CMA December 2009 Exam Questions

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA DECEMBER 2009 EXAMINATION

FOUNDATION LEVEL (NEW)
SUBJECT : 001. PRINCIPLES OF ACCOUNTING.
Time : Three hours
100
All questions are to be attempted.
Show computations, where necessary.
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
Full Marks :
Q. No. 1.
As on December 31, 2001 the end of annual accounting period, the trial balance of the ledger of
Mahmud Store are as follows:
MAHMUD STORE
TRIAL BALANCE
DECEMBER 31, 2001
Sl. No.
Name of Accounting
Debit Tk.
Credit Tk.
1
Cash
90,000
2
Accounts Receivable
166,000
3
Merchandise inventory
300,000
4
Purchase
3,310,000
5
Prepaid Insurance
38,000
6
Store Equipment
800,000
7
Accumulated D/P Store Equipment
170,000
8
Accounts Payable
190,000
9
Mahmud Capital
900,000
10
Mahmud drawings
220,000
11
Sales
4,830,000
12
Sales Return & allowances
150,000
13
Sales Discount
72,000
14
Purchase Return & allowances
100,000
15
Purchase Discount
64,000
16
Freight in
122,000
17
Freight out
75,000
18
Advertising expenses
155,000
19
Rent expenses
200,000
20
Salaries expenses
395,000
21
General expenses
165,000
22
Vat current account
4,000
Total
6,258,000
6,258,000
Additional information:
(a)
Merchandise inventory on hand at December 31, 2001 is Tk. 395,000.
(b)
Merchandise in transit at December 31, 2001 costing Tk. 5,000, which was shipped by a
supplier under the terms F.O.B Shipping point and recorded as purchase but not included in
ending Merchandise inventory.
(c)
Insurance expired during the period is Tk. 20,000.
(d)
Salaries accrued but not paid Tk. 10,000.
(e)
Depreciation expenses are changed during the period was Tk. 80,000.
(f)
General expenses include Tk. 15,000 for utilities, which is to be treated as selling expenses.
Required:
(i)
Multiple Income Statement.
(ii)
Owners Equity Statement.
(iii)
Balance Sheet.
[Marks : (10+3+7) = 20]
Q. No. 2.
(a)
(b)
Distinguish between perpetual and periodic inventory system.

D & E Company has the following inventory, purchases and sales for the month of March,
2008
Inventory March 1
200 units @ Tk. 4.00
Tk. 800
Purchase March 10
500 unit @ Tk. 4.50
Tk. 2,250
Purchase March 20
400 unit @ Tk. 4.75
Tk. 1,900
Purchase March 30
300 unit @ Tk. 5.00
Tk. 1,500
Sales March 15
500 units
Sales March 25
400 units
The physical inventory count on March 31, 2008 shows 500 units on hand.
Required:
Under periodic inventory system, determine the cost of inventory on hand at March
31, 2008 and cost of goods sold for March under the (a) First in First out (FIFO) method
(b) Last in First out (LIFO) method and (c) weighted average cost method.
1
[Marks : {5+(5x3)} = 20]

SUBJECT : 001. PRINCIPLES OF ACCOUNTING
Q. No. 3.
S. A. Merchant maintains two bank accounts No.-1 account is his business account and No.-2
account is his private account. On June 30, 2006, there was a balance of Tk.890 outstanding to his
credit in No.-1 account.
It is discovered that:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
The receipt column of the cash book has been overcast by Tk.1,000.
Cheques outstanding to Tk.3,760 entered in the cash book as paid into the bank have not
been cleared.
Cheques issued amounting to Tk.5,230 have not been presented.
Discount allowed Tk.110 has been included through mistake in the cheque entered in the
bank column of the cash book.
A trade credit note Tk.290, was received in June, 2006, but not recorded in the books.
A cheque for Tk.100, originally issued in 2005 was replaced when out of date and entered
again in the cash book. It was still outstanding (and not out of date) on June 30, 2006. Both
the cheques were included in the total of unpresented cheques Tk.5,230.
The bank has charged the No-2 account with a cheque for Tk.2,000 in error. This should have
been charged to No.-1 account.
Requirements:
(i)
Make the appropriate correction/adjustment in the cash book.
(ii)
Prepare a bank reconciliation statement to show the bank balance as per No.-1 account.
[Marks: (5+15) = 20]
Q. No. 4.
The following selected transactions relate to ABC Company:
March-1:
Sold on credit Tk.20,000 to Aziz Brothers Terms 2/0, n/30.
March-11:
Received payment in full from Aziz Brothers for balance due.
March-12:
Accepted Juno Companys Tk.20,000; 6 months 12% note for balance due.
March-13:
Made ABC Company Credit Card sales for Tk.13,200.
March-15:
Made American Express Credit Card sales totaling Tk.6,700. A 5% service fee is
charged.
March-30:
American express company made full payment.
April-11:
Sold Accounts Receivable of Tk.8,000 to XYZ factor. They take a service charge of 2%
of the account of receivables sold.
April-13:
Received collections of Tk.8,200 on ABC Company credit card sales and added finance
charges of 1.5% on the remaining balances.
May-10:
Wrote off as uncollectible Tk.16,000 of Accounts Receivable. ABC uses the percentage
of sales as basis to estimate bad debts.
June-30:
Credit sales for the first six months total Tk.20,00,000. The bad debts percentage is
1% of credit sales. At June 30, the balance in the allowance account is Tk.3,500.
July-16:
One of the accounts receivable written off in May was from Mr. Salim who pays the
amount due Tk.4,000 in full.
Required:
Prepare the journal entries for the above transactions.
[Marks: 20]
Q. No. 5.
(a)
(b)
(c)
(d)
(e)
Distinguish between Capital Expenditure & Revenue Expenditure.

Distinguish between Cash basis Accounting & Accrual basis Accounting.
Distinguish between current and non-current liabilities.
Explain the concept of business entity and going concern.
Depreciation is a process of allocating cost for wear and tear, not a process of valuation
Explain.
[Marks: (4x5) = 20]
==THE END==

CMA DECEMBER-2009 EXAMINATION
SUBJECT: 002-BUSINESS COMMUNICATION AND OFFICE MANAGEMENT
Time:
Three hours
Full Marks:100
Answer any THREE questions from each part, where Q. No. 4 and 8 are compulsory.
Use a fresh sheet for answering each question.
All questions must be answered in English.
PART A: BUSINESS COMMUNICATION

Q. No. 1.
(a)
An effective communication is the key to success Discuss.
(b)
What are the barriers of effective communication?
(c)
Differentiate between internal and external communication with examples.
[Marks: (5+5+5) = 15]
Q. No. 2.
(a)
Define Business report.
(b)
What are the steps to be followed in writing a successful report?
(c)
Draft a statutory report of a company for presenting the same to the share holders meeting.
[Marks: (3+5+7) = 15]
Q. No. 3.
(a)
Draft a Notice for holding the Annual General Meeting of a publicly listed Company.
(b)
Draft an introductory letter to a new prospect highlighting your interest to make a business
relation with them.
(c)
Write a letter to the Register of Joint Stock Company to allow three months time extension to
hold the AGM of your Company.
[Marks: (5+5+5) = 15]
Q. No. 4.
Write short notes on any FIVE of the following:
(a) Credit Rating
(b) Extra Ordinary General Meeting
(c) Proxy to AGM
(d) I.P.O.
(e) Automated teller machine (ATM)
(f) Bonded warehouse
(g) World Bank
(h) Capital Market
(i) Independent Director of a listed Company
[Marks: (4 5) = 15]
PART B: OFFICE MANAGEMENT
Q. No. 5.
(a)
What is the objective of office Management?
(b)
Discuss the Major functions of office Management.
(c)
Discuss the principles of scientific office Management
[Marks: (3+6+6) = 15]
Q. No. 6.
(a)
What do you mean by selection of office location?
(b)
What are the factors to be considered in selecting office building site?
(c)
Discuss the effects of the office environment on Employees.
[Marks: (3+6+6) = 15]
Q. No. 7.
(a)
How do you define office employee.
(b)
Relationship between employer and employee of an organization is must. Do you agree
with this comment? Why?
(c)
Discuss the methods of scientific filing system of office record.
[Marks: (3+6+6) = 15]
Q. No. 8.
Write short notes on any five of the followings:
(a)
Mobile Banking
(b) Business ethics
(c)
Co-ordination of office management
(d) Office decoration.
4
(e)
(g)
Job rotation of office work.

Share market
(f) Record Management program.

[Marks: (5 4) = 20]
= THE END =
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF

BANGLADESH
CMA DECEMBER-2009, EXAMINATION
SUBJECT: 003. QUANTITATIVE TECHNIQUES.
Time: Three hours
Answer any TEN questions, FIVE from each part.
All questions carry equal marks; the notations refer to usual meanings.
Full Marks:100
PART A : BUSINESS MATHEMATICS

Q. No. 1.
(a)
In a survey of 400 students in a school, 100 were listed as smokers and 150 were chewers of
gum; 75 were listed as both smokers and gum-chewers. Find out how many students were
neither smokers nor gum-chewers.
(b)
If the roots of the quadratic equation ax2 + bx + c = 0 are in the ratio m : n, prove that
(m+n)2ac = b2mn.
[Marks: (5+5) = 10]
Q. No. 2.
(a)
If A = {1, 4}, B= {4, 5}, C= {5, 7}, verify that A (BC) = (AB) (AC)
(b)
In how many ways can the letters of the word ARRANGE be arranged? How many of these
arrangements are there in which(i)
the two Rs come together,
(ii)
the two Rs do not come together,
(iii) the two Rs and the two As come together?
[Marks: (5 + 5) = 10]
Q. No. 3.
(a)
Solve the following system of the two linear equations and express it by a graph.
2x + y 11 = 0
3x + 5y 27 = 0
(b)
In how many months it will take at 10% compounded quarterly of a year for Tk. 5,000 to
grow to Tk. 20,000.
[Marks: (5 + 5) = 10]
Q. No. 4.
(a)
If the equations x2 + px + q = 0 and x 2 + qx + p = 0 have a common root, show that their
other roots are the roots of the equation x2 + x + pq = 0.
(b)
How many different words each consisting of 3 consonants and 2 vowels, can be formed out
of 12 consonants and 5 vowels, the letters of the words being all different?
[Marks: (5 + 5) = 10]
Q. No. 5.
(a)
Find the equation of the straight line passing through the intersection of the lines 4x 3y 1
=
0,
2x 5y + 3 = 0 and parallel to the line 4x + 5y = 6.
(b)
Prove that (i) log 2 log
log 3 81 = 2 and
(ii) 2log(x+y) = logx + logy + 3log2
if x2+y2 = 6xy.
[Marks: (5 + 5) = 10]

Q. No. 6.
(a)
Find the inverse of the matrix A where:
A =
4
0
(b)
3
2
10 9
2
1
A businessman invest Tk.50,000 at 6% compounded semi-annually. Find the compound

interest and compound amount after 3 years.
[Marks: (5 + 5) = 10]
Q. No. 7.
(a)
If y = (x3+3) log(2x+1), find
dy
.
dx
(b) If x3 3x2y + 2y2 5 = 0, find
dy
.
dx
[Marks: (5 + 5) = 10]
PART B: BUSINESS STATISTICS

Q. No. 1.
(a)
Distinguish between Karl Pearsons and Bowleys co-efficient of Skewness.
(b)
You are given the following data pertaining to kilowatt hours of electricity consumed by 100
persons in Dhaka city:
Consumption (kwh)
No. of users
Calculate:
0 - 10
6
(i) Arithmetic mean
10 20
25
(ii)
20 30
36
30 40
20
40 50
13
Standard deviation
[Marks : (4+6) = 10]

Q. No. 2.
(a)
The storekeeper of the Dhaka Industries Limited has studied his record and notices that for
the past 310 working days in the year, the demand for his product (Malai) has varied as
follows:
Demand (units)
5000
6000
7000
8000
9000
10000
Number of days
20
60
80
120
20
10
What is the expected demand for his product?
A company learned that inventory shortage were associated with a loss of goodwill with a
probability 0.10. The company also knew that a loss of goodwill from all causes occurred with
a probability of 0.15. What is the probability of an inventory shortage, given a loss of
goodwill?
[Marks: (6+4) = 10]
Q. No. 3.
(b)
(a)
(b)
What is statistical average? What are the desirable properties for an average to possess?
Incomes of employees in an industrial concern are given below. The total income of the 10
employees in the class over Tk. 2,500 is Tk. 30,000. Compute the mean income. Every
employee belonging to the top 25% of the earners is required to pay 5% of his income to
workers relief fund. Estimate the contribution to this fund.
Income
Below 500
500 1000
1000 - 1500
Frequency
90
150
100
Income
1500 -2000
2000 2500
2500 and over
Frequency
80
70
10
[Marks : (4+6) = 10]

Q. No. 4.
(a)
(b)
Define the coefficient of correlation. What is it intended to measure?

Two house wives, Rozi and Lozi, asked to express their preference for different kinds of
detergents, gave the following replies:
Detergent
A
B
C
D
E
F
G
H
I
J
Rozi
4
2
1
3
7
8
6
5
9
10
Lozi
4
1
2
3
8
7
5
6
9
10
To what extent the preferences of these two ladies go together?

