Aa1 3 2024

Suggestion
Department: Accounting / Finance

Sub: Management Accounting
MD. OLEUR RAHMAN (Oli Sir)
Mobile No- 01750-044826
S.L Name of chapter etdn dnaH Short
অংক নং Suggestion
1 Accounting for Stockholder equity ** 1,2,4,5,6
2 (i) Financial Statement *** 1,2,4,5,6
(ii) Cash flow Statement ** 1,2,3,5,8
3 Revenue Recognition ***** 1,4,5,6,8,10,11,14
4 Accounting for Lease *** 2,4,5,6,3
5 Accounting changes and Error analysis *** 1,2,3,5,6
6 Accounting for Operating segment ** 2,4,3,6
7 Accounting related to Bankruptcy *** 1,2,4,3,6
***** অ ও ও । 30-40
ও । 3,2,1,6 অ 3 অ
।
*** সকল প্রিক্ষােীনের একই রকম বই না োকাে Hand Note থেনক সানজিন বানাননা হ্ল।
***** Part A,B ও ও 2019, 2018,2017,2016,2015 nu question । 2020
। কম । ক কম -ও ক
। ও ও ১০০% ক ।
।
***** যানের অবস্থা অননক োরাপ পাস করনে পারনবন না, োরা আমার সানে থযাগানযাগ করুন। সহ্ােো করব
ইনিা-আল্লাহ্। কারন NU থে পাস করা অননক সহ্জ প্রকন্তু ভাল থরজাল্ট করা কটিন।
অনলাইননর সবনেনে জনপ্রিে প্রবপ্রবএ এর প্রিক্ষক অপ্রল সযানরর হ্যান্ডননাট থেনক মাত্র ৫ টট অংক
কনর প্রিনে প্রনন অধ্যানের সব প্রনেম। সানজিন সংগ্রহ্ করনে কল করুন 01750-044826
Marks Distribution
Department: Accounting (3rd year)
MD. OLEUR RAHMAN (Oli Sir)
Mobile No- 01813-019385
Sub: Advanced Accounting 1
Sl Chapter Name 2014 2015 2018 2017 2018 2019 2020 2021
1 4,10 5
Accounting for
Stockholder equity 4,10 4,10 4,4 4,4,10 4,4,10 4,10
2 10 12
(i) Financial Statement 4,10 4 10 10 10 10,
(ii) Cash flow Statement 4,10 10 4, 4,10 4,10 4 4 6,11
3 Revenue Recognition 4,10,10 4,10,10 10,10 10,10 10 10 10 13,14
4 Accounting for Lease 10 4 4,10 4 4,10 4,10 4,10 15
5 X 4,10 10 8,16
Accounting changes
and Error analysis
10 10 10 10
6 4,10 7
Accounting for 4 10 4,10 X X 10
Operating segment
7 Accounting related to 10 9
Bankruptcy 10 4,10 10 4,10 4,10 10
Accounting for Stockholders’ Equity
Problem-1
The Relex Ltd. Is authorized to issue 1,00,000 shares of Tk. 5 per value common stock.
Has the following stock transaction :
January 10 Issued 40,000 shares of stock at Tk. 8 per share.
July 1 Issued 10,000 shares of stock for land. The land had an asking price of Tk.
90000 The stock is Currently selling at Tk. 8.25 per share.
September 1 Purchased 10,000 shares of common stock for the treasury at Tk. 9.00 per share.
December 1 Sold 4,000 shares of the treasury stock at Tk. 10 per share.
Instructions:
(1) Journalize the transactions.
(2) Prepare stock holders equity section assuming the company had retained earning of Tk.
1,35,000 at December 31.
Problem-2
The stockholders equity accounts of Sihab Corporation on January 1, 2017 were as follows:
Common stock (TK. 20 per value, 60,000 shares issued) Tk. 12,00.000
Paid up capital in excess of per value Tk. 2,00.000
Retained carnings Tk. 6,00.000
During the year, the following transactions occurred:
February 1 Declared a Tk. 1 cash dividend per share to stockholders of record on February 15,
payable March 1.
March 1 Paid dividend declared in February
April 1 Announced a 2 for 1 stock spilt. Prior to the spilt, the market price per share was Tk.
36.
July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable
July. 31 issued the share for the stock dividend.
December 31 Declared a Tk. 0.50 per share dividend to stockholders of record on December 15,
payable January 5, 2018.
31 Determined that net income for the year was Tk. 3,50,000.
Required:
(a) Journalize the transactions and the closing entry for net income.
(b) Prepare stockholders equity section at December 31.
Problem-3
The stock holders equity of Lily Company as at December 31, 2015 as follows:
Common Stock (Tk. 100 per value authorized share 8,000) Taka 4,80,000
Retained earnings Taka 2.94.000
Requirements:
(a) Show the journal entries for the following transactions occurred in 2016:
1. 280 shares were repurchased at Tk. 97 per share;
2. Cash dividend was declared at Tk. 20 per share:
3. The proposed dividend was paid:
4. The re-purchased treasury stock was sold at Tk. 102 each.
(b) Net income earned in 2016 was Tk. 94.000. Prepare the Stockholders’ equity statement as on
31,2016.
Problem-4
The stockholders equity accounts of Shyamol Corporation on January 1,2016

