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Ques Aug 2012 PDF
Ques Aug 2012 PDF
Page 1 of 66
Debit (Tk.)
83,500
1,68,500
1,90,000
27,500
4,25,000
Credit(Tk.)
90,000
2,40,000
30,000
2,55,000
2,42,500
5,50,000
60,000
37,33,000
21,000
25,18,000
34,500
18,500
54,000
7,00,000
1,32,000
70,000
60,500
83,500
1,20,000
49,53,500
=========
49,53,500
=========
10
20
35
Cost price
per unit
Tk. 400
250
300
Selling price
per unit
Tk. 850
600
750
04:
06:
08:
12:
15:
16:
17:
20:
22:
25:
Purchase 30 racquets from Reeve Co. @ Tk. 450 each; FOB destination, terms 1/10,
n/60. The appropriate party paid the freight cost of Tk. 200.
Received credit of Tk. 450 from Reeve Co. for a damaged racquet that was returned.
Sold tennis shoes of 5 units to members; FOB shipping point, terms 2/10, n/30. The
appropriate party paid the freight cost of Tk. 100.
Purchase Shirts and Shorts from Lee Enterprise Tk. 2,400; FOB shipping point, terms
3/15, n/25. The appropriate party paid the freight cost of Tk. 150.
Paid Reeve Co. in full.
Sold racquets of 15 units to DD Enterprise for cash; FOB Destination. The appropriate
party paid the freight cost of Tk. 300.
Receive cash payment from members for the merchandise sold on June 8.
Purchase supplies on account Tk. 500 from Lesner Supply Co.
Made refund of Tk. 1,700 to DD Enterprise for merchandise returned by them.
Paid Lee enterprise in full.
Required:
Journalize the June transactions using a perpetual inventory system. ZS Tennis Shop applies FIFO
method to value inventories.
[Marks: 20]
Page 2 of 66
Bank charges of Tk. 60 had not been entered in the cash book.
(b)
Checks drawn by Omayer totaling Tk. 450 had not yet been presented to the bank.
(c)
Omayer had not entered receipts from a customer of Tk. 530 in his cash book.
(d)
The bank had not credited Omayer with receipts of Tk. 1,970 paid into the bank on 31st October
2011.
(e)
Standing order payments against a loan amounting to Tk. 1,240 had not been entered in the cash
book.
(f)
Omayer had entered a payment to suppliers of Tk. 560 in his cash book as Tk. 650.
(g)
A check received for Tk. 300 from a debtor had been returned by the bank marked refer to drawer,
but this had not been written back in the cash book.
(h)
Omayer had brought down his opening cash book balance of Tk. 6,585 as a debit balance instead of
as a credit balance.
(i)
An old check payment amounting to Tk. 880 had been written back in the cash book, but the bank
had already honoured it.
(j)
Some of Omayers customers had paid to settle their debts by direct debit. Unfortunately, the bank
had credited some direct debits amounting to Tk. 16,650 to another customers account.
Required:
(i) Prepare a statement showing Omayers adjusted cash book balance as at 31stOctober 2011.
(ii) Prepare a bank reconciliation statement as at 31st October 2011.
(iii) Journalize the errors to rectify bank balance.
[Marks:(6+7+7) = 20]
Q. No. 4.
(a)
Goodwill has been defined as the value of all favorable attributes that relate to a business enterprise.
What type of attributes could result in goodwill?
(b)
In the fourth year of an assets 5-years useful life, the company decides that the asset will have a
6-years service life. How should the revision of depreciation be recorded?
(c)
Plant and machinery costing Tk. 50,000, was purchased on 1 April 2009. This was depreciated for
two years at 20 per cent using the reducing balance method. On 1 April 2011 the machinery
(original cost Tk. 25,000) was sold for Tk. 12,000. Replacement machines were acquired on the
same date for Tk. 34,000. What was the net book value of plant and machinery at 1 April 2012?
Page 3 of 66
Inventories
-------------------------------------------------Beginning (75,000 units) Tk.1,70,000
Ending
(1,00,000 units)
Units
3,00,000
2,50,000
2,50,000
3,50,000
11,50,000
Operating expenses were Tk.7,35,000 and the companys income tax is 30% .
Required:
(i) Prepare comparative condensed income statement for 2011 under FIFO and LIFO
(Show computations of ending inventory).
(ii) Answer the following question for management:
(a) Which cost flow method (FIFO or LIFO) produces the more meaningful inventory amount
for the balance sheet? Why?
(b) Which cost flow method (FIFO or LIFO) produces the more meaningful net income? Why?
(c) Which cost flow method (FIFO or LIFO) produces the more likely to approximate actual
physical flow of goods? Why?
(d) How much additional cash will be available for management under LIFO than under FIFO?
Why?
(e) Will gross profit under this average cost method be higher or lower than (a) FIFO and (b)
LIFO? (It is not necessary to quantify your answer)
[Marks: {5+ (10+5)} = 20]
= THE END =
Page 4 of 66
Page 5 of 66
Page 6 of 66
(b)
A (B C)
(ii)
A (B C)
( A B) ( A C )
( A B) ( A C )
Mr. Rahman can purchase a machine by Paying Tk. 40,000 in cash at now. He can also purchase
the machine by 8 equal yearly installments to be paid at the beginning of each year. If the interest
rate is 12%, what should be amount of each installment?
[Marks: (5+5) = 10]
Q. No. 2.
(a)
Find the equation of the line which passes through the origin O(o,o) and the point of intersection of
the lines 5x +y+4 = 0 and 2x + 3y 1 = 0.
(b)
The total cost y for x units of a certain product consists of fixed cost and the variable cost. It is
known that the total cost is Tk. 1200 for 100 units and Tk. 2700 for 400 units. Assume that y is a
linear function of x.
Required:
(i) Find the linear relationship between x and y.
(ii) Find the slope of the line. What does it indicate?
(iii) Find the cost of producing 200 units of the product.
(iv) If the selling price is Tk. 7 per unit, find the number of units that must be product for breakeven.
[Marks: (4+6) =10]
Q. No. 3.
(a)
A farmer has 2000 yards of fence to enclose a rectangular field. What are the dimensions of the
rectangle that encloses the most area?