[Marks : (4+6) = 10]
Q. No. 5.
(a)
What is business fore-casting? What are the assumptions on which business fore-casting are
made?
(b)
Calculate the trend values by the method of least squares from the following data given
below and estimate the sales for the year 2008.
Year
Sales Tk. million
2000
12
2001
18
2002
20
2003
2004
23
27
[Marks : (4+6) = 10]
Q. No. 6.
(a)
(b)
Define dispersions. What are the measures of dispersion?

A purchasing agent obtained samples of electric lamps from two samples. He had the
samples tested in his own Laboratory for length of life, with the following results:
Length of Life in hours
Sample from
Co. A
10
16
26
8
700 900
900 1100
1100 1300
1300 1500
Co. B
3
42
12
3
Which companys Lamp should be preferred by the buyer and why?

[Marks : (4+6) = 10]
Q. No. 7.
Write short notes on the following:
(a)
Probability and non-probability sampling.
(b)
Dispersion and measures of dispersion.
(c)
Skewness and Kurtosis.
[Marks : (3+4+3) = 10]
= THE END =

SUBJECT : 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS
Time : Three Hours
Marks 100
Answer FIVE questions taking at least TWO from each Group A and B.
Show Computations, where necessary.
Full
GROUP A : BUSINESS ECONOMICS

Q. No. 1.
(a)
(b)
How does knowledge of economics help efficient management of business?

Distinguish between economic profit and business profit.
(c)
Mr. Sulaiman, a CMA professional, left his job of Tk. 50,000.00 per month and started a consultancy
business under the name Sulaiman Cost and Management Consultancy Limited with a capital of
Tk. 5,00,000.00 and a bank loan of Tk. 3,00,000.00, interest rate being 14% p.a. He earned Tk.
15,00,000.00 during the year 2008-2009. He used a room of his fathers business for which he
need not spend any rent, which could be rented out @ Tk. 8,000.00 per month. During the year,
material cost and service charges were Tk. 80,000.00 and salaries of employees were Tk.
90,000.00. Depreciation of Equipment is estimated at Tk. 6,000.00. Calculate accounting profit and
economic profit of Sulaiman Cost and Management Consultancy Limited for the year 2008 2009.
[Marks : (6+6+8) = 20]
Q. No. 2.
(a)
State the law of demand. What are the circumstances when demand falls even if price
remains unchanged?
(b)
What is the impact of recent global financial crisis on the exports of Bangladesh?
(c)
Tell whether product X and Y are complementary or Substitute goods if
i) increase of price of X leads to increase of price Y
ii) increase of price of X leads to decrease of price Y
iii) increase of price of X does not bring any change in the price of Y
(d)
Define price elasticity, income elasticity and cross elasticity.
[Marks : (6+5+3+6) = 20]
Q. No. 3.
(a)
(b)
(c)
Distinguish between Perfect Competition and Monopoly market.

Show how price is determined under perfect competition.
Give example of one product in the market of:
i. Oligopoly,
ii. Monopolistic Competition, and
iii. Perfect Competition.
[Marks : (7+7+6) = 20]
Q. No. 4.
(a)
(b)
(c)
Distinguish between
i.
Fixed cost and Variable cost, and
ii.
Internal economies and External Economies of firms
State the law of diminishing return and indicate exceptions to this law.
Calculate average cost, marginal cost, marginal revenue, average revenue and profit from
the following information
Units of
Output
1
2
3
4
5
6
7
8
(d)
Total Cost
(Tk.)
300
350
400
450
550
610
670
750
Variable Cost
(Tk.)
200
250
300
350
450
510
570
650
Fixed Cost
(Tk.)
100
100
100
100
100
100
100
100
Total Revenue
(Tk.)
150
250
400
500
600
650
700
760
Identify the Break Even Output Level, Shut down Output Level and Profit maximizing output
level from c as above.
[Marks : (4+5+5+6) = 20]

SUBJECT : 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS
Q. No. 5.
(a)
(b)
Distinguish between:
i)
GDP and National Income; and
ii)
National Income at market price and National Income at factor cost.
Calculate GDP and National Income of Bangladesh during 2008-2009 from the following
information
Dollars in Crores
Gross Private Investment
Government Purchase of goods and Services
Personal Consumption of goods and Services
Depreciation Charges
Exports
Imports
Value of Shares purchased during the year
Value of Second hand computer purchased in the country
Purchase of land during the year
Gains from sale of old cars during the year
2500
500
3500
150
1650
1850
150
50
120
150
[Marks : (8+12) = 20]
GROUP B : INTERNATIONAL BUSINESS

Q. No. 6.
(a)
(b)
(c)
What is the usual procedure of exports from and imports to Bangladesh?

What should be the trade strategies for Bangladesh to get maximum possible gains from
International business?
What are the factors of competitive advantages of a nation?
[Marks : (8+6+6) = 20]
Q. No. 7.
(a)
(b)
(c)
Define foreign exchange rate.

Describe the different methods of determining foreign exchange rate.
How is foreign exchange rate determined in Bangladesh?
[Marks : (4+9+7) = 20]
Q. No. 8.
(a)
(b)
(c)
What is FDI ?
Critically evaluate the risks of FDI ?
Why do you think FDI is not coming to Bangladesh ?
[Marks : (3+9+8) = 20]
=THE END=

PROFESSIONAL LEVEL-I (NEW)
SUBJECT: 101. INTERMEDIATE FINANCIAL ACCOUNTING.
Time: Three hours
Full Marks:100
Q. No. 1.
(a)
In the context of revised IAS 1, state the method classifying current assets and current
liabilities.
(b)
STAR Company Private Ltd. registered under Company Act1994, submits the following trial
balance as of 31 December 2008.
Accounts Title
Cash
Investment in Land
Customer Receivable
Inventory
Prepaid Expenses
Land
Plant & Machineries
Other Assets (non current)
Sales on Accounts
Contractor Payable
Accrued Wages
Unearned Revenue
Debentures
Other Liabilities
Common Stock
Retained Earnings
Cash Sales
Interest Revenue
Gain on Condemnation of Land by Govt.
Cost of Goods Sold
Commercial and General Overhead
Loss from tidal bore charge
Financial Expenses
Income Tax
Operating Loss on discontinued business
Dividends
Sales Allowances
Total
Dr. (Tk)
1,20,000
1,70,000
3,02,000
56,000
54,000
2,60,000
11,67,000
15,63,000
Cr. (Tk)
10,50,000
2,40,000
2,20,000
33,000
12,00,000
3,36,000
2,90,000
11,08,000
19,00,000
23,000
2,00,000
15,65,000
6,40,000
1,50,000
70,000
2,73,000
60,000
1,00,000
50,000
66,00,000
66,00,000
Additional Information:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Inventory includes spoiled & not salable goods worth Tk. 6,000.
Commercial and General Overhead incorrectly includes Tk. 15,000 for office furniture
purchases (other assets). The purchases were made on December30.
The prepaid expenses were paid on September 1 and relate to a 3 years insurance policy
that went into effect on September1.
The unearned revenue relates to rental of an unused portion of the corporate offices Tk.
33,000 received on April1 and represents payment in advance for one years rental.
Plant & Machineries includes Tk. 10,000 for equipment repairs that were erroneously
recorded as machineries purchases. The repair made on December30.
Other assets include Tk. 80,000 for miscellaneous office supplies which were purchased on
mid October. At the end of the year count reveals that only Tk. 6,500 of office supplies
remains.
It has been decided that un-collectible account expenses will be Tk. 2,000 for which provision
was not made earlier. The account of M/s Khan & Co. will be written off for this purpose.
10

Q. No. 1. (Contd..)
Required:
(i)
Adjusting Entries needed for above transaction;
(ii)
Income Statement for the year ended December 31, 2008; and
(iii) Balance Sheet as on December 31, 2008.
[Marks: (5 + 15) = 20]
Q. No. 2.
(a)
Define cash equivalents and non-cash transactions as per IAS - 7.
(b)
A portion of the Mower Companys Balance Sheet appears bellow:
Assets:
Cash
Notes Receivable
Inventory
Liability:
Accounts Payable
December 31,
2008
December 31,
2007
3,53,300
To be determined
50,000
25,000
1,99,875
To be determined
50,000
Mower Company pays for all operating expenses with cash and purchases all inventory on
credit. During 2008, cash totaling of Tk.4,71,000 was paid on accounts payable. Operating
expenses for 2008 totaled Tk. 2,00,000. All sales are cash sales. The inventory was restocked
by purchasing 1,500 units per month and valued by using periodic FIFO. The unit cost of
inventory was 32.60 during January2008 and increased Tk. 0.10 per month during the year.
All sales are made for Tk. 50 per unit. The ending inventory for 2007 was valued at Tk. 32.50
per unit.
Required:
(i)
(ii)
(iii)
(iv)
(v)
Compute the number of units sold during 2008

Compute the December 31 2008 Accounts Payable Balance.
Compute the beginning inventory quantity.
Compute the ending inventory quantity & value.
Prepare an income statement for 2008 (including a detailed COGS section). Ignore
Income Tax.
[Marks: (5 + 15) = 20]
Q. No. 3.
(a)
Distinguish between financial depreciation and physical depreciation of assets.
(b)
The Star Mining Company paid Tk. 29,00,000 in 2001 for property with a supply of natural
resource estimated at 20,00,000 tons. The estimated cost of restoring the land for use after
the resources are exhausted is Tk. 3,25,000. After the land is restored it will have an
estimated value of Tk. 2.25,000. Development costs such as drilling and road construction
were Tk. 8,00,000. Building, such as bunk houses and messhall were constructed on the site
for Tk. 2,00,000. The useful lives of the buildings are expected to terminate upon exhaustion
of the natural resources. Operations were not begun until January 01, 2002. In 2002,
resources removed totaled 6,00,000 tons. During 2003, an additional discovery was made
indicating that available resources subsequent to 2003 will total 18,75,000 tons. Because of
a strike, only 4,00,000 tons of resources were removed during 2003.
Required: Compute the depletion and also the depreciation charge for 2001, 2002 & 2003.
(c)
On July 02, 2002 Simanto Delivery Company traded with a dealer an old delivery taxi cab for
a newer taxi model. Data related to the old taxi and new taxi follow:
Amount in
Tk.
Old Taxi:
Original Cost
Accumulated Depreciation as of July 02, 2002
Average published retail value
New Taxi:
Listed Price
Cash Price without trade-in
Cash paid with trade-in
11
2,00,000
1,50,000
42,000
2,50,000
2,25,000
1,95,000
Instruction: Give the journal entry on Simantos books to record the purchase of the new Taxi.
[Marks: (6 + 8 + 6) = 20]
12

Q. No. 4.
(a)
Cash flow statements are a valuable source of information. However, there may be certain
important non-cash transactions; give 4 (four) examples of such transactions.
(b)
The following schedule shows the account balances of Eldora Company at the beginning and
end of the fiscal year ended October31, 2008.
Debits
Cash
Accounts Receivable
Inventories
Prepaid Insurance
Long-Term Investment (at cost)
Sinking Fund
Land and Building
Equipment
Discount on Bonds Payable
Treasury Stock (Cost)
Cost of Good Sold
Selling and General Expenses
Income Tax
Loss on Sale of Equipment
Total Debits
October
31,2008
(Amount in
Taka)
2,26,000
1,48,000
2,91,000
2,500
10,000
90,000
1,95,000
2,15,000
8,500
5,000
5,39,000
2,87,000
35,000
1,000
20,53,000
Credits
Allowance for Doubtful Accounts

