CMA April - 14 Exam Question PDF

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA APRIL, 2014 EXAMINATION

FOUNDATION LEVEL
SUBJECT : 001. PRINCIPLES OF ACCOUNTING.
Time: Three hours
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: 100
Q. No. 1.
(a) Explain why (i) Prepaid Insurance, (ii) Unearned Revenue, (iii)Depreciation Expense (iv)
Interest payable and (v) Rent Receivable, each account may require adjustment.
(b) The Accounts and other records of ABC Company Limited the following information is
made available for the year ended on 30th June 2013:
i)
Debit Balance of Office Supplies on 01-07-2012
Tk. 5,000
Purchased during the year
10,500
Supplies on hand on 30-06-2013
2,000
ii)
Prepaid Rent (Debit Balance) on 01-07-2012
50,000
Paid during the year Tk. 60,000 which includes amount to Tk. 24,000 paid as advance on
1st March 2013, to hire a show room for one year at the rate of Tk. 4,000 per month. While
paying monthly rent, only 50% rent is paid in cash, while the balance 50% is adjusted
against the advance paid. Other advance has expired on 30th June 2013.
iii) Prepaid insurance Account has a debit balance of Tk. 1,38,000. It is paid against the
following Policies purchased during the year:Policy No.
A 5320
E 4520
X 3211
Date of Policy
August 1, 2012
October 1, 2012
May 1, 2013
iv)
Life policy
3
2
1
Premiums
Tk. 96,000
24,000
18,000
During the year goods worth of Tk. 1,00,000, was sold on Sale or return basis.
The cost of which was Tk. 60,000. It is reported at the end of the year that only
goods worth of Tk. 80,000 has been sold.
v)
It has been observed in reconciling Bank accounts that five cheques totalsling an
amount of Tk.89,650 issued two years back is still continuing as item of
reconciliation and has been decided to adjust in this years Accounts.
vi) Repairs and maintenance debit Tk. 25,00,000. This seems to be abnormally high in
comparison to previous years. On checking, it was found that it includes a bill of
Tk. 7,50,000, paid for major overhead of a machinery which was required to keep
the machinery in working condition for the period estimated previously.
vii) An equipment purchased on 1st Sept. 2010 for Tk. 12,00,000, was charged with
depreciation @ 10% on Book value up to 30th June 2013. Recently, an instruction
has been received from loan giving agency to charge depreciation on straight line
method considering 10 years life and Tk. 50,000 as scrap value.
Required: Give Journal entries for the above.
[Marks (7+15) = 22]
Page 1 of 4

FOUNDATION LEVEL
Q. No. 2.
Balances taken from the ledger of Mr. Arafat as on 31st December, 2013 are given below after
first year of business:
Cash
Tk. 3,00,000
Capital
10,00,000
Sales
15,00,000
Accounts Receivable
6,00,000
Purchase
7,00,000
Interest Income
30,000
Allowance for doubtful accounts
20,000
Merchandise Inventory (01-01-2013)
4,50,000
Accounts Payable
1,00,000
Gain on sales of fixed assets
30,000
Rent expenses
1,40,000
Salary expenses
2,00,000
Office equipment
1,00,000
Stores equipment
1,35,000
Supplies
30,000
Freight In
25,000
Adjustments are to be made:
(a) Merchandise inventory on 31st December, 2013. Tk. 3,50,000
(b) Prepaid rent Tk. 20,000.
(c) Accrued Salaries Tk. 40,000.
(d) Doubtful accounts to be written off against allowance Tk. 10,000.
(e) Maintain an allowance for doubtful accounts equal to 7% of accounts receivable.
(f) Office equipment includes an item purchased on 1st July, 2013 at Tk. 20,000. Depreciation
is to be charged @ 10% per annum.
(g) Stores equipment was charged with an amount of Tk. 15,000 which was spent for
repairing the trolley of the stores. Depreciation is to be charged @ 10% per annum.
(h) Goods valuing Tk. 10,000 Taken by the proprietor for personal use was debited to
purchases.
(i)
Supplies in hand Tk. 5,000.
Required:
(i)
8-Column Work sheet.
(ii) Adjusting entries, show computations where necessary.
[Marks (12+8) = 20]
Q. No. 3.
(a) Colleen Mehla Company sells portable tables to be used for message therapy. Each table
has a built-in stereo system and carries a one year warranty contract that requires the
company to replace defective parts and to provide the necessary repair labor. During
2002, the company sold 300 tables at a unit price of Tk.2,500. Sales occurred evenly
throughout the year. The one year warranty costs to repair defective tables are estimated
to average Tk.110 for parts and Tk.130 for labor per unit. Approximately 10% of the tables
sold are estimated to require warranty service. During 2002, the company's first year of
operations, 11 units were submitted for warranty work at a total cost of Tk.2,750.
Page 2 of 4

