Principles of Accounting Midterm Summer 2026 Question Paper

1 (a) Explain the internal users of accounting data and interpret how accounting provides relevant data to these users. CLO-1, L-2: [1] (b) Can a business enter into a transaction in which only the left side of the basic accounting equation is affected? If so, illustrate with an example. CLO-1, L-2: [2] (c) Interpret the importance of Going Concern Assumption in preparing financial statements and explain the consequences if this assumption is not valid. CLO-1, L-2: [2] 2 Mr. Beta commenced business under the name Beta Trading on 1 May 2026. The following transactions occurred during the month of May 2026: | Date | Transactions | |---|---| | May 1 | Invested Tk. 1,500,000 cash in the business. | | May 5 | Opened a bank account in the name of the business and deposited Tk. 1,000,000. | | May 10 | Purchased inventory on credit from Karim Suppliers for Tk. 300,000. | | May 15 | Sold goods on account to Rafi Enterprise for Tk. 180,000. | | May 20 | Received Tk. 100,000 from Rafi Enterprise as partial settlement of the account. | | May 25 | Owner withdrew Tk. 40,000 cash for personal use. | | May 30 | Received Tk. 60,000 in advance from a customer for products to be provided next month. | Requirement: Apply the principles of double-entry accounting to a) Prepare the necessary journal entries for all transactions of Beta Trading for the month of May 2026; b) Post the journal entries to the appropriate ledger accounts; and c) Prepare a Trial Balance as at May 31, 2026. CLO-2, L-3: [10] 3 Trix started his own consulting firm, Matrix Consulting, on April 1, 2026. On April 30, the balance sheet showed Cash Tk. 500,000, Accounts Receivable Tk. 1,500, Supplies Tk. 500, Equipment Tk. 6,000, Accounts Payable Tk. 4,000, and Owner’s equity Tk. 504,000. During May, the following transactions occurred. | Date | Transactions | |---|---| | May-1 | Additional invested Tk. 1,000,000 cash in the business. |