Accounting & Cost Management exam (TEM 303) from the 2022 Level-3 Term-I finals, BUTEX affiliated colleges. Built around journalizing full months of business transactions with tabular summaries, income statements, and balance sheet preparation.
Level-3 Term-I, Final Exám-2022
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. Who are the users of accounting information?
(b) Discuss the modern rules of determining debit and credit.
(c) Define assets, liability and equity with example.
[4+4+4=12]
2. (a) Joan Robinson opens her own law office on July 1, 2012. During the first month of operations, the following transactions occurred:
(i) Joan invested Tk. 21,000 in cash in the law practice.
(ii) Paid Tk. 800 for July rent on office space.
(iii) Purchased office equipment on account Tk. 3,000.
(iv) Provided legal services to clients for cash Tk. 1,500.
(v) Borrowed Tk. 700 cash from a bank on a note payable.
(vi) Performed legal services for client on account Tk. 2,000.
(vii) Paid monthly expenses: salaries and wages Tk. 500, utilities Tk. 300, and supplies Tk. 100.
(viii) Joan withdrew Tk. 1,000 cash for personal use.
(ix) Received cash of Tk. 1,200 for services billed in transaction (vi)
(x) Payment cash of TK. 1500 for purchasing office equipment in transection (iii)
Required:
(i) Prepare a tubular summary of the transactions
(ii) Prepare the income statement, owner’s equity statement, and balance sheet at July 31 for Joan Robinson, Attorney.
[8+4=12]
3. (a) Mr. Shamim started a delivery service, Shamim Deliveries, on June 1, 2021. The following transactions occurred during the month of June:
June 1 Shamim invested Tk. 10,000 cash to start his business.
June 2 Purchased a used van for deliveries for Tk. 14,000. Shamim paid Tk. 2,000 cash and signed a note payable for the remaining balance.
June 3 Paid Tk. 500 for office rent for the month.
June 5 Performed Tk. 4,800 of services on account.
June 9 Withdrew Tk. 300 cash for personal use.
June 12 Purchased supplies for Tk. 150 on account.
June 15 Received a cash payment of Tk. 1,250 for services provided on June 5.
June 17 Purchased gasoline for Tk. 100 on account.
June 20 Received a cash payment for Tk. 1,500 for services provided.
June 23 Made cash payment of Tk. 500 on the note payable.
June 26 Paid Tk. 250 for utilities.
June 29 Paid for the gasoline purchased on account on June 17.
June 30 Paid Tk. 1,000 for employee salaries.
Required: Journalize the June transactions.
[12]
4. (a) What is trial balance? Discuss the limitations of trial balance.
(b) Bob Sample opened the following transactions on September 1, 2017. During the first month of operations, the following information occurred:
1. Bob invested $20,000 cash in the business.
2. The company paid $1,100 cash for store rent for September.
3. Purchased supplies and drove for $25,000, paying $10,000 in cash and signing $15,000, 6-month, 12% note payable.
4. Paid $1,200 for a one-year accident insurance policy.
10. Received a bill from the Daily News for online advertising of the opening of the Laundromat $200.
20. Bob withdrew $700 cash for personal use.
30. The company determined that cash receipts for laundry services for the month were $6,200. Instructions:
(a) Journalize September transactions.
(b) Open ledger accounts and post the September transactions.
(c) Prepare a trial balance at September 30, 2017.
Saifulsclassroom [4+8=12]
Part: B
(Answer any three questiοns)