Taka
Preferred stock (8% Tk. 50 par, cumulative 10,000 shares authorised) Tk 4.00.000
Common stock(Tk.I stated value, 2,00,000 shares authorised) Tk 10,00.000
Paid in Capital in Excess of par value-Preferred stock Tk 1.00.000
Paid in capital in Excess of stated value-Common stock Tk 14.50.000
Retained Earnings Tk 18,16,000
Treasury stock-Common (10,000 shares) Tk. 50,000
During 2016, the corporation had the following transactions and events pertaining to its
stockholders equity :
Feb. 1 Issued 25.000 shares of common stock for Tk. 1.20,000.
Apr. 14 Sold 6,000 shares of treasury stock-common for Tk. 33.000.
Sep 3 Issued 5,000 shares of common stock for a patent valued at Tk. 35,000.
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of Tk. 6,000.
Dec. 31 Determined that net income for the year was Tk. 4.52,000.
No dividends were declared during the year.
Required:
(a) Journal entries for the transactions and closing entry for net income.
(b) Prepare a stockholders’ equity section at December 31, 2016, including the disclosure of the
preferred dividends in arrears.
Problem-5
Bithe Corporation’s Charter authorized issuance of 1,00.000 shares of Tk. 10 per value common
share and 50,000 Share of Tk. 50 preference share. The following transactions involving the issuance
of shares were completed. Each Transaction is independent of the others :
(1) Issued a Tk. 10,000,9% bond payable at par and gave as a bonus one share of
preference share which at thatTime was selling for Tk 106 a share.
(2) Issued 500 shares of common share for equipment. The equipment had been
appraised at Tk. 7.100: The Seller’s book value was Tk. 6,200. The most recent
market price of the common share is Tk. 16 a share.
(3) Issued 375 shares of common and 100 shares of preference for a lump sum
amounting to Tk. 10,800. The Common had been selling at Tk, 14 and the
preference at Tk. 65.
(4) Issued 200 shares of common and 50 shares of preference for equipment. The
common had a fair value of Tk. 16 per share; The equipment has a fair value of
Tk. 6,500.
Instructions: Record the transactions listed above in journal entry.
Problem-6
Amin Ltd reported the following amounts in the stockholders equity section of its December 31,
2014 balance sheet:-
Account Titles
Common stock, Tk. 5 per (1,00,000 shares authorized 20,000 shares issued) 1,00,000
Additional paid in capital 1,25,000
Retained earnings 4,50,000
6,75,000
During 2015. Amin Ltd. took part in the following transactions concerning stockholders equity:
(i) Purchased 1,700 shares of its outstanding common stock for Tk. 40 per share.
(ii) Reissued 700 treasury shares at Tk. 30 per share.
(iii) Declared a 10% stock dividend on the outstanding common stock when the stock is selling for Tk.
45 per share.
(iv) Issued the stock dividend.
(v) Declared the annual 2015, Tk. 2 per share dividend on common stock.
These dividends are payable in 2016.
Required:
(a) Prepare journal entries to record the transactions described above
(b) Prepare the December 31, 2015 stockholders equity section. Assume 2015, net income was Tk.
3,30,000.
Problem-7
At January 1, 2020 Shaka Ltd. has 8,000 outstanding common stock par values Tk. 10 per share.
During 2020, the Co. took part in the following transactions concerning stockholders equity:
May 15, Declared a 10% stock dividend on the outstanding common stock when the stock is
selling for Tk. 40 per share.
June 01, Issued the stock dividend.
June 10 Announce a 2 for 1 stock split.
July 15 Declared the annual 2020 Tk. 3 per share cash dividend on common stock.
Sept 30 Purchased 1,000 treasury shares for Tk. 30 per share. The Co. uses cost method.
Nov 10 Resold 300 treasury shares for Tk. 40 per share.
Dec 31 Determine net income during the year Tk. 1,20,000.
Required: Make journal entries to record the transactions describe above and prepare stockholders
equity section.
Chapter 1: Accounting for Stockholders equity
Journal entries for Common stock /Preferred stock/Treasury stock
1 / Cash/asset/organization expense
Common/preferred stock
Paid in capital in excess to per-c. stock
2 Treasury stock
Cash
3 Cash
Treasury stock
Paid in capital from treasury stock
4 Loss এ Cash
Paid in capital from treasury stock
Retain earning
Treasury stock
5 Retain earning
Dividend payable
6 Dividend payable
cash
7 Retain earning
Common stock dividend distribution
Paid in capital in excess of par
8 Common stock dividend distributable
Common stock
9 Net income এর closing Income statement
entry Retain earning
Company Financial Statement
Problem-1
Presented below the Y Ltd. information :
Y Ltd.
Trial Balance
as at December 31,2017
Accounts Title Debit Taka Credit Taka
Cash 50,000
10% Mortgage payable 20,000
Accounts receivable 45,000
Inventory 30,000
Office equipment 90,000
Accumulated depreciation (Equip.) 6,000
Accounts payable 25,000
Common stock 100000
Retained earnings 50,000
Dividend 25,000
Sales revenue 130,000
Cost of goods s014 70,000
Salaries expense 10,000
Rent expense 11,000
3,31,000 3,31,000
Adjustments
1. An inventory account shows Tk. 29,000 of inventory actually on hand.
2. Two months salaries were unpaid.
3. Charged 5% depreciation on office equipment.
4. Make provision for income tax @ 30% on net income before tax.
Required
A. Prepare income statement.
B. Prepare classified balance sheet at 31-12-2017.
Problem-2
11b The followin is the Trial Balance of Modhumoti Limited on December 31 2016
Capital : 3,000 shares of Tk. 10 each 30,000
Purchase and sales 29,620 36,310
Inventory at 1-1-2016 2,720
Other expenses 820
Wages 4,100
Investments 10,000
General Reserve 10,000
Plant 8,000
Accounts payable 2,030
Goods out on consignment 720
Cash at Bank 20,830
Taxation provision 10,000
Investment income 620
Tax paid 4,000
Retained earning 6,050
95,010 95,010
Adjustments
1 Ending inventory cost Tk. 10,090.
2 Sales include Tk. 3,200 goods on sale or return (cost price Tk. 2,500).
3 Make provision of 20% on accounts receivable for bad debts.
4 Taxation provision to be increased by Tk. 5,000.
5 Proposed dividend 10%.
6 Goods on consignment sold for Tk. 900 subject to commission for agent was 5%.
Required
B. Prepare classified balance sheet at 31-12-2016
Problem-3
The following is the trial balance or I)BII Ltd. on 31-12-2015
shares of tk. 10 each 30,000
Inventory (1-1-2015) 10000
General expenses 4,000
Wages 6,000
Purchase and sales 25,000 70,000
Prepaid insurance 15000
General Reserve 8,000
Building 50,000
Accounts receivable and accounts payable 15,000 5,000
Carriage outward 2,000
Cash in hand 17,000
salary (80%) 8,000
5% loan (31-12-2015) 24,000
Retained earnings 20,000
Sales discount 5000
Total 1.57 000 157.000
Adjustments
1 Ending inventory valued Tk. 16.000',
2 Create a reserve for bad debt at 5% on accounts receivable.
3 Directors declared dividend at I0%
4 Unused supplies Tk. 2,000 ate included in general
5 Prepaid insurance paid for period from 1/4/2015 to 31/3/2016
Required
B. Prepare classified balance sheet
Problem-4
Alpha Ltd. Issued 4,000 shares of Tk 20 each of which Tk, 7.50 per share called up. Other data are as
follows:
Inventory (01-01-2012) Tk. 3,440; Purchases Tk. 29.120; Sales Tk. 37.310; Other expenses Tk. 1.820;
Wages & Salaries Tk. 4,100; Investments Tk. 10,000; General Reserve Tk. 10.000; Machinery Tk.
8,000; Debtors Tk. 14,200; Creditors Tk. 2.030; Cash at Bank Tk. 21,730; Taxation Provision Tk.
10,000; Investment income Tk. 620; Tax paid Tk. 3,100; Retained earnings (01-01-12) Tk. 6,050 (Cr.);
Calls-in-arrear Tk. 500.
You are required to prepare an income statement and Retained earnings statement for the year
2012
And also draft the Balance Sheet as on 31-12-2012 with the following adjustments :
(a) Ending inventory (31-12-2012) Tk. 12,500;
(b) Make a reserve of 15% on debtors for Bad Debts;
(c) Taxation provision is increased by Tk. 5,000;
(d) A tax free dividend of 10% is proposed;
(e) Transfer Tk. 4,000 to General Reserve;
(f) Depreciate fixed asset by 10%.
Problem-5
Trial Balance of A Ltd. as on 31st December, 1014. Prepare income statement and retained earning s
statement
ssue capita 40000
stock (1 - 1-2014) 34000
Purchase and Sales 29160 37,310
Expenses 2820
Salaries 3100
5% Investment (1 -7 - 14) 20,000
Debtors and Creditors 14300
Cash 21,730
Taxation Provision 12,030
Tax paid 3,100
Retained earnings (1 10,620
Calls in arrear 500
Additional information's : a. Closing Stock T k. 12,500. b. Make a provision for bad debts @10% on
debtor. c. Dividend Proposed 10%. d. Transfer to General reserve Tk. 1,000. e. Depreciate machinery
to be charged @10%
Problem-6
From the following Trial Balance of Salah Ltd. Prepare Income that date Statement : and Retained
Earnings for the year ended 30th June, 2018 and a Balance Sheet as on Date
Share capital (4000 share of Tk. 100 each, Tk. 75 called up) 3,00,000
Calls in arrear (200 share) 5,000
Inventory (1-7-2017) 27,200
Purchases and sales 2,91,200 3,63,100
Wages and salaries 41,000
Sundry expenses 18,200
Investment (Market price Tk. 86,000) 90,000
General reserve 50,000
10% loan (1-9-2017 taken) 50,000
Plant 80,000
Accounts receivable and accounts payable 1,42,000 20,000
Goods sent on consignment 7,200
Cash 2,00,000
Petty cash 7,300
Taxation provision 100000
Investment income (after deduction 20% tax) 62,000
Rent paid 44,000
Investment fluctuation fund 3,000
Retained earnings account 60,500
953,100 953,100
Additional information's :
1 Closing Inventory cost price Tk. 1,60,000 and Market price Tk, 1,50,000.
2 Sales include Tk. 30,000 goods on sales or return basis for which has not yet expired
(cost price Tk 26000)
3 Create provision of 10% on accounts receivable for doubtful uncollectible debts.
4 Depreciate plant @ 10% per annum.
5 Taxation provision is increased by Tk. 20,000. Transfer Tk. 10,000 to general reserve.
6 All the goods on consignment have been sold for Tk. 10,000 subject to agent's
commission of 6%.
7 Increase the Investment Fluctuation Fund to cover the fall in the market price.
8 Wages outstanding Tk 1,000 and contingent liabilities Tk. 10,000.
Problem-7
The following Trial Balance was taken from the books of Padma Ltd,
Share Capital 10 ,00 ,000
Buildings 8 , 20 , 000
Purchase and Sales 5 , 00 , 000 12 , 00 ,000
Plant and Machinery 6 , 00 , 000
Share Premium 1 , 00 ,000
Sundry Debtors and Sundry Creditors 2 , 20 , 000 1 ,40 , 000
Furniture's 30 , 000
General Reserve 2 ,00 ,000
Preliminary Expenses 25 , 000
Profit and Loss Account (1 - 1-2008) 1 , 50 , 000
Stock 2 , 00 ,000
6% Bank Loan (1 2 ,00 , 000
Salary 80 ,000
Sales Returns and Purchases Returns 5 , 000 10 ,000
General Expenses 25 , 000
Fees 14 , 000
Wages 2 , 25 , 000
Carriage 1 1 , 000
Advertisement 20 , 000
Good will 1 , 00 , 000
Cash and Bank 1 , 25 , 000
30 , 00 , 000 30 00 ,000
Adjustments:
i The closing stock on 31st December, 2008 was Tk. 1,71,300;
ii. Depreciate plant and Machinery by 10%, Furniture by 15%;
iii. Create a 5% allowance for bad debts;
iv. The Managing Director is entitled to a commission of 5% on net profits after charging his
commission;
V. General expenses include prepaid rates amounting to Tk. 500.
vi. Provide for outstanding Rent and Taxes Tk. 2.000 and Salaries Tk. 6,000;
vii. A provision for Income tax to the extent of 50% of the net profit is desired;
viii. The directors recommended a dividend of 10%;
Required :
Trading and Profit and Loss Account (Income Statement);
ii. Profit and Loss Appropriation Account (Retained Earnings Statement);
iii. Balance Sheet as at 31 - 12 - 2008
Chapter 2: Company Financial Statement
ABC Company
Income statement
For the year ended Dec 31,2012
Sales revenue/operating Revenue : TK TK TK