Accumulated Depreciation-Building
Accumulated Depreciation-Equipment
Accounts payable
Notes Payable-Current
Miscellaneous Expenses Payable
Taxes Payable
Unearned Revenue
Notes Payable-Long Term
Bonds Payable-Long Term
Common Stock
Retained Earnings Appropriated for Sinking
Fund
Unappropriated Retained Earnings
Paid-in Capital in Excess of Par Value
Sales
Gain on Sale of Investments
Total Credits
November
1,2007
(Amount in
Taka)
50,000
1,00,000
3,00,000
2,000
40,000
80,000
1,95,000
90,000
9,000
10,000
------------------8,76,000
October
31,2008
(Amount
in
Taka)
8,000
26,250
39,750
55,000
70,000
18,000
35,000
1,000
40,000
2,50,000
3,00,000
90,000
94,000
1,16,000
8,98,000
12,000
20,53,000
Increase(Decreas
e)
(Amount in Taka)
1,76,000
48,000
(9,000)
500
(30,000)
10,000
--1,25,000
(500)
(5,000)
539,000
287,000
35,000
1,000
11,77,000
November
1,2007
(Amount
in
Taka)
5,000
22,500
27,500
60,000
20,000
15,000
10,000
9,000
60,000
2,50,000
2,00,000
80,000
1,12,000
5,000
----------8,76,000
Increase(Decreas
e)
(Amount in Taka)
3,000
3,750
12,250
(5000)
50,000
3,000
25,000
(8000)
(20000)
-----1,00,000
10,000
(18000)
1,11,000
898,000
12,000
11,77,000
The following information was also available:

(a)
All purchase and sales were on account.
(b)
The sinking fund will be used to retire the long-term bonds.
(c)
Equipment with and original cost of Tk15,000 was sold for Tk.7000.
(d)
Selling and general expenses include the following expenses:
Building depreciation
Tk.3,750
Equipment depreciation
Tk.19,250
Doubtful accounts expenses
Tk.4,000
Interest expenses
Tk.18,000
(e)
A six-month note payable for Tk.50,000 was issued forward the purchase of new equipment.
(f)
The long-term note payable requires the payment of Tk.20,000 per year plus interest until
paid.
(g)
Treasury stock was sold for Tk.1,000 more than its cost.
(h)
All dividends were paid by cash.
Required:
Prepare statement of cash flow for 2008. Also show your workings.
[Marks: (4+16) = 20]
13
14

Q. No. 5.
(a)
Distinguish between depreciation, depletion, and amortization.
(c) Analysis of the December bank statement for Locomotive Company discloses the following
information:
(i)
Statement balance at December 31, 2008 was Tk.33,350
(ii)
Check issued by Ludmia Corporation for Tk.630 was charged to Meghan Company in
error.
(iii)
December bank charges were Tk.60
(iv)
Deposit of Tk.1,400 was erroneously credited to Meghan Company account by the

bank.
(v)
Outstanding cheque at December 31, 2008, were Tk.10,560. They included a Tk.600
cheque outstanding for 8 month to Amco products which was cancelled in December
and a new cheque issued. No entry was made for the cancellation.
(vi)
Receipts on December 31 were Tk.9,000. Receipts were deposited on January 2
(vii)
An error in addition was made on the December 23 deposit slip. This slip showed a
total of Tk.2,220. The correct balance as credited to the account by the bank was
Tk.2,020. A count of cash on hand showed an overage of Tk.200 as of December 31.
(viii) The cash in Bank balance in the general ledger as of December 31, 2008 was
Tk.31,280.
Required:
1.
Prepare a bank reconciliation statement which reconciles the bank balance with the balance
per books.
2.
Give all entries required on the books at December 31, 2008.

[Marks: (5+15) = 20]
= THE END =
15

PROFESSIONAL LEVEL- I (NEW)
SUBJECT: 102. COST ACCOUNTING.
Time: Three hours
Full Marks:100
Q. No. 1.
Consider the information below for the year ended December 31, 2008 and complete the cost of
goods manufactured statement in good form:
Taka
Finished goods, December 31, 2008
Supplies, January 1, 2008
Property Tax
Income Tax
Raw Material, December 31, 2008
Payroll
Purchase Discount
Work-in-Process, January 1, 2008
Material Purchase
Work-in-Process, December 31, 2008
Finished Goods, January 1, 2008
Freight in
Supplies used
Freight out
Supplies, December 31, 2008
Raw Material, January 1, 2008
Purchase Returns and Allowances
Rent
Depreciation:
Factory Building
Factory Plant
Office Building
Office Furniture
Interest on Borrowings
Insurance
Utility
(1)
(2)
(3)
(4)
8,000
9,000
7,000
6,000
Taka
50,000
3,000
15,000
17,000
25,000
98,000
4,000
60,000
90,000
39,000
70,000
10,000
12,000
15,000
2,000
15,000
10,000
20,000
30,000
23,000
11,000
10,000
Payroll account includes payment made to both direct and indirect labor. As a policy,
payment for direct labor is 80% higher than indirect labor.
80% of rent is related to factory.
80% of property tax and 70% of utility is related to factory.
For both direct and indirect material, the company uses a single account. Records show
that direct material is 8 times higher than indirect material.
[Marks: 20]
16

Q. No. 2.
Five-Star Hotel received a single invoice covering supply of five materials for which five orders were
placed. Extract of the invoice is reproduced below:
Material description
Ferus Sulphate
Driet Execicate
PVC compound
Chemical
Dyes
Order
ref.
071
075
132
185
205
Unit
Gram
Kg.
Kg.
Ibs
Ibs.
Unit
price
Tk.25
Tk.160
Tk.212
Tk.25
Tk.32
Qty.
1,000
200
175
1,100
550
Total value
(Tk.)
25,000
32,000
37,100
27,500
17,600
Tk.1,39,200
2,500
Tk.1,41,700
Fright
C&F
Other relevant data were as follows:
Import duty 10%, insurance 4%, clearing charges 5%, supplementary duty 2.5%, ordering cost
Tk.500 per order and receiving cost estimated to be Taka 10 per kg. It is the company policy to
apportion fright on the basis of weight.
Required: Calculate unit cost for each material that will be entered on the ledger card.
[Marks: 20]
Q. No. 3.
The Best Supply Company has been experiencing stock outs on one of it important materials, even
though deliveries are dependable within one month from the date of an order. Management asks
that a safety stock for this item be established and provides the following records of actual and
forecast usages during the past 9 (nine) months:
Month
January
February
March
April
May
June
July
August
September
Usage
475
480
490
500
510
520
500
490
485
Forecast
490
490
475
485
500
510
510
510
500
It is believed that 90 to 95 percent protection against a stock out is adequate. This protection
can be achieved by doubling the deviation found.
Requirement:
(a)
A schedule showing the safely stock required.
(b)
The safely stock required if the lead time is 2(two) months.
[Marks: (10+5) = 15]
Q. No. 4.
3M operates 5 days a week and 8 hours a day. Ajax Rosario, a semi-killed worker, works at a
guaranteed rate of Tk. 6 per hour. Standard production for Ajax is 192 units per day. Factory
overhead per labor hour is Tk.3. Production for the first week of June was 180, 200, 220, 224, 192
units for Monday through Friday respectively.
17

Q. No. 4. (Contd..)
Required:
(a) Compute conversion cost per unit under straight piecework plan.
(b) Compute conversion cost per unit under 100% bonus plan.
[Marks: (8+7) = 15]
Q. No. 5.
Six Sigma is a sheet metal fabricator. Its total factory overhead costs are a linear function of
machine usage. Different capacity level (annual) of Six Sigma is given as:
Theoretical Capacity
25,000 machine
hours
Practical Capacity
:
15,000 machine
hours
Normal Capacity
:
8,000 machine hours
Expected Actual Capacity
:
10,000 machine
hours
Six Sigma computes predetermined overhead rate by dividing expected actual costs by expected
actual capacity at the beginning of each year. During 2009, it actually works for 9,500 machine
hours (MH) with actual overheads amounting to Tk.33,85,000. But the budgeted amount of factory
overhead was Tk.35,00,000 which would be Tk.30,00,000 at normal capacity.
Required:
(a)
Calculate the amount of over or under applied factory overhead for the year.
(b)
If it had used practical capacity as the activity level in its predetermined overhead rate
calculation for the year, what would the predetermined overhead rate have been per MH?
(c)
Without influencing your answer to requirement (a) now assume factory overhead was under
applied by Tk.10,000. Give the end-of-period entries to close applied factory overhead to
factory overhead control and to close factory overhead control to cost of goods sold.
(d)
Without prejudice to your answers to the preceding requirements, assume overhead was
under applied by Tk.10,000 and applied factory overhead has already been closed to factory
overhead control. The under applied amount of overhead is to be allocated to inventories and
cost of goods sold in proportion to the balances in those accounts. The balances in work in
process, finished goods and cost of goods sold are Tk.2,00,000, Tk.4,00,000 and
Tk.74,00,000 respectively. Give the end-of-period entry to close factory overhead control.
[Marks: (4x5) = 20]
Q. No. 6.
(a)
What do you mean by service reciprocity? Do you believe that step down method of service
cost allocation doesnt consider service reciprocity at all? How?
(b)
High degree of labor turnover produces a weaker form of learning curve how do you
evaluate the statement?
[Marks: (5+5) = 10]
= THE END =
18

PROFESSIONAL LEVEL I (NEW)
SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT
Time : Three hours
Answer any THREE questions from each part.
Answer must be brief, relevant, neat and clean
Full Marks: 100
PART A: MANAGEMENT (TOTAL MARKS-50)

Q. No. 1.
(a)
What is management?
(b)
Describe the basic managerial roles and skills.
(c)
How can a manager successfully face the contemporary management challenges?

Marks : (5+6+5) = 16
Q. No. 2.
(a)
Discuss the significance of environment and culture on managing an organization.
(b)
What are the responsibilities of a manager with regard to environment and culture of an
organization?
(c)
Describe how to develop and nourish organizational culture.

Marks : (5+6+5) = 16
Q. No. 3.
(a)
What do you mean by TQM?
(b)
What are the basic features of TQM?
(c)
Why is TQM getting so much importance in to-days management?

Marks : (5+6+5) = 16
Q. No. 4.
(a)
Explain the meaning of motivation, motivators and satisfaction.
(b)
To what extent and how is money an effective motivator?
(c)
Explain the various leading theories of motivation and their strengths & weaknesses.
Marks : (5+6+5) = 16
Q. No. 5.
(a)
What is an assessment centre? How does it work?
(b)
What is the system approach to selection of managers? How does it differ from other
approaches?
(c)
Do you think managers should be appraised regularly? If so, how?

Marks : (5+6+5) = 16
Two marks are reserved for neatness and relevance
19

SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT
PART B: MARKETING MANAGEMENT (TOTAL MARKS-50)
Q. No. 6.
(a)
What is meant by an effective marketing strategy?
(b)
How can a marketer develop effective marketing strategies?
(c)
Discuss the marketing strategies for a market leader.

Marks : (5+6+5) = 16
Q. No. 7.
(a)
Assess the importance of analyzing consumer buying behavior.
(b)
State and explain the factors affecting consumers buying behavior.
(c)
What is SWOT analysis and why is it done?

Marks : (5+6+5) = 16
Q. No. 8.
(a)
Do you think that market segments and market sectors are alike? Explain.
(b)
Discuss the bases of market segmentation.
(c)
What are the advantages of market segmentation?

Marks : (5+6+5) = 16
Q. No. 9.
(a)
Outline the major characteristics affecting consumer behaviour.
(b)
Illustrate different types of buying decision behaviour.
(c)
Identify and define the steps of the business buying process and list out the characteristics
of business buying process.
Marks : (5+6+5) = 16
Q. No. 10.
(a)
Is E-business an effective alternative to conventional business practice? Why?
(b)
How would you assess the potential foreign market if you are interested to get access of it?
(c)
What are the major risks involved in International business?

Marks : (5+6+5) = 16
Two marks are reserved for neatness and relevance
==THE END==
20

SUBJECT:
104. INFORMATION TECHNOLOGY.
Time: 2 hours 30 minutes
Questions are of equal marks.
Full Marks: 80
Answer any FOUR questions.
These questions carry 80 marks (Part A) and balance 20 marks (Part B) is for practical
test (to be taken later on).
Q. No. 1.
(a)
What is the difference between computer based information system and manual
information system?
(b)
What is Barcode reader? What are the applications of Barcode reader in business? Mention
what factors we should consider for buying a monitor and a printer?
Marks : (10+10) = 20
Q. No. 2.
(a)
What factors do you take into consideration while adopting an information system in an
Organization? Explain at least four of them.
(b)
Describe the three principal data base models and their advantage.
Marks : (10+10) = 20
Q. No. 3.
(a)
What do you mean by Enterprise Resource Planning (ERP) Software? How does if differ from
the integrated Accounting Package Software?
(b)
What do you understand by electronic commerce? Explain the foundations of electronic
commerce.
Marks : (10+10) = 20
Q. No. 4.
(a)
(b)
(c)
Compare the traditional data entry with source data automation.