(b)
Page 7 of 66
Q. No. 4.
(a) Differentiate the following with respect to x
4x
(i) y = e + log (sin x )
(ii) Log (x cosx)
d2y
(b)
dy
x dx + x dx - y = 0
2
Q. No. 5.
1 of
3 the following Matrix:
3 inverse
(a)
Compute the
2 4 2
1
1 2function
The unit demand
4 is x = (25 2p), where x is the number of units and p is the price.
Let average cost per unit be Tk. 40.3 Find the following:
A=
(b)
(i)
(ii)
(iii)
(iv)
(v)
Q. No. 6.
1
1
x
tan 1 x 2
dx
(a)
Evaluate the following:
(i)
dx ;
(ii)
2
2
1
+
x
taken 3 at a time?
1
+
x
0
0
(b)
How many different words can be formed from the word ARRANGEMENT
Page 8 of 66
What do you mean by measures of central tendency? What are their measures? Among all measures
of central tendency which one is the best and why?
(b)
Pepsi company is forecasting regional sales for next year. The Atlantic branch, with current yearly
sales of $ 194.3 million, is expected to achieve a sales growth of 7.65%; the Midwest branch, with
current sales of $ 79.5 million, is expected to grow by 8.35% and the Pacific branch, with sales of
$ 59.4 million, is expected to increase sales by 9.15%. What is the average rate of sales growth
forecasted for next year?
[Marks: (5+5) = 10]
Q. No. 2.
(a) Define mean deviation, standard deviation and coefficient of variation with some of their uses.
(b)
For the following values calculate mean deviation and coefficient of variation.
17.5 13.3
19.6
23.9
14.7
18.5
22.1
15.7
19.6
17.8
[Marks: (6+4) = 10]
Q. No. 3.
(a) What do you mean by the terms skewness and kurtosis? Point out their role in analyzing a
frequency distribution.
(b)
The following data show the life of some electric bulbs (in hours) of two different companies:
Life of bulbs (in hours)
500-550
550-600
600-650
Philips
50
47
30
Crown
62
34
22
(i) Which companys bulbs have higher average life?
(ii) Which companys bulbs are more uniform/stable in their life?
650-700
18
20
700-750
26
12
Ad. Exp.
29
41
48
53
(Lakh Taka)
Sales (Crores)
7
8
10
12
Required:
(i) Fit regression equation of Ad. Exp. on Sales.
(ii) Estimate sales for Ad. Exp. of Tk. 65.00 lakhs.
(iii) Comment on the reliability of the estimates.
(iv) Compute the 95% confidence interval of the estimate.
58
50
57
13
18
15
Page 9 of 66
Q. No. 5.
(a)
In a recent study, 80 percent of the homes in the United States were found to have large screen
TVs. In a sample of nine homes, what is the probability that:
(i) All nine homes have large-screen TVs?
(ii) Less than two have large-screen TVs?
(iii) More than two have large-screen TVs?
(b)
A recent study of the hourly wages of maintenance crew members for major airlines showed that
the mean hourly salary was $ 16.50, with a standard deviation of $3.50. If we select a crew member
at random, what is the probability the crew member earns:
(i) Between $ 16.50 and $20.00 per hour?
(ii) At least $ 20.00 per hour?
(iii) At most $15.00 per hour?
[Marks: (5+5) = 10]
Q. No. 6.
(a)
Explain with examples the following concepts: (i) Mutually exclusive events (ii) Sample space (iii)
Classical definition of probability (iv) Subjective probability.
(b)
220 workers employed in a firm in the garment sector of Bangladesh classified according to gender
and skills are presented as follows:
Skilled
Semi Skilled
Unskilled
Total
Gender
S1
S2
S3
Male (M)
38
17
5
60
Female (F)
103
37
20
160
Total
141
54
25
220
If one worker is selected at random compute the followings: (i) Marginal probabilities (ii) Joint
probabilities (iii) Conditional probabilities (iv) Union probabilities.
[Marks: (4+6) = 10]
Q. No. 7.
(a) What is sampling? Discuss the different types of sampling with example.
(b) Distinguish between the followings:
(i) Statistic & Parameter (ii) Null and Alternative hypotheses (iii) Type-I & Type-II errors.
[Marks: (5+5) = 10]
Skill
= THE END =
Page 10 of 66
Page 11 of 66
Q. No. 4.
(a) How is equilibrium price determined in the market?
(b) (i) Differentiate between demand pull and cost push inflation.
(ii) Discuss the various measures of credit control taken by the Central Bank to control inflation.
(c) Explain the ways in which public expenditure can play an important role in tackling rural poverty.
[Marks: {5+(4+5)+6} = 20]
Q. No. 5.
(a) Explain Super Profits in firms.
(b) What do you understand by movement along the demand curve? Explain with examples.
(c) Discuss the factors that determine elasticity of demand.
(d) Calculate price elasticity, income elasticity and cross elasticity from the following figures of a firm
selling product X:
Years
Sales in Quantity of Price per unit of X Price per unit of Y Per capita Income
X (No. of units)
in Taka
in Taka
in taka
2000
30,000
30
10
10,000
2010
60,000
20
15
20,000
[Marks: (4+5+4+7) = 20]
GROUP B : INTERNATIONAL BUSINESS
Q. No. 6.
(a) International Trade is vital for a Countrys overall development. Discuss this statement, giving
examples as appropriate.
(b) Bangladesh has not been very successful in attracting FDIs. Explain the reason(s) behind this
situation.
(c) Discuss the determinants of demand for readymade garments of Bangladesh in the world market.
[Marks: (6+7+7) = 20]
Q. No. 7.
Write short notes on any five of the following:
(i)
Anti-dumping.
(ii) GATT.
(iii) Global Network Strategy.
(iv) Technology Transfer.
(v) Product Life Cycle.
(vi) Market Segmentation.
(vii) Balance of Trade and Balance of Payment.
[Marks: (5 x 4) = 20]
Q. No. 8.
(a) Trade must always promote a win-win situation for both parties. Is that a realistic assumption?
Discuss, giving examples as appropriate.
(b) Write short notes on:
(i)
Back to back letter of credit.
(ii) Mode(s) of Export financing in Bangladesh.
(c)
Most developing countries have certain Infant Industry arguments? Discuss these in the context
of the development of Bangladesh. Give examples as relevant.
