Accounting and Cost Management

Daffodil International University Department of Textile Engineering Faculty of Engineering Midterm Examination, Semester: Fall-2026 Course Code: 0411-311 Course Title: Accounting and Cost Management Level & Term: L3T2 Section: F1, F2, F3 Name & Designation of the Course Teacher: Sampa Saha (SS), Lecturer Time: 1.5 hours. Total Marks: 25 Answer all the questions: Question-1: (2*2=4) a) Who are the users of accounting? Explain with proper example. [CO4, PO2, C2]. b) Describe the following short notes: (i) Monetary Unit Assumption (ii) Accrual Basis Assumption [CO1, PO1, C2]. Question-2: (6+2) Robin Service Agency was started on August 1, 2025 by Al Robin. The following events and transactions occurred during the month: 1) Mr. Robin started his business with Tk. 85,000 cash, and Tk. 35,000 equipment. 2) The company purchased furniture of Tk. 40,000 of which 40% is on account. 3) Employees' salaries paid Tk. 15,000. 4) Services provided of Tk. 28,000 cash & Tk. 12,000 on account. 5) Purchased additional Equipment for Tk. 20,000. Robin paid Tk. 8,000 cash. 6) Received a cash payment of Tk. 8,000 for services provided in (4). 7) The owner has withdrawn Tk. 3,500 from the business. 8) Paid Tk. 10,000 of the accounts payable Requirements: a) Show the effect of above transactions using the tabular format. [CO1, PO1, C2]. b) Demonstrate income statement. [CO1, PO1, C2]. Question-3: (5+2) Mr. Rony is the owner of Rony HR Agency, started its operation on 1st June, 2026. The following information is related with the operations of June, 2026: June 1: Rony invested Tk. 1,20,000 cash and Tk. 40,000 supplies in the business. June 5: Purchased additional supplies of Tk. 25,000 of which 20% paid in cash. June 13: Paid advertising expense of Tk. 2,500. June 15: Paid Tk. 17,500 for Equipment. June 20: Provided services to Prime Bank Ltd. for cash Tk. 30,000. June 23: Paid employees' salaries of Tk. 15,000. June 24: Paid for due in transaction (5) June 30: Rony withdrew Tk. 2,500 from his business. Requirements: a) Identify journal entries for the above transactions. [CO2, PO2, C3]. b) Develop ledger for: (i) Cash & (ii) Supplies. [CO2, PO2, C3]. Question-4: (6) Mr. Rifat started his Accounting Firm, Meghna Accounting Firm, on March 1, 2025. The trial balance at 30 July, 2025 is as follows: Padma Accounting Firm Trial Balance 30 July, 2025 Details | Debit (Tk) | Credit (Tk) Cash | 30,000 | Accounts Receivable | 16,000 | Prepaid Insurance | 9,000 | Supplies | 16,000 | Office furniture | 90,000 | Accounts Payable | | 18,000 Unearned Service Revenue | | 27,000 Owner's Capital | | 55,000 Notes Payable | | 45,000 Service Revenue | | 40,000 Salaries expense | 20,000 | Rent Expense | 4,000 | | 185,000 | 185,000 Other data: 1. One forth of the supplies have been used at July 31. 2. The Insurance policy is for 3 years. 3. Tk. 22,800 of unearned service revenue has been remained unearned during this period. 4. The office furniture has 8 years life with Tk. 8,000 salvage value. 5. Rent expense is accrued Tk. 4,500 at July 31. 6. The note payable interest rate is 8%. The note payable was issued at 1st July, 2025. Requirements: Examine the above information in preparing the adjusting entries. [CO3, PO2, C4].