Explain the necessity of database maintenance in the Transaction Processing System.
What is the final output of Transaction Processing? Explain.
Marks : (6+8+6) = 20
Q. No. 5.
(a)
(b)
Describe technology infrastructure required to support E-commerce and M-commerce.

What are the steps to be taken to digitalize NBR (National Board of Revenue) of
Bangladesh?
Marks : (10+10) = 20
Q. No. 6.
Write short notes on:
(a)
(b)
(c)
(d)
(e)
System software & application software.

Digital subscribers line.
Virtual Reality.
SAP.
Knowledge Management System.
Marks : (5 x 4) = 20
==THE END==
21

PROFESSIONAL LEVEL II (NEW)
SUBJECT: 201-ADVANCED FINANCIAL ACCOUNTING-I
Time: Three hours
Full Marks: 100
Q. No. 1.
Mr. Kamal Keeps his books on single entry system. His balance sheet on 31.12.2007 is as follows:
Tk.
Tk.
Kamals capital
31,500 Premises
15,600
Creditors
7,210 Plant and Machinery
4,200
Stock
8,760
Debtors
9,820
_______ Cash
330
38,710
38,710
The following is a summary of his receipts and payments for the year ended on 31.12.2008:
Receipts
Cash on account of credit sales
Cash sales
Tk.
42,760
18,630
Payment
Creditors
Wages
General Expenses
Machinery (1-7-08)
Drawings
Tk.
39,540
7,430
6,270
Capital
2,000
1,600
_______
5,360
63,390
60,200
On 31.12.2008, the amount due to creditors was Tk.8,170 and the debtors and stock amounted to
Tk.9,200 and Tk.8,540 respectively. You are required to prepare Trading and profit and loss account
for the year ended on 31.12.2008 and Balance Sheet as on that date, after making adjustments in
respect of the followings:
(i)
(ii)
(iii)
(iv)
(v)
Depreciation @ 10% for plant and Machinery.

Tk.500 to be provided for bad debts.
General expenses include Tk.1,400 paid as life insurance premium.
Wages include Tk.150 paid for erection of new machinery.
A sum of Tk.350 for goods supplied to the proprietor was included in the debtors
balance at 31.12.2008
(vi)
The amount of Tk.8,170 due to creditors on 31.12.2008 includes admission of an old
claim by a creditor of Tk.600 relating to purchases before 01.01.2008, but the claim was not
shown in the balance sheet as on 31.12.2007.
[Marks: (10+10) = 20]
Q. No. 2.
Please write the answer in the context of the Framework for the preparation and presentation of
Financial statements.
(a) What are the objectives of Financial Statements?
(b) Describe the four principal qualitative Characteristics that determine the usefulness of
information in the financial statement.
(c) Explain the two concepts of capital maintenance. What is the principal difference between
the two concepts?
[Marks: (5+5+10) = 20]
Q. No. 3.
Mr. Karim consigned 100 cases of medicine to Mr. Rahim of Comilla on 01.01.08 costing Tk.1,000
per case. The goods are to be sold at 25% above cost. Any deficiency in selling price are to be
borne by Mr. Rahim. Mr. Rahim is, however, entitled to a special commission of 25% of any surplus
price realized. Mr. Rahim is further entitled to an ordinary commission of 5% and del-credere
commission of 2.50% on all sales in addition to special commission. Mr. Karim incurred the
following expenses:
22

Q. No. 3 (Contd.)
Packing charges
Loading charges
Lorry hire
Railway freight
Tk.
6,000
1,000
12,000
21,000
The cases are received by Mr. Rahim on 15.01.08. The account sales received from Mr. Rahim on
30.06.08 revealed the following:
40 cases sold on 21.03.08 @ Tk.1,500 per case, 30 cases sold on 24.05.08 @ Tk.1,200 per case
and 10 cases sold on 15.06.08 @ Tk.1,300 per case. 5 cases of medicine was stolen by a dishonest
employee. A compensation Tk.2,000 was realized form him. Mr. Rahim incurred unloading charges
of Tk.2,000 and warehouse rent Tk.3,000.
Required:
Prepare a consignment Account.
[Marks: 20]
Q. No. 4.
Sony Co. Ltd., Japan established its branch Sony-BD in Bangladesh. Sony-BD maintains separate set
of books. Following are the transactions of Sony-BD:
(i)
(ii)
Receipt of cash from Sony-Japan Tk.60,000.

Merchandise received from home office at an invoice price of cost plus 25% costing
Tk.1,20,000.
Purchase of furniture by branch for cash Tk.30,000.
Sale on credit of Tk.65,000.
Collection from accounts receivable Tk.35,000.
Expenses incurred by the branch are:
(iii)
(iv)
(v)
(vi)
Sales salaries
Sales commission
Rent
Miscellaneous
(vii)
(viii)
Tk.2,00
0
Tk.2,00
0
Tk.2,00
0
Tk.1,50
0
Remittance to home office Tk.20,000.

Home office charged to branch the following expenses:
Insurance on branch assets
Depreciation on branch assets
Taxes on branch assets
Advertising
Interest on investment in branch
(ix)
Tk.350
Tk.500
Tk.250
Tk.3,00
0
Tk.1,00
0
Ending inventory of branch
Tk.85,000
Required:
(a)
Give Journal entries in the books of Sony-BD and Sony-Japan.
(b)
Give adjusting and closing entries both in branch and home office books.
[Marks: (12+8) = 20]
23

Q. No. 5.
The following information was assembled for M/s. ABC Pipeline Company:
Cash (overdraft in 2007)

Accounts Receivable
Inventories
Long-term investments
Land, building and Equipment
Less: Accumulated Depreciation
Patents
Total assets
Tk.1,30,00
0
21,500
Accounts payable
Bonds payable
Premium on bonds payable
Preferred stock, Tk.100 par
Common stock, Tk. 10 par
Premium on common stock
Retained earnings
Total liabilities and stock holders equity
Balance Sheet
December 31
2008
2007
Tk.38,625
(Tk.5,625)
82,000
95,500
73,250
50,000
12,000
27,000
Tk.95,0
00
1,08,500
20,000
75,000
--35,000
Tk.3,14,37
Tk.2,76,87
5
5
55,875
49,375
50,000
20,000
2,375
----50,000
1,60,000
1,00,000
24,000
--22,125
57,500
Tk.3,14,37
Tk.2,76,87
5
5
Account: Retained Earnings

Date
2008:
Item
Debit
Jan-1
Oct-15
Balance
Cash dividends
Dec-12
Premium on retirement of preferred

stock
Net loss
Dec-31
Credit
Balance
Debit (Tk.)
--Tk.25,0
00
5,000
-----
-----
Credit
(Tk.)
57,500
32,500
---
---
27,500
5,375
---
---
22,125
Income statement data for the year ended December 31, 2008, summarized operations as follows:
Loss before extraordinary items
Extraordinary loss on retirement of bonds
Net loss
Tk.4,375
1,000
Tk.5,375
Equipment, cost Tk.15,000, book value Tk.3,000, was scrapped, salvage of Tk.900 being recovered
on the disposal. Additional equipment, cost Tk.50,000, was acquired during the year. Long-term
investments, cost Tk.15,000, were sold for Tk.18,250; 7% bonds, face value Tk.20,000, were called
in at 105, and new 10-year, 5% bonds of Tk.50,000 were issued at 105 on July 1. Preferred stock
was retired at a cost of Tk.110 while 6,000 shares of common stock were issued at Tk.14.
Depreciation on building and equipment for the year was Tk.13,500. Patents, costing Tk.35,000,
were written off.
Required: A cash flow statement.
[Marks: 20]
THE END
24
********
25

PROFESSIONAL LEVEL- II (NEW)
SUBJECT: 202. MANAGEMENT ACCOUNTING.
Time:
Three hours
Full Marks:100

Q. No. 1.
(a)
(b)
(c)
(d)
In a just-in-time (JIT) system, what is meant by the pull approach to the flow of goods, as
compared to the push approach used in conventional systems?
What is the role of Cost Management with respect to the objective of continuous
improvement?
Where does the theory of constraints recommend that improvement efforts be focused?
Samir companys projection for the coming year is as follows:
Sales
Less Variable expenses
Contribution margin
Less Fixed expenses
Operating income
Total
(Tk.)
200,000
120,000
80,000
64,000
16,000
Per Unit
(Tk.)
20
12
8
Required:
(i)
(ii)
(iii)
Compute the break-even point in units.

How many units must be sold to earn a profit of Tk.30,000?
Compute the contribution margin ratio. Using the ratio compute the additional profit that
Samir would earn if sales were Tk.25,000 more than expected.
(iv) Suppose Samir would like to earn operating income equal to 20 percent of sales revenue.
How many units must be sold for this goal to be realized? Prepare an income statement to
prove your answer.
[Marks: (4+3+3+10) = 20]
Q. No. 2.
Ovi Manufacturing Co. is interested in comparing net earnings for two periods. The companys
operating data are as follows:
Standard Production (units)
Actual Production (units)
Sales (units)
Sales price per unit
Variable manufacturing costs per unit:
Direct materials
Direct labor
Variable factory overhead
Total Variable Manufacturing costs per unit
Fixed factory overhead (Tk.4 per unit)
Period-1
30,000
30,000
25,000
Tk.15.00
Tk.1.50
2.50
2.00
Selling and administrative overhead (fixed)
Tk.6.00
Tk.120,000.0
0
Tk.50,000.00
Period-2
30,000
25,000
25,000
Tk.15.00
Tk.1.50
2.50
2.00
Tk.6.00
Tk.120,000.0
0
Tk.60,000.00
Required:
(a)
(b)
(c)
(d)
Prepare a statement of earnings for both periods under the: (1) Absorption costing method,
(2) Direct costing method.
Account for the difference in net earnings between the two methods.
Explain why net earnings under the two methods for the two periods are equal combindly.
If the firm used direct costing in its formal accounting records, what adjustments are
necessary for external reporting?
[Marks: (14+2+2+2) = 20]
26

Q. No. 3.
(a)
All future costs are relevant in decision-making. Do you agree? Why?
(b)
Dancy-clean Corporation produces a variety of cleaning compounds and solutions for both
industrial and house hold use. While most of its products are processed independently, a few
are related, such as the companys Grit 337 and its sparkle silver polish. Grit 337 is a coarse
cleaning powder with many industrial uses. It costs Tk.1.60 a pound to make, and it has a
selling price of Tk.2.00 a pound. A small portion of the annual production of Grit 337 is
retained in the factory for further processing. It is combined with several other ingredients to
form a paste that is marketed as sparkle silver polish. The polish sells for Tk.4.00 per jar.
This further processing requires one-fourth pound of Grit 337 per jar of silver polish. The
additional direct costs involved in the processing of a jar of silver polish are:
Other ingredients
Tk.0.65
Direct labor
1.48
Total direct cost
Tk.2.13
Overhead costs associates with the processing of the silver polish are:
Variable manufacturing overhead cost 25% of direct labor.
Fixed manufacturing overhead cost (per month):
Production (overhead) supervisor
Tk.1,600.00
Depreciation of mixing equipment
Tk.1,400.00
The production supervisor has no duties other than to oversee production of the silver polish.
The mixing equipment is a special purpose equipment acquired specifically to produce the
silver polish. It has only negligible resale value.
Direct labor is a variable cost at Dancy-clean corporation.
Advertising costs for the silver polish total Tk.4,000.00 per month. Variable selling costs
associated with the silver polish are 7.5% of sales.
Due to a recent decline in the demand of silver polish, the company is wondering whether its
continued production is advisable. The sales manager feels that it would be more profitable
to just sell all of the Grit 337 as a cleaning powder.
Required:
(i)
What is the incremental contribution margin per jar from further processing of Grit 337
into silver polish?
(ii)
What is the minimum number of jars of silver polish that must be sold each month to
justify the continued processing of Grit 337 into silver polish? Show all computation in
good form.
[Marks: (4+9+7) = 20]
Q. No. 4.
(a)
In what way is the flexible budget involved in product costing?
(b)
The management of the Gulshan Company wants to prepare budgets for one of its products,
Dura flex for July 2010. The firm sells the product for Tk. 40.00 per unit and has the following
expected sales units for these months in 2010.
April
May
June
July
August
September
5,000
5,400
5,500
6,000
7,000
8,000
The production process required 4 pounds of Dura-1000 and 2 pounds of flex-plus. The firms
policy is to maintain a minimum of 100 units of Dura flex on hand at all time. The units on
hand at the end of a period, however, should not fall below 10 percent of the expected sales
for the following month. All materials inventories are to be maintained at 5 percent of the
production needs for the next month, but not to exceed 1,000 pounds. The firm expects all
inventories at the end of June to be within the guide lines. The purchased department
expects the materials to cost Tk. 1.25 per pound and Tk. 5.00 per pound of Dura 1,000 and
flex-plus respectively.
27