[Marks: (6+6+8) = 20]
= THE END =
Page 12 of 66
Page 13 of 66
Page 14 of 66
As per Para 6 of IAS-2, inventories include assets held for sale in the ordinary course of business
(finished goods), assets in the production process for sale in the ordinary course of business (work
in process), and materials and supplies that are consumed in production (raw materials). In the Para
16 and 18 of IAS-2 where mentioned that inventory cost should not include few items.
Can you write the name of the items?
(b)
Pathan Furniture Ltd. is a retailer of Italian furniture and has five major products: Sofas, Dining
Tables, Beds, Office Tables and Chairs. At June 30, 2012, quantity on hand, cost per unit, and net
realizable value (NRV) per unit of the product lines are as follows:
Products
Dining
Tables
Page 15 of 66
Beds
Office
Tables
Chairs
Descriptions
Quantity on hand
100
200
300
400
500
Cost per unit
Tk. 1,00,000
Tk. 50,000
Tk. 1,50,000
Tk. 75,000 Tk. 25,000
NRV per unit
Tk. 1,02,000
Tk. 45,000
Tk. 1,60,00
Tk. 77,000 Tk. 20,000
Required:
Compute the valuation of the inventory of Pathan Furniture Ltd. at June 30, 2012, under IAS-2
using the Lower of Cost and NRV principle.
(c) On 1st April, 2011, Farhana has 50,000 ordinary shares of M3 Ltd. at a book value of Tk.15 per
share (face value Tk.10 each). She provides you the further information:
(1) On 20th June, 2011, she purchased another 10,000 shares of M3 Ltd. at Tk.16 per share.
(2) On 1st August, 2011, M3 Ltd. issued one equity bonus share for every 6 shares held by the
shareholders.
(3) On 31st October, 2011, the directors of M3 Ltd. announced a right issue which entitle the
holders to subscribe 3 shares for every 7 shares at Tk.15 per share. Shareholders can transfer
their rights in full or in part.
Farhana sold 1/3rd of entitlement to Yeasmine for a consideration of Tk.2 per share and subscribe
the rest on 5th November, 2011.
Required:
Prepare Investment A/c in the books of Farhana for the year ending 31st March, 2012 (accounting
year April March).
[Marks: 4 + 7 +9 = 20]
Q. No. 4.
(a) An accountant must be familiar with the concepts involved in determining earnings of a business
entity. The amount of earnings reported for a business entity is depended on the proper recognition,
in general, of revenue and expenses for a given time period. In some situations, costs are recognized
as expenses at the time of product sale. In other situations, guidelines have been developed for
recognizing costs as expenses or losses by other criteria.
Required:
(i) Explain the rationale for recognizing costs as expenses at the time of product sale.
(ii) What is the rationale underlying the appropriateness of treating costs as expenses of a period
instead of assigning the costs to an asset? Explain.
(iii) Identify the conditions under which it would be appropriate to treat a cost as a loss.
Sofas
In April 2012 your client, Dilara Pharmaceuticals Ltd. a private company, decided to undertake a
major restructuring of its manufacturing activities. The client had two factories in different towns
that produce the same products. Management decided that production would be moved to one of the
factories (Z). Management has also decided to incur additional costs to upgrade the facilities in
order to increase production significantly. The remaining factory (X) was closed. The company has
incurred the following costs:
(i)
Cost of closing factory X, including the cost of terminating some
Tk. 1,000,000
existing contracts and redundancy payments for staff
(ii)
Cost of feasibility study carried out by the Company to determine the
Tk. 90,000
best system for factory Z
(iii)
Cost of relocating key staff to the town where factory Z is located.
Tk. 50,000
The staff are not contracted to remain with the company.
(iv)
Cost of implementing the new system in factory Z:
(a) Consulting fees
Tk. 550,000
(b) Allocation of time spent by internal employees
Tk. 150,000
(c) training for new staff
Tk. 40,000
(v)
Efficiency losses in early production stages
Tk. 30,000
(vi)
Campaign specifically to advertise the new technology being used
Tk. 20,000
Required:
How should each of the above costs be accounted for: capitalized or expensed? Support your
answer with reference of relevant accounting standards (if any).
[Marks: (12+8) = 20]
Q. No. 5.
General Motors Ltd. has prepared the balance sheets as set out below:
Balance sheets as at 31 March
20111
(Tk. 000))
ASSETS
None-current assets
Property, plant and equipment
Investments
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total assets
Page 16 of 66
2010
(Tk.) 000)
30,946
7,100
38,046
25,141
25,141
16,487
12,347
863
29,697
67,743
15,892
8,104
724
24720
49,861
13,000
10,000
12,500
7,450
24,776
57,726
3,250
5,000
2,650
22,856
40,506
4,250
2,771
1,200
2,796
6,767
67,743
2,632
1,235
1,238
5,105
49,861
Page 17 of 66
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Page 23 of 66
Q. No. 1.
a)
Define Information Systems. Describe the key components of Information Systems.
b)
What is MIS? "Only a computerized MIS can cope up with the dynamics of changing management
requirements"-Explain.
c)
Discuss points that are important while designing an MIS for a business organization.
d)
What are the differences between MIS and DSS?
[Marks: (4X5) = 20]
Q. No. 2.
(a) In keeping the organizational information in a file processing system, what are the major
disadvantages and how database management systems can reduce the aforesaid problems?
(b) Explain with example the difference between the following terms with reference to a Database:
*
Data and Information
*
Field and Record
(c) What do you understand by the term memory? What is a primary memory? What are the
distinguishing characteristics of a primary memory?
(d) Distinguish between a batch processing system and an online processing system.
[Marks: (4X5) = 20]
Q. No. 3.
(a)
What are the differences between system software and application software package? Mention two
examples each.
(b) Discuss input and output devices with some examples each.
(c) What is Data Flow Diagram (DFD)? Describe the rules of constructing a DFD with figure?
[Marks: (7+6+7) = 20]
Q. No. 4.
(a) Compare and contrast Internet, Intranet and Extranet.
(b) What does the e' stand for in e-commerce? How do you differentiate between commerce' and
e-commerce'?
(c) What do you mean by security control? Why it is needed in an Organization?
(d) What do you understand by the life cycle of a system? "Designing is considered the most important
stage in SDLC. Do you agree with this statement?
[Marks: (4X5) = 20]
Q. No. 5.
(a) Discuss about prevention of computer related waste and mistakes.
(b) What is security? How to develop a disaster recovery plan?
(c) Define computer crimes. Critically explain the procedures of auditing information systems to
control computer crimes.
