2017-06 ICMAB FL 001 PAC Year Question JUNE 2017
2017-06 ICMAB FL 001 PAC Year Question JUNE 2017
2017-06 ICMAB FL 001 PAC Year Question JUNE 2017
Q. No.1
The account balances taken from the ledger of United Motors Ltd. On December 31, 2016 are
given below:
Accounts Receivable 431,000 Capital – Unique Motors Ltd. 975,500
Notes Receivable 122,000 Accounts Payable 210,240
Cash 710,500 Notes Payable 112,000
Inventory 55,000 Sales 178,750
Unexpired Insurance 800 Interest Income 3,000
Purchase 110,350 Foreign Loan 40,860
Freight in 3,400 Allowance for bad debt 1,500
Delivery expenses 3,400 Accumulate depre-Computer 8,200
Sales salaries 18,000 Accumulate depre-Equipment 7,800
Rent 3,600 Computer 42,000
Interest expenses 2,000 Equipment 15,800
Office expenses 20,000
Adjustments:
(a) Inventory on December 31, 2016 was taka75,000
(b) The Allowance for bad debts are to be increased to taka 2,000
(c) Accrued delivery expenses amounted to taka 500
(d) Sales salaries accrued amounted to taka 2,500
(e) Office supplies on hand taka 5,520
(f) Depreciation – Computer – 8%, Equipment – 10% p.a.
(g) Taka 3,000 is reported as interest income from which taka 1,200 is unearned
(h) Taka 2,000 is reported as interest expenses of which taka 500 represents a payment for
the year 2017
Required:
(i) Prepare a ten column work sheet.
(ii) Show necessary adjustment entries.
[Marks: (15+5) = 20]
Q. No. 2
(a) “Anticipate no profit, provide for all possible losses” – Explain.
(b) On January 1, 2016, Kloppenberg Company had Accounts Receivable TK. 39,000, Notes
Receivable Tk.25,000, and Allowance for Doubtful Accounts Tk.13,200.The note
receivable is from Sara Rogers Company. It is a 4-month, 12% note dated December 31,
2015. Kloppenberg Company prepares financial statements annually. During the year the
following selected transactions occurred.
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CMA JUNE, 2017 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 001. PRINCIPLES OF ACCOUNTING
Q. No. 2 (cont’d………)
Apr. 30 Received payment in full from Sara Rogers Company on the amount due.
May 25. Accepted Jenks Inc.’s Tk.4,000, 3-month, 7% note in settlement of a past-due
balance on account.
Aug. 18 Received payment in full from Ludwig Company on note due.
Aug. 25 The Jenks Inc. note was dishonored. Jenks Inc. is not bankrupt; future payment is
anticipated.
Sept. 01 Sold Tk.12,000 of merchandise to Lena Torme Company and accepted a
Tk.12,000, 6-month, 10% note for the amount due.
Required:
Journalize the transactions.
[Marks: (5+15) = 20]
Q. No. 3
(a) Jamuna Trading Company uses a perpetual inventory system. The Company has the
opening inventory, purchases and sales data for the month of March 2016 as under:
Tk.
Inventory March 01 200 units @ Tk. 4.00 800.00
Purchases: March 10 500 units @ Tk. 4.50 2,250.00
March 20 400 units @ Tk. 4.75 1,900.00
March 30 300 units @ Tk. 5.00 1,500.00
Sales March 15 500 units
March 25 400 units
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CMA JUNE, 2017 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 001. PRINCIPLES OF ACCOUNTING
Q. No. 4 (cont’d………)
(vi) A bank memo statement stated that notes receivable for Tk. 2,500 and interest of
Tk. 75 had been collected on June 28 and the bank had made a charge of Tk. 25.
(No entry had been made on the books when sent to the bank for collection)
(vii) Cheques outstanding on June 30 were Tk. 12,308.
(viii) Receipts of June 30 for Tk. 6,850 were deposited July 02.
Required:
(i) Prepare a bank reconciliation statement using the form where both bank and book
balance is brought to corrected cash balance.
(ii) Give necessary journal entries in United Motor’s book.
[Marks: 5+(10+5) = 20]
Q. No. 5
(a) What is Intangible Asset and Wasting Asset? Explain.
(b) United Motors Ltd. reported the following as plant assets on December 31, 2015:
= THE END =
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