Department of Computer Science and Engineering

Mid Term Examination (Online), spring - 2021

Hum 3302: Financial and Managerial Accounting
Section- A/B/C
Time: 1hour 15 Minutes (With additional 15 minutes for uploading) Marks: 20

Comprehensive Questions
Instructions:
 Answer any two of the following questions. Each question carries equal marks.
 Answer in your sheets and send a scanned copy of your answer script via email.

Note:
 Do not forget to preserve your sent copy.
 You must submit in the assignment (Hand in) option. No email is acceptable. For late
submission, your marks will be deducted. After a considerable time, the script will not be
evaluated.
 However, your honesty in all respect is highly expected. If I find copy answer scripts, you
both must be penalized.
Question 1: (10 Marks)
a) Assume that you have purchased a land in Basundhara residential area 15 years back for your
office on Taka 25 lakhs. In the meantime, you developed it as your factory cum office and
the current value of that land is Taka 1 Crore. Now, you want to take a loan and the bank
authority told you to submit your financial statement where you need to write your land
price. Which price will you record? Why? Mention the name of the principle will you follow
that you studied in the lecture to solve this dilemma.
b) On June 1, 2019, Michel Clerk established Clerk Travel Agency. The following transactions
were completed during the month.
June 1. Invested Tk. 80,000 cash to start the agency.
June 2. Purchased office equipment for Tk. 25,000 cash.
June 3. Paid Tk. 3000 cash for office supplies.
June 4. Incurred Tk. 7000 of advertising costs in the Dhaka Tribune, on account.
June 5. Earned Tk. 50,000 for services rendered: Tk. 30,000 cash is received from
customers, and the balance of Tk. 20,000 is billed to customers on account.
June 16. Withdrew Tk. 15000 cash for personal use.
June 17. Paid Tk. 16000 cash for April office rent.
June 18. Paid Dhaka Tribune amount due in transaction (4).
June 19. Paid employees’ salaries Tk. 2,2000.
June 20. Received Tk. 10,000 in cash from customers who have previously been billed in
transaction (5).
Requirements:

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 (a) Prepare a tabular analysis of the transactions using the following column headings:
Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Clerk
Capital; Clerk Drawings; Revenues, and Expenses.

Question 2: (10 Marks)

(a) The Chandra Shooting course was opened on March 1, 2019, by Mr. Chandra Paul.
The following are journals of the transaction that occurred during March.

Chandra Shooting Course

General Journal
March 1, 2019
J 15
Date Particulars Ref. Debit (Tk.) Credit (Tk.)
2018, Cash 111 45,000
March 01 Chandra Capital 311 45,000
03 Furniture 113 38,000
Cash 111 38,000
05 Advertising expense 115 1,600
Cash 111 1,600
06 Prepaid insurance 114 1,480
Cash 111 1,480
10 Equipment 119 1,600
Accounts Payable 411 1,600
18 Cash 111 800
Shooting Revenue 211 800
19 Cash 111 15,000
Unearned Revenue 311 15,000
25 Drawing 121 500
Cash 212 500
30 Salaries expense 117 600
Cash 111 600
30 Accounts Payable 411 1,600
Cash 111 1,600
31 Cash 111 500
Shooting Revenue 211 500
Requirements:
(i) Prepare ledger accounts in the T-account format using the above journal entries.
(ii) Prepare a Trial Balance with reference to Req. (i).
(iii) What could be the reasons for which the trial balance may become equal but still there
may have an error in it?

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Question No. 03 (10 Marks)

At end of its first month of operations, Diamond Company has the following adjusted Trail
Balance.
DIAMOND COMPANY
Adjusted Trial Balance
For the Year Ended December 31, 2017

Accounts Account Titles Amount

No.
Dr. Cr.
101 Cash 5,300
112 Accounts Receivable 10,800
126 Supplies 1,500
130 Prepaid Insurance 2,000
157 Equipment 27,000
158 Accumulated Depreciation—Equipment 5,600
200 Notes Payable 15,000
201 Accounts Payable 6,100
212 Salaries and Wages Payable 2,400
230 Interest Payable 600
301 Owner’s Capital 13,000
306 Owner’s Drawings 7,000
400 Service Revenue 61,000
610 Advertising Expense 8,400
631 Supplies Expense 4,000
711 Depreciation Expense 5,600
722 Insurance Expense 3,500
726 Salaries and Wages Expense 28,000
905 Interest Expense 600
Totals $103,700 $103,700
Requirements:
(i) Prepare the income statement in a “good form” for the month ended December 2017.
(ii) Explain the accounting cycle with all its steps.

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