FOUNDATION LEVEL
Q. No. 3. (contd.)
Instructions:
(i)
Record the adjusting journal entry at the end of 2002 to accrue the estimated warranty
costs on the 2002 sales.
(ii) Prepare the entry to record repair costs incurred in 2002 to honor warranty contracts on
2002 sales.
[Marks: 8]
Q. No. 4.
(a) Explain the book value, market value and par value of capital stock.
(b) The stockholders equity of Sutton Corporation at December 31, 1993, is shown below:
Stockholders equity:
Common stock, Tk.10 par, 100,000 shares authorized, 40,000 shares issued
Tk 400,000
Additional paid-in capital: common stock
200,000
Total paid-in capital
Tk 600,000
Retained earnings
1,500,000
Total stockholders equity
Tk2,100,000
Transactions affecting stockholders equity during 1994 are as follows:
Mar. 31
A 5-for-4 stock split proposed by the board of directors was approved by vote of the
stockholders. The 10,000 new shares were distributed to stockholders.
Apr. 1
The company purchased 2,000 shares of its common stock on the open market at
Tk.37 per share.
July 1
The Company reissued 1,000 shares of treasury stock at Tk.45 per share.
July 1
Issued for cash 20,000 shares of previously unissued Tk.8 par value common stock
at a price of Tk.45 per share.
Dec. 1
A cash dividend of Tk.1 per share was declared, payable on December 30, to
stockholders of record at December 14.
Dec. 22 A 10% stock dividend was declared; the dividend shares are to be distributed on
January 15 of the following year. The market price of the stock on December 22 was
Tk.48 per share.
The net income for the year ended December 31, 1994, amounted to Tk.177,000, after an
extraordinary loss of Tk.35,400 (net of related income tax benefits).
Instructions:
(i)
(ii)
(iii)
Prepare journal entries (in general journal form) to record the transactions relating to
stockholders equity that took place during the year.
Prepare the lower section of the income statement for 1994, beginning with the income before
extraordinary items and showing the extraordinary loss and the net income. Also illustrate the
presentation of earnings per share in the income statement, assuming that earnings per share is
determined on the basis of the weighted-average number of shares outstanding during the year.
Prepare a statement of retained earnings for the year ending December 31, 1994.
[Marks = 5 + (10+5+5) = 25]
Page 3 of 4

FOUNDATION LEVEL
Q. No. 5.
(a) Define loss contingencies. Explain the criteria determining their presentation in financial
statements.
(b) Nafisa Company maintains a checking account at the Commerce Bank. At July 31,
selected data from the ledger balance and the bank statement as follows:
Cash Balance
Per Books
Per Bank
Balance, July 1
Tk.17,600
Tk.16,800
July Receipts
81,400
July Credits
82,470
July Disbursements
77,150
July Debits
74,756
Balance, July 31
Tk. 21,850
Tk. 24,514
Analysis of the bank data reveals that the Credits consist of Tk.79,000 of July deposits and a
credit memorandum of Tk.3,470 for the collection of a Tk.3,400 note plus interest revenue of
Tk.70. The July debits per bank consist of checks cleared Tk.74,700 and a debit memorandum
of Tk.56 for printing additional company checks.
You also discover the following errors involving July checks: (1) A check for Tk.230 to a creditor
on account that cleared the bank in July was journalized and posted for Tk.320. (2) A salary
check to an employee for Tk.255 was recorded by the bank for Tk.155.
The June 30 bank statement contained only two reconciling items: deposits in transit Tk.7,000
and outstanding checks of Tk.6,200.
Instructions:
(i)
Prepare a bank reconciliation at July 31.
(ii) Journalize the adjusting entries to be made by Nafisa Company at July 31, 2010. Assume
the interest on the note has been accrued.
[Marks: (5+15+5) = 25]
= THE END =
Page 4 of 4

FOUNDATION LEVEL
SUBJECT: 002. BUSINESS COMMUNICATION AND OFFICE MANAGEMENT.
Time: Three hours
Full Marks: 100
Answer THREE questions from each part, where Q. No. 4 and 8 are compulsory.
Use fresh sheet for answering each question.