[Marks: (4+6+10) = 20]
Q. No. 6.
Write short notes on:
(a) Outsourcing; (b) Artificial Intelligence; (c) Knowledge Management; (d) Compiler and Interpreter;
(e) Database Administrator
[Marks: (5X4) = 20]
=THE END=
Page 24 of 66
Present value of Tk.1 at 10% for 7 years is 0.51316 and 11% for 7 years is 0.48166
Present value of an annuity due at 10% for 7 years is 5.35526 and 11% for 7years is
5.23054.
Instructions:
(a) Discuss the nature of this lease for both the lessee and the lessor, according to IAS-17 Leases.
(b) Calculate the amount of the annual rental payment required.
(c) Compute the present value of the minimum lease payments.
(d) Prepare the journal entries PMX would make in 2010 and 2011 related to the lease arrangement.
[Marks: {5+(4+3+3+5)} = 20]
Q. No. 2.
(a) How can you classify an asset as a current asset or non-current? Briefly describe as per IAS-1.
Page 25 of 66
The R & Co. had the following balance sheet on April 30, 2012 at which the company is
contemplating filing a petition for liquidation.
Assets
Cash
Notes Receivables
Accounts Receivables (Net)
Inventories
Finished goods
Work in Process
Raw materials
Prepaid Insurance
Investment in Grameen Phone
Land
Buildings (Net)
Machinery & Equipments(net)
Total Assets
R & Company
Balance sheet
April 30, 2012
Taka
Liabilities & stock holders equity
8,200 Bank Notes Payable
24,000 Accounts Payables
47,000 Accrued Salaries & Wages
Accrued Interest
56,000
On Bank Notes
24,000
On Mortgage
39,000
Mortgage Note Payables
1,200 Capital Stock
26,500 Retained Earnings (deficit)
42,000
1,98,000
93,000
5,58,900
Taka
32,000
1,95,000
13,500
1,100
8,500
2,00,000
2,50,000
(1,41,200)
5,58,900
Additional Information:
1.
The notes receivable are expected to be fully realized and they have been pledged as collateral on
Bangladesh Development Bank note in the principal amount of BDT. 20,000.00 plus accrued
interest of BDT. 600.00
2.
Accounts receivable have been an estimated collectible value of BDT. 28,000.00
3.
Finished goods inventory can be sold at a markup of 20% over cost, with selling expenses estimated
at 10% of selling price. Work in process has no value unless finished. The estimated cost to
complete totals BDT. 12,000.00, of which 5,000.00 represent the cost of Raw Materials. The
estimated selling price of the work in process inventory when finished is 25,000.00. The remaining
raw materials inventory has an estimated selling price 70% of its cost.
4.
The recovery value of prepaid Insurance is 6,00.00
5.
The Grameen phone stock is pledged as collateral on a Bank note payable in the principal amount
of 12,000.00 plus accrued interest of 500.00.
6.
Land & Building have appraised values of BDT. 40,000.00 and BDT. 1,00,000.00 respectively, and
serve as collateral on the mortgage note payable.
7.
The machinery and equipments have an estimated disposal value of 38,000.00
Prepare the statement of affairs for R & Company along with a Deficiency Account summarizing
estimated gains & losses on the realization of assets.
[Marks: (5+15) = 20]
Page 26 of 66
Total labor costs will be Tk.300,000 higher than expected. Of this amount, only Tk.240,000
will be the result of increased wage tariffs. The remainder will be caused by inefficiencies.
Page 27 of 66
Drs.
Taka ('000)
Holding Taxes ........................................................................ 21,50,000
City Corporation Taxes ......................................................... 5,10,000
Motor Vehicles Licenses ......................................................
95,000
Interest on bank Accounts ....................................................
22,000
Miscellaneous ......................................................................
35,000
Data from the expenditure ledgers are as follows:
General Government ....................................................
Police department ..........................................................
Fire Department ............................................................
Streets & Roads ............................................................
Sanitation .....................................................................
Public Welfare ............................................................
Crs.
Taka ('000)
21,67,000
5,01,500
97,000
23,100
41,500
9,25,000
5,55,000
4,40,000
4,00,000
2,95,000
1,75,000
The Encumbrances balances in the expenditure ledger are as follows: Taka ('000)
General government..................................................
3,600
Fire Department
....................................................
2,100
Sanitation....................................................................
3,700
Required:
i)
Prepare a statement of Revenues and Expenditures - Budget & Actual
ii)
Prepare a Statement of Changes in Fund Balance assuming the balance of fund at the
beginning of the year was Tk. 37,00,00,000
iii) Prepare a Balance Sheet.
[Marks: (5+15) = 20]
Page 28 of 66
1200
1150
1100
Brought forward
Direct cost of additions
Interest capitalized
Depreciation
Carried forward
3.
20X6
CUm
180
90
10
280
(50)
230
20X5
CUm
0
180
20
200
(20)
180
Property, plant and equipment is depreciated at the rate of 10% of cost per annum.
The directors now believe that more relevant information would be provided if interest was not
capitalized, so the decision has been made to change the accounting policy and to recognize all interest as
an expense in the year in which it is incurred.
Prepare the revised balance sheets at 31 December 20X7 and 20X6, together with extracts from the
statement of changes in equity for each of the two years then ended.
[Marks: (5+15) = 20]
= THE END =
Page 29 of 66
Page 30 of 66
Page 31 of 66
Page 32 of 66
Loan demand
Tk. 12,100,000
Tk. 10,000,000
Tk. 8,070,000
Tk. 6,030,000
Tk. 4,420,000
Page 33 of 66
Savings supply
Tk. 4,700,000
Tk. 5,420,000
Tk. 8,630,000
Tk. 9,830,000
Tk. 11,800,000
Tk. 645,766
314,360
331,406
30,200
130,522
77,800
Tk. 92,884
Tk. 8,062,000
Tk. 8,123,000
Required:
(i)
Calculate the processing, loan default, and overhead expenses for each possible interest rate.
(ii)
Create a budgeted income statement for five-year loans and deposits for the Car loan
department given a savings interest rate of 4 percent. Remember to match supply and
demand.
= THE END =
Page 34 of 66
Answer any FIVE questions taking at least TWO from each Group A and B
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
PART-A : COMMERCIAL LAWS
Q. No. 1.
(a) All agreements are not contracts but all contracts are agreements. Explain.