sales 4,80,000
Less: sales return /discount (20,000)
(1) Net sales . 4,60,000
Less: cost of goods sold:
Beginning / opening inventory 1,00,000
Purchase-------------------------- 2,10,000
Less : purchase return /discount--- (10,000)
Net purchase-------------------- . 2,00,000
Freight in/wages/other direct expenses----- 26,000
Cost of goods sold available for sales------ .
Less: ending inventory 3,26,000 3,16,000
(10,000) .
(2) Gross profit . 1,44,000
sLess: operating expenses:

a. Selling/marketing/distribution expenses:
freight out/delivery traveling expense ----- 50,000
Bad debt/advertising/store/showroom 50,000
expense ---------- . 1,00,000
a. Administrative/office expense:
Salary/rent/insurance/depreciation------- 14,000
Total operating expense-------- . (1,14,000)
(2) Operating income/Loss 30,000
Net operating income/other income:

Interest revenue/commission---------- 2,600
32,600
Non operating/other expense:
Interest expense/goodwill written off----------- (1,000)
(3) Net income before tax--------- 31,600
Less: income tax------------------------ (1,600)
(4) Net income 30,000
X Company Ltd
Statement of financial position / balance sheet
As at December 3, 2015
Details Taka Taka
Assets
Current assets:
Inventory/cash/bank/supplies/notes receivable 10,000
Int. receivable/prepaid expense/revenue accrued 20,000
Less: allowance for doubtful accounts 5,000
20,000
Total current asset 50,000
Long term investment:
Investment 50,000
Property, plant equipment fixed asset:
Land/building/equipment 1,00,000
Less: accumulated depreciation 50,000
Total fixed assets 50,000
Intangible assets:
Goodwill/patent/preliminary expense 1,00,000
Total expense 2,50,000
Liabilities and owners/ stockholders equity
Current liabilities:
Notes payable/accounts payable/expense payable 50,000
Bank overdraft/ unearned revenue 50,000
Total current liabilities 1,00,000
Long term debt: 50,000
Bonds/loan
Owners/stockholders equity:
Common stock / capital 1,20,000
(+) net profit (net loss) 5,000
1,25,000
(-)drawings 25,000
Total owners equity 1,00,000
Total liabilities and owners equity 2,50,000
2.2 Cash Flow Statement
Problem-1
Comparative balance sheet for Pran Company Ltd. are presented below:
Pran Company
Comparative Balance Sheet
December, 31
2014 2013
Assets Taka Taka
Cash 63 000 22 , 000
Account receivable 85 , 000 76 , 000
Inventories 1 , 80 , 000 1 , 89 , 000
Land 75 , 000 1 00 , 000
Equipment 2 , 60 , 000 2 , 00 , 000
Accumulated depreciation (66 , 000) (42 , 000 )
5 , 97 , 000 5 , 45 , 000
Liabilities and Stockholder's Equity
Accounts payable 34 , 000 47 000
Bonds payable 1 , 50 , 000 2 , 00 , 000
Common stock (Tk, 1 par) 2 , 14 , 000 1 , 64 , 000
Retained earnings 1 , 99 , 000 1 , 34 , 000
5 , 97 , 000 5 45 , 000
Additional information :
1 Net Income for 2014 was Tk. 1,25,000.
2 Cash dividends of Tk. 60,000 were declared and paid.
3 Bond payable amounting to Tk. 50,000 were redeemed for cash Tk. 50,000
4 Common stock was issued for Tk. 50,000 cash.
5 Depreciation expenses was Tk. 24,000.
6 Sales for the year were Tk. 9,78,000.
Are a statement of Cash Flows for 2014 using the “Indirect Method”.
Problem-2
From the following data of Moon Co. prepare a cash-flow statement under indirect method
Account Titles 2015 2016
Assets: Taka Taka
Cash 6,000 8,000
Accounts receivable 20,000 6,000
Merchandise inventory 40,000 44,000
Equipment 30000 38000
Total Assets 96000 96000
Liabilities and Shareholders'
Equity Accumulated depreciation equipment 8000 10000
Accounts payable 12,000 8000
Tax pay awe 2000 4000
Common stock Tk. 20 par value 50,000 64,000
Premium on common stock 2,000
Retained earnings 24,000 28,000
96,000 96,000
Additional data
1 The Co. earned Tk. 16,000 net income during 2016.
2 Equipment was depreciated Tk. 4,0()0 during the year.
3 Fully depreciated equipment that cost 1k 2,000 was discarded and its cost and
accumulated depreciation were removed from the accounts.
4 Equipment costing Tk. 10,000 was purchased.
5 200 shares of common stock issued at TX. 30 per share.
6 Dividends, total Tk. 12,000 paid during the year.
Problem-3
Presented below are data taken from the records of Fortune Ltd:
31-12-2014 31-12-2013
Taka Taka
Cash 15,000 8,000
Current assets other than c.åsh 85,000 60,000
Long-term investments 10,000 53,000
Plant asset 3,35,000 2,15,000
4,45,000 3,36,000
Accumulated depreciation 20,000 40,000
Current liabilities 40 22,000
Bonds payable 75,000 0
Capital stock 2,54;ooo 2,54,000
4,45,000 3,36,000
Additional information :
(a) Held-to-maturity Securities carried at a cost of Tk. 43,000 on December 31, 2013, were sold
in 2014 for Tk. 34,000.
(b) Plant assets that cost Tk. 50,000 and were 80% depreciated were sold during 2014 for Tk.
8,000.
(c) Net income as reported on the income statement for the year was Tk. 46,000.
(d) Dividends paid amounted to Tk. 10,000..
Prepare a statement of cash-flows for the year 2014 using the indirect method.
Problem-4
Shown below are the balance sheets of Urmi Corporation for the years ended December 31, 2016
and December 31.
Assets 2017 Tk. 2016 Tk.
Cash 12,500 5,000
Inventory 37,500 30,000
Long term investment 0 8,000
Equipment 50,000 40,000
Accumulated depreciation (15000) (12,500)
90,000 73,000
Liabilities and Stockholders' equity
Accounts payable 9,000 2,500
Wages payable 5,000 5,500
Bonds payable 40,000 50,000
Common stock 10,000 10000
90,000 73,000
Net income for 2017 was Tk. 36,000. A fully depreciated equipment that had originally cost Tk. 5,000
was sold for Tk. 1,200. The long term investment were sold for Tk. 6,500. Additional equipment
purchased during the year Tk. 15,000.
Requires : Prepare a statement of cash flows for the year ended December, 31 2017. Use the indirect
method of the
Problem-5
Comparative Balance sheet of XYZ com an Ltd. for the ear ended December 31, 2012 and 2013
Account titles 2013 2012
Assets Taka Taka
Cash 34,380 28,620
Inventory 23,400 28,800
Prepaid expenses 1,080 1,440
Land ,32,400 14,400
Equipment 28,800
Accumulated dep.-equipment (2880)
1,19,340 75,960
Liabilities and stockholder equity
Accrued expense payable 2,700 3,600
Income tax payable 2,160
Bonds payable 16,200
Common stock 72,000 54,000
Retained earnings 16,920 7500
119340 75960
Income Statement
Account titles Taka Taka
Sales revenue 1,75.500
Less : Cost of goods sold 1,18.800
Gross profit 56,700
Less : expense 31,680
Depreciation expense 3 240
Loss : On sale of equipment 180 35,100
Income before tax 21600
Less : Income tax 6480
Net Income 15120
Additional information:
a. In 2013 the Company declared and paid a Tk. 5,760 cash dividend.
b. Equipment costing Tk. 3,600 was sold for Tk. 3,060 cash, when the book valued to the
equipment was Tk. 3,240.
c. Bonds were issued at face value of Tk. 16,200.
d. Equipment costing Tk. 32,400 was purchase for cash.
e. Common stock Tk. 18,000 was issued to acquire land.
Prepare Cash flow statement under indirect or direct method.
Problem-6
On 1st January, 2012 Boby Ltd. had a cash balance of' Tk. 1,40,000. During the year, it reported the
followings
Tk.
Cash received from sale of common stock 4,70,000
Amortization of Goodwill 20,000
Payment of dividends 60,000
Purchase of long-term investments 800,000
Cash received from sale of equipment 4,50,000
Net Income 1,10,000
Increase of accounts receivable 90,000
Depreciation expenses 50,000
Gain on sale of equipment 30,000
Decrease of accounts payable 1oo,ooo
Preliminary expenses written off 40,000
Increase in allowance for Doubtful Debts 2,000
Required : Statement of Cash flows for 2012 using indirect method.
Problem-7
The following balance sheets were drawn from the records of Keya Ltd:
Comparative Balance Sheet
2017 2017
Accounts Title
January 1 (Tk.) January 31 (Tk.)
Cash 70,000 35,000
Marketable security 10,000 15,000
Account receivable 40,000 50,000
Notes receivable 25,000 5,000
Inventories 40,000 48,000
Prepaid insurance 12,000 9,000
Machinery 200,000 450,000
Accumulated depreciation-Machinery (40,000) (55,000)
Land 90,000 -
4,47,000 557,000
Liabilities :
Salaries payable 20,000 45,000
Wages payable - 10,000
Taxes payable 40,600 45,000
Notes payable 10,000 -
Equity capital 110,000 205,000
Bond 100,000 75,000
447,000 557,000
Keya Ltd.
Income statement
For the year ended 31st December, 2017
Particulars Tk.
Sales 800,000
Cost of goods sold (550,000)
Gross profit 250,000
Operating expense (including depreciation) (200,000)
Operating income 50,000
Gain on sales of machinery 2,000
Net income before tax 52,000
Income tax expense (20,000)
Net income 32,000
Additional information:
1. Dividends paid Tk. 62,000.
2. Machinery that had a cost of Tk. 20,000 with accumulated depreciation of Tk. 15,000 was sold
during 2017.
3. Bond of Tk. 40,000 converted into equity share capital.
Instructions: Prepare a statement of cash flow using the direct method.
Problem-8
The followings are the Summarised Balance Sheet of Jujan Shah and company as at 31st December
2013 and 2014
2013 2014 2013 1014
Liabilities Taka Taka Assets Taka Taka
Share Capital 2,00,000 2,50,000 Goodwill 5,000
General Reserve 50,000 60,000 Building 2,20.000 1,90,000
Bank loan (long term) 70,000 Equipment 1,50,000 1,69,000
Accounts payable 1,50,000 1,35,200 Inventory 100000 74,000
Tax provision 30,000 35,000 Bank balance 8000
Cash 500 600
LS balance 30500 30600 Accounts Receivable 80,000 64200
5.30,300 5.10.800 5,30,500 5,10.800
Supporting information : During the year 2014.
1 Dividend of Tk. 23,000 was paid.
2 Assets of another company were purchased for a consideration of Tk. 50,000
payable in shares. The asset considered of inventory Tk. 20,000, Equipment Tk.
25,000 and goodwill Tk. 5,000.
3 Additional Equipment was purchased for Tk. 8,000.
4 Depreciation of Equipment Tk. 12,000.
5 Income tax provided during the year Tk.83,000.
6 Loss on sale of Equipment Tk. 200 was written off to general reserve.
Preparation of cash flow statement

