Asi Bba182 8ais 050819
Asi Bba182 8ais 050819
Asi Bba182 8ais 050819
2. Orchard carried on trade as a fruit grower and a canner. On December 31,2017 the trial
balance extracted from his book was as follows (Taka in thousand).
Particulars Dr. Cr. Particulars Dr. Cr.
Orchard: Capital (1.1.2017) 13,500 Bought Ledger balances:
Drawings 1200 Farm 200
Freehold land and premises at cost 14,900 Cannery 740
Sales during the year 800 Purchases:
Plant and machinery at cost: Farm 250
Farm 1,900 Cannery 1,210
Cannery. 4,800 Wages:
Purchases of plant and machinary Farm 1,600
less sale during the year 500 Cannery 2,400
Provisions for depreciation: Sales:
Farm 1,100 Farm 530
Cannery 1,640 Cannery 9,950
Fruit trees and bushes at cost 800 Trade expenses 920
Stock (1.1.2017) Administration and motor
farm 400 expenses (including loan
Cannery 1,650 interest to Sept. 30, 2017 584
Loan at 6% (interest payable on 800 Repairs:
March 31 and September 30) Farm 80
Blance at bank 864 Cannery 360
Sales ledger balances 642 Salaries 1,400
____________
36,460 36,460
You are instructed to prepare the accounts and are given further information as follows:
(a) Provision is to be made for depreciation for the year of plant and machinery on cost at
the end of the year at the rate of 10 per cent in the case of the farm and 71/1 per cent in
case of the cannery.
4. (a) What do you mean by Royalty? Why the Minimun Rent Account is books of the lessee?
(b) On Ist January 2017, J. Colliery purchased one car from Gazipur Motor Ltd. The cash
down price of the car was Tk. 50,000. It was agreed that Tk.5,000 would be paid on
signing the agreement and the balance by 4 equal annual instalments of Tk. 12,500 each
commencing from 31st December 2017, Colliery Company closes its books on 31st
BBA 8335_182_QGA Page # 2
December. Depreciation is charged on car @ 10% p.a. on the Diminishing Balance
Method.
Required:
Show the necessary Ledger Accounts in the books of Gazipur Motors Ltd. for 4 year.
(c) On 1st January, 2009. Model Industries Ltd. purchased a machine from Ideal Machineries
Ltd, under hire putchase agreement. The terms were that Tk. 4,780 would be paid on
delivery, that is on 1stJanuary 2009, and the balance in three consecutive yearly
instalments of Tk. 9,261 each, payable on 31st December each year. The instalments
included interest @ 5% per annum on the balance of the cash down price due.
Required:
Calculate the cash down price of the machine and show the Machinery Account
(assurming depreciation was charge @ 10% under the Reducing Balance Method) and
the account of Ideal Machineries Ltd. in the books of Model Industries Ltd.
(a) Administrative expenses include Tk. 6,000 paid to the managing director, as an advance
against his remuneration.
(b) Sinking fund is to be credited with Tk. 20,000 which together with the interest received
would be invested on 1st April, 2012.
(d) At meeting held on 25th February, 2012 the board of directors decided to allot one fully –
paid bonus share against two shares held by members who are not in default in payment
of calls. This was sanctioned by the members on 18th March, 2012, but no effect has
been given to it.
(g) Out of the total amount due from the customers, Tk. 40,000 has been outstanding for
more than six months. All the outstandings are considered good.
(h) Depreciation may be written off at the rates mentioned below: Building-2 / 1/2%, Plant-
15%; and Furniture-10%.
Required:
Prepare the Profit and Loss Account for the your ended 31st March, 2012 and a Balance
Sheet as at that date.
2. Following are the Balance Sheet of A Ltd and B Ltd as on March 31, 2019:
Additional information:
(a) A Ltd acquired 8,000 equity shares in B Ltd on 1.4. 2017. On that date. B Ltd had
Tk. 40,000 in profit and Loss Account and Tk. 40,000 in General Reserve.
(b) B Ltd declared on 1.7.2017 10% dividend for 2016-17 and 15% dividend on
1.8.2018 for 2017-18. A Ltd credited its share of both the dividends to Investment in
B Ltd Account.
(c) Further on 1.8.2018 B Ltd declared bonus dividend in the ratio of one for four beld
out of balance in General Reserve pm 1.4.2018. Though A Ltd rightly treated its
(d) On 1.4.2018 B Ltd purchased plant and machinery for Tk. 60,000 from A Ltd which
yielded a profit of 20% on selling price to A Ltd charges 10% depreciation on its
Plant and machinery.
(e) The entire bills payable of B Ltd represent bills accepted in favor of A Ltd.
(f) Liability for expenses not given effect in the books of a Ltd. amounts to Tk. 25,000.
Required:
Prepare Consolidated Balance Sheet in the books of A Ltd on 31.3.2019.
3. Negotiation is going on for transfer of X Ltd, on the basis of the Blance sheet and the additional
information as given Blance sheet of X Ltd as on 31st March, 2012.
Liabilities Tk. Assets Tk.
Share Capital (Tk. 10 fully paid-up 10,00,000 Goodwill 1,00,000
shares) Land and Building 3,00,000
Reserve and surplus 4,00,000 Plant and Machinery 8,00,000
Sundry Creditors 3,00,000 Investments 1,00,000
Stock 2,00,000
Debtors 1,50,000
Cash and Bank 50,000
_______ ________
17,00,000 17,00,000
Profit before tax for 2011-12 amounted to Tk.6,00,000 including Tk.10,000 as interest on
investment. However, an Additional amount of Tk.50,000 p.a. shall be required to be spent for
smooth running of the business.
Markt values of Land and Buildings and plant and Machinery are eslimated at Tk. 9,00,000 and
Tk. 10,00,000 consideration.
