0411-115 Final Solved Questions & Study Guide (Summer 2025)

0411-115 Principles of Accounting Final Exam Solved Questions — Summer 2025 (DIU BBA)

Introduction

Principles of Accounting (0411-115) is a foundational course in the BBA program at Daffodil International University (DIU), designed to equip students with essential accounting knowledge. This course covers key concepts such as accounting principles, adjusting entries, financial statements, and merchandising transactions—critical for future business leaders. The Summer 2025 final exam tests students' ability to apply these concepts in real-world scenarios, making it a pivotal assessment for DIU BBA students.

Practicing past exam questions is one of the most effective ways to prepare for the Principles of Accounting final exam. It helps students understand the exam format, identify recurring topics, and improve problem-solving speed. This solved guide provides step-by-step solutions to the Summer 2025 final exam paper, ensuring DIU BBA students can grasp complex accounting adjustments, financial statements, and transaction entries with clarity. Whether you're revising for the final or reinforcing classroom learning, this guide is tailored to boost your confidence and performance.

Exam Overview & Mark Distribution

The 0411-115 Principles of Accounting Summer 2025 final exam consists of three questions, covering theoretical concepts, adjusting entries, financial statements, and merchandising transactions. Below is the mark distribution:

• Question 1 (a & b): 5 marks (Theoretical explanations)
• Question 2 (i–vi): 27 marks (Adjusting entries, worksheet, financial statements, closing entries)
• Question 3: 18 marks (Merchandising transactions — truncated in OCR)

Solved Questions

Question 1(a): Explain different principles of accounting.

Answer:

Accounting principles are the guidelines and rules that govern financial reporting. Below are the key principles:

• Cost Principle: Assets should be recorded at their original purchase cost, not market value.
• Revenue Recognition Principle: Revenue is recognized when earned, not necessarily when cash is received.
• Matching Principle: Expenses must be matched with revenues in the same accounting period.
• Full Disclosure Principle: All relevant financial information must be disclosed in financial statements.
• Consistency Principle: Businesses should use the same accounting methods across periods for comparability.

These principles ensure accuracy, transparency, and consistency in financial reporting.

Question 1(b): Describe briefly the following:

i) Economic Entity Assumption

Answer:

The economic entity assumption states that a business's financial activities must be kept separate from its owner's personal finances. For example, a DIU BBA student running a small business should not mix personal expenses (e.g., groceries) with business expenses (e.g., office supplies).

ii) Accrued Revenue

Answer:

Accrued revenue is income earned but not yet received in cash. For example, if a company provides services in September but receives payment in October, the revenue is recorded in September under accounts receivable.

iii) Compound Entry

Answer:

A compound entry is a journal entry that affects three or more accounts. For example, a transaction involving cash, accounts receivable, and service revenue would require a compound entry to record all effects accurately.

Question 2: Malaika Company Adjusting Entries & Financial Statements

(i) Prepare the adjusting entries.

Steps & Answer:

1. Prepaid Insurance:

- Expired insurance = Tk. 1,800 (annual) × 3/12 = Tk. 450

- Adjusting Entry:

```

Insurance Expense 450

Prepaid Insurance 450

```

1. Supplies:

- Used supplies = 70% of Tk. 1,500 = Tk. 1,050

- Adjusting Entry:

```

Supplies Expense 1,050

Supplies 1,050

```

1. Depreciation:

- Monthly depreciation = Tk. 200 × 3 months = Tk. 600

- Adjusting Entry:

```

Depreciation Expense 600

Accumulated Depreciation 600

```

1. Interest on Note Payable:

- Interest = Tk. 24,000 × 5% × 1/12 = Tk. 100

- Adjusting Entry:

```

Interest Expense 100

Interest Payable 100

```

1. Unearned Service Revenue:

- Earned revenue = 60% of Tk. 6,000 = Tk. 3,600

- Adjusting Entry:

```

Unearned Service Revenue 3,600

Service Revenue 3,600

```

(ii) Prepare the worksheet.

Steps:

1. Unadjusted Trial Balance: Copy the given trial balance.
2. Adjustments: Add the adjusting entries from part (i).
3. Adjusted Trial Balance: Combine unadjusted balances with adjustments.
4. Income Statement & Balance Sheet Columns: Extend adjusted balances to respective columns.

*(Note: A full