Principles of Accounting Spring 2025 MID

Daffodil International University Faculty of Business & Entrepreneurship Department of Business Administration Semester: Spring-2025 Time: I.S Hours Course Code: Section: 68.A/68.B/68-C/68.D Program: Examination: Mid-term Full Marks: 2S Course Title: Principles of Accounting Teacher's Name: D.SFMMAII ,Answcr all tt'C Ouestipns (a) Explain the assumptions of accounting. (b) Describe the following short notes: Simple entry, Cash basis accounting, prepaid expense [CLO 1 and l.cvc121 121 ICI„O I and Level 21 131 Qns. 2: On April l, 2024, Arhaan established his own consulting firm "Arhaan Solution". The following transactions occurred during the month of April: April I April 3 April 8 April 12 April 17 April 22 April 24 April 26 April 29 April 30 Arhaan invested Tk.80,000 cash in the business. Purchased supplies of Tk.5,000 (40% paid in cash). Performed services of 1k.10,000 on account. Incurred of advertising expense in 'The Daily Prothom-Alo' on account. Received cash of '1k.4,500 for services performed on account on April 8. Performed services of Tk.6,500 for cash. Arhaan invested an additional Tk.25,OOO cash in the business. Borrowed Tk. 15,000 cash from Prime Bank by signing a note. paid for utilities. Paid Tk. 1,500 for rent. Instructions: (i) Examine the above transactions in preparing a tabular summary. [CL03 and Level 4] 1101 (ii) Use the information of tabular summary in preparing Income Statement, Owner's Equity Statement and Statement of Financial Position. [CLO 2 and Level 31 131 Mr. Adyan started a law firm on March I , 2024. During the month Of March, the following transactions took place: March Adyan started the business with 1k 70,000 cash. March 1 Purchased furniture of •1k.5 ,OOO on account. March 13 Received cash of "1k 8,000 frotn Customers when service was performed. March 21 Paid salaries expenses Of March 25 paid to the accounts payable. ICL02 and Level 3] (i) Use the transactions in preparing the journal entries. (ii) journal entries in preparing the ledger accounts. (iii) Se the ledger accounts in preparing a trial balance at March 31, 2024. •••,UI the Best•••