Q. No. 4. (Contd..)
The production process requires direct labor at two skill levels. Workers at the K102 level
earn Tk. 50.00 per hour and can process one batch of Dura flex per hour. Each batch consists
of 100 units.
The manufacturing of Dura flex also requires one tenth of an hour of K 175 workers time
for each unit manufactured. K 175 Workers earn Tk. 20.00 per hour. Manufactured overhead
is allocated at the rate of Tk. 200.00 per batch and Tk. 30.00 per direct labor hour.
Required:
On the basis of the preceding data and projections, prepare the following budgets for July,
2010:
(i)
Sales budget (in taka)
(ii)
Production budget (in units)
(iii) Production budget for August ( in Units)
(iv) Direct materials purchase budget (in pounds)
(v)
Direct materials purchase budget (in taka)
(vi) Direct manufacturing labor budget (in taka)
Marks : (3+17) = 20
Q. No. 5.
(a)
Distinguish between Absolute profitability and relative profitability.
(b)
According to the economists approach to setting prices, the profit maximizing price should
depend on what two factors?
(c)
Iqbal manufactures custom made pleasure boats ranging in price from Tk. 10,000 to Tk.
250,000. For the past thirty years, Iqbal has determined each boats sales price by
estimating the costs of materials, labor and a prorated portion of overhead and by adding
20% to those estimated costs. For example, a recent price quotation was determined as
follows:
Direct materials
Tk. 5,000
Direct labor
8,000
Overhead
2,000
Tk. 15,000
Plus 20%
3,000
Sales price
Tk. 18,000
The overhead figure was determined by estimating the total overhead cost for the year and
allocating it at 25% of direct labor.
If a customer rejects the price and business is slack, Iqbal is often willing to reduce the mark
up to as little as 5% over estimated costs. Thus average markup for the year is estimated at
15%.
Iqbal has just completed a pricing course and believes that the company could use some of
the modern techniques taught in the course. The course emphasized the contribution margin
approach to pricing, and Iqbal feels that such an approach would be helpful in determining
the sales prices of custom-made pleasure boats.
Total overhead (including marketing and administrative expenses for the year) has been
estimated at Tk. 150,000 of which Tk. 90,000 is fixed and the remainder is variable in direct
proportion to direct labor.
Required:
(i) (a)
Compute the difference in profit for the year if a customers offer of Tk. 15,000
instead of Tk. 18,000 price quotation shown above is accepted.
(b)
Determine the minimum sales price Iqbal could have quoted without reducing or
increasing profit.
(ii) State the advantages of the contribution margin approach to pricing used by Iqbal.
(iii) Identify the pitfalls, if any to contribution margin pricing.
Marks : (4+4+6+3+3) = 20
= THE END =
28

CMA DECEMBER 2009 EXAMINAION
PROFESSIONAL LEVEL-II (NEW)
SUBJECT : 203. COMMERCIAL & INDUSTRIAL LAWS
Time : Three hours
Marks : 100
Answer FIVE questions taking at least TWO from each group A and B.
Full
GROUP A : COMMERCIAL LAW

Q. No. 1.
(a)
(b)
(c)
What is meant by discharge of a contract? What are the modes of discharge of contract?
All contracts are agreements but all agreements are not contracts Discuss.
Who are competent to enter into a contract? Discuss the contractual liability of a minor
with reference to a leading case.
[Marks : (7+6+7) = 20]
Q. No. 2.
(a)
(b)
(c)
Describe the rules regarding the presentation of a Bill of Exchange with exception.
Discuss the features of negotiable instruments.
Difference between Holder and Holder in Due-Course.
[Marks : (8+6+6) = 20]
Q. No. 3.
Define and distinguish between an Agent and the Principal. Under what circumstances an
agency may be terminated.
[Marks =
20]
GROUP B : INDUSTRIAL LAW

Q. No. 4.
(a)
(b)
(c)
Classify different types of workers?

What is the procedure for punishment of a worker?
Describe the grievance handling procedures.
[Marks : (6+7+7) = 20]
Q. No. 5.
(a)
(b)
Describe the requisites for registration of a trade union of workers.

What constitutes unfair labour practices by an employer?
[Marks : (10+10) = 20]
Q. No. 6.
State the procedures for settlement of an industrial dispute.
[Marks =
==THE END==
29
20]

BANGLADESH
SUBJECT: 204. TAXATION.
Time: Three hours
Full Marks:100
Q. No. 1.
(a) Write short notes in relation to Income Tax Ordinance, 1984
(i)
Speculative Business
(ii)
Permanent Establishment (PE)
(iii) Profits in lieu of salary
(iv) National Board of Revenue (NBR)
(b)
Briefly explain the tax implications in the following cases:
(a)
Non-Governmental Organizations (NGO)
(b)
Private Educational Institutions
(c)
Co-operative Societies
(d)
Local authorities
[Marks: {(4x3)+(42)} = 20]
Q. No. 2.
M/S John Morris Inc. is a multinational company doing business in Bangladesh Branch. The
company filed return of income for the assessment year 2009-2010 showing income at Tk.
30,00,000. Examination of the audited statement of accounts filed with the return of income
revealed the following:(a)
Salary includes Tk.3,30,000 paid to a Director working at the head office at California. He has
never visited Bangladesh and no tax, as such, has been deducted at the time of making the
payment.
(b)
Head office expenses charged Tk.11,00,000. No evidence could be produced for this other
than HO auditors certificate.
(c)
Fine Tk. 11,000 paid for violation of customs law charged to P& L Account.
(d)
Two Nissan Petrol Jeeps purchased for Tk. 45,00,000 during the year. Depreciation @20%
charged on the full cost of the vehicles.
(e)
To procure business Tk. 10,00,000 has been paid as commission to a local agent. In making
the payment, the provision of section 53E of. I.T. Ordinance, 1984 has not been complied
with.
(f)
The company sold a motor vehicle for Tk. 4,65,000. Original cost of the vehicle was Tk.
5,25,000 and the written down value was Tk,. 3,25,000. This has not been reflected in the
accounts.
(g)
Tk. 15,000 donated to a non-recognized school.
(h)
Miscellaneous expenses include Tk. 72,000 paid as salaries to three servants who are
working at the residence of the Managing Director.
(i)
Conveyance expenses include Tk, 2,20,000 paid for the plane fare of the wife and son of the
Managing Director for the visit of the neighboring countries.
(j)
Interest expense claimed at Tk. 33,50,000. The company has outstanding bank loan of Tk.
2.10 crores. The company advanced Tk. 75,00,000 interest-free loan to a sister concern in
Bangladesh.
From the above information compute the total income and tax liability of the company for tax
purpose.
[Marks: 20]
30

SUBJECT: 204. TAXATION.
Q. No. 3.
M/s. ABCD is a partnership firm with four partners having equal shares. The business that the firm
performed during the financial year was:
(i)
Dealings in grocery goods;
(ii)
Contract business;
(iii) Worked as broker of sale & purchase of land;
(iv) Buying house commission.
During the year the sale of grocery goods was Tk.5,00,00,000.
Other information were
Opening stock Tk.35,00,000, purchase Tk.4,50,00,000; closing stock Tk.1,50,00,000.
Rent Tk.2,40,000; salary & other expenses Tk.25,50,000.
Receipts from contract works Tk.4,25,00,000, tax deducted as sources Tk.17,00,000.
Receipts from brokery Tk.26,30,000. Direct expenses Tk.15,10,000.
Buying house commission Tk.2,25,00,000. Tax deducted at source Tk.9,00,000.
The firm had Bank OD to the tune of Tk.5,00,00,000. Interest on OD was Tk.72,00,000.
The interest to be apportioned among the business listed above in the following ratio 3:3:2:2.
Capital introduced in the business by the partners @Tk.5,00,000 each. Mr. B&C got the rent as they
are the proprietor of the shop.
From the above information compute income under different heads and also the total income and
taxes payable by the firm.
[Marks: 20]
Q. No. 4.
(a)
What consequences an importer shall face if he fails to submit mandatory PSI certificate?
(b)
What is the use of Bond License? For what purpose it is issued?
(c)
Gift tax revenue is dwindling day by day. Do you agree with the statement? If not show the
reasons.
(d)
Is there any inner bondage/link among Customs, VAT & Income Tax Policy?
(e)
What is deemed Export? What conditions are to be fulfilled by a deemed exporter?

[Marks: (5x4) = 20]
Q. No. 5.
(a)
What is foreign Travel Tax? Discuss the mode of levy on travel by Air and travel by land and
sea. Who is responsible to collect tax on travel by Air? Is there any scope to exempt or
reduce such tax? What is the procedure to get refund to foreign Travel Tax?
(b)
How the values of goods and services are determined for imposition of VAT?
(c)
What are the services brought under VAT coverage though Finance Act, 2009?
[Marks:
(10+5+5) = 20]
= THE END =
31

PROFESSIONAL LEVEL-III (New)
SUBJECT: 301. ADVANCED FINANCIAL ACCOUNTING II.
Time : Three hours
Full Marks: 100
Q. No. 1.
(a)
Why are Segment Disclosures needed in the Financial Statements?
(b)
Hitech Corporation has its Home Office in Dhaka and a Branch in Chittagong. The following
information were available from the books of Home Office and the Branch as on 31 December
2008:
Home Office (Tk.)
100,000
1150,000
2050,000
152,000
52,000
Inventories as on 1 January 2008

Purchases
Sales
Other Expenses
Inventories as on 31 December 2008
Branch (Tk.)
45,000
-1550,000
62,000
31,000
The Branch books show the Home Office account at Tk. 90,000 (Cr.) and the Home Office
books show the Branch account at Tk. 300,000 (Dr.)
The Branch receives all its supplies from the Home Office, which are invoiced at 25 percent
over cost. During the year, the Home Office sent invoices to the Branch to the tune of Tk.
1045,000. The Home Office credits its Sales Account with the invoice price of the goods sent
to the Branch.
The Home Office billed the Branch for Tk. 120,000 on 31 December 2008 representing the
Branchs share of expenses incurred by the Home Office. The said expenses had not been
recorded in the books of the Branch.
All cash collections made by the Branch are deposited in a local bank in the account of the
Home Office. Deposits of this nature included the following:
Amount
50,000
20,000
40,000
Date of Deposit by Branch

25 December 2008
28 December 2008
31 December 2008
Date of Receipt by Home Office

31 December 2008
2 January 2009
3 January 2009
The expenses of the Branch are net by the Home Office from time to time for which
amounts are sent in advance to the Branch. A sum of Tk. 30,000 sent to the Branch by the
Home Office on 29 December 2008, in this connection, was received by the Branch on 3
January 2009.
Required: Prepare the Income Statement in columnar form after showing
reconciliation of Branch account and Home Office account balances.
the
[Marks: (5+20) = 25]

Q. No. 2.
(a)
What is functional currency? What factors are used to determine a reporting entitys
functional currency?
(b)
Greener Inc. is a small company based in Australia, which has a subsidiary Greener BD
Private Ltd. in Bangladesh. At the end of the financial year the following balances appeared
in the books of Greener BD Private Ltd.:
Trial Balances as at 31 December 2008
Amount in Taka
Debit
Plant and Equipment
Credit
1000,00
0
Accumulated Depreciation
140,000
Long-term note receivable
200,000
32
Accounts Receivable
100,000
Prepayments, advances and deposits
90,000
Inventories at cost
120,000
Cash and cash equivalents
360,000
33