GROUP A: BUSINESS COMMUNICATION
Q. No. 1.
(a) What are the various methods used to convey information internally? Give importance of
internal communication.
(b) Describe the types of communication & sketch a diagram.
(c) Discuss the different forms of Formal Communication.
[Marks: (6+5+4) = 15]
Q. No.2
(a) What do you mean by communication model? What are the causes of distortion of
message in the downward communication?
(b) What are the matters included in a letter of credit?
(c) Draft a suitable letter of canceling the order you have placed with your supplier because of
his unusual delay in the delivery of goods.
[Marks: (6+4+5) = 15]
Q. No. 3.
(a) An adequate written business letter creates good relationship between the two parties.
Discuss.
(b) Write a letter to the registrar joint stock company to allow 45 days time extension to hold
the AGM of your company.
[Marks: (8+7) = 15]
Q. No. 4.
Write short notes on any 5(five) of the following:
(a) Automated Teller Machine (ATM);
(b) Central Depository System (CDS);
(c) Foreign remittance;
(d) Bill of Exchange;
(e) International Trade Fair;
(f) Asset Management Company;
(g) Export Promotion Bureau (EPB);
(h) FBCCI.
[Marks: (4 x 5) = 20]
Page 1 of 2

FOUNDATION LEVEL
SUBJECT: 002. BUSINESS COMMUNICATION AND OFFICE MANAGEMENT.
GROUP B: OFFICE MANAGEMENT
Q. No. 5.
(a) Discuss the functions of a modern office.
(b) Correspondence is an important mode of communication in any office of business
establishment. Explain.
(c) Briefly lay down procedure for handling incoming and outgoing mail.
[Marks: (5+5+5) = 15]
Q. No. 6.
(a) What factors are relevant in choosing a type of organization? Which type is best and why?
(b) Write down the advantages and disadvantages of decentralization of services.
(c) State the principles in drawing up a plan for office layout.
[Marks: (5+5+5) = 15]
Q. No. 7.
(a) What factors to be considered before automation of an organization?
(b) Outline the factors influencing the recruitment process.
(c) Narrate the process of performance appraisal.
[Marks: (5+4+6) = 15]
Q. No. 8.
Write short notes of any 5(five) of the followings:
(a) Organization Chart.
(b) Inter Office Relationship.
(c) KPI.
(d) IPO.
(e) Mobile Banking.
(f) Job Evaluation Method.
(g) Office Manual.
(h) Standard Operating Procedure.
[Marks: (5 x 4) = 20]
= THE END =
Page 2 of 2

FOUNDATION LEVEL
SUBJECT: 003. QUANTITATIVE TECHNIQUES.
Time: Three hours
Answer any TEN questions, FIVE questions from each part.
Full Marks: 100
PART A : BUSINESS MATHEMATICS

Q. No. 1.
(a) Define a power set. Find the power set P(S) of the set S = { p, q, r }.
(b) Among the 50 people, 35 can speak in English, 25 can speak both in English and Bengali
and all of them can speak in at least one of the languages. How many of them can speak in
Bengali? How many of them can speak only in Bengali? Display your result in Venn diagram.
[Marks: (4+6) = 10]
Q. No. 2.
(a) If the equations px2+qx+1 = 0 and qx2+px+1 = 0 have a common root, show that p+q+1 = 0.
(b)
If 3 . 5 = +5 . 3 show that x log( ) = log .
[Marks: (5+5) = 10]
Q. No. 3.
(a) A trust fund for a childs education is being established by a single deposit in a savings
account which will pay 16 percent interest compounded quarterly. If the amount required 12
years to grow to $30000, what should the amount of the initial deposit be?
(b) What is the present value of an annuity that pays $400 a month for the next 5 years if money
is worth 12 percent interest compounded monthly?
[Marks: (5+5) = 10]
Q. No. 4.
(a) A printer quotes a price of $7500 for printing 1000 copies of a book and $15000 for printing
2500 copies. Assume a linear relationship and that 2000 books are printed. Find the
following:
(i)
The linear relationship between total cost and the number of books printed.
(ii) The variable cost.
(iii) The fixed cost.
(iv) The variable cost per book.
(v) The average cost per book.
(b) Find the equation of the line passing through the points (0,9) and (10,1). Show that this line
and the lines 3 x 4 y + 5 = 0 and 7 x 8 y + 5 = 0 are concurrent.
[Marks: (5+5) = 10]
Page 1 of 4

