Two Accounting & Cost Management papers (TM 301) from BUTEX affiliated colleges' 2018 Level-3 Term-II finals. Questions cover financial statement components, tabular analysis of a golf course company's transactions, and income statement preparation.
Q1
Level-3 Term-II, Final Exám-2018
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) “Accounting is an information system that identifies, records, and communication the economic events of an organization to interested users”. Explain.
(b) Define Asset, Liability and Owner’s equity with examples.
(c) What are the component of a set of financial statements and how they are prepared?
[7.5+6+4=17.5]
2. (a) State the accounting equation and define its components.
(b) MCH company opened in March 1, 2018 by Genesis Bine. The following selected events and transactions occurred during march:
March 1 | Invested Tk 1,30,000 cash in the business. |
3 | Purchased rainbow golf land for Tk 35,000 cash. The price consists of land Tk 30,000 Shed Tk 3,000 and equipment Tk 2,000. |
5 | Paid advertising expense Tk 7,000. |
6 | Paid cash 26,000 for a one year insurance police. |
7 | Hired a secretary at a salary of Tk 5,000 per week payable monthly. |
10 | Purchase golf disc and other equipment for Tk 9,000 from XYZ company payable in 30 days. |
18 | Received Tk 7,000 in cash for golf fees. |
19 | Sold 150 coupon books for Tk 10 each. |
25 | Withdrew Tk 3,000 cash for personal use. |
30 | Paid salaries of Tk 800 |
30 | Paid XYZ company in full. |
31 | Received Tk 23,000 cash for golf fees. |
Requirements:
i) Prepare a tabular analysis of the transactions and show the effects of the above transactions on accounting equation. ii) Prepare an income statement for the period.
[3.5+(10+4)=17.5]
3. (a) “The terms debit and credit mean increase and decrease, respectively”. Do you agree? Explain.
(b) Carla Quentin started her own consulting firm, Quentin Consulting, on May 1, 2012. The following transactions occurred during the month of May,
May 1 | Carla invested Tk. 10,000 cash in the business. |
2 | Paid Tk. 900 for office rent for the month. |
3 | Purchased Tk. 600 of supplies on account. |
5 | Paid Tk. 125 to advertise in the County News. |
9 | Received Tk. 4,000 cash for services provided. |
12 | Withdrew Tk. 1,000 cash for personal use. |
15 | Performed Tk. 5,4000 of services but Tk. 5000 received in cash immediately and remaining on account. |
17 | Paid Tk. 2,500 for employee salaries. |
20 |
Q2
Level-3 Term-I, Final Exám-2018
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) Forte dise golf course was opened on March 1 by Matt Forte. The following selected events and transactions occurred during March.
March | 1 | Invested Tk. 200,000 cash in the business. Purchased Heeren’s Gold Land for Tk. 150,000 cash. |
” | 3 | The price consists of land Tk. 120,000, shed Tk. 20,000 and equipment Tk. 10,000 (Make one compound entry). |
” | 4 | Paid advertising expenses of Tk. 7,000. |
” | 6 | Paid cash Tk. 6,000 for a one-year insurance policy. |
” | 10 | Purchased golf discs and other equipment for Tk. 10,050 from Innova Company payable in 30 days. |
” | 18 | Received Tk. 10,100 in cash for golf fees earned (Forte records golf fees as service revenue). |
” | 19 | Sold 150 coupon books for Tk. 100 each. Each book contains 4 coupons that enable the holder to play one round of disc golf. |
” | 25 | Withdrew Tk. 8,000 cash for personal use. |
” | 30 | Paid salaries of Tk. 2,050. |
” | 30 | Paid Innova Company in full. |
” | 31 | Received Tk. 20,100 cash for fees earned. |
Required: Journalize and post the above transactions in the books of Matt Forte.
[4.5+13=17.5]
2. (a) Briefly explain the different types of financial statements.
(b) The following is an extract of the record of receipt and issue of sulphur in a chemical factory during July, 2018:
July | 1 | Opening balance 500 tonnes @ Tk. 200 |
” | 3 | Issue: 250 tonnes |
” | 13 | Received from supplier 200 tonnes @ Tk. 190 |
” | 14 | Returned from department 15 tonnes |
” | 16 | Issue: 180 tonnes |
” | 20 | Received from supplier 240 tonnes @ Tk. 190 |
” | 24 | Issue: 300 tonnes |
” | 25 | Received from supplier 320 tonnes @ Tk. 190 |
” | 28 | Issue: 115 tonnes |
” | 30 | Returned from department 35 tonnes |
” | 31 | Received from supplier 100 tonnes @ Tk. 190 |
Issues are to be priced on the principle of ‘First in, First out’. The stock verifier of the factory had found a shortage of 10 tonnes on the 22nd and left a note accordingly.
Instruction: Draw up a store ledger for the material, showing the above transactions.
[5.5+12=17.5]
3. Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. The following transactions occurred during the month of May.
May | 1 | Trixie invested Tk. 7,000 cash in the business. |
” | 2 | Paid Tk. 900 for office rent for the month. |
” | 3 | Purchased Tk. 600 of supplies on account. |
” | 5 | Paid Tk. 125 to advertise in the County News. |
” | 9 |