(b) Differentiate between the terms Misrepresentation and Fraud.
(c) What are the rules of a valid offer?
(d) Mr. Sumon started self service system in his shop. Ms. Suborna entered the shop, took a basket
and after taking articles of her choice into the basket reached the cashier for payments. The
cashier refuses to accept the price. Can Mr. Sumon be compelled to sell the said articles to Ms
Suborna?
[Marks: (4 x 5) = 20]
Q. No. 2.
(a) Discuss Caveat Emptor with its exceptions.
(b) Risk Prima Facie passes with property- Discuss with at least two examples.
(c) Differentiate between Right of Lien and Right of stoppage in transit.
[Marks: (8+6+6) = 20]
Q. No. 3.
(a) What are the essential characteristics of a cheque.
(b) Discuss the proposes, meaning and types of crossing a cheque.
(c) Distinguish between negotiation and assignment.
[Marks: (8+6+6) = 20]
Q. No. 4.
Who is the holder and who is the holder in due course of a cheque? Discuss the various privileges of a
holder in due course.
[Marks: 20]
Q. No. 5.
(a) What matters can and cannot be referred to arbitration?
(b) Whats the difference between a general crossing and a special crossing of a cheque?
(c) Whats the difference between Actual breach of contract and Anticipatory breach of contract?
[Marks: (8+6+6) = 20]
Page 35 of 66
What are the provisions for Maternity Benefits, under the Bangladesh Labor Act, 2006. What will
be the impact in the Garment Factory for enhancement of Maternity Leave.
What are the precautions to be taken in case of fire and precautions to be taken against
dangerous fumes in a factory?
[Marks: (10+10) = 20]
Q. No. 9.
State the provisions of welfare of workers as described in the Bangladesh Labour Act 2006.
[Marks: 20]
Q. No. 10.
(a) Discuss the provision of closure of shops with exceptions as per the BLA-2006.
(b) State the causes of weak Trade union movement in Bangladesh. What are your suggestions to
improve in this regard?
[Marks: (10+10) = 20]
= THE END =
Page 36 of 66
Page 37 of 66
Property Income:
Mr. Rahman and his wife owned two house properties of which he resides in one, the annual value
of which is Tk. 3,00,000 p.a. and another he rented to Mr. A on which he receives Tk. 3,50,000 p.a.
Expenses incurred are as follows:
(i) City Corporation tax
Tk. 50,000 p.a (Tk. 20,000 for self-occupied house and
Tk. 30,000 for other)
(ii) Insurance premium
15,000 p.a (Tk. 5,000 for self-occupied house and
Tk. 10,000 for other)
(iii) Collection charges
24,000 p.a
(iv) Water bill (his own portion)
20,000 p.a
C.
Income from other source:
(i) Mr. Rahman has received Tk. 55,000 as directors fee from a company where he is a parttime director on which the company paid Tk. 550 VAT.
(ii) He has received Tk. 40,000 as dividend from a listed company on which tax has been
deducted @ 10%.
(iii) He has received Tk. 50,000 as interest on Savings Bank A/C on which tax has been deducted
@ 10%.
Mr. Rahman has invested Tk. 50,000 in purchasing Bangladesh Sanchayapatra during the year.
Compute the total income and tax payable of Mr. Rahman mentioning the assessment year.
[Marks: 20]
Q. No. 4
From the following Profit & Loss Account of Oman Bank, a non-resident bank, for the year ended on
31/12/2011, compute total income and tax liability:
Particulars
Salaries and allowances
Interest on deposit
Car maintenance
Head office expenses
(as per allocation by head office)
Bad debt
Provision for bad debt
Audit fee
Depreciation
Technical fee
Scholarship to poor students
Special reserve
Advertisement
Entertainment
Traveling :
(a) within the country
(b) outside the country (including head
office tour)
Net profit
4,00,000
1,30,00,000
Credit (Tk.)
1,20,00,000
10,00,000
3,00,000
6,00,000
4,00,000
2,00,000
15,00,000
1,00,000
8,00,000
2,00,000
7,00,000
8,00,000
50,000
4,50,000
Page 38 of 66
1,30,00,000
Tk. 6,000
Tk. 5,000
Tk. 4,000
Tk. 6,000
Tk. 4,000
Tk. 7,000
Tk. 2,000
Tk.15,000
He has another residential house situated at Uttara, Dhaka. The City Corporation, for municipal tax
purpose, valued its annual value at Tk.200,000. He spent Tk. 6,000 for its repair and paid City
Corporation tax at Tk. 5,000. He also paid interest on a loan taken from Agrani Bank for alteration and
expansion of the house for which interest payable was Tk. 20,000 per year.
Compute Income from house property for the assessment year 2012-13.
[Marks: 10]
= THE END =
Page 39 of 66
Q. No. 1.
(a) Why is it necessary to distinguish pre-acquisition dividends from post-acquisition dividends?
(b) On 1 July, 2010, two companies New Plymouth Ltd. and Whangarei Ltd. sign an agreement
whereby the operations of Whangarei Ltd. are to be taken over by New Plymouth Ltd. Whangarei
Ltd. is to liquidate after the transfer is complete. The balance sheets of the two companies on that
day were as follows:
New Plymouth Ltd.
Whangarei Ltd.
Cash
Tk. 50,000
Tk. 20,000
Accounts receivable
75,000
56,000
Inventory
56,000
29,000
Land
65,000
-Plant and equipment
180,000
167,000
Accumulated depreciation plant and equipment
(60,000)
(40,000)
Shares in Sefton Ltd.
-26,000
Debentures in Akaroa Ltd. (face value)
10,000
-Tk. 376,000
Tk. 258,000
Accounts payable
Mortgage loan
10% Debentures (face value)
Contributed equity:
Ordinary shares of Tk. 1.00, fully paid
A class shares of Tk. 2.00, fully paid
B class shares of Tk. 1.00, fully paid
Retained earnings
62,000
75,000
100,000
31,000
21,500
30,000
100,000
--39,000
Tk. 376,000
-40,000
60,000
75,500
Tk. 258,000
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Page 42 of 66
Head Office
Dr. (Tk.
Cr. (Tk.)