Name of the company
Statement of the cash flow (indirect method)
For the year ended December 31……
Account tittles / Details TK TK
Cash flows from operation actividies:
Net income 10,000
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation / depletion / amortizing 200
Loss on sale of fixed assets 800
Profit on sale of fixed assets (100)
Increase in current asset (400)
Decrease in current asset 2000
increase in current liabilities 100
Decrease in current liabilities (500) 2,100
Net cash provided / used by operating activities 12,100
Cash flow from investing activities:

Purchase of fixed asset / investment (1,400)
Sales of fixed asset / investment 2,000
Net cash used by investing activities 600
Cash flow from financing activities

Issue of common stock / bond / preference share 5000
Redemption of bond / preference share / payback of share (2,000)
Payment of dividend (1,000)
Net cash used by financing activities 2,000
Net increase / decrease in cash 14,700

Add: cash at the beginning of period 5,300
Cash end of period 20,000
Non cash activities
Issue if binds against loan 10,000
Revenue Recognition
Problem-1
Ideal Ltd. Appropriately uses the installment sales method of accounting lo recognize income in its
Financial statements. The following information is available for 2015 and 2016-
Accounts Titles 2015 (Taka) 2016 (Taka)
Installment sales 9.00,000 10,00,000
Cost of installment sales 6.30.000 6,80,000
Cash collections on 2015 sales 3,70,000 3,50.000
Cash collections on 2016 sales 4,75.000
Instructions:
(a) Compute the amount of realized gross profit recognized in each year.
(b) Prepare all journal entries required in 2016.
Problem-2
SarifLicha which sales merchandise on installment basis :
2013 Taka 2014 Taka 2015 Taka

Sales con installment plan) 2,50,000 2,60,000 2,80,000
Cost of sales 1,50,000 1,63,800 1,82,000
Gross profit 1,00,000 96,200 98,000
Collections from customers on
2013 installment sales 75.000 1.00,000 50,000
2014 installment sales 1,00,000 1,20,000
2015 installment sales 1,10,000
Instructions:
a) Compute the realized gross profit for each of the year 2013, 2014 and 2015.
b) Prepare journal entries required in 2015. Applying the installment sales method of Accounting
(Ignore interest charges).
Problem-3
Sara Stores sells merchandise on open account as well as on installment terms:
Account Titles 2016 Taka 2017 Taka 2018 Taka
Sales on account 3,85,000 4,26,000 5,25,000
Installment sales 3,20,000 2,75,000 3,80,000
Collections on installment sales :
Made in 2016 1.00,000 90,000 40,000
Made in 2017 110,000 140,000
Made in 2018 125.000
Cost of Sales :
Sold on account 2.70,000 2,77,000 3,41,000
Sold on installment 2.14,400 1,76,000 2.28.000
Selling expenses 77,000 87.000 92.000
Administrative expenses 50,000 $1,000 52.000
Instructions : From the above data, which cover the 3 years since Sara Stores commenced
operations, determine the
Net income for each year applying the installment-sales method of accounting,
Problem-4
X Ltd. sold an equipment to Y Lid for Tk 25,000 on January 1, 2010, Terms required a down
payment of 5.000 and 2,000 at the end of each month for 10 month Starting on January 31,
2010. The equipment cost is Tk 15.000 Y Ld paid 4 installments and then were unable to pay
the rest installments. Subsequently X Lid repossessed the equipment which air value was Tk.
8,000. Requirement: Give journal entries for above events in the books of X Lid
Problem 5
Saiham Corporation, which began business on January 1, 2018 appropriately uses the installment-
sales method of accounting. The following data were obtained for the years 2018 and 2019.
2018 2019
Installment sales Tk. 7,50,000 Tk. 8,40,000
Cost of installment sales 5,25,000 6,04,800
General & administrative expenses 70,000 84,000
Cash collections on sales of 2018 3,10,000 3,00,000
Cash collections on sales of 2019 4,00,000
Instructions:
(a) Compute the balance in the deferred gross profit accounts on December 31, 2018, and on
December 31, 2019.
(b) A 2018 sale resulted in default in 2020. At the date of default, the balance on the installment
receivable was Tk. 12,000 and the repossessed merchandise had a fair value of Tk. 8,000. Prepare
the entry to record the repossession.
Problem 6
The following summarized information relates to the installment sales activity of Moon Inc. for
2020:
Installment sales during 2020 Tk. 5,00,000
Cost of goods sold on installment basis 3,30,000
Collection from customers 2,00,000
Unpaid balances on merchandise repossessed 24,000
Estimated value of merchandise repossessed 9,200
Instructions :
(a) Prepare Journal entries at the end of 2020 to record on the books of Lina Stores Inc. the
summarized
data above.
(b) Prepare the entry to record the gross profit realized during 2020.
Problem 7
Rony Ltd. Sold goods to customer on the installment sales for Tk. 5,00,000 on 1st January, 2017. Cost
of
installment sales of Tk. 3,70,000. Cash collection was as follows:
For 2017 Tk. 2,25,000
For 2018 Tk. 2,00,00026
For 2019 Tk. 75,000
Requirement:
(i) Compute the amount of gross profit recognized each year, the company uses cost
recovery method
(ii) Prepare Journal entries in the books for all years.
(iii) Prepare income statement and balance sheet for 2017
Problem-8
On March 1, 2016. Sunflower Company entered into a contract to build an apartment building. It is
Estimated that the building will cost Tk. 20,00.000 and will take 2 years to complete. The contract
price
Tk. 30,00.000. The information on the below pertains to the construction period :
Account Titles 2016 2017
Cost to date 15,60,000 21,00.000
Estimated cost to complete 3.90,000 0
Progress billing to date 2100000 3000000
Cash collected to date 1950000 2750000
Required:
(a) Compute the amount of gross profit to be recognized each year assuming the percentage of
completion method is used
(b) Prepare necessary journal entries for 2017
Problem-9
During 2011, Zahid Ltd. Started a construction job with a contract price of Tk. 16,00,000. The job was
Completed in 2013. The following is available related to this:
Cost incurred to date 4,00,000 9,35,000 10.70.000
Estimated cost to complete 6,00,000 1,65,000 Nil
Billing to date 3,00.000 9,00,000 16,00,000
Collection to date 2,70.000 8.10,000 14.25.000
Required:
(a) Compute the amount of gross profit to be recognized each year assuming the percentage of
completion method is used,
(b) Prepare journal entries for 2012
Problem-10
On February 1, Arman Construction Company obtained a contract to build an athletic stadium. The
stadium was to built a total cost of Tk. 54,00,000 and was scheduled for completion by September 1,
2016. One clause of the contract was stated that Arman was to deduct Tk. 15,000 from the Tk.
66,00,000 billing price for each week that completion was delayed. Completion was delayed 6 weeks
which resulted in a Tk. 90.000 penalty. Below are the data pertaining to the construction period :
Cost to date 17.82.000 38,50.000 55,00.000
Estimated cost to complete 36,18.000 16,50.000 0
Bill to date 12.00,000 31.00.000 65.10.000
Cash collection to date 10,00,000 28,00,000 65.10,000
Required:
(a) Compute the estimated gross profit recognized in the years using the percentage of completion
method.
(b) Prepare a partial balance sheet on December 31, 2015 shewing the balances in the receivable
and inventory accounts.
Problem 11
RM Construction Company has a contract to construct a Tk. 50,00,000 Bridge at an estimated cost of
Tk. 45,00,000. The contract is to start in July 2017, and the bridge is to be completed in December
2019.
2017 2018 2019
Costs to date Tk. 12,00,000 Tk. 30,00,000 Tk.46,00,000
Estimated costs to complete 43,00,000 16,00,000
Billings to date 10,00,000 35,00,000 50,00,000
Cash collected to date 8,00,000 30,00,000 50,00,000
Requirement:
(a) What portion of the gross profit would be recognization in each year. Assume company used
completed contract method.
(b) Prepare journal entries for 2017,2018 and 2019.
Problem 12
During 2016 padma Company started a construction job with a contract price of Tk 15,00,000. The
job was completed in 2018. The following information is available.
2016 TK 2017 TK 2018 TK
Cost incurred to data 4,00,000 9,35,000 10,70,000
Estimated cost to 6,00,000 1,65,000
complete
Billing to date 3,00,000 9,00,000 15,00,000
Collection to data 2,70,000 8,10,000 14,25,000
Instruction:
a. Compute the amount of gross profit to be recognized each your assuming the percentage of
completion method is used.
b. Prepare all necessary journal entries for 2017.
c. Compute the amount of gross profit to be recognized each year assuming the completed
contract method is used.
Problem 13
In 2015 abdul Monem Ltd agreed to construct a briedge at a price of Tk 1,00,00,000.
The following information to the costs and billing for this contract is shown below.
Details 2015 2016 2017

