Accounting & Cost Management exam (TEM 305) from BUTEX affiliated colleges' 2024 Level-3 Term-I finals, built around journalizing complete transaction sets for new businesses, ledger preparation, and GAAP fundamentals.
Level-3 Term-I, Final Exám-2024
Subject: Accounting & Cost Management (Code: TEM 305)
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) Jane Kent is a licenced CPA. During the first month of operation of her business, the following events and transactions occurred.
May 1. Kent Invested $25000 cash.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on account from Read Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a $1,000 advanced bill for $2,100 for services provided.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services completed for Hill Arnold Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 40% of balance due Read Supply Company.
Journalize the transactions.
(b) What is GAAP?
[10+2=12]
2. (a) Hob Snare opened the Campus Laundromat on September 1, 2010. During the first month of operations the following transactions occurred.
Sep. 1. Bob invested $20,000 Cash in the business.
Sep. 2. The company paid $1,000 cash for store rent for September.
Sep. 3. Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable.
Sep. 4. Paid $1,200 for a one-year accident insurance policy.
Sep. 10. Received a bill from the Daily News for advertising the opening of the Laundromat $200.
Sep. 20. Bob withdrew $700 cash for personal use.
Sep. 30. The company determined that cash receipts for laundry services for the month were $6,200.
Instructions: (a) Journalize the September transactions. (Use J1 for the journal page number.) (b) Open ledger accounts and post the September transactions.
[7+5=12]
3. (a) Define accounting. Who are the users of accounting information?
(b) What is trial balance? Discuss the limitations of trial balance.
(c) What are the differences between accrual and cash basis of accounting?
[4+4+4=12]