Income tax rate may be taken at 50% Return on capital at the rate of 20% before tax be considered
normal for this business at the present stage.
For the purpose of determining the rate of retun, profit for this year after the aforesaid adjustment
may be taken as expected average profit. Similarly, average trading capital employed is also to be
considered on the basis of the position in this year. It has been agreed that four years purchase of
super profit shall be taken as the value of goodwill for the purpose of the deal.
Required:
Questions
1. Square Consumers Ltd. has supplied the following data from its activity-based costing system:
Overhead Costs
Wages and salaries………………………… Tk. 300,000
Other overhead costs………………………. 100,000
Total overhead costs………………………. 400,000
Activity Cost Pool Activity Measure Total Activity for the Year
Supporting direct labor……… Number of direct labor-hours 20,000 DLHs
Order processing ……………. Number of customer orders 400 orders
Customer support…………… Number of customers 200 customers
Other This is an organization sustaining Not applicable
activity
During the year, Square Consumers Ltd completed one order for a new customer, Beximco Ltd. This customer
did not order any other products during the year. Data concerning that order follow:
2. Akash Bari Tours operates day tours of river Meghna Estuary in Chandpur on its tour boat the MV Sonar
Tori. Management has identified two cost drivers—the number of cruises and the number of passengers—
that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises
that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers can be
accommodated on the tour boat. Data concerning the company’s cost formulas appear below:
For example, vessel operating costs should be Tk.5,200 per month plus Tk.480 per cruise plus Tk.2 per
passenger. The company’s sales should average Tk.25 per passenger. In July, the company provided 24
cruises for a total of 1,400 passengers.
Required:
Prepare the company’s flexible budget for July.
3. Selected sales and operating data for three divisions of different structural engineering firms are given as
follows:
Required:
i. Compute the return on investment (ROI) for each division using the formula stated in terms of margin
and turnover.
ii. Compute the residual income for each division.
iii. Assume that each division is presented with an investment opportunity that would yield a 15% rate of
return.
a. If performance is being measured by ROI, which division or divisions will probably accept
the opportunity? Reject? Why?
b. If performance is being measured by residual income, which division or divisions will
probably accept the opportunity? Reject? Why?
Instructions
Answer the all questions in your own handwriting on A4 size white paper.
Fill-in the cover page of your assignment with care.
Enclose the photocopy of your ID Card with the assignment (next to the cover page).
Don’t make spiral binding. Instead, make soft binding.
Submit the assignment to the respective course tutor and ensure his/her signature on your
Assignment Acknowledgement Form (see page#5 of Semester Calendar).
Questions
1. Ramna Food produces three products—A, B, and C. Data concerning the three products follow (per unit):
Product
A B C
Selling price Tk. 80 Tk. 56 Tk. 70
Variable expenses:
Direct materials 24 15 9
Other variable expenses 24 27 40
Total Variable Expenses 48 42 49
Contribution margin 32 14 21
Contribution margin ratio 40% 25% 30%
The company estimates that it can sell 800 units of each product per month. The same raw material is used
in each product. The material costs Tk.3 per kg with a maximum of 5,000 kg available each month.
Required:
1. Calculate the contribution margin per kg of the constraining resource for each product.
2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second?
Third?
3. What is the maximum contribution margin that the company can earn per month if it makes optimal use
of its 5,000 kg of materials?
2. Alif Company wants to use absorption cost-plus pricing to set the selling price on a new product. The
company plans to invest Tk. 200,000 in operating assets to produce and sell 16,000 units. Its required
return on investment (ROI) in its operating assets is 18%. The accounting department has provided cost
estimates for the new product as shown below:
Required:
i. What is the unit product cost for the new product?
ii. What is the markup percentage on absorption cost for the new product?
iii. What selling price would the company establish for its new product using a markup percentage on
absorption cost? (Round your answer to the nearest Taka)
3. Saleh Company makes two products and uses a traditional costing system in which a single plant wide
predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming
year follow:
A B
Direct materials cost per unit Tk. 13.00 Tk. 22.00
Direct labor cost per unit Tk. 6.00 Tk. 3.00
Direct labor-hours per unit 0.40 0.20
Number of units produced 20,000 80,000
These products are customized to some degree for specific customers.
Required:
(i) The company’s manufacturing overhead costs for the year are expected to be Tk.567,000. Using the
company’s traditional costing system; compute the unit product costs for the two products.
(ii) Management is considering an activity-based costing system in which half of the overhead would continue to
be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering
design time. This time is expected to distribute as follows during the upcoming year:
A B Total
Engineering design time (in hours) 3,000 3,000 6,000
(iii) Compute the unit product cost for the two products using the proposed ABC system.
(iv) Explain why the product costs differ between the two systems.
Questions
(b) Apex Corporation was organized on January 3, 2017, subsequent to the sale of
capital stock for Tk. 60,000 cash. Shortly thereafter , the following transactions
occurred:
Instructions
Answer the all questions in your own handwriting on A4 size white paper.
Fill-in the cover page of your assignment with care.
Enclose the photocopy of your ID Card with the assignment (next to the cover page).
Don’t make spiral binding. Instead, make soft binding.
Submit the assignment to the respective course tutor and ensure his/her signature on
your Assignment Acknowledgement Form (see page#5 of Semester Calendar).
Questions
1. a. What are the types of data? Mention the methods of collecting data.
b. What are the types of survey research? How to design an appropriate survey
research?
c. What is pre-testing? Why it is important in survey research?
2. a. What are the levels of scale measurement? Mention the criteria for good
measurement.
b. Mention the techniques for measuring attitudes.
c. Describe the guidelines for constructing a good questionnaire.