Cost incurred to date 28,00,000 60,00,000 78,50,000
Estimated cost 52,00,000 20,00,000
Customers billings to date 15,00,000 40,00,000 1,00,00,000
Collection of billing to date 12,00,000 32,00,000 94,00,000
Instruction:
a. Assuming that the percentage of completion method is used (a) compute the amount of
gross profit to be recognized in 2015 and 2016 and (b) prepare journal entries for 2016.
b. For 2016 show how the details related to this construction contract would be disclosed on
the statement of financial position and income statement.
Problem 14
In 2017 J R Construction Company agreed to construct an apartment building at a price of Tk.
10,00,000. The information relating to the costs and billings for this contract is shown.
2017 2018 2019
Costs incurred to date Tk. 2,80,000 Tk. 6,00,000 Tk. 7,85,000
Estimated costs yet to be incurred. 5,20,000 2,00,000
Customer billings to date 1,50,000 4,00,000 10,00,000
Collection of billings to date 1,20,000 3,20,000 9,40,000
Instructions
(a) Assuming that the percentage-of-completion method is used, (1) compute the amount of gross
profit to be recognized in 2017 and 2018, and (2) prepare journal entries for 2018.
(b) For 2018, show how the details related to this construction contract would be disclosed on the
balance sheet and on the income statement.
Chapter 3: Revenue recognition

Journal entries for installment sales method:
S.L Transection Journal entries
1 Installment sales Installment acc receivable Dr.
Installment sales Cr.
2 Cost of installment sales Cost of installment sales Dr.
Inventory Cr.
3 Cash collection Cash Dr.
Installment acc receivable Cr.
4 To close installment sale Installment sale Dr.
Cost of installment sales Cr.
deferred gross profit Cr.
5 Gross profit Differed gross profit Dr.
Realized gross profit Cr.
6 To cross realized gross profit Realized gross profit Dr.
Income summery Cr.
Journal entries for construction :

SL no Transection Journal entries
1 Cost incurred on construction Construction in process ------------------ Dr
Material, cash payable, etc. -----------------Cr
2 Billing in construction Acc receivable---------------------------------Dr
Billing in construction in process---------Cr
3 Cash collection Cash ---------------------------------------------Dr
Acc receivable---------------------------------Cr
4 Gross profit recognized Construction expense-----------------------Dr
Construction in process---------------------Dr
Revenue from long term contract--------Cr
3.2 calculation of gross profit recognize

Sl no Acc titles Year-1 Year- Year-3
2
1 Contract price A
2 Cost ot date B
3 Estimated cost to complete C
4=2+3 Estimated total cost D=B+C
5=1-4 Estimated total profit E=A-D
6=(2*5)/4 Total gross profit recognized F=(BXE)/D
7 Gross profit recognized in previous year E
8=6-7 Gross profit recognized in current year G=F-E
Accounting for Leases

Problem-1
Uttara Leasing Company leases a new machine that has a fair value of Tk. 75,000 to Kabir
Corporation on a 3 years Non-cancelable contract. Kabir Corporation agrees to assume all risks of
normal ownership. The machine has a 3 years Useful life and no residual value. The lease was signed
on 1st Jan, 2012. Uttara leasing company expects to earn 9% Return on its investments. The annual
rentals are payable on 31st December each year.
Prepare an amortization schedule and comment on the nature of the lease.
Problem-2
Lemo corp. sign a 10 years non-cancelable lease agreement to lease an equipment from IDLC. The
information Pertain to this lease are as follows:
(i) Equal annual rental payment of Tk. 90,000 beginning on January 01, 2012.
(ii) The fair value of the equipment on January 01, 2012 is Tk. 5,50,000.
(iii) The estimated economic life of the equipment is 10 years, with unguranted residual
value of Tk. 10.000.
(iv) Lemo’s borrowing rate is 12% per year.
Requirement:
(a) Prepare the amortization schedule for the 1st three years in the books of Lemo.
(b) Show the journal entries for the year 2012 in the books of both parties.
Problem-3
The Roxi Company leases equipment under the following terms:
A three years base agreement is signed in which the lessor receives annual rental of Tk. 2.500 (in
advance). At the end of the Three year, the lessee agrees to make up any deficiency in residual value
below Tk 2,400 (guaranteed residual value to lessor) Any excess over this amount accrues to the
benefit of the lease. The cash price of the equipment is Tk. 8,433. The implicit Interest rate is 12%
which is known to the lessee and is less than the lessee’s incremental borrowing rate. The lessee
estimates the residual value at the end of three years to be tk. 2,700 and depreciate its equipment
on straight line basis.
(a) Give the entries on the lessee’s books required in the first year of the lease. Assuming the
lease begins May 1. 2016, the beginning of the lessee’s fiscal year.
(b) What balances related to the lease would appear on the lessee’s balance sheet at the end of
year 3?
(c) Assuming the equipment is sold by the lessee of Tk. 2,900.
Prepare the entries to record the sales and settlement with the Roxi Company.
Problem-4
Carzon Corporation sells equipment that has a book value of Tk. 80,000 and fair value of Tk. 1,00,000
to Isan Corporation and then immediately leases it back under the following conditions:
(i) The sale date is January 1, 2018 and the equipment has a fair value of Tk. 1,00,000 on
that date and estimated useful life of 15 years.
(ii) The lease term is 15 years non-cancellable and requires equal rental payments of Tk.
13,109 at the beginning of each year.
(iii) Carzon Corporation has the option annually to review the lease at the same rental
payments on expiration of the original lease.
(iv) Carzon Corporation has the obligation to pay all executory costs of Tk. 3,000 per month.
(v) The annual rental payments provide the lessor with a 12% return on investment.
(vi) The incremental borrowing rate of Carzon Corporation is 12%.
(vii) Carzon depreciates similar equipment on a straight line basis.
Requirement: Prepare necessary Journal entries both in the book of lease and lessor during the year
2018.
Problem-5
General Leasing Company sings a lease agreement on January 1, 2013 to lease electronic equipment
to Westem Ltd. The term of The lease is 2years and payments are required at the end of each year.
The following information relates to this agreement:
(i) Western Ltd. Has the option to purchase the equipment for Tk. 16,000 upon
termination of the lease.
(ii) The equipment has a cost and fair value of Tk. 1,60,000 to General Leasing
Company. The useful life is 2 Years with a salvage value of Tk. 16,000.
(iii) Western Ltd. Is required to pay Tk. 5,000 each year to the lesser for executory costs.
(iv) General Leasing Company desires to earn a return of 10% on its investment.
(v) Collect ability of the payments is reasonably predictable and there are no important
uncertainties surrounding The costs yet to be incurred by the lesser.
Required:
(a) Prepare journal entries on the books of General Leasing Company for the years 2013 and 2014.
(b) Assuming that Western Ltd. Exercises its option to purchase the equipment on December
3,12,014.
Prepare the journal entry to reflect the sale on General Leasing Company’s book.
Problem-6
Grossman Ltd. Signs a 10 years non cancelable lease agreement to lease a building from Bay Leasing
Company. The Following information pertains to this lease agreement.
(i) The agreement requires equal rental payments of Tk. 72,000 beginning on January 1,
2011.
(ii) The fair value of the building on January 1, 2011, is Tk. 4,40,000.
(iii) The building has an estimated economic life of 12 years, with an unguaranteed
residual value of Tk. 10.000.
(iv) Grossman Ltd. Depreciates similar buildings on straight-line method.
(v) The lease is nonrenewable. At the termination of the lease, the buildings reverts to
the lessor.
(vi) Grossman Lid’s incremental borrowing rate is 12% per year. The lessor’s implicit rate
is not known by Grossman Lid.
(vii) The yearly rental payment includes Tk. 2470.51 of executory costs related to taxes
on the property.
Required : Prepare the journal entries on the lessee’s books to reflect the signing of the lease
agreement and to record The payments and expenses related to this lease for the years 2011 and
2012. Gross man Ltd’s year end is December 31.
Chapter 4: accounting for lease