FOUNDATION LEVEL
Q. No. 5.
(a) A mixture is to be made of three foods A, B, C. They contain nutrients P, Q, R as shown
below:
Food
Ounces per pound of nutrient

Nutrient R
Nutrient P
Nutrient Q
1
2
5
A
3
1
1
B
4
2
1
C
How to form a mixture so that it will have 8 ounces of P, 5 ounces of Q and 7 ounces of R ?
3 1 4
1 1 2
(b) Given A = 2 1 2 and B = 2 4 3 . Show that ( AB)' = B ' A'.

4 2 3
3 6 5
[Marks: (5+5) = 10]

Q. No. 6.
(a)
(b)
Find
dy
for any two of the following functions:
dx
(i)
y = log(sin x 2 ) ;
(iii)
y = sin x ;
2
x +2
(ii)
y=
(iv)
y=e
x
log(sin x )
A company has examined its cost structure and revenue structure and has determined that
C , the total cost; R, the total revenue and x, the number of units produced, are related as
C = 100 + 0.015 x 2 and R = 3x. Find the production rate x that will maximize profits of the
company. Find the amount of profit.
[Marks: (5+5) = 10]
Q. No. 7
(a) Evaluate any two of the following integrals:
(i)
1+
dx ;
(ii)
(1 + x
dx
2
) tan 1 x + 3
(iii)
(sin x + cos x)
0
(b)
dx ; (iv)
x
1
The total cost function of a firm is C ( x) =
3
dx.
x
1 3
x 5 x 2 + 28 x + 10, where C is the total cost and
3
x is the output. A tax at the rate of Tk. 2.00 per unit of product is imposed and the producer
adds it to his cost. If the market demand function is p = 2530 5 x, where p is the price per
unit of output, find the profit maximizing output and price.
[Marks: (5+5) = 10]
Page 2 of 4

FOUNDATION LEVEL
PART B : BUSINESS STATISTICS
Q. No. 1.
(a) What do you mean by Statistics? Explain how your knowledge of statistics can help you in
business and commerce.
(b) The sale proceeds of 50 shops are given below in taka. Prepare a frequency table by taking
taka 5 as class-interval and represent table by a frequency polygon.
82
40
56
75
46
87
43
62
70
64
58
77
52
57
63
55
64
67
37
66
73
34
72
61
85
58
62
74
55
67
52
54
58
64
65
48
69
54
47
61
66
72
57
62
60
64
72
55
63
59
[Marks: (4+6) = 10]
Q. No. 2.
(a) Define arithmetic mean, geometric mean and mode of a set of data. Discuss their merits and
demerits.
(b) Calculate appropriate measure of dispersion from the following data.
Profits (in million Tk.): 20-30, 30-40, 40-50, 50-60, 60-70, 70-80, 80-90
No. of firms
:
2
5
8
10
6
3
2
[Marks: (5+5) = 10]
Q. No. 3.
(a) What do you mean by dispersion of a set of data? Compare and contrast the different
measures of dispersion known to you. Which of these measures do you consider best and
why?
(b) The mean and the stasndard deviation of a simple of size 10 were found to be 9.5 and 2.5
respectively. Later on, an additional observation became available. This was 15.0 and was
included in the original sample. Find the mean and the standard deviation of the 11
observations.
[Marks: (5+5) = 10]
Q. No. 4.
(a) What does co-efficient of correlation measure? What is its importance in business?
(b) Following figures give the rainfall in inches for the year and the production in oos of kgs for
the Robi crop and kharif crop. Calculate the Karl Pearsons co-efficient of correlation between
rainfall and total production:Rainfall
20
22
24
26
28
30
32
Rabi Production
15
18
20
32
40
39
40
Kharif Production
15
17
20
18
20
21
15
[Marks: (4+6) = 10]
Q. No. 5.
(a) Explain what do you understand by Time series. Why is Time series considered to be an
effective tool of forecasting?
(b) Below are given the figures of production (in million tonnes) of a cement factoryYear
2005
2007
2008
2009
2010
2011 2012
Production (in m tonnes)
77
88
94
85
91
98
90
(i)
Fit a straight line trend by the least squares method and tabulate the trend values.
(ii) Eliminate the trend. What components of the Time series are thus left over?
(ii) What is monthly increase in the production of cement?
[Marks: (4+6) = 10]
Page 3 of 4

