Principles of Accounting Midterm Spring 2026 Question Paper

Semester: Spring-2025 Time: 1.5 Hours Course Code: 0411-115 Section: 68-A/68-B/68-C/68-D Examination: Mid-term Course Title: Principles of Accounting Teacher's Name: DSFA/MAH Answer all the Questions Ons. 1: (a) Explain the assumptions of accounting. (b) Describe the following short notes: [CLO 1 and Level 2] (2] [CLO 1 and Level 2] [3] Simple entry, Cash basis accounting, Prepaid expense Ons. 2: On April 1, 2024, Arhaan established his own consulting firm "Arhaan Solution". The following transactions occurred during the month of April: April 1 Arhaan invested Tk.80,000 cash in the business. April 3 Purchased supplies of Tk.5,000 (40% paid in cash). April 8 Performed services of Tk.10,000 on account. April 12 Incurred Tk. 2,000 of advertising expense in "The Daily Prothom-Alo' on account. April 17 Received cash of Tk.4,500 for services performed on account on April 8. April 22 Performed services of Tk.6,500 for cash. April 24 Arhaan invested an additional Tk.25,000 cash in the business. April 26 Borrowed Tk. 15,000 cash from Prime Bank by signing a note. April 29 Paid Tk.3,500 for utilities. April 30 Paid Tk.1,500 for rent. Instructions: (i) Examine the above transactions in preparing a tabular summary. [CLO 3 and Level 4] (10] (i) Use the information of tabular summary in preparing Income Statement, Owner's Equity Statement and Statement of Financial Position. [CLO 2 and Level 3] [3] Ons. 3: Mr. Adyan started a law firm on March 1, 2024. During the month of March, the following transactions took place: March 1 Adyan started the business with Tk.70,000 cash. March 7 Purchased furniture of Tk.5,000 on account. March 13 Received cash of Tk. 8,000 from customers when service was performed. March 21 Paid salaries expenses of Tk.1,000. March 25 Paid Tk.2,000 to the accounts payable. Instructions: (i) Use the transactions in preparing the journal entries. (ii) Use the journal entries in preparing the ledger accounts. (ili) Use the ledger accounts in preparing a trial balance at March 31, 2024. [CLO 2 and Level 3] 13] [3] 11] ***All the Best***