Accounting & Cost Management exam (TEM 303) from BUTEX affiliated colleges' 2019 Level-3 Term-I finals, built around journalizing and posting a practitioner's monthly transactions plus a travel agency's complete records.
Level-3 Term-I, Final Exám-2019
Subject: Accounting & Cost Management (Code: TEM 303)
Time: 3.0 Hrs. Full Marks: 72
(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 and state the importance of accounting.
(b) Mr. Subhas Das is a licensed FCA and IT Practitioner. During the first month of operations of his business, the following event and transactions are occurred.
May 1 Mr. Das invested in cash Tk. 1,70,000.
2 Hired a secretary-receptionist at a salary of Tk. 15,000 per month.
3 Purchased Tk. 15,000 of supplies on account from Acme Supply Company.
7 Paid office rent of Tk. 9,000 in cash for the month.
11 Completed a tax assignment and billed client Tk. 20,100 for services provided.
12 Received Tk. 30,500 advance on a management consulting engagement.
17 Received cash of Tk. 10,200 for services completed for MGH Group and Co.
30 Paid secretary-receptionist Tk. 15,000 for the month.
31 Paid 60% of balance due Acme Supply Company.
Instructions (i) Journalize the May transactions. (ii) Open ledger accounts and post the May transactions.
[4+8=12]
2. (a) Discuss the modern rule of determining debit and credit.
(b) On April 1, Russel Transport, Pabna established Square Travel Agency. The following transactions were completed during the month:
1. Invested Tk. 15,000 cash to start the agency.
2. Paid Tk. 600 cash for April office rent.
3. Purchased office equipment for Tk. 3,000 cash.
4. Incurred Tk. 700 of advertising costs in the Daily News, on account.
5. Paid Tk. 800 cash for office supplies.
6. Earned Tk. 10,000 for services rendered: Tk. 3,000 cash is received from customers, and the balance of Tk. 7,000 is billed to customers on account.
7. Withdrew Tk. 500 cash for personal use.
8. Paid Daily News Tk. 500 of the amount due in transaction (4).
9. Paid employee’s salaries TK. 2,500.
10. Received Tk. 4,000 in cash from customers who have previously been billed in transaction (6).
Instructions:
(a) Prepare a tabular analysis of the transactions using the following column headings: Cash + Accounts Receivable + Supplies + Office Equipment = Accounts Payable + Owner’s Capital.
(b) From an analysis of the owner’s equity columns, compute the net income or net loss for April.
[2+10=12]
3. (a) “Trial balance gives us guarantee about accuracy of the accounting record”. Do you agree? Why?
(b) Parasol Furniture has opened its furniture business on March 01, 2017 by Mr. Mahtab. The following transactions occurred during March:
Mar. 1 Owner invested Tk. 165,000 cash to start business.
Mar. 3 Paid monthly insurance policy installment is Tk. 1,500.
Mar. 6 Paid Tk. 4,000 cash for office rent of the month.