SUBJECT: 301. ADVANCED FINANCIAL ACCOUNTING II
Q. No. 2. (Contd..)
Capital Stock
Share money deposit
Retained earnings as on 1 January 2008
10% Bonds payable
Sales
Cost of goods sold
Selling and distribution expenses
Administrative expenses
Depreciation expense
Accounts payable
Other income
Interest expenses
Income tax expense
350,000
250,000
180,000
500,000
2000,000
1200,000
100,000
140,000
100,000
110,000
30,000
50,000
100,000
3560,000
3560,000
Other relevant following information are also available:
i)
Greener BD Private Ltd. uses an average cost of goods sold. Inventory increased by
Tk.20,000 during the year. Purchases were made uniformly during 2008.
ii)
Plant and Equipment were acquired as follows:
Date
Cost
1 January 2007
400,000
1 January 2008
600,000
iii)
Plant and Equipment are depreciated using the straight-line method, on 10 year life
and no residual value.
iv)
The 5-year bonds were issued on 1 October 2007. The premium is amortized on a
straight-line method. The interest is paid on 1 April and 1 October.
v)
The long-term note receivable represents a 10 percent loan to a supplier made in
December 2007 and due in 2011.
vi)
All income and expense items except interest expense and income tax expense
occurred evenly through out the year.
vii)
Exchange rates were as follows:
1 January 2007
A$1
= BDT 40
1 October 2007
A$1
= BDT 41
1 January 2008
A$1
= BDT 42
1 April 2008
A$1
= BDT 44
1 October 2008
A$1
= BDT 48
31 December 2008
A$1
= BDT 50
Average 2008
A$1
= BDT 46
viii)
Share money deposit was received 1 January 2008.
Required: 1.
Prepare a schedule translating the 31 December 2008 trial balance of

Greener BD Private Ltd. from BDT to Australian Dollars.
2.
Prepare Income Statement and Balance Sheet of Greener BD Private Ltd. in

Australian Dollars.
[Marks: {5 +(10+10)} = 25]
Q. No. 3.
The following particulars are stated in the Balance Sheet of M/s. Saiham Limited as on 30 th June,
2003:
Taka in lacs
Deferred tax liability (Cr.)
Deferred tax assets (Dr.)
20.00
10.00
The following transactions were reported during 2003 2004:

(i)
(ii)
Tax rate
Depreciation as per Book
Depreciation for tax purpose
There were no additions to fixed assets during the year.
(iii)
Items disallowed in 2002 2003 and allowed for tax purposes in 2003 2004
34
40%
50.00
30.00
10.00

SUBJECT: 301. ADVANCED FINANCIAL ACCOUNTING II
Q. No. 3. (Contd..)
(iv)
Interest to financial institutions to be accounted in the books on accrual basis,

but actual payment was made on 30.09.2004
20.00
(v)
Donations to private trusts made in 2003 2004
10.00
(vi)
Share issue expenses allowed for the year 2003 2004 (10% of Tk. 50.00 lacs
incurred in 1999 2000)
5.00
(vii)
Repairs to plant and machinery Tk. 100.00 lacs was spread over the period 2003 2004
and
2004 05 equally in the books. However, the entire expenditure was allowed
for income tax purposes.
Required: Indicate clearly the impact of above items in terms of deferred tax liability/deferred tax
assets and the balances of deferred tax liability /deferred tax asset on 30.06.2004.
[Marks: 25]
Q. No. 4.
(a)
What is negative good will? Is a negative purchase discrepancy the same as negative
goodwill? Explain.
(b)
The Balance Sheet of Eastern Co. Ltd. disclosed the following position on 31 December 2008:
Assets
Plant and Machinery
Land and Building
Inventories
Accounts Receivable
Cash and Bank balances
Liabilities and Share Capital:
Common Stock (10 par value)
Preferred Stock (10 par value)
Retained Earnings
Net Profit during the year
7% Bond payable
Accounts payable
Taka
400,000
350,000
200,000
150,000
50,000
1150,000
100,000
100,000
10,000
40,000
500,000
400,000
1150,000
Additional Information:
i. Adequate provision has been made in the accounts for taxation.
ii. The fixed assets of the company have been adequately depreciated.
iii. The present market value of Plant and Machinery is 500,000.
iv. The turn over and net profit or losses of the company since incorporation, after
charging depreciation and taxation have been as follows:
Year
Turnover
2002
2003
2004
2005
2006
2007
2008
1100,000
1200,000
900,000
600,000
1200,000
1400,000
1750,000
Profit/
(Losses)
140,000
110,000
(120,000)
40,000
100,000
150,000
170,000
The reasonable return on capital invested in the class of business done by Eastern Co. Ltd.
is 10 per cent.
The loss incurred in 2004 was due to exceptional circumstances. It is expected that the
company will be able to maintain its profit for the next few years at the same level in the
past.
Required:
Calculate the value of goodwill of Eastern Co. Ltd. (Assume that tax rate is
40% and also consider any further facts, if, necessary).
[Marks: (5+20) = 25]
==THE END==
35

BANGLADESH
PROFESSIONAL LEVEL- III (NEW)
SUBJECT: 302. ADVANCED COST ACCOUNTING.
Time: Three hours
Full Marks:100
Q. No. 1.
(a)
(b)
Is a standard cost system equally applicable to Job Order Costing and Process Costing ?
The standard cost card for Torno Companys product is:
Amount (Tk.)
Materials
7
liters
@
Tk.
3.50
0.50.
Labor
hour
@
Tk.
6.00.
3.00
..
Variable
Factory
Overhead
hour
@
Tk.
1.00
2.00
Fixed
Factory
Overhead
hour
@
Tk.
2.00
4.00..
Standard production cost per unit
9.50
Data for November:
(a)
1,000 units (40% converted) were in process at the beginning of the month.
5,050 units were started during the month.
5,000 units were transferred to finished goods.
800 units (25% converted) were in process at the end of the month.
(b)
Materials are all added at the beginning of the process. Conversion costs are incurred
evenly throughout the process. Inspection takes place when the units are 80%
converted. Under normal conditions, no spoilage should occur.
(c)
40,000 liters of materials were purchased for Tk.19,200 and were charged to
inventory at standard cost.
(d)
37,000 liters of materials were issued to production.
(e)
Direct labor payroll was Tk.15,600 for 2400 hours.
(f)
Actual factory overhead costs were:
Amount
(Tk.)
Amount
(Tk.)
4,000
Indirect
labor
(variable)
..
Supervision.
4,000
..
Depreciation
(based
on
time)
2,500
Supplies
1,000
.
Heat,
light,
and
power
(variable)
300
.
(Fixed) 1,200
1,500
.
Property
200
tax.
Insurance.
500
.
Total
13,70
..
0
(a)
Marketing and administrative expenses were: variable, Tk.1 per unit sold; fixed,
Tk.13,500.
(b)
Normal output for a month is 4000 units.
Required:
(1)
Compute the November equivalent production for materials and for conversion costs.
(2)
Determine the standard cost of:
(a)
Units transferred to finished goods.
36
(3)
(b)
Abnormal spoilage, to be charged directly to a current period expense account.
(c)
Ending inventory of work in process.
Compute the (a) materials price and quantity variances, (b) labor rate and efficiency
variances,
and
(c) factory overhead variances, using the four-variance method.
[Marks: {4+(4+3+9)} = 20]
37

Q. No. 2.
(a)
Distinguish between join product and by product. In making decision about the further
processing of joint products, what costs are relevant?
(b)
Doxy Company manufactures three products from a common input in a joint processing
operation. Joint processing costs up to the split-off point total Tk.350,000 per quarter. The
company allocates these costs to the joint products on the basis of their total sales value at
the split-off point. Unit selling prices and total output at the split-off point are as follows:
Product
Selling Price
Quarterly
Output
A
Tk.16 per pound
15,000 pounds
B
8 per pound
20,000 pounds
C
25 per gallon
4,000 gallon
Each product can be processed further after the split-off point. Additional processing requires
no special facilities. The additional processing costs (per quarter) and unit selling price after
further processing are given below:
Product
Additional
Processing
costs
Tk.63,000
80,000
36,000
A
B
C
Selling price
Tk.20 per pound
13 per pound
32 per gallon
Required: Which product or products should be sold at the split-off point and which product
or products should be processed further? Show computations.
[Marks: (5+10) = 15]
Q. No. 3.
(a)
A practicing Cost and Management Accountant spends Tk.1.80 per km on taxi fare. He is
considering two other alternatives- purchasing a new small car or an old big car. The
estimated cost figures for these two alternatives are as follows:Particulars
Purchase price
Sale price after 10 years
Servicing and other fixed expenses per annum
Tax and Insurance per annum
Km. run per liter
New Small Car (Tk.)

70,000
30,000
1,500
3,500
10
Old Big Car (Tk.)

40,000
20,000
2,400
1,000
7
Petrol price per litre is Tk.7. His estimated annual requirement of travel is 10,000 km. You are
required to find out:
(b)
(a)
Which of three options will be most economical for him;
(b)
In case of his annual travel requirement is 20,000 km. what should be his decision?
(c)
At how many Kms. p.a. the cost of the two cars will break-even?
The XYZ Company sells three products. The following is an analysis of profitability of each of
the products:
A (Rs.)
25.00
9.00
15.00
24.00
1.00
4.00%
11,000
Selling price
Variable costs
Fixed costs
Total costs
Profit
Profit % to selling price
Annual volume (in units)
38
Per unit basis

B (Rs.)
40.00
19.00
15.00
34.00
6.00
15.00%
7,500
C (Rs.)
55.00
32.00
15.00
47.00
8.00
14.50%
6,500

Q. No. 3. (Contd..)
The company has total fixed costs of Tk.3,75,000 per year. The fixed cost per unit has been
arrived at by dividing the total fixed cost with the total volume of 25,000 units. On the basis
of the above analysis, it has been suggested by the Cost Accountant that product A should
be discontinued if a substitute could be found that would be more profitable. This conclusion
upsets the sales manager, who had planned to undertake a Tk.60,000 promotional campaign
for product A. He has estimated that a Tk.50,000 expenditure would increase the volume of
the product selected by 30%; sales of other products would be unaffected as would existing
fixed costs.
Required: To determine whether promotional campaign should be undertaken or not. If your
answer is yes, then which product should be selected for special promotion? Will your
decision get changed if the required expenditure on promotional campaign were
Tk.50,000 only?
[Marks: (10+15)} = 25]
Q. No. 4.
(a)
Express an opinion as to the usefulness of data derived from a process cost system for
control of cost.
(b)
Builder Product, A processing factory manufacturing a single product processes the same
through two departments. Particulars of expenses incurred on the different processes for a
period are given below:
Process-A:
Raw Material
Tk.1,50,000
Wages
Tk.1,30,000
Overhead expense
Tk.1,45,000
Total
Tk.4,25,000
After crediting the process account with Tk.25,000 being the estimated realizable value of
waste and by-product and Tk.40,000 against process profits, the balance is transferred to
Process-B.
Process-B:
Transferred from Process-A
Tk.4,40,000
Wages
Tk.1,00,000
Overheads
Tk.1,40,000
Total
Tk.6,80,000
There is no wastage of by-product in Process-B and the output is transferred to Finished Stock
Account with a margin of 25% on total cost of Tk.6,80,000.
The Finished Stock inventories at the end of the period, show a balance of Tk.1,05,000 which
has been transferred to Balance Sheet and included under closing stock.
Required:
(i)
Prepare Process and Finished Stock Account. Can the figure be accepted and adopted
for Balance Sheet purpose?
(ii)
If not, indicate the figure which you would accept as cost of closing stock after making
such adjustments which you deem necessary.
[Marks: {5+ (10 x 2)} = 25]
39

Q. No. 5.
The Rochester Company assembles a washing machine that is sold to three classes of customers:
department stores, retail appliance stores, and wholesalers. The data with respect to these three
classes of customers are shown below:
Customer Class
Department Stores
Retail
appliance
stores
Wholesalers
Total
Taka
Sales
Gross
Profit (Tk)
Number of
Sales Calls
Number
of
Orders
Number of
Invoice
Lines
1,80,00
0
240,000
26,000
240
120
2,100
80,000
360
580
4,600
300,000
720,000
71,000
177,000
400
1,000
300
1,000
3,300
10,000
Actual marketing costs for the year are:

Function
Selling.
Packing and shipping..
Advertising
Credit and collection
General accounting..
Costs (Tk)
65,000
12,000
10,000
15,000
18,000
Measure of Activity
Salespersons calls
Customers orders
Taka sales
Invoice lines
Customers orders
Required: An income statement by customer classes with functional distribution of marketing

expenses. (When allocating the advertising expense, round to the nearest Tk.100).
[Marks: 15]
= THE END =
40

