Assignment: 2

Marks: 5
Assignment type: Individual (handwritten)
Submission deadline: (to be announced later)

Your assignment will be checked carefully. If it is found to be plagiarized and

matched with other assignment, it will be strictly dealt with.
Answer all the questions.

Instructions for the assignment: You should solve the assignment on your script, take an
image of the answers, convert it into pdf and upload the pdf file on google form. You must
prepare a front page mentioning your name, ID, Course Code, Section, faculty particulars
etc. Your front page should appear as the first page. You may use ‘camscanner’ apps to
take an image. File size: Maximum 10 MB.

CHAPTER 5
Mr. Sajal started business from July 1. His investment was Tk.10,000. The following
transactions were completed during July:
July-5; Merchandise purchased on account from Sumon Tk.2,000, terms 2/10, N/30.
July-7; Paid freight Tk.100 on purchase of July 5.
July-9; Credit received from Sumon Tk.150 for merchandise returned.
Jul-10; Merchandise sold on account Tk.1200. Terms 1/10, N/30. The cost of the sold
merchandise was Tk.1000.
July-12; Merchandise purchased Tk.2,200, terms 2/10, N/30.
July-14; Amount paid to Sumon, less discount.
July-17; Credit received from supplier Tk.100 for merchandise returned which was
purchased on July 12.
July-20; Merchandise sold in account Tk.700. Terms N/30. The cost of the sold
merchandise was Tk.490.
July-21; Amount paid for purchase on account of July 12.
July-27; Granted allowance Tk.50 to buyer of July 20 for inferior goods Tk.30.
July-30; Amount received from buyer of July 10, Tk.1,200.
Required: Journalizes the transactions of July using Perpetual Inventory System.

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 CHAPTER 6
XYZ Company buys and sells cabinets and drawers for the last 5 years at their Michigan
outlet. XYZ Company the furniture from the wholesaler and then sells the furniture to the
customers from their retail outlet at Michigan
The following information is for XYZ Company for the month ended July 30 2017.

Date Description Quantity Unit Cost

July 1 Opening Inventory 50 100
July 8 Purchase 230 76
July 21 Purchase 80 110
July 27 Purchase 40 100

Sales 350 units

XYZ Company uses the periodic method for inventory.
Required:
(1) Calculate Ending Inventory and Cost of Goods sold, under each of the following
methods. (1) LIFO. (2) FIFO. (3) Average cost. Prove the amount allocated to cost
of goods sold under the LIFO and FIFO method
(2) From your calculations, analyze which method results in (1) The highest ending
inventory, and (2) The highest cost of goods sold.

CHAPTER 8
Abdur Rahman Company’s bank statement for the month of September showed the
balance per bank of $8000. The company’s Cash account in the general ledger had a
balance of $7,465 at September 30. Other information is as follows:
(A) The statement included a debit memo of $60 for printing of additional company
checks.
(B) Cash sales of $950 on September 10 were deposited in the bank. The cash
receipts journal entry and the deposit slip were incorrectly made for $590. The
bank credited Abdur Rahman Company for the correct amount.

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 (C) A payment was received $450 from one of the customer was recorded by the
company accountant and deposited correctly in the bank account, however the
subsidiary ledger account shows that the amount received should have been $550.
(D) Outstanding checks at September 30 totaled $500, deposits in transits were $800.
(E) On September 22, the company written a check no,007 for $750 to one of it’s
supplier Huzaifa Company. The check, which cleared the bank in September, was
incorrectly journalized and posted by Abdur Rahman Company for $950.
(F) A $2,000 note receivable was collected by the bank for Abdur Rahman Company
on September 30 plus $100 interest. The bank charged a collection fee of $15. No
Interest has been accrued on the note.
(G) The salaries expense $5,000 for current month was not paid.
(H) Among the cancelled checks was a check issued by Huzaifa Company to
Mohammad Company for $1,000 that was incorrectly charged to Abdur Rahman
Company by the bank.
(I) On September 30, the bank statement showed a NSF charge of $750 for a check
issued by Rahman Company, a customer of Abdur Rahman Company.
Required: Prepare a bank reconciliation as of September 30, 2050 for Abdur Rahman’s
company.

CHAPTER 9

Avett Furniture Store has credit sales of $400,000 in 2014 and a debit balance of $600 in
the Allowance for Doubtful Accounts at year end. As of December 31, 2014, $130,000 of
accounts receivable remain uncollected. The credit manager prepared an aging schedule
of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March
4, 2015, the credit manager authorizes a write-off of the $1,200 balance owed by B.
Fernitti.
Instructions
1) Prepare the adjusting entry to record the estimated uncollectible accounts expense in
2014.
2) Show the balance sheet presentation of accounts receivable on December 31, 2014.
3) On March 4, before the write-off, assume the balance of Accounts Receivable account
is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000.

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Make the appropriate entry to record the write-off of the Ferntti account. Also show the
balance sheet presentation of accounts receivable before and after the write-off.

CHAPTER 10
On January 1, 2006, a company purchased a machinery at an acquisition cost of Tk.
84,000. The machinery has been depreciated by the straight-line method using a 4 year
service life and a Tk. 12,000 salvage value. The company’s fiscal year ends on December
31.
Requirements:
Prepare the journal entries to record the disposal of the machinery that it was:
(i) Retired and scrapped with no salvage value on January 1, 2010.
(ii) Sold for Tk. 15,000 on July 1, 2009.

(b)
A plant asset acquired at the beginning of the fiscal year at a cost of Tk. 28,20,000 has
an estimated trade – in value/ salvage value of Tk. 3,00,000 and an estimated useful life
of 8 years. Determine the following:
(i) The amount of annual depreciation by the straight-line method.
(ii) The amount of depreciation for the second year computed by the double declining
balance method.

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