FOUNDATION LEVEL
Q. No. 6.
(a) Distinguish between: (i) null hypothesis and alternative hypothesis and (ii) size of a test and
power of a test. What do mean by 5% level of significance?
(b) Prices of shares (in Tk.) of a particular company on 10 days in a month were found to be:
66, 65, 69, 70, 69, 71, 70, 63, 64, and 69.
Test whether the average price of the shares in the month is Tk. 65.
[Marks: (5+5) = 10]
Q. No. 7.
(a) In a recent study, 80 percent of the homes in United States were found to have large screen
TVs. In a sample of nine homes, what is the probability that:
(i)
All nine have large-screen TVs?
(ii) Less than two have large-screen TVs?
(iii) More than two have large-screen TVs?
(b) A client has an investment portfolio whose mean value is equal to Tk. 500,000 with a
standard deviation of Tk. 15,000. She has asked you to determine the probability that the
value of her portfolio is between Tk. 485,000 and Tk. 530,000.
[Marks: (6+4) = 10]
= THE END =
Page 4 of 4

FOUNDATION LEVEL
SUBJECT: 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS.
Time: Three hours
Full Marks: 100
Answer FIVE questions, taking at least TWO from each Group A and B.
Use fresh sheet for answering each question.

GROUP A: BUSINESS ECONOMICS
Q. No. 1.
(a) Discuss the role of Managerial Economist in the context of Bangladesh.
(b) Explain (i) Utility in relation to Law of Demand; and (ii) Time in relation to Supply.
(c) Describe relationship between Managerial Economics and Managerial Accounting.
[Marks: (7+7+6) = 20]
Q. No. 2.
(a) What do you mean by elasticity of demand?
(b) Discuss the factors that determine elasticity of demand. Draw demand curves for the
commodity when its demand is:
(i) Perfectly inelastic (ii) Perfectly elastic, and
(iii) Unitary elastic.
(c) Calculate price elasticity, income elasticity and cross elasticity from the following figures of
a firm selling product X. Comment on the result.
Years
Sales in Qty Price per unit Price per unit
Per Capita
of X No.
X in Taka
Y in Taka
income in Taka
2004
15,000
30
12
20,000
2014
30,000
20
24
30,000
[Marks: (3+8+9) = 20]
Q. No. 3.
(a) Expansionary Budgetary policy required more taxation as well as borrowing by the
Government Do you agree? Explain.
(b) Distinguish between Monopolistic Competition and Perfect Competition.
(c) Explain how Monetary Measures and Fiscal Measures help to Control Inflation.
[Marks: (8+4+8) = 20]
Q. No. 4.
a.
Distinguish between:
i.
Fixed cost and Variable cost,
ii.
Marginal Cost and Average Cost,
iii.
Break-even point and Shut down point, and
iv. Internal economies and External Economies of firms
b.
Calculate average cost, marginal cost, marginal revenue and profit from the following
information:
Units of Output
Total Cost
Variable Cost
Fixed Cost
Total Revenue
1
150
50
100
100
2
300
200
100
200
3
400
300
100
400
4
450
350
100
500
5
550
450
100
600
6
610
510
100
650
7
670
570
100
700
8
750
650
100
760
c.
Indicate Profit maximizing Output Point from the above Table (b).
[Marks: (8+10+2) = 20]
Page 1 of 2

FOUNDATION LEVEL
SUBJECT: 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS.
Q. No. 5.
(a) Define national income. Who does national income accounting?
(b) Distinguish between GDP and GNP.
(c) Calculate GNP, NNP, NI and DPI from the following information of XYZ Ltd.
Particulars
Consumption Expenses
Value of Common stock purchase
Gross domestic investment
Sales tax
Govt. purchase of goods & services
Corporate income tax
Personal income tax
Net of Export (Export minus import)
Depreciation
Business transfer Payment
Tk. In Lacs
1,000
400
300
50
200
200
100
100
75
100
[Marks: (3+5+12) = 20]
GROUP B: INTERNATIONAL BUSINESS