4.1 accounting for lease= ] x (1+i) +
Lease amortization schedule
Date Beginning Annual Interest Principal Ending

balance payment payment balance
1 2 3 4=2x3 5=3-4 6=2-5
Journal entries for lease transection (capital leases)
Transection Lessee Lessor

১/ Leased asset---------------------Dr Lease receivable -------------- Dr
Leased liability------------------Cr Asset ----------------------------- Cr
২/ interest এ Interest expense----------------Dr Interest receivable ----------- Dr
Interest payable-----------------Cr Interest revenue ---------------Cr
৩/ খ Executory cost--------------------
Dr
Cash---------------------------------Cr
৪/Depreciation এ Depreciation cost---------------Dr Capital lease এ
Accumulated depreciation----Cr ।operating
lease এ এ
।
৫/ Executory cost-------------------Dr Cash---------------------------------Dr
Interest payable-----------------Dr Lease receivable-----------------Cr
Lease liability---------------------Dr Interest receivable -------------Cr
Cash--------------------------------Cr Executory cost payable--------Cr
6/Closing entry Income summary----------------Dr Interest revenue-----------------Dr
Interest expense-----------------Cr Income summary----------------Cr
Depreciation expense----------Cr
Cash --------------------------------Cr
Guaranteed Sv এর Capital lease non Lessor এ rate
। calculatable এ 75% ।
ও
।
Accounting for leases
Lease: (lease) এক ক ম ম ম ম
ক । ২ ক ।
১/ operating lease: i/ ম (১-৫ ছ )। ii/ concealable
(iii) maintenance cost (lessor) ক ।
২/ capital lease : i/ ম ৭৫% ।
Ii/ Non concealable । iii/ ম ক ।
Iv/ maintenance cost ক ।
কক ক
i. Lease fair value ( ম )

ii. Installment (A) এ ম (ক / ম )
iii. Life of lease ( ম )
iv. Interest rate ( )
v. Granted residual value.
*** এ ছ ক ম ।
Accounting Changes and Error Analysis
Problem-1
Below is the net income of Ruchi Ltd. computed under the three inventory valuation methods using
a periodic s system:
Year FIFO Average cost LIFO
2010 Tk. 26,000 Tk. 23,000 Tk. 20,000
2011 Tk. 30,000 Tk. 25,000 Tk. 21,000
2012 Tk. 29,000 Tk. 27,000 Tk. 24,000
2013 Tk. 34,000 Tk. 30,000 Tk 26,000
Instructions : (Ignore tax)
a. Assume that in 2013, Ruchi Ltd. decided to change from the FIFO method to the average
cost method to pricing inventories. Prepare the journal entry necessary for the change that
took place during 2013, and show the net income reported for 2010, 2011, 2012 and 2013.
b. Assume that in 2013 Ruchi Ltd. which had been using the LIFO method since incorporation in
2010, change to the FIFO method of pricing inventories. Prepare the journal entry necessary
to record the change in 2013 and show the net income for 2010, 2011, 2012 and 2013.
Problem-2
The first audit of the books of Apex Ltd. Was make for the year ended December 31, 2014. In
examining the books, The auditor found that certain items had been overlooked or incorrectly
handled in the last 3 years. These items are :
(1) At the beginning of 2012, the company purchased a machine for Tk: 5,10,000 (salvage
value of Tk. 51.000)That had a useful life of 5 years. The bookkeeper used straight line
method but failed to deduct the salvage Value in computing the depreciation base for
the 3 years.
(2) At the end of 2013 the company failed to accrue sales salaries of Tk 45,000.
(3) The company purchased a copyright from another company early in 2012 for Tk. 45,000.
Apex Ltd. Had not amortized The copyright because its value had not diminished. The
copyright has a useful life of 20 years from purchase,
(4) In 2014, the company wrote off Tk. 87.000 of inventory considered to be obsolete, this
boss was charged directly to retained earnings
(5) Insurance for a 12 month period purchased on November 1, 2014 was charged to
insurance expense in the Amount of Tk. 3.000 because “the amount of the check is
about the same every year”.
Prepare the journal entries necessary in 2014 to correct the books, assuming that the books have
not been closed Disregard effects of correction on income tax.
Problem-3
Chandon Ltd. purchased a machine on 1-1-2019 for 4,40,000. At that time it was estimated that the
Machine would have a 10 year life and no salvage value. On 31-12-2012 it is found that the entry for
Depreciation expense had been omitted in 2010. In addition, management has informed the
accountant that The company plans to switch to straight line method starting from 2012. At present,
the company uses the sum Of the years digits method. Pass entries for omission of depreciation and
changes of method.
Problem-4
Presented below the partial trial balance of BD Ltd. On n31-12-2017:
Accounts Debit Tk. Credit Tk.
Supplies on hand 3.000
Accrued salaries 2.000
Prepaid insurance 6000
Unearned rent 10,000
Interest payable 1.500
Additional adjustments :
a. A physical count of supplies on hand cost 31-12-2017 Tk. 700.
b. Prepaid insurance expired Tk.20,000.
c. Depreciation expense for the year was erroneously recorded Tk. 3,000 rather than the
correct figure Tk. 30.000,
d. Tk. 10,000 was received on January 1, 2017 for the rent of a building for both 2017 and
2018.
e. A further review of depreciation calculation of prior years revealed that depreciation of Tk.
7,000 was not Recorded. It was decided that oversight should be corrected by a prior
adjustment.
Required:
(a) Give the adjusting entries Assuming that books have not been closed.
(b) Give the adjusting entries Assuming that books have been closed.
Problem-5
The before tax income for MSR Co. for 2017 was Tk. 1.01.000 and Tk. 77400 for 2018 . However, the
accountant Noted that the following errors had been made.
(1) Sales for 2017 included amounts of Tk. 38.200 which had been received in cash during 2017
but for which the Related products were delivered in 2018. Title did not pass to the
purchaser until 2018
(2) The inventory on December 31, 2017 was understated by Tk. 8.640.
(3) The bookkeeper in recording interest expenses for both 2017 and 2018 on bonds payable
made the following entry on an annual basis
Interest expense Dr. 15.000

