Principles of Accounting Final Fall 2025 Question Paper

Qns. 1: Describe briefly the following: [CLO 1 and Level 2] [5*1=5] i) Going concern assumption, ii) Revenue recognition principle, iii) Periodic inventory system, iv) Permanent account, v) Zero balance Qns. 2: Arhaan Company started operation at April 1, 2025. The trial balance of the company before adjustment was as under: Arhaan Company Trial Balance April 30, 2025 | Accounts Title | Debit (Tk.) | Credit (Tk.) | | :------------- | :---------- | :----------- | | Cash | 62,000 | | | Accounts Receivable | 8,500 | | | Prepaid Insurance | 4,800 | | | Supplies | 2,500 | | | Machine | 30,000 | | | Notes Payable | | 22,500 | | Accounts Payable | | 6,000 | | Unearned Service Revenue | | 8,500 | | Owner's Capital | | 51,000 | | Owner's Drawing | 2,000 | | | Service Revenue | | 32,000 | | Salaries Expenses | 5,300 | | | Utilities Expense | 1,700 | | | Repair Expense | 2,200 | | | Rent Expense | 1,000 | | | Total | 1,20,000 | 1,20,000 | Additional data: * Prepaid insurance represents a one-year policy that started on April 1, 2025. * A count of supplies shows that Tk.1,500 of supplies have been used. * Annual depreciation on machine is Tk.3,000. The machine was purchased on April 1, 2025. * Interest of Tk.700 on the notes payable has accrued during April. * 20% of unearned service revenue has been earned. Requirements: (i) Examine the above information in preparing the adjusting entries. [CLO 3 and Level 4] [5] (ii) Use the above information in preparing the worksheet. [CLO 2 and Level 3] [10] (iii) Use the information of worksheet in preparing an Income Statement. [CLO 2 and Level 3] [2] (iv) Use the information of worksheet in preparing an Owner's Equity Statement. [CLO 2 and Level 3] [2] (v) Use the information of worksheet in preparing a Classified Balance Sheet. [CLO 2 and Level 3] [4] (vi) Use the information of worksheet in preparing the closing entries. [CLO 2 and Level 3] [2] Ons. 3: In March 2025, Azmery Store completed the following merchandising transactions: | March 1 | Purchased merchandise on account from Rohan Store of Tk.25,000, terms 3/10, n/40. | | :------ | :---------------------------------------------------------------------------------- | | March 4 | Sold merchandise on account to Rahat Distributions of Tk.18,000, terms 2/10, n/30. The cost of the merchandise sold was Tk.10,000. | | March 9 | Paid Rohan Store. | | March 12 | Received amount from Rahat Distributions. | | March 15 | Purchased merchandise for cash of Tk.5,000. | Requirement: Use the above transactions in preparing the journal entries under perpetual inventory system. [CLO 2 and Level 3] [5] Qns. 4: Mr. Adyan opened his own legal firm "Adyan Solution" on August 1, 2025. During August, the following transactions occurred: | August 1 | Adyan invested Tk.90,000 cash to start the business. | | :------- | :-------------------------------------------------- | | August 3 | Purchased furniture of Tk.30,000, paying Tk.22,000 cash and the balance on account. | | August 13 | Received cash of Tk.5,000 for providing legal services to the clients. | | August 18 | Incurred utilities expense of Tk.1,500 on account. | | August 21 | Paid Tk.2,000 to purchase supplies. | | August 24 | Paid Tk.500 cash to the accounts payable. | | August 30 | Paid Tk.1,000 for salaries. | Requirement: Examine the above transactions in preparing a tabular summary. [CLO 3 and Level 4] [5]