Accounting & Cost Management exam (TM 301) from BUTEX affiliated colleges' 2016 Level-3 Term-II finals, 105 marks. Includes accounting process steps, GAAP principles, journal entry preparation for a month of business transactions, and accounting equation effect analysis.
Level-3 Term-II, Final Exám-2016
Subject: Accounting & Cost Management (Code: TM 301)
Time: 3.0 Hrs. Full Marks: 105
(Use separate answer script for Part: A and Part: B)
(All parts of a question must be answered consecutively)
Part: A
(Answer any three questions)
1. (a) What is Accounting? Explain the steps of Accounting Process.
(b) Define Accounting Information. Who are the users of accounting information? Why do they use them? Discuss.
(c) What is meant by GAAP? Briefly explain the four principles of GAAP.
[6+6.5+5=17.5]
2. (a) What is journal?
(b) What is the difference between event and transaction?
(c) The following transactions are obtained from the books of Mr. Rana for the month of january, 2015.
January | 1 | Rana invested cash Tk. 200,000 and furniture Tk. 50,000 into business. |
January | 5 | Purchased office supplies for cash Tk. 30.000 and on account Tk. 20,000. |
January | 15 | Received cash Tk. 100,000 for services rendered. |
January | 22 | Paid office rent Tk. 20,000 for the month. |
January | 24 | Insurance Paid in advance Tk. 5000. |
January | 27 | Paid salaries Tk. 25000 for the month. |
January | 31 | Mr. Rana withdrew Tk. 10,000 for personal use. |
You are required to prepare journal entries.
[3+4.5+10=17.5]
3. (a) What are the rules of determining Debit and Credit?
(b) Show the effect on the accounting equation for the month of july, 2014 from the following transactions :
(i) Karim started business with cash Tk. 150, 000.
(ii) Purchased machinery Tk. 16000 for cash.
(iii) Purchased merchandising inventory from Rahim on credit Tk. 4000.
(iv) Purchased merchandising inventory by cash Tk. 25000
(v) Merchandising sales Tk. 17000 of which cost price Tk. 15000
(vi) Salary paid Tk. 3000.
[5.5+12=17.5]
4. (a) What is adjusting entry? State the difference between accrual basis and cash basis accounting.
(b) Assort Resort opened for business in June 1 with eight air-conditioned unites. Its trial balance before adjustment on August 31 is as follows
Assort Resort
Trial Balance
August 31, 2015
Serial No. | Accounts Title | Debit Taka | Credit Taka |
1. | Cash | 19600 |
|
2. | Supplies | 3300 |
|
3. | Prepaid Insurance | 6000 |
|
4. | Accounts Receivable | 25000 |
|
5. |