Accounting & Cost Management paper (TEM 303), 2020 Level-3 Term-I, from BUTEX affiliated colleges, featuring full transaction sets for a law office and a disc golf course requiring tabular summaries and income statements.
Level-3 Term-I, Final Exám-2020
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. Joan Robinson opens her own law office on July 1, 2012. During the first month of perations, the following transactions occurred.
July 01 Joan invested Tk.11,000 in cash in the law practice.
July 05 Paid Tk. 800 for July rent on office space.
July 06 Purchased office equipment on account Tk. 3,000.
July 08 Provided legal services to clients for cash Tk. 1,500.
July 15 Borrowed Tk.700 cash from a bank on a note payable.
July 20 Performed legal services for client on account Tk. 2,000.
July 25 Paid monthly expenses: salaries and wages Tk. 500, utilities Tk. 300, and supplies Tk. 100.
July 31 Joan withdraws Tk. 1,000 cash for personal use.
Required:
(a) Prepare a tabular summary of the transactions.
(b) Prepare the income statement for the month ended July, 2012 for Joan Robinson, Attorney.
[8+4=12]
2.
Forte Disc Golf Course was opened on March 1 by Sanju. The following selected events and transactions occurred during March.
Mar. 1 Invested Tk. 20,000 cash in the business.
Mar. 3 Purchased Land for Tk. 15,000 cash. The price consists of land Tk. 12,000, shed Tk. 2,000, and equipment Tk. 1,000.
Mar. 5 Paid advertising expenses of Tk. 700.
Mar. 6 Paid cash Tk. 600 for a one-year insurance policy.
Mar. 10 Purchased golf discs and other equipment Tk. 1,050 from Innova Company payable in 30 days.
Mar. 18 Received Tk. 1,100 in cash for golf fees earned (Forte records golf fees as service revenue).
Mar. 19 Sold 150 coupon books for Tk. 10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.
Mar. 25 Withdrew Tk. 800 cash for personal use.
Mar. 30 Paid salaries of Tk. 250.
Mar. 30 Paid Innova Company in full.
Mar. 31 Received Tk. 2,100 cash for fees earned.
Required: Journalize the March transactions.
[12]
3.
(a) What is a Trial balance? Why is it prepared?
(b) The following transactions were obtained from the books of Mr. Awal for the month of June, 2019.
June 1 | Mr. Awal invested in cash Tk. 5,00,000 with building Tk. 2,00,000 into his business. |
June 4 |