Bangladesh University of Professionals (BUP)

Faculty of Business Studies (FBS)

Department of Business Administration-General
Semester Final Examination January –June 2021
Bachelor of Business Administration (BBA)
Batch: BBA 2021
Principles of Accounting (ACC-1101)

Time: 2 hours Full Marks: 50

Instructions
• Answer any 05 questions form the alternatives
• Show detailed calculations where applicable.
• Sub-questions must be answered consecutively.
• Marks are shown against each question in bracket.

Question No. 1 (5+5=10)

a. Bookkeeping is considered as a part of whole accounting process. Which part of accounting

is known a bookkeeping? Also mention two important advantages of accounting over
bookkeeping.
b. The investors and the creditors are two important users of accounting information, but they
have different objectives of using the information. Explain.
Question No. 2 (4+6 = 10)

a) There are two bases of recording the transactions in any organization. Company can record
revenues or expenses at the time of related cash flow either received or paid or it can record
revenues when earned and expenses as incurred regardless of the related cash flows. Identify
these two bases of recording business transactions and mention some of the key differences
between this two.
b) Scoop Consulting Service’s unadjusted trial balance on December 31, 2021, is as follows.
Amount in BDT
Accounts title Debit Accounts title Credit
Cash 19,250 Accumulated Depreciation—Office Equipment 2,140
Accounts Receivable 7,360 Accounts Payable 5,940
Office Supplies 2,861 Notes Payable 11,000
Prepaid Rent 1,820 Unearned Service Revenue 4,120
Office Equipment 9,240 A. Chase, Capital 24,111
A. Chase, Withdrawals 22,000 Service Revenue 76,200
Salaries Expense 51,300
Rent Expense 5,400
Utilities Expense 4,280
Total 123,511 Total 123,511
An analysis of the accounting record revels number of adjustment information.
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Instructions
(i) As an accountant of the company, write at least five adjustment information of the
company. (Don’t write the same transaction twice)
(ii) Journalize the adjusting entries.

Question No. 03 (10)

Simone Jacobs opened a small tax-preparation service. At the end of its second year of operation,
Jacobs Financial Advisors Service had the following trial balance.

Jacobs Financial Advisors Service

Trial Balance
December 31, 2020

Amount in BDT
Accounts title Debit Credit
Cash 11,265
Accounts Receivable 2,191
Prepaid Insurance 520
Office Supplies 682
Office Equipment 7,980
Accumulated Depreciation—Office Equipment 790
Accounts Payable 437
Unearned Tax Fees 519
S. Jacobs, Capital 5,474
S. Jacobs, Withdrawals 7,500
Tax Fees Revenue 36,926
Office Salaries Expense 9,700
Advertising Expense 650
Rent Expense 3,200
Telephone Expense 458
Totals 44,146 44,146

The following information is also available:

a. Office supplies on hand, December 31, 2014, BDT319
b. Insurance still unexpired, BDT180
c. Estimated depreciation of office equipment, BDT870
d. Telephone expense for December, BDT182; the bill was received but not recorded.
e. The services for all unearned tax fees had been performed by the end of the year.
Required:
Prepare a 10-column worksheet

Question No. 4 (10)

Fulco Company engaged in the following transactions in March 2020

Sold merchandise on credit to James William, terms n/30, FOB shipping point,
March 7 $3,000 (cost, $1,800).
Purchased merchandise on credit from Leverage Company, terms n/30, FOB
8 shipping point, $6,000.

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 Paid Leverage Company for shipping charges on merchandise purchased on March
9 8, $254
Sold merchandise on credit to Deepak Soni, terms n/30, FOB shipping point, $2,400
14 (cost, $1,440).
Returned damaged merchandise received from Leverage Company on March 8 for
14 credit, $600.
17 Received check from James William for his purchase of March 7.
Paid Leverage Company the balance from the transactions of March 8 and March
21 14.
Accepted from Deepak Soni a return of merchandise, which was put back in
24 inventory, $200 (cost, $120).

Prepare journal entries to record the transactions, assuming use of the perpetual inventory system.

Question No. 5

Kilda Recreational Club’s adjusted trial balance at the end of its fiscal year follows.

Kilda recreational Club

Adjusted trial Balance
June 30, 2021
Cash $52,400
Prepaid Advertising 19,200
Supplies 2,400
Land 200,000
Building 1290,400
Accumulated Depreciation—Building $520,000
Equipment 312,000
Accumulated Depreciation—Equipment 100,800
Accounts Payable 146,000
Wages Payable 18,000
Property Taxes Payable 45,000
Unearned Revenue—Locker Fees 6,000
M. Kilda, Capital 942,300
M. Kilda, Withdrawals 108,000
Revenue from Court Fees 1356,200
Revenue from Locker Fees 19,200
Wages Expense 702,000
Maintenance Expense 103,200
Advertising Expense 79,500
Utilities Expense 129,600
Supplies Expense 12,000
Depreciation Expense—Building 60,000
Depreciation Expense—Equipment 24,000
Property Taxes Expense 45,000
Miscellaneous Expense 13,800
Totals $3,153,500 $3,153,500
Page 3 of 4
Prepare an income statement, a statement of owner’s equity, and a balance sheet for Kilda
Recreational Club.

Question No. 6
Shandler’s Maid Company offers home cleaning service. The company considers revenue earned
from mid service as service revenue. However, the company has the following accounts balances
on March 31, 2020.
Amount in BDT
Cash 457,000
Equipment 525,000
Accounts payable 125,000
Owner’s Capital 857,000
During April the company has number of transactions. One important consideration of the
company is that it does not allow to provide services on credit, therefore any service provided must
be immediately realized in cash. Every month the company has to pay number of expenses: utility,
salary of staff, rent for office, advertising etc. Some of the expenses are paid in cash and others
remained incurred during the month and paid in a later period. During August the company
purchases a special equipment on credit. Moreover, one special equipment is invested into the
business by the owner. However, it is noticeable that no transactions have a value exceeding
amount BDT100,000 or below BDT500.

Required:

a) Considering the above situation, write down at least six probable transactions of
Shandler’s Maid Company during April. (Don’t write the transactions having same
accounts twice)
b) Journalize your transactions.

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