14,000
8,900
9,500
1,04,000
40,000
35,000
Page 43 of 66
Branch
Dr. (FL)
Cr. (FL)
63,000
36,000
1,560
4,32,000
60,100
5,04,260
3,60,000
1,500
59,000
15,200
28,900
56,700
18,000
11,520
2,000
6,000
28,000
4,600
23,300
2,20,000
2,20,000
1,26,000
2,72,000
79,200
28,800
9,94,520
9,94,520
The cost of sales figure includes a depreciation charge of 10% per annum on the cost of
machinery.
(2) A provision of Tk.300 for unrealized profits in the branch stock is to be made.
(3) On 26th June, 2011 the branch remitted 16,000 FL. This amount was received by the H.O. on 14th
July, 2011 and realised Tk.1,900.
(4) During May 2011, a customer of the branch by mistake paid the H.O. for goods supplied by the
branch. The amount due from him was FL 320 which realised Tk.36. It has been correctly dealt
with by H.O. but not yet entered in the Branch Accounts.
(5) Provide commission at 5 per cent of the net profits of the branch after charging such commission
which is payable to the Branch Manager.
(6) The exchange rates were : (a) At 1st July, 2010 : 10 FL = 1 Tk.; (b) At 30th June, 2011 :
8 FL = 1
Tk.; (c) Average rate for the year; 9 FL = 1 Tk.; and (d) On date of purchase of building and
machinery : 7 FL = 1 Tk.
Required:
You are required to prepare for internal use:
=THE END=
Page 44 of 66
Q. No. 1.
(a)
Express an opinion as to the usefulness of data, derived from process costing for the control of
costs.
(b)
M/s. Pahartoli Company produces three products, Alpha, Beta and Gamma. Alpha, and Gamma
are joint products while Beta is a by-product of Alpha. No joint cost is to be allocated to the byproduct. The production processes for a given year are as follows:
(i)
In Department I, 1,10,000 (One Lac Ten Thousand) pounds of material, Rho, are processed at
a total cost of Tk.1,20,000. After processing, 60% of the units are transferred to Department
II and 40% of the units (now Gamma) are transferred to Department III.
(ii)
In Department II, the material is further processed at a total additional cost of Tk. 38,000.
70% of the units (now Alpha) are transferred to Department IV and 30% emerge as Beta, the
by-product, to be sold at Tk. 1.20 per pound. The marketing expense related to Beta is Tk.
8,100.
(iii)
(iv)
In Department III, Gamma is processed at a total additional cost of Tk. 1,65,000. In this
Department, a normal loss of units of Gamma occurs, which equals 10% of the goods output
of Gamma. The remaining goods output is sold for Tk. 12 per pound.
Required:
(a)
(b)
Prepare a schedule showing the allocation of the Tk. 1,20,000 joint between Alpha and Gamma
using the market value at split off point and treating the net realizable value of Beta as an addition
to the sales value of Alpha.
Prepare a statement of gross profit for Alpha, independent of the answer to requirement (a),
assuming that:
(i)
Tk. 1,02,000 of total joint cost was appropriately allocated Alpha.
(ii) 48,000 pounds of alpha and 20,000 pounds of Beta were available for sale.
(iii) During the year, sales of Alpha were 80% of the pounds available for sale. There is no
beginning inventory.
(iv) The net realization value of Beta available for sale is to be deducted from the cost of
producing Alpha. The ending inventory of Alpha is to be based on the net cost of production.
(v) All other costs, sales prices and marketing expenses are those presented in the facts of the
original problem.
[Marks :{ 6+ (7+7)} = 20]
Page 45 of 66
Actual
Budget
60,000
20,000
50,000
25,000
Tk. 630,000
300,000
Tk. 930,000
Tk. 500,000
375,000
Tk. 875,000
CM ratio:
Actual mix
.1844
Budgeted mix
.1971
The manufacturing activities for the quarter resulted in the production of 55,000 plastic chairs and
22,500 metal chairs. The actual costs incurred by each manufacturing unit are presented below.
Plastic Model
Metal Model
Raw materials (stated in equivalent finished chairs):
Purchases:
Plastic 60,000 lbs@ Tk.5.65
Tk.339,000
Metal 30,000 feet @ Tk.6.00
Tk.180,000
Usage:
Plastic 56,000 lbs
Metal 23,000 feet
Direct labor:
9,300 hours @ Tk.6.00 per hour
Tk. 55,800
5,600 hours @ Tk.8.00 per hour
Tk. 44,800
Manufacturing overhead:
Variable
Tk.112,000
Tk. 55,000
Fixed
Tk. 27,900
Tk. 21,300
The standard variable manufacturing costs per unit and the budgeted monthly fixed manufacturing costs
established for the current year are presented below:
Plastic Model
Raw materials
Plastic 1 lb @ Tk.5.00
Metal 1 foot @ Tk.6.00
Direct labor:
1/6 hour @ Tk. 6.00 per DLH
1/4 hour @ Tk. 8.00per DLH
Variable manufacturing overhead:
1/6 hour @ Tk.12.00 per DLH
1/4 hour @ Tk.8.00 per DLH
Standard variable manufacturing cost per unit
Budgeted fixed costs per month
Page 46 of 66
Metal Model
Tk.5.00
Tk.6.00
Tk.1.00
Tk.2.00
Tk. 2.00
Tk. 8.00
Tk.9,100
Tk. 2.00
Tk. 10.00
Tk.6,900
Page 47 of 66
Cost data:
Tk.
Design engineering per hour
96
Process engineering per hour
70
Inspection per hour (manufacturing)
50
Rework per communication system reworked (manufacturing)
4,800
Customer support per repaired unit (marketing)
240
Transportation costs per repaired unit (distribution)
280
Warranty repairs per repaired unit (customer service)
4,600
(3) Staff training costs amounted to Tk. 180,000 and additional product testing costs of Tk. 72,000.
(4) The marketing director has estimated that sales of 1,800 units were lost as a result of public
knowledge of poor quality at TAW. The average contribution per communication system is
estimated at Tk. 7,200.
Required:
(i)
Prepare a cost analysis which shows actual prevention costs, appraisal costs, internal failure costs,
and external failure costs for the year ended 31 May 2012. Your statement should show each cost
heading as a % of turnover and clearly show the total cost of quality. Comment briefly on the
inclusion of opportunity costs in such an analysis.
