk.6,00,000. The managir,g directcr is entitled
to a commission of 59/o on net income aller charging his commission. Sundry assets itclude
accoullrs rcceivables of Tk.1,00,000 on wirich an allowance of 5olo is to be rnade for bad
debls. The directors reqommended a dividend of 5o%. Depreciatioi is to be charged for
Machinery @ 7A%o and for l,and anci Buildings @ 2o% on the original cost, 50% of the
advefiising is to be capitalized. Income tax provision @ 40% is to be provided for.

Qaestions:
Prepare the financial statements of the company for the concerned period.

MBA 161 1103 Page # 4