BANGLADESH
SUBJECT: 303. CORPORATE LAWS, GOVERNANCE & SECRETARIAL
PRACTICES.
Time: Three hours
Full Marks:100
Answer FIVE questions taking any THREE from Part-A and TWO from Part-B including
question No. 5 which is compulsory.
PART A: CORPORATE LAWS
Q. No. 1.
(a)
What is a prospectus? When should a statement in lieu of prospectus be issued?
(b)
Is there any significant difference between a prospectus and a statement in lieu of
prospectus?
(c)
Suppose you have purchased shares based on a prospectus, which was eventually proved to
be
false and misleading. What remedies are available to you as per the Companies Act 1994?
[Marks: (5+5+10) = 20]
Q. No. 2.
(a)
Differentiate between a private and a public company.
(b)
How a company can be listed with and de-listed from Stock Exchange?
(c)
What is Book Building?
[Marks: (6+10+4) = 20]
Q. No. 3.
(a)
What do you mean by net capital as described in the Securities & Exchange Rules, 1987?
(b)
As per the Securities & Exchange Rules, 1987 what are the qualification of members of stock
exchange?
(c)
Under the above stated Rules, what are the financial report to be submitted to the SEC by an
issuer and when?
[Marks: (5+7+8) = 20]
Q. No. 4.
(a)
Define EGM & AGM.
(b)
In what circumstances a company calls for an EGM?
(c)
How can a general meeting be called?
[Marks: (5+10+5) = 20]
Q. No. 5.
Write short notes on any 4 (four) of the following:
(a)
Insider Trading.
(b)
Disqualification of Directors.
(c)
Directors Report.
(d)
Divisible Profit.
(e)
Appointment of Auditor.
(f)
Stock Dividend.
[Marks: (4x5) = 20]
41

SUBJECT: 303. CORPORATE LAWS, GOVERNANCE & SECRETARIAL PRACTICES.
PART B: CORPORATE GOVERNANCE & SECRETARIAL PRACTICES

Q. No. 6.
(a)
What is Right Offer?
(b)
Being a company secretary what are the procedure you have to follow in offering right
shares?
[Marks: (5+15) = 20]
Q. No. 7.
(a)
What is ordinary resolution and extra-ordinary resolution?
(b)
In what circumstances a resolution by circulation can be made?
(c)
Define special resolution.
[Marks: (10+5+5) = 20]
Q. No. 8.
a)
Draft a notice of the Annual General Meeting?
b)
Discuss the role of a Company Secretary to uphold Corporate Governance in the
organization?
[Marks: (10+10) = 20]
= THE END =
42

PROFESSIONAL LEVEL-III (NEW)
SUBJECT: 304. AUDITING.
Time: Three hours
Full Marks:100
Q. No. 1.
(a)
What do you mean by auditors independence, integrity and objectivity as per general
principles of an audit?
(b)
Define related party transaction. How can you verify the related party transactions at the
time of audit?
(c)
What do you meant about electronic data processing (EDP) environment? Describe briefly the
basic principles of audit in an EDP environment.
[Marks: (5x3) = 15]
Q. No. 2.
(a)
What do you meant about audit Sampling? Explain the meaning of the following term in the
context of audit Sampling.
(i)
Stratified Sampling.
(ii)
Random Sampling.
(iii) Block Sampling.
(b)
Why cost audit is essential for a manufacturing company? Write briefly the benefits enjoyed
by the management after effective implementation of cost audit.
(c)
Draw a speciment clean cost audit report for a manufacturing company.
[Marks: (10+6+4) = 20]
Q. No. 3.
(a)
What do you meant about Cut of procedure? Describe briefly the manner in which the auditor
gains satisfaction as to the physical existence of stocks.
(b)
Who are responsible for implementation of Internal control system? Why and to what extent
an internal control system mostly essential for an organization?
[Marks: (5+5) = 10]
Q. No. 4.
(a)
What do you mean by IAASB?
(b)
Describe the process of promulgation of ISA.
(c)
What are the responsibilities of management of public limited company to financial
statement under Companies Act, 1994?
[Marks: (6+6+8) = 20]
Q. No. 5.
(a)
An Auditor is expected to have an absolute basis for the expressions of an opinion. Do you
agree?
(b)
Should the auditor give an unqualified opinion on financial statement which shows stocks not
kept properly by the Management but a Management representation letter provided by the
Management during the time of audit?
[Marks: (5x2) = 10]
Q. No. 6.
(a)
Explain the meaning of the term materiality and its significance for an auditor. Why does an
auditor need to study and evaluate internal control system?
(b)
What do you meant about:
(i) Auditors Liability to third party.
(ii) Professional Competence and due care.
[Marks: (5+10) = 15]
Q. No. 7.
(a)
Briefly describe the Rights & Power of Auditor u/s 213 of the Companies Act, 1994. Can this
rights be restricted by the terms of an Auditors appointment or in any other manner?
(b)
What do you meant about electronic data processing (EDP) environment? Describe briefly the
common types of frauds that take place in EDP environment and suggest how the occurrence
of such frauds can be minimized.
[Marks: (5+5) = 10]
= THE END =
43

BANGLADESH
PROFESSIONAL LEVEL IV (NEW)
SUBJECT: 401. FINANCIAL MANAGEMENT.
Time : Three hours
Full Marks: 100
Q. No. 1.
(a)
What do you mean by working capital management? Explain how working capital
management policies affect profitability, liquidity and structural health.
(b)
M. A. Limited is commencing a new project for manufacture of a plastic components.
The following cost information has been ascertained for annual production of 12000 units
which is the full capacity:
Cost per
unit (Tk.)
40
20
6
10
4
80
Materials
Direct labor and variable expenses
Fixed manufacturing expenses
Depreciation
Fixed administrative expenses
Total cost
The selling price per unit is expected to be Tk.96 and the selling expenses Tk.5 per unit, 80% of
which is variable.
In the first two years of operations, production and sales are expected to be as follows:
Year
1
2
Production in
units
6000
9000
Sales in
Units
5000
8500
To assess the working capital requirements the following additional information is available:(a)
Stock of materials
2.25 months average consumption
(b)
Work in process
Nil
(c)
Debtors
1 months average sales
(d)
Cash balance
Tk.10,000
(e)
Creditors for supply of material
1 months average purchase during the year.
(f)
Creditors for expenses
1 months average of all expenses during the year.
Required:
Prepare for the two years:(i)
A projected statement of profit/loss (Ignoring taxation)
(ii)
A projected statement of working capital requirements
[Marks: (5+15) = 20]
Q. No. 2.
(a)
JAMUNA plastic manufacturing company has been following a dividend policy which can
maximize the market value of the firm as per Walters model. Accordingly, each year at
dividend time, the capital budget is reviewed in conjunction with the earnings for the period
and alternative investment opportunities for the shareholders. In the current year, the firm
reports net earnings of Tk. 5,00,000. It is estimated that the firm can earn Tk. 1,00,000 if the
amounts are retained. The investors have alternative investment opportunities that will yield
them 10%. The firm has 50,000 shares outstanding. What should be the dividend payout
ratio of the company if it wishes to maximize the wealth of the shareholders?
(b)
Calculate the degree of operating leverage, financial leverage and combined leverage for the
following firms and interpret the results, given the following data.
44

Q. No. 2. (Contd..)
Output (units)
Fixed costs (Tk)
Unit variable cost (Tk)
Interest expenses (Tk)
Unit selling price (Tk)
P
3,00,000
3,50,000
1.00
25,000
3.00
Q
75,000
7,00,000
7.50
40,000
25.00
R
5,00,000
75,000
0.10
Nil
0.50
[Marks: (10+10) = 20]
Q. No. 3.
(a)
(b)
Ratios can be classified into five broad groups What are these? Explain.
As a financial analyst of M/S. PHILIPS BANGLADESH LTD. you are required to determine the
weighted average cost of capital of the company using (i) book value weights and (ii) market
value weights. The following information is available for your perusal.
The companys present book value capital structure is:
Debentures (Tk. 100 per debenture)
Tk. 8,00,000
Preference shares (Tk.100 per share)
2,00,000
Equity shares (Tk. 10 per share)
10,00,000
20,00,000
All these securities are traded in the capital markets. Recent prices are:
Debentures, Tk. 110 per debenture
Preference share, Tk. 120 per share
Equity shares, Tk. 22 per share
Anticipated external financing opportunities are:
i)
Tk. 100 per debenture redeemable at per; 10 year maturity, 13 per cent coupon rate, 4
per cent flotation costs, sale price, Tk. 100.
ii)
Tk. 100 preference share redeemable at per; 10 year maturity, 14 per cent dividend
rate, 5 per cent flotation cost, sale price, Tk. 100.
iii)
Equity share: Tk. 2 per share flotation cost, sale price = Tk. 22
In addition, the dividend expected on the equity share at the end of the year is Tk. 2 per
share; the anticipated growth rate in dividend is 7 per cent and the firm has the practice of
paying all its earnings in the form of dividends.
The corporate tax rate is 35 per cent.
[Marks: (5+15) = 20]
Q. No. 4.
POLIMER plc has decided it must replace its major turbine machine on 31 December 2009. The
machine is essential to the operations of the company. The company is, however, considering
whether to purchase the machine outright or to use lease financing.
Purchasing the machine outright
The machine is expected to cost Tk.360,000 if it is purchased outright, payable on 31 December
2009. After four years the company expects new technology to make the machine redundant and it
will be sold on 31 December 2013 generating proceeds of Tk.20,000. Capital allowances for tax
purposes are available on the cost of the machine at the rate of 25% per annum reducing balance.
A full years allowance is given in the year of acquisition but no writing down allowance is available
in the year of disposal. The difference between the proceeds and the tax written down value in the
year of disposal is allowable or chargeable for tax as appropriate.
45

Q. No. 4. (Contd..)
Leasing
The company has approached its bank with a view to arranging a lease to finance the machine
acquisition. The bank has offered two options with respect to leasing which are as follows:
Finance
Operating
Lease
Lease
Contract length (years)
4
1
Annual rental
Tk.135,000
Tk.140,000
First rent payable
31 December 2010
31 December 2009
General
For both the purchasing and the finance lease option, maintenance costs of Tk.15,000 per year are
payable at the end of each year. All lease rentals (for both finance and operating options) can be
assumed to be allowable for tax purposes in full in the year of payment. Assume that tax is payable
one year after the end of the accounting year in which the transaction occurs. For the operating
lease only, contracts are renewable annually at the discretion of either party. POLIMER plc has
adequate taxable profits to relieve all its costs. The rate of corporation tax can be assumed to be
30%. The companys accounting year-end is 31 December. The companys annual after tax cost of
capital is 10%.
Required:
Calculate the net present value at 31 December 2009, using the after tax cost of capital, for
(i)
Purchasing the machine outright;
(ii)
Using the finance lease to acquire the machine; and
(iii) Using the operating lease to acquire the machine. Recommend the optimal method.
[Marks: 20]
Q. No. 5.
(a)
Explain the exchange rate system that existed during the 1950s and 1960s. How does
todays exchange rate system differ?
(b) PURBO Cordage Company is considering the acquisition of SUMY Wire and Mesh Corporation
with stock. Relevant financial information is as follows:
PURBO
SUMY
Present earnings (in thousands)
Tk. 4,000
Tk. 1,000
Common shares (in thousands)
2,000
800
Tk. 2.00
Tk. 1.25
12x
8x
Earnings per share

Price/earnings ratio
PURBO plans to offer a premium of 20 percent over the market price of SUMY stock.
(i)
What is the ratio of exchange of stock? How many new shares will be issued?
(ii)
What are earnings per share of the surviving company immediately following the
merger?
(iii)
If the price/ earnings ratio stays at 12 times, what is the market price per share of the
surviving company? What would happen if it went to 11 times?
[Marks: (6+14) = 20]
= THE END =
46

BANGLADESH
PROFESSIONAL LEVEL- IV (NEW)
SUBJECT: 402. STRATEGIC MANAGEMENT ACCOUNTING.
Time: Three hours
Full Marks:100
Q. No. 1.
The Managing Director of M/s. ABC Ltd. has been planning to acquire a Bus available for use by
the Companys staff. The Bus that the company wishes to acquire can be either purchased or
leased from the manufacturer. The company has made the following evaluation of the two
alternatives.
Purchase alternative:
If the Bus is purchased, then the costs incurred by the company would be as follows:
Purchase cost of the Bus
Tk.8,50,0
00
9,000
Annual cost of servicing, licenses and taxes