(ii) A detailed analysis has revealed that the casings in which the communications systems are housed
are often subject to mishandling in transit to TAWs manufacturing premises. The directors are
considering two alternative solutions proposed by the design engineering team which are aimed
at reducing the quality problems that are currently being experienced. These are as follows:
Option 1 Increase the number of immediate physical inspections of the casing when they are
received from the supplier. This will require an additional 10,000 inspection hours.
Option 2 Redesign and strengthen the casings and the containers used to transport them to
better withstand mishandling during transportation. Redesign will require an additional 2,000
hours of design engineering and an additional 5,000 hours of process engineering.
Internal failure costs of rework for each reworked communication system are as follows
Tk.
Variable costs (including direct materials, direct labor rework and supplies)
1,920
Allocated fixed costs (equipment, space and allocated overhead)
2,880
Total costs (as per note 2 on cost data)
4,800
The directors of TAW believe that, even if it is able to achieve improvements in quality, it will be
unable to save any of the fixed costs of internal and external failure.
If TAW chooses to inspect the casings more carefully, it expects to eliminate re-work on 720
communication systems whereas if it redesigns the casings it expects to eliminate rework on 960
communication systems.
If incoming casings are inspected more carefully, TAW estimates that 600 fewer communication
systems will require warranty repair and that it will be able to sell an additional 300
communication systems. If the casing is redesigned, the directors estimate that 840 fewer
communication systems will require warranty repair and that an additional 360 communication
systems will be sold.
Page 48 of 66
Page 49 of 66
Marks: 100
Answer SIX questions taking any THREE from each Part including question no. 5 and 10
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
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Equity
Debt (Rate of interest at 20%)
(b)
(c)
Financial Plan
A
B
Tk. 10,000
Tk. 15,000
10,000
5,000
20,000
20,000
Hypothetical Ltd. is expanding its facilities. In the coming year, the company will either purchase
or lease equipment which it plan to use for 4 years and then replace it with a new one. Its current
tax bracket is 50 percent. The other data are as follows:
PURCHASE:
(i) The purchase price of the equipment is Tk. 40,00,000; (ii) The expected salvage value after 4
years is Tk. 10,00,000; (iii) The equipment is subject to the straight line method of depreciation;
(iv) Funds to finance the equipment can be obtained at 16 percent; (v) The loan is to be repaid in
four equal annual installments due at the end of each year; (vi) The equipment will increase the
annual revenues by Tk. 30,00,000 and increase annual cash operating cost by Tk. 20,00,000.
LEASE:
(i) The annual lease is Tk. 10,00,000; (ii) The lease rent is payable at the end of each year for 4
years; (iii) The equipment will increase annual revenues by Tk. 30,00,000 and increase annual nondepreciation operating costs by Tk. 19,00,000 as the lessor will pay Tk. 100,000 for the
maintenance costs associated with the equipment.
Required: Determine whether the company should purchase or lease the equipment.
Below are the distributions of Sugar Kane and Best Candy in the given economic scenarios.
Economic Scenarios
Probability
Best Candy
Sugar Kane
T-Bills
Abnormal Year
Sugar Crisis
0.2
-25
20
5
Required:
(i) What would be the correlation of Sugar Kane with Best Candy?
(ii) Calculate the portfolio rate of return in each scenario and the standard deviation of the
portfolio from the scenario returns. Then evaluate portfolio standard deviation (assume
previous correlation coefficient being -0.86). Provided that investment ratio between Sugar
Kane and Best Candy are equal.
(iii) Is Sugar Kane stock a useful hedge asset now?
(iv) Are the two methods of computing portfolio standard deviations consistent?
[Marks: (8+10+12) = 30]
Page 56 of 66
Page 57 of 66
Marks: 100
Q. No. 1.
The Border Agriculture Group (BAG), which has a divisional structure, produces a range of products for
the farming industry. Divisions B and C are two of its divisions. Division B sells a fertilizer product (BF) to
customers external to BAG. Division C produces a chemical (CC) which it could transfer to Division B for
use in the manufacture of its product BF. However, Division C could also sell some of its output of
chemical CC to external customers of BAG.
An independent external supplier to The Border Agriculture Group has offered to supply Division B with
a chemical which is equivalent to component CC. The independent supplier has a maximum spare
capacity of 60,000 kilograms of the chemical which it is willing to make available (in total or in part) to
Division B at a special price of Tk.55 per kilogram.
Forecast information for the forthcoming period is as follows:
Division B:
Production and sales of 360,000 liters of BF at a selling price of Tk.120 per liter.
Variable conversion costs of BF will amount to Tk.15 per liter.
Fixed costs are estimated at Tk.18,000,000.
Chemical (CC) is used at the rate of 1 kilogram of CC per 4 liters of product BF.
Division C:
Total production capacity of 100,000 kilograms of chemical CC.
Variable costs will be Tk.50 per kilogram of CC.
Fixed costs are estimated at Tk.2,000,000.
Market research suggests that external customers of BAG are willing to take up sales of 40,000
kilograms of CC at a price of Tk.105 per kilogram. The remaining 60,000 kilograms of CC could be
transferred to Division B for use in product BF. Currently no other market external to BAG is available for
the 60,000 kilograms of CC.
Required:
(i)
State the price/prices per kilogram at which Division C should offer to transfer chemical CC to
Division B in order that the maximization of BAG profit would occur if Division B management
implement rational sourcing decisions based on purely financial grounds.
(ii) Division C is considering a decision to lower its selling price to customers external to the group to
Tk.95 per kilogram. This decision if implemented is expected to increase sales to external
customers to 70,000 kilograms.
Prepare a detailed analysis of revenue, costs and net profit of BAG using both current and
proposed selling prices of CC.
[Marks: (8+12) = 20]
Page 58 of 66
The Sloan Roadlines transports household goods from one city to another within Bangladesh. It
measures quality of service in terms of (a) time required to transport goods, (b) on-time delivery
(within two days of agreed-upon delivery date), and (c) number of lost or damaged shipments.
Sloan is considering investing in a new scheduling-and-tracking system costing Tk. 16,00,000 per
year, which should help it improve performance with respect to items (b) and (c). The following
information describes Sloans current performance and the expected performance if the new
system is implemented.
Current
Expected Future
Performance
Performance
On-time delivery performance
85%
95%
Variable cost per carton lost or damaged
Tk. 600
Tk. 600
Fixed cost per carton lost or damaged
Tk. 400
Tk. 400
Number of cartons lost or damaged per year
3,000 cartons
1,000 cartons
Sloan expects each percentage point increase in on-time performance to increase revenue by Tk.