Cash Cr. 15.000
The bonds have a face value of Tk. 2,50.000 and pay a stated interest rate of 6%. They are issued
at a discount of Tk 10.000 On January 1, 2017. To yield an effective interest rate of 7% (Assume
that the effective interest method should be used),
(4) Ordinary repairs to equipment had been erroneously charged to the equipment account
during 2017 and 2018.Repairs in the amount of Tk. 8,000 in 2017 and Tk. 9,400 in 2018 were
so charged. The company applies a rate of 10% to the balance in the equipment account at
the end of the year in its determination of depreciation charges.
Instructions: Prepare a schedule showing the determination of corrected income before taxes for
2017 and 2018.
Problem-6
On January 1, 2015, ABC company purchased a building and equipment that have the following
useful lives salvage values, and costs.
Building, 40-year estimated useful life, Tk.50,000 salvage value, Tk.8,00,000 cost
Equipment. 12-year estimated useful life, Tk. 10,000 salvage value, Tk. 1,00,000 cost
The building has been depreciated under the double-declining balance method through 2018. In
2019, the company decided to switch to the straight-line method of depreciation. Jackson also
decided to change the total useful life of the equipment to 9 years, with a salvage value of Tk.5,000
at the end of that time. The equipment is depreciated using the straight-line method.
Instructions:
(a) Compute the cumulative effect of the change in accounting principle for 2019
(b) Prepare the journal entry(ies) necessary to record the changes made in 2019.
(c) Compute depreciation expense on the equipment for 2019
Problem-7
XYZ company acquired the following assets in January of 2007 Tk. 4, 65,000. Equipment, estimated
service life, 5 years; salvage value, Tk. 15,000.
building, estimated service life, 30 years; no salvage value Tk. 7,80,000
The equipment has been depreciated using the sum-of-the-years'-digits method for the first 3 years
for financial reporting purposes. In 2010, the company decided to change the method of computing
depreciation to the straight- line method for the equipment, but no change was made in the
estimated service life or salvage value. It was also decided to change the total estimated service life
of the building from 30 years to 40 years, with no change in the estimated salvage value. The
building is depreciated on the straight-line method.
Instructions
(a) Prepare the journal entry to record depreciation expense for the equipment in 2010.
(b) Prepare the journal entry to record depreciation expense for the building in 2010.
Problem-8
You have been engaged to review the financial statements of Linette Gottschalk Corporation. In the
course of your examination your conclude that the bookkeeper hired during the current year is not
doing a good job. You notice a number of irregularities follows.
1) Year end wages payable of taka 3400 were not recorded because the bookkeeper thought
that "they were immaterial.
2) Accrued vacation pay for the year of Tk.31,100 was not recorded because the bookkeeper
"never heard that you had to do-it."
3) Insurance for a 12-month period purchased on November 1, of this year was charged to
insurance ' expense in the amount of Tk.2,640 because "the amount of the check is about
the same every-year."
4) Reported sales revenue for the year is Tk.21,20,000. This includes all sales taxes collected
for the year.
5) The sales tax rate is 6%. Because the sales tax is forwarded to the State's Department of
Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that "the sales
tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense
account is Tk. 1,03,400.
Instructions: Prepare the necessary correcting entries, assuming that Gottschalk uses a calendar-
year basis.
Accounting for Operating Segments

Problem-1
Sales 20,00.000
Average Operating Assets 15,00,000
Net Operating Income 120000
Compute margin and turnover and the return on investment (ROI)
Problem-2
Selected Sales and operating for three divisions of different structural engineering firms are given
below:
Division-A Division-B Division-C
Sales 1,20,00.000 1,40,00,000 2.50,00.000
Average Operating Assets 30,00,000 70,00,000 50.00.000
Net Operating Income 6,00,000 5,60,000 8.00,000
Minimum Required Rate of Return 14% 10% 16%
Required:
(1) Compute the return on investment (ROI) for each division using the formula, stated in terms of
margin and turnover.
(2) Compute the residual income for each division.
(3) Assume that each division is presented with an investment opportunity that would yield a 15%
rate of return.
(a) If performance is being measured by ROI, which division or divisions will probably accept the
opportunity? Reject? Why?
(b) If the performance is being measured by residual income, which division or divisions will probably
accept the opportunity? Reject? Why?
Problem-3
Financial Data for Z Ltd. Are given below:
Assets Beginning Balance Taka Ending Balance Taka

Cash 70000 60,000
Account receivable 2,25,000 2,60.000
Inventory 1.60,000 1.90.000
Plant assets 3,40,000 3.10,000
Investment in Y Co. 1.25.000 1,40.000
Land (undeveloped) 90000 90000
Total Assets 10.10,000 10.50,000
Liabilities and owner’s equity :

Accounts payable 1.80,000 1.5.000
Long term liability 7.50,000 7.50,000
Owner’s equity 80,000 1.45,000
Total liability and owner’s equity 10.10.000 10.50.000
Income statement
Sales 20.25,000
Less : Operating expense 18.22.500
Net operating income 2,02,500
Interest and taxes : 77,500
Interest expense 55000
Tax expense 1.32,500
Net income 70,000
The company paid dividends of Tk. 5,000 last year.

Required:
(a) Compute the company’s margin turnover and return on investment (ROI) for last year.
(b) The boards of directors of the company has set a minimum required rate of return of 15%. What
was the company’s residual income for last year?
Problem-4
Commercial Services Corporation provides business to business services on the internet.
Most recent year appear below:
Sales Taka 30,00.000
Net operating income Taka 1,50,000
Average operating assets Taka 7.50,000
Required:
Consider each question below independently. Carryout all computations to decimal places,
(a) Compute the company’s return on investment (ROI)
(b) The entrepreneur who founded the company is convinced that sales will increase next year by
50% and that net operating Income will increase by 200%, with no increase in average operating
assets. What would be the company’s ROI?
(c) The chief financial officer of the company believes a more realistic scenario would be a Taka
10,00.000 Increase in sales, requiring a Taka 2,50,000 increase in average operating assets with a
resulting Taka 2,00,000 Increase in net operating income. What would be the company’s ROI in this
scenario?
Problem-5
Find the missing data in the table below:
Particular Company А Company B Company С
Sales Tk. 90,00,000 Tk. 70,00,000 Tk. 45,00,000
Net operating income Tk. ? Tk. 2,80,000 Tk. ?
Average operating assets Tk. 30,00,000 Tk.? Tk. 18.00.000
Return on investment (ROI) 18% 14% ?
Minimum required rate of return:
Percentage 16% ? 15%
Taka amount Tk.? Tk. 3,20,000 Tk. ?
Residual income Tk.? Tk. ? Tk. 90.000
Problem-6
Navana Trading Co. Carries on business in the three departments. The following information is
available
From their books of Accounts as at 31 December 2015:
Dept. 1 (Tk.) Dept. 2 (Tk.) Dept. 3 (Tk.)
Sales 30,750 36,750 16,875
Variable expenses 18,900 18,900 11,250
Rent Tk. 9.840, Insurance Tk. 3,120, Taxes Tk. 1,536 (on sales) and commission expenses Tk. 848 are
to be apportioned Among the departments in the ratio of 2:1: 1 respectively. Salaries and wages
amounting to Tk. 5,400 are to be allocated On the basis of sales. Common fixed cost are Tk. 5,000.
Draw up in contribution format income statement segmented by the department
Chapter 6: Accounting for operating segments
1/ ROI = Margin x turnover = X