Repairs:
First three years, per year
3,000
Fourth year
5,000
Fifth year
10,000
The Bus would be sold after five years. Based on current resale values, the company would be
able to sell it for about one-half of its original cost at the end of the five-year period.
Lease alternative:
If the Bus is leased, then the company would have to make an immediate deposit of Tk.50,000 to
cover any damage during use. The lease would run for five years, at the end of which time the
deposit would be refunded. The lease would require as annual rental payment of Tk.2,00,000 (the
first payment is due at the end of year-1). As part of this lease cost, the manufacturer would
provide all servicing and repairs, license the Bus, and pay all taxes. At the end of the five year
period, the Bus would be reverted to the manufacturer as owner.
The cost of capital of the company is 18%.
Required:
(a)
Use the total cost approach to determine the present value of the cash flows associated with
each alternative. Ignore income taxes. The present value factor of Taka 1 at 18% cost of
capital for 1-5 years period is 3.127 while it is 2.174 for 1-3 years period and 0.516 for the 4 th
year and 0.437 for the 5th year.
(b)
Which alternative would you recommend that the company should accept? Why?
[Marks: (15+5) = 20]
Q. No. 2.
M/s. Jaypur Hat Company has two divisions. The Mining Division makes Toldine, which is then
transferred to the Metals Division. The Toldine is further processed by the Metals Division and is
sold to customers at a price of Tk.150 per unit. The Mining Division is currently required by the
company to transfer its total yearly output of 4,00,000 units of Toldine to the Metals Division at
110% of full manufacturing cost. Unlimited quantities of Toldine can be purchased and sold on the
outside market at Tk.90 per unit.
The following table gives the manufacturing costs per unit in the Mining and Metals Divisions for
2009:
Mining Division
Direct materials
Direct manufacturing labour costs
Manufacturing overhead costs
Total manufacturing costs per unit
Tk.12
16
32
Tk.60
47
Metals
Division
Tk.6
20
25
Tk.51

Q. No. 2. (Contd..)
Manufacturing overhead costs in the Mining Division are 25% fixed and 75% variable.
Manufacturing overhead costs in the Metals Division are 60% fixed and 40% variable.
Required:
(a)
Calculate the operating incomes for the Mining and Metals Divisions for the 4,00,000 units of
Toldine transferred under the following transfer-pricing methods:
(i)
Market price; and
(ii)
110% of full manufacturing costs.
(b)
Suppose the company rewards each divisions manager with a bonus, calculated as 1% of
division operating income (if positive). What is the amount of bonus that will be paid to each
division manager under the transfer-pricing methods in requirement (a)? Which transferpricing method will each division manager prefer to use?
(c)
What arguments would the manager of the Mining Division make to support the transferpricing method that he prefers?
[Marks: (12+5+3) = 20]
Q. No. 3.
M/s. Dhaka Medical Instruments Company is considering JIT (Just-in-time) purchasing policy
implementation in 2010. The companys annual demand for a product XJ-200, a surgical instrument
is 20,000 units. If the company implements JIT, the purchase price of the product XJ-200 is
expected to increase from Tk.10 to Tk.10.05 because of frequent deliveries by M/s. Mirpur
Manufacturing Industries Ltd. M/s. Mirpur Manufacturing Industries enjoy a sterling reputation for
quality and reliability. Ordering costs will remain at Tk.5 per order. However, the annual number of
orders placed will be 200 instead of the current 20. As a result of frequent ordering, the order size
of M/s. Dhaka Medical Instruments Company will decrease proportionately. Dhaka Medical
Instruments Companys required rate of return on investment is 20%. Other carrying costs
(insurance, materials handling and so on) will remain at Tk.4.50 per unit. Currently the Dhaka
Company has no stockout costs. Lower inventory levels from implementing JIT will lead to Tk.3 per
unit stockout costs on 100 units during the year.
Required:
(a)
Calculate the estimated Taka savings (loss) for M/s. Dhaka Medical Instruments Company
from adoption of JIT purchasing policy.
(b)
Under what conditions would it be beneficial for M/s. Dhaka Medical Instruments Company to
have management from M/s. Mirpur Manufacturing Industries Ltd. for all inventories in the
supply chain?
[Marks: (15+5) = 20]
Q. No. 4.
Consider the following data for the two geographical divisions of M/s. Chittagong Electric Company
that operate at profit centers:
Rajshahi
Division
Tk.10,00,000
2,50,000
2,00,000
Total assets
Current liabilities
Operating income
48
Khulna
Division
Tk.50,00,000
15,00,000
7,50,000

Q. No. 4. (Contd..)
Required:
(a)
Calculate the ROI (Return on Investment) for each division using operating income as the
measure of income and total assets as the measure of investment.
(b)
Chittagong Electric Company has used RI (Residual Income) as a measure of management
performance, the variable it wants a manager to maximize. Using this criterion, what is the RI
for each division using operating income and total assets, if the required rate of return on
investment is 12%?
(c)
M/s. Chittagong Electric Company has two sources of funds: Long-term debt with a market
value of Tk.35,00,000 and interest rate of 10%, and equity capital with a market value of
Tk.35,00,000 at a cost of equity of 14%. The companys income tax rate is 40%. The
Chittagong Electric Company applies the weighted-average cost of capital to both divisions,
because each division faces similar risks. Calculate the EVA (Economic Value Addition) for
each division. Which of the measures calculated in requirements (a), (b) and (c) would you
recommend Chittagong Electric Company to use? Why? Explain.
[Marks: (5+5+10) = 20]
Q. No. 5.
(a)
Explain the condition when conflicting ranking would be given by IRR and NPV to the
mutually exclusive project?
(b)
What should be the criteria for Management to adopt a particular performance measure?
(c)
What are the four key perspectives in the balanced scorecard?
(d)
Describe three ways to improve the performance of a bottleneck operation.
[Marks: (5x4) = 20]
= THE END =
49

BANGLADESH
SUBJECT: 403. STRATEGIC MANAGEMENT AND ORGANIZATIONAL
BEHAVIOR.
Time: Three hours
Full Marks:100
Answer any THREE questions from Group-A and TWO question from Group-B.
All questions carry equal marks.
PART A: STRATEGIC MANAGEMENT
Q. No. 1.
(a)
What is a strategy? What is strategic management?
(b)
How can you classify different strategies of a firm?
(c)
Can you avoid strategic management to-day? Why?
[Marks: (5+8+7) = 20]
Q. No. 2.
(a)
How does internet reshape the competitive environment?
(b)
Discuss the e-commerce business strategies for future.
(c)
What are the effects of internet on the value chain of an industry?
[Marks: (5+8+7) = 20]
Q. No. 3.
(a)
What are the elements to be incorporated in the mission statement of a company? Discuss
those elements in brief.
(b)
Discuss in brief the concept of strategic intent.
(c)
How a company should communicate the strategic vision down the line to lower-level
managers and employees? Discuss in brief.
[Marks: (9+5+6) = 20]
Q. No. 4.
(a)
What do mean by competitive strategy?
(b)
How is it decided upon for a company?
(c)
Discuss the five generic competitive strategy of Michel Porter.
[Marks: (4+6+10) = 20]
Q. No. 5.
Discuss any four of the following:
(i)
Strategy and Entrepreneurship
(ii)
Strategic Vision and Strategic Mission
(iii) Company Competence and Competitive Capability
(iv) Unbundling and Outsourcing
(v)
Joint Venture and Strategic Partnership
(vi) Strategic Objectives and Financial Objectives
[Marks: (5 4) =
20]
50

SUBJECT: 403. STRATEGIC MANAGEMENT AND ORGANIZATIONAL BEHAVIOR.
PART B: ORGANIZATIONAL BEHAVIOR
Q. No. 6.
(a)
What is group dynamics?
(b)
Distinguish between formal and informal organization.
(c)
Discuss the pros and cons of the informal organization.
[Marks: (4+6+10) = 20]
Q. No. 7.
(a)
Why is change management significant in an organization?
(b)
Describe the common resistance to change.
(c)
Discuss the process of effective change management.
[Marks: (4+6+10) = 20]
Q. No. 8.
(a)
What do you mean by group structure? What are the group structural variables?
(b)
Is there any difference between role conflict and role ambiguity? Give a practical example
from your position that makes the distinction more clear?
(c)
Why is the study of role ambiguity important in organization behavior ? Discuss
[Marks: (6 +7 +7) = 20]
= THE END =
51

SUBJECT: 404-COST & MANAGEMENT AUDITING.
Time: Three hours
Full Marks: 100
PART A: COST AUDITING (MARKS: 50)

Q. No. 1.
How Cost Auditor will suggest the measure for improvements in performance, if any, in respect of
the following:
(a)
Rectification of general imbalance in production facilities;
(b)
Fuller utilization of installed capacity;
(c)
Concentration on areas offering scope for cost reduction and increased productivity;
(d)
Improved inventory policies.
[Marks (44) = 16
Q. No.2.
(a)
Enumerate the provisions of the Companies Act, 1994 and Cost Audit Ordinance/Rules
regarding qualification, appointment and removal of a Cost Auditor of a Company.
(b)
Discuss the provisions of professional misconduct in relation to Cost Accountants in respect
of his professional duties.
[Marks (8+8) = 16]
Q. No.3.
(a)
Cost accounting and cost audit are effective management control mechanisms and as such,
a management tool. Briefly discuss.
(b)
Cost audit Is an aid to shareholders of corporate bodies and to Government briefly discuss.
(c)
In the context of Bangladesh, what factors should be considered for the development of cost
audit practice in the private sector manufacturing concern? Briefly discuss.
[Marks (6+6+6) = 18]
PART B: MANAGEMENT AUDITING (MARKS: 50)
Q. No. 4.
(a)
Management auditors act as consultants both to senior management and to the board of
directors of a manufacturing company. Briefly explain.
(b)
What is the importance of management audit report? Briefly discuss the essential features
and contents of a management audit report.
[Marks (6+8) = 14]
Q. No.5.
(a)
Distinguish between principle-based and law-based Corporate Governance. How far SEC
circular is in conformity with other countries?
(b)
You are the management auditor of a manufacturing company. State various techniques you
would adopt in measuring the performance of resources of Factory.
[Marks (8+8) = 16]
Q. No. 6.
(a)
Why many industries are relocated from the developed countries to the LDC like Bangladesh?
Do you find it a sign of localization of industries or development of the nation?
(b) Why e-business with foreign countries and e-transactions involving foreign exchange could
not be implemented in Bangladesh?
(c)
Who does dictate disclosure requirements of audited financial statements of scheduled
banks, insurance companies, listed companies and Private Limited Companies? Why?
.
[Marks (7+ 5+8) = 20]
THE END
********
52

CMA December 2009 Exam Questions

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CMA December 2009 Exam Questions

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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA DECEMBER 2009 EXAMINATION

All questions are to be attempted.

Show computations, where necessary.

Answer must be brief, relevant, neat and clean.

Start answering each question from a fresh sheet.

Distinguish between perpetual and periodic inventory system.

[Marks : {5+(5x3)} = 20]

CMA DECEMBER 2009 EXAMINATION

Make the appropriate correction/adjustment in the cash book.

Distinguish between Capital Expenditure & Revenue Expenditure.

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Answer must be brief, relevant, neat and clean.

Use a fresh sheet for answering each question.

All questions must be answered in English.

PART A: BUSINESS COMMUNICATION

Job rotation of office work.

(f) Record Management program.

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF

PART A : BUSINESS MATHEMATICS

Prove that (i) log 2 log

(ii) 2log(x+y) = logx + logy + 3log2

CMA DECEMBER-2009, EXAMINATION

A businessman invest Tk.50,000 at 6% compounded semi-annually. Find the compound

If y = (x3+3) log(2x+1), find

(b) If x3 3x2y + 2y2 5 = 0, find

PART B: BUSINESS STATISTICS

(i) Arithmetic mean

[Marks : (4+6) = 10]

CMA DECEMBER-2009, EXAMINATION

Define the coefficient of correlation. What is it intended to measure?

To what extent the preferences of these two ladies go together?

Define dispersions. What are the measures of dispersion?

Which companys Lamp should be preferred by the buyer and why?

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Show Computations, where necessary.

Answer must be brief, relevant, neat and clean.

Start answering each question from a fresh sheet.

GROUP A : BUSINESS ECONOMICS

How does knowledge of economics help efficient management of business?

[Marks : (6+6+8) = 20]

Distinguish between Perfect Competition and Monopoly market.

CMA DECEMBER 2009 EXAMINATION

GROUP B : INTERNATIONAL BUSINESS

What is the usual procedure of exports from and imports to Bangladesh?

Define foreign exchange rate.

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA DECEMBER-2009, EXAMINATION

Compute the number of units sold during 2008

CMA DECEMBER-2009, EXAMINATION

Allowance for Doubtful Accounts

The following information was also available:

CMA DECEMBER-2009, EXAMINATION

Distinguish between depreciation, depletion, and amortization.

Statement balance at December 31, 2008 was Tk.33,350

December bank charges were Tk.60

Deposit of Tk.1,400 was erroneously credited to Meghan Company account by the

Receipts on December 31 were Tk.9,000. Receipts were deposited on January 2

Give all entries required on the books at December 31, 2008.

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA DECEMBER-2009, EXAMINATION

CMA DECEMBER-2009, EXAMINATION

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Answer any THREE questions from each part.