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Acc 4101

Role of Financial markets and institutions

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33 views2 pages

Acc 4101

Role of Financial markets and institutions

Uploaded by

bibornomohin1987
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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International Islamic University Chittagong

Department of Business Administration


MBA 1st Semester – spring 2023
ACC-4101: Principles of Accounting
Mid-term Examination
Time: 2 Hours Full Marks: 30
Instructions:
 Answer any Three (3) of the following questions.
 One set of question must be completed before starting another set.

Question No .1 (03+04+03=10)
A) Define Accounting. Briefly explain various types of account.
B) Mention the elements of accounting cycle and explain in details.
C) What are the specialized fields of accounting? Explain at least five fields.

Question No.2 (07+03=10)


Mostafa owns and operates an interior design studio called “Mostafa Interiors”. The
following amounts summarize the financial position of her business on May 31, 2022:
Assets = Liabilities + Owner’s Equity
Cash + A / R + Supplies + Land = A/P+ Azad’s Capital
Bal. 15,250 13,500 100 27,000 24,100 31,750

During May 2022, the following transactions occurred:


1) Mostafa’s additional investment $21,500 in the business.
2) Performed services for a client and received cash of $2,000.
3) Paid off the beginning balance of Accounts Payable as final settlement.
4) Purchased supplies on account, $3200.
5) Cash collected on account, $13,000 and allowed them $200 as discount.
6) Consulted on the interior design of a major office building and billed the client
for the service rendered, $1,500.
7) Recorded the following business expenses for the month:
i) Paid Salary ----$200, ii) Transportation expense -$400, iii) Paid utilities $800.
8) Sold supplies to another business for $ 200 cash, cost of which was $190.
9) Purchased a Land for $5,000; cash paid $2,000 and the balance being paid using
credit card.
10) Withdraw cash of $1,000 for personal use.

Required: a) Analyze the effects of the above transactions on the accounting equation.
b) Prepare an Income Statement.
Question No. 3 (03+04+03=10)
ABC Company started a cable television service organization in 2022. During the
first week of operations completed the following selected transactions:

Jan. 1 ABC began the business with an investment of $240,000 cash and Equipment
$230,000.
,, 3 Purchased furniture $30,000, cash paid 24000 and remaining on account.
,, 5 Accrued Salary $350.
,, 7 Service performed for customers, cash received $1,000 and 1300 on account.
,, 9 Borrowed $15,000 from the bank signing a note payable.
Required:
a) Journalize the above transactions.
b) Post the Journal entries to the ledger.
c) Prepare a Trial Balance.

Question No. 4 (10)


The Trial Balance of Himalay Traders at March 31 of the current year and the data
needed for the month-end adjustments follow:
Himalay Traders
Unadjusted Trial Balance
March 31, 2022
Cash…………………………………………………………. Tk. -
. 47,800 -
Accounts Receivable…………………………........................ 4,250 -
Supplies………………………………………........................ 700 -
Prepaid Rent…………………………………………………. 3,000 -
Furniture…………………………………………………….. 23,500 Tk.12,000
Accumulated Depreciation………………………………….. - 5,000
Note Payable-Long Term…………………………………… - 8,100
Accounts Payable…………………………………………… - 450
Unearned Service Revenue…………………………………. - 51,250
Capital……………………………………………………… - -
Withdrawal…………………………………………………. 4,200 9,000
Service Revenue……………………………………………. - -
Salary Expense……………………………………………… 1,950 ----
Utilities Expense……………………………………………. 400 Tk.85,800
Total…………………………………………………… Tk.
85,800
Information for adjustments:
a) Depreciation on chair and table Tk. 1,200.
b) Accrued salary expense Tk. 1,300.
c) Accrued service revenue Tk. 1500.
d) Supplies used Tk. 400.
e) Prepaid rent expired Tk. 900.
Required:
i) Prepare a worksheet.

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