2/ Residual income= Net operating income – (average operating asset x NRR)
Income statement
Details A(TK) B(TK) Total
Sales *** *** ***
(-) variable expenses *** *** ***
*** *** ***
Contribution *** *** ***
(-) traceable fixed expenses . . .
Segment *** *** ***
margin . . .
(-) common fixed expenses *** *** ***
Net operating . . .
income ***
.
Bankruptcy
Problem-1
Mr. Dulal is declared insolvent. He supplies you the following information for the preparation of his
statement Affairs and Deficiency Account:
Account Titles Taka
(i) Creditors for goods 60,000
(ii) Salaries due to clerks for four months 1.200
(iii) Tax owing to Govt. 2,400
(iv) Bank loan (Secured by lien on inventory worth 50,000) 27.500
(v) Furniture (Expected to realise Tk. 4,000) 8,000
(vi) Inventory (Expected to realise 60% of book value) 60,000
(vii) Accounts receivable (debtors):
Good 8,000
Doubtful (Expected to realise 50%) 16,000
Bad 10,000
(viii) Bills receivable (Tk. 6,000 bad) 12,000
(ix) Loan from wife 20,000
(x) Loss on gambling 100
Mr. Dulal commenced business 6 years ago with a capital of Tk. 50,000. He drew Tk. 10,000 each
year during the Years he made a profit of Tk. 13,000. Mrs. Dulal gave up jewelary worth Tk. 8,000 to
the official receiver.
Instructions: (1) Statement of affairs. (2) Deficiency Account.
Problem-2
Mr. Kabir filed his petition for insolvency on December 31, 2017. He had the following assets and
liabilities:
Account Titles Taka
Creditors for goods 74,500
Bills payable 5.000
Creditors secured by lien on shares 40,000
Creditors secured by lien on stock 15,000
Liability on bills discounted (Expected to rent Tk. 3,000) 7,000
Mortgages on mill 10,000
Creditors for rent, rates, etc. (Tk. 3,000 preferential) 3,500
Book debts : Good 20.000
Doubtful and bad (Estimated to produce Tk. 2,000) 10.000
Consignment 5.000
Shares (Estimated to realised Tk. 16,000) 15.000
Stock (Estimated to realise Tk. 40,000) 60,000
Cash 100
Bill of exchange 1.400
Mill (Estimated to realise Tk. 11,000) 20,000
Machinery (Estimated to realise Tk. 12,000) 15,000
Furniture (Estimated to realise Tk. 1,500) 3,000
Misc. assets (Estimated to realise Tk. 3,000) 6,800
On 15 January 6 years ago, he had a capital of Tk. 50,000. Profit earned during the 6 years total Tk.
45,500 and loss were Incurred total Tk. 25,000 after allowing Tk. 2,500 per year as interest on
capital, withdraws amount to Tk. 77,200.
Instructions: (1) Statement of affairs. (2) Deficiency Account.
Problem-3
Mr. Rahman filed his petition for insolvency on December 31, 2016. Prepare a Statement of affairs
and
Deficiency account from the following information given by him:
(i) His capital, Drawings and net loss were amounting to Tk. 17,000, Tk. 15,000 and Tk. 9,800
respectively.
(ii) Amount of accounts receivable was Tk. 10,000 of Tk. 8.000 considered good and the balance
estimated to produce Tk. 1,000.
(iii) Inventory (Book value Tk. 15.000) estimated to produce Tk. 9,000.
(iv) Machinery Book value Tk. 16,000 (cost Tk. 18,000) estimated to produce Tk. 11,000.
(v) Amount of bank overdraft Tk. 8,000 and mortgage loan Tk. 10,000.
(vi) Accounts payable of merchandise supplied Tk. 40,300 and outstanding salaries 500 for
employees.
(vii) Bill receivable Tk. 10,000 (expected to realise Tk. 4,000).
(viii) Mr. Rahman has a life assurance policy of Tk. 15.000 (whose surrender value Tk. 10,000) is held
by the banker against overdraft.
(ix) His household liabilities are amounting to Tk. 8,000 and value of house hold property other than
life
Assurance policy is Tk. 4,000.
Problem-4
Mrs. Sabira commenced business on January 1, 2014 with capital Tk. 50,000 at Khulna City
Corporation. Daring the Years she made profits Tk. 22,000. She made drew Tk. 10,000 per year. At
December 31, 2016, she became Insolvent. On that date her statement of affairs was as follows:
Account Titles Taka
Cash in hand 5000
Equipment (estimated to realise Tk. 20,000) 25,000
Stock (expected to realise 70%) 60,000
Mining share (estimated to produce Tk. 17.000) 15,000
Plant expected to realise Tk. 18,000) 27,000
Bills receivable (estimated to realise Tk. 6,000) 13000
Debtors (estimated uncollectible 4%) 20000
Creditors of which Tk. 18.000 is secured by plant 83,000
Salary due to a clerk (4 months) 2400
Bank loan (The loan is secured by stock to the extent of Tk. 50,000) 30000
Rent due to Landlord 600
Discounted bills (dishonored Tk. 4.500) 6,000
Bills payable (secured by life policy which surrender value-Tk. 17.000) 12000
Speculative Loss 5000
Realisation expenses Tk. 3.000. Mrs Sabira has a private building (estimated realisable value Tk.
2,00,000)
Required: (a) Statement of affairs: (b) Deficiency account.
Problem-5
Mr. Zia is declared insolvent on 31 December 2014 and his statement of affairs was as follows:
Accounts Titles Taka
Creditors for goods 74,500
Bills payable 5,000
Creditors secured by lien on shares 40,000
Creditors secured by lien on stock 25,000
Liability on bills discounted (Estimated to rank Tk. 3,000) 7.000
Creditors for rent, rates etc 3.500
Book Debts : Good 20,000
Bad & doubtful (Estimated to produced 50%) 10.000
Shares (Estimated to realize Tk. 16,000) 15.000
Stock (Estimated to realize 51,000) 80,000
Cash 1,500
Machinery (Estimated to realize Tk. 13,500) 18.000
Cottage (Estimated to realize Tk. 3,000) 6.800
On January 1, 6 years ago, he had a capital of Tk. 50,000.Profit made in the six years amounted to TX.
45,500 and loss Incurred amounted to Tk. 25,000 after allowing Tk. 2,500 P. a. interest on capital.
Withdrawals amounted to Tk. 77.200.
Requirements: Prepare a statement of affairs and deficiency account
Problem-6
Miss Samina filed her bankruptcy petition on 31-12-2018.
Name of Accounts Taka
Cash in hand 1,250
Stock (estimated to produce Tk. 20,000) 30,000
Bills payable 30,000
Fixtures (Present value Tk. 3,000) 4,000
Bank overdraft 20,000
Capital 34,250
Sundry debtors :
Good 20,000
Doubtful 20,000
Bad 30,000
Drawing 20000
Trade creditors 41,000
Liabilities on bills discounted Tk. 7,500 of which Tk. 3,000 is bad. Her household furniture was valued
Tk. 5,000 She owned a house valued at Tk. 15,000 having a mortgage on it of Tk. 10,000 at 10%
interest p.a. and interest for Last six months still payable. Preferential creditors of Tk. 1.000 included
in Trade creditors.
Required:
(a) Statement of Affairs
(b) Deficiency Accounts
Chapter 7: Accounting relating to bankruptcy

Insolvent: ১৯৯৭ , ক এ
ম এ ও ক
ক ক insolvent/ ।
Rule 1: Fully secured creditors: Fully secured creditors: ও ম
ম কছ (17%) ক ।ক ম ক ম ক 4% ক
।
Rule 2: partly secured creditors: ম কম।
Rule 3: preferential creditors: Salary ( ১ ২,০০০) Tax ও
ক ।
Rule 4: Unsecured creditors : ম ছ ।
Rule 5: Receiver fees: ম 4% এছ 10% (>10 lac)
Rule 6: ক ৩,০০,০০০ ক ম এ এ ক
২,৫০০ ম ।
Accounting Department 3rd Year
Advanced Accounting-1
অ -১: অ -৫: এ
১. । ( এএ -৮)
২. ওঅ ১. ।
খ ও। ২.
অ -২: খ
১. । ।
২. অ । অ -৬:অ
অ -৩: ( এএ -১৮) ( এ এ -৮)
১. ও ১. ও
খ । খ ও।
২. এ ২. ওঅ
। ।
৩. এ অ -৭:
। ১. ?
৪. ২.১৯৯৭ অ
? ।
অ -৪: ৩. এ
১. । ?
২. ওঅ । ৪. ? এ ?
৩. । ৫. " ঋ
৪. ও । "- খ ।
৬. অ অ
?
৭.১৯৯৭ ৬৬
অ ?

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Department: Accounting / Finance

The stockholders equity accounts of Shyamol Corporation on January 1,2016

Instructions: Record the transactions listed above in journal entry.

Sales revenue/operating Revenue : TK TK TK

sLess: operating expenses:

Net operating income/other income:

Preparation of cash flow statement

Cash flow from investing activities:

Cash flow from financing activities

Net increase / decrease in cash 14,700

SarifLicha which sales merchandise on installment basis :

2013 Taka 2014 Taka 2015 Taka

In 2015 abdul Monem Ltd agreed to construct a briedge at a price of Tk 1,00,00,000.

Details 2015 2016 2017

Chapter 3: Revenue recognition

Journal entries for construction :

3.2 calculation of gross profit recognize

Accounting for Leases

Chapter 4: accounting for lease

Lease amortization schedule

Date Beginning Annual Interest Principal Ending

Journal entries for lease transection (capital leases)

Transection Lessee Lessor

Accounting for leases

i. Lease fair value ( ম )

Accounting Changes and Error Analysis

Interest expense Dr. 15.000

Accounting for Operating Segments

Assets Beginning Balance Taka Ending Balance Taka

Liabilities and owner’s equity :

The company paid dividends of Tk. 5,000 last year.

Chapter 6: Accounting for operating segments

1/ ROI = Margin x turnover = X

Chapter 7: Accounting relating to bankruptcy

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