2,00,000 per year. Sloans contribution margin percentage is 45%.
Required:
(i)
(ii)
Sloan is very confident about the cost savings from fewer lost or damaged cartons as a
result of introducing the new system. Calculate the minimum amount of increase in
revenues needed for Sloan to invest in the new system.
[Marks: 6+(8+6) = 20]
Q. No. 3
(a)
Why dont upper level managers simply dictate transfer prices to divisional managers, and thereby
avoid all the hassles and expense of the negotiations between them (divisional managers)?
(b)
Jason Kemp was torn between conflicting emotions. On the one hand, things were going so well.
He had just completed six months as the assistant financial manager in the electronics division of
considerations Med-Products Ltd. The pay was good, he liked his colleagues and he felt that he
was part of a team that was making a difference in Australian health care. On the other hand, his
latest assignment was causing some sleepless nights. Mel Cravens, his boss, had asked him to
refine the figures on the divisions latest projecta portable imaging device codenamed ZM. The
original estimates called for investment of Tk.15.6 million and projected annual operating profit of
Tk.1.87 million. Med-Products required an ROI of at least 15% for new project approval; so far,
ZMs rate of return was nowhere near that hurdle rate. Mel encouraged him to show increased
sales
Page 59 of 66
What is the ROl of project ZM based on the initial estimates? What would ROl be if the operating
profit rose to Tk.2.34 million?
(ii)
Do you agree that Jason has an ethical dilemma? Explain your reasoning. Is there any way that Mel
could ethically justify raising the sales estimates and/or lowering expense estimates?
(iii)
Q. No. 4.
Jamuna Company manufactures several different products. One of the firms principal products sells for
Tk.20 per unit. The sales manager of Jamuna Company has stated repeatedly that he could sell more
units of this product if they were available. In an attempt to substantiate his claim the sales manager
conducted a market research study last year at a cost of Tk.44,000 to determine the potential demand
for this product. The study indicated that the company could sell 18,000 units of this product annually
for next five years.
The equipment currently in use has a capacity to produce 11,000 units annually. The variable production
costs are Tk.9.00 per unit. The equipment has a book value of Tk.60,000 and remaining useful life of five
years. The salvage value of the equipment is negligible now and will be zero in five years.
A maximum of 20,000 units could be produced annually on the new machinery that can be purchased.
The new equipment costs Tk.300,000 and has an estimated useful life of five years with no salvage value
at the end of five years. Jamuna Companys production manger has estimated that the new equipment
would provide increased production efficiencies that would reduce variable costs to Tk.7.00 per unit.
Page 60 of 66
(i)
(ii)
(b)
Explain the treatment of each item of your corrected calculations that is treated differently from
the original analysis prepared by the sales manager.
(c)
Calculate the net present value of the proposed investment in the new equipment.
Page 61 of 66
Symphony set up a website where clients could access product manuals and other diagnostic data
as well as being able to book an appointment with a service engineer.
The following data is available:
Year
2009
2010
2011
Number of contracted clients
13,000 15,000
14,800
Number of visits to contracted clients
23,400 30,000
32,000
Number of clients gained via recommendation
200
100
5
Number of telephone calls for product support received
52,500 62,000
59,500
Number of telephone calls for product support answered
52,000 60,000
58,000
Number of product support issues resolved by telephone
46,800 51,000
46,400
At the end of 2011, Mr. Khan became anxious regarding the fact that the growth in the customer
base had stopped and that a number of clients had chosen not to renew their contracts with
Symphony. In view of these facts, he undertook an extensive survey of the customers who had
entered into contracts with Symphony since it commenced trading.
Mr. Khan received the following comments which were representative of all other comments that
he received.
Symphony ought to adopt a right first time mentality.
I booked an engineer for last Monday who never arrived but two engineers turned up on Tuesday!
You send me a different engineer each time to inspect my central heating system. Some are here
for an hour and yet others are here for the whole day and some of those even have to come back
the next day.
Your people never seem to have the required parts with them and have to come back the next
day!
An engineer arrived at my home to repair my washing machine but the required parts which were
shipped to my home direct from the manufacturer arrived three days later! Ive heard that Artiste
is the best organization in your service sector and that they provide a much more efficient service
than Symphony and unlike Symphony is always contactable on a twenty-four hours basis during
every day of the year! When I have tried to contact you on Saturdays and Sundays I have often
given up out of sheer frustration!
Mr. Khan also obtained the following data from the Centre for Inter-Firm Comparison.
Symphony
Artiste
Industry average
Customer satisfaction rating (%)
65
92
75
Remedial visits (%) of client visits
8
1
4
Cost per client per visit (Tk.)
150
75
100
Client to staff ratio
250:1
200:1
225:1
Mr. Khan undertook further investigations which revealed remedial visits were frequently due to
staff servicing appliances with which they were not completely familiar.
Required:
Explain how the above-mentioned problems at Symphony could be analyzed and addressed using
the Six Sigma methodology. Your answer should include suggestions regarding additional activities
that should be undertaken in order to improve the performance of Symphony.
[Marks : 20]
= THE END =
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A hundred percent export oriented shrimp processing plant has been incurring losses for last five
years. You have been appointed to submit a report to the Board of directors. How you would
examine the matter before giving a report to the management?
(b)
What would be the evidences to be examined by you to support your observations in the cost audit
report of a company with respect to the following:
(i)
Raw material & spare parts which are not moved for one year and above.
(ii)
Define audit risk. What are the common areas in pharmaceutical and composite textile industry
which causes audit risk?
(b)
Narrate mathematical model for Risk Based Auditing. How can it help in determining degree of risk
with regard to the test of details as well as in determining the size of the sample?
[Marks: (4+8) = 12]
Q. No. 3.
(a)
What objectives would you set in your mind at the time of framing an Internal Control System of a
Commercial organization?
(b)
What is Internal Control questionnaire? Draft a Questionnaire which you would use for determining
the effectiveness of internal control over payroll of a manufacturing Company.
[Marks: (4+9) = 13]
Q. No. 4.
(a)
What do you understand with the term Conflicts of interest? Describe the term in detail in relation
to the cost audit.
(b)
Define performance audit and efficiency audit. Distinguish between these two with appropriate
example.
[Marks: (5+5) = 10]
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