Two Accounting & Cost Management papers (TM 301) from BUTEX affiliated colleges' 2017 Level-3 Term-I finals, worth 105 marks. Questions require double column cash books for a month of banking transactions and trial balance preparation from ledger records.
Q1
Level-3 Term-I, Final Exám-2017
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) Explain the different forms of cash book.
(b) During the month of November 2016 the following transactions took place in Samsung
H. Chowdhury’s Business.
November | 1 | Cash in hand Tk. 17,000 and Bank overdraft Tk. 5,000 |
” | 2 | Received a cheque from sale of goods Tk. 16,000 |
” | 4 | Goods purchased by cheque Tk. 4,000 |
” | 6 | Withdrew from Bank Tk. 5,000 for business use |
” | 8 | Bills receivable received by Bank Tk. 2,000 |
” | 12 | Cheque received from debtor Sayed Tk. 8,000 |
” | 15 | Purchased furniture in cash Tk. 3,000 and Tk. 2,000 in cheque |
” | 20 | Took cash by the proprietor Tk. 2,000 |
” | 28 | Bank allowed interest Tk. 500 |
” | 30 | Keep Tk. 2,000 in hand and deposited the rest of the amount into Bank. |
Required: Record the transactions in the double column cash book and calculate the
amount of cash & bank balance at the last date of the month.
[2.5+15=17.5]
2. (a) What is Trial Balance? Mention the errors that cannot be detected by Trial Balance.
(b) The following transactions were obtained from the books of Mr. Rakib for the month of
December’ 2016.
December | 1 | Mr. Rakib invested in cash Tk. 5,00,000 with building Tk. 2,00,000 into his business. |
” | 4 | Purchase equipment for cash Tk. 50,000 and on account Tk. 40,000. |
” | 9 | Insurance paid in advance Tk. 10,000. |
” | 17 | Paid salaries Tk. 15,000 for the month. |
” | 20 | Received cash Tk. 60,000 and on account Tk. 20,000 for service rendered. |
” | 25 | Paid rent Tk. 12,000 for the month. |
” | 30 | Mr. Rakib withdraw Tk. 8,000 from the business for personal use. |
Requirements: i) Journalize the transactions for the month of December 2016.
ii) Open ledger accounts and prepare a Trial Balance at 31st December, 2016.
[3.5+5+(6+3)=17.5]
3. On January 1, 2017, Mr, Willson established delivery service. The following transactions
were completing during the month-
January | 1 | Invested Tk. 10,000 cash in the business. |
” |
Q2
Level-3 Term-II, Final Exám-2017
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) Define accounting. Explain the career opportunities in accounting.
(b) Who are the users of financial information? Differentiate between Accounting and Bookkeeping.
(c) What are the component of a set of financial statements and how they are prepared?
[4+6.5+7=17.5]
2. (a) “The terms debit and credit mean increase and decrease, respectively”. Do you agree? Explain.
(b) Metropolitan Dental is a licensed dentist. During the first month of the operation of its business, the following events and transactions occurred.
April 1, 2016 Invested Tk. 30,000 cash in business.
April 1, 2016 Hired a receptionist at a salary of Tk. 800 per week payable monthly.
April 2, Paid office rent for the month Tk. 1,500.
April 3, 2016 Purchased dental supplies on account from Ratans Dental Tk. 4,500.
April 10, 2016 Performed dental services and billed insurance companies Tk. 5,100.
April 11, 2016 Received Tk. 1,000 cash advance from Faith Dental Care but services to be performed in May, 2016.
April 20, 2016 Received Tk. 2,600 cash for services performed from Noakhali Dentals.
April 30, 2016 Paid receptionist for the month Tk. 3,200.
April 30, 2016 Paid Tk. 3,400 to Ratans Dental for accounts payable due.
Required: (i) Journalize the transactions. (ii) Post to the ledger accounts.
[5+12.5=17.5]
3. (a) Distinguish between perpetual and periodic inventory systems of recording inventory.
(b) What do you mean by FOB shipping point and FOB destination? Explain the meaning of the credit term 2/10, n/30.
(c) The following transaction has been occurred in the books of Monroe company.
i | On march 2, Monroe company sold Tk 9,00,000 of merchandise to Churchill company, terms 2/10, n/30. The cost of the merchandise sold was Tk 6,20,000. |
ii | On march 6, Churchill company returned Tk 1,20,000 of the merchandise purchased on march 2. the cost of the returned merchandise was Tk 90,000. |
iii | On march 12, Monroe company received the balance due from Churchill company. |
iv. | Purchased merchandise on account from brauns wholesale supply Tk 4,200 terms 2/10, n/30. |
v. | Sold merchandise on account Tk 2,100 terms 1/10, n/30. The cost of the merchandise sold was Tk 1,300. |
vi. | Received credit from brauns wholesale supply for merchandise returned Tk 300. |
vii. | Received collections in full less discounts, from customers billed on sales of Tk 2,100 (transaction v). |
viii. | Paid brauns wholesale supply in full, less discount. |
Requirement: Journalize the transactions using a perpetual inventory system.
[3+4.5+10=17.5]
4. (a) What is a trial balance and what are its purposes?