Q. No. 6.
(a) What are the factors considered important in international business?
(b) State the theory of comparative advantage and absolute advantage in international trade.
(c) What are the probable impact of Foreign Direct Investment on economic growth in a
country?
[Marks: (5+9+6) = 20]
Q. No. 7.
(a) What do you mean by the term back to back letter of credit?
(b) Explain the mode of Export financing in Bangladesh.
(c) What are the procedures for exports in Bangladesh to the destination of buying countries?
[Marks: (5+6+9) = 20]
Q. No. 8.
Write Short notes on any FIVE from the following:
(i)
Trade and Investment Cooperation Framework Agreement (TICFA);
(ii) Technology Transfer;
(iii) International Product Life cycle;
(iv) Foreign Direct Investment (FDI);
(v) Corporate Social Responsibility (CSR);
(vi) Franchising;
(vii) Free Trade Area (FTA).
[Marks: (4 x 5) = 20]
= THE END =
Page 2 of 2

PROFESSIONAL LEVEL-I
SUBJECT : 101. INTERMEDIATE FINANCIAL ACCOUNTING.
Time: Three hours
Full Marks: 100

Q. No. 1.
Comparative balance sheets for Eddie Murphy Company are presented below:
Eddie Murphy Company
Comparative Balance Sheets on December 31
Assets
Cash and cash equivalent
Accounts Receivable
Marketable securities
Inventories
Prepaid insurance
Land and buildings
Equipment
Treasury stock (at cost)
Discount on bonds payable
Total
Liabilities and Stockholders Equity
Allowance for doubtful accounts
Accumulated depreciation on buildings
Accumulated depreciation on equipment
Accounts payable
Notes payable (current)
Expense payable
Tax payable
Un-earned revenues
Notes payable long term
Bonds payable
Deferred income tax liability
Common Stock
Retained earnings appropriated
Retained Earnings
Paid in capital in excess of par
Total
2012
Tk. 12,21,000
8,00,000
1,05,000
16,00,500
13,750
10,72,500
15,95,000
27,500
46,750
64,82,000
2011
Tk. 2,75,000
5,50,000
2,20,000
16,50,000
11,000
10,72,500
9,35,000
55,000
49,500
48,18,000
30,000
1,44,375
2,18,625
3,02,500
3,85,000
99,000
1,92,500
5,500
2,20,000
13,75,000
2,58,500
19,76,700
2,85,500
4,32,300
5,56,500
64,82,000
27,500
1,23,750
1,51,250
3,30,000
1,10,000
47,850
55,000
49,500
3,30,000
13,75,000
2,93,150
11,00,000
1,81,500
6,16,000
27,500
48,18,000
Income Statement
For the year ended on December 31, 2012
Income before extra-ordinary items
Add: gain on marketable securities
Tk. 3,96,000
66,000
4,62,000
Less: Loss on sale of equipment

Decline in value of securities
5,500
22,000
27,500
4,34,500
1,92,500
Tk. 2,42,000
Income before income tax

Less: income tax
Net income
Page 1 of 5

Q. No. 1. (Contd.)
Additional information:
1.
All purchases and sales were on account.
2.
Equipment with an original cost of Tk. 82,500 was sold for Tk.38,500.
3.
A six months note payable for Tk. 2,75,000 was issued toward the purchase of new
equipment.
4.
Long term notes payable requires the payment of Tk. 1,10,000 per year plus interest until paid.
5.
Treasury stock was sold for Tk. 5,500 more than its costs and the surplus was created to
additional paid in capital in excess of par.
6.
Equipment was overvalued, extending its useful life at a cost of Tk. 33,000. The cost was
debited accumulated depreciation equipment.
7.
During the year a 30% stock dividend was declared and issued. At the time there were
1,10,000 shares of Tk.10 per common stock outstanding. However 1,100 of those shares
were held as treasury stock at the time were prohibited from the participation in the stock
dividend. Market price was Tk.15 per share at the time the dividend was declared.
8.
A cash dividend of Tk. 44,000 was paid during the year.
9.
Additional 55,000 shares of common stock were sold in cash at Tk. 1,155,000.
10. Selling and general expenses include: building depreciation Tk. 20,625, equipment depreciation
Tk. 1,38,875, doubtful accounts expenses Tk. 22,000, interest expenses Tk. 99,000.
Required: Prepare a statement of cash flows for 2012 using the indirect method.
[Marks: 20]
Q. No. 2.
(a) What do you understand by earnings quality from the view point of income statement?
Why does a company buyback its own shares?
(b) The shareholders equity section of the balance sheet of Square Textile included the
following accounts at December 31, 2009:
Shareholders Equity
Tk.
Preferred Stock, 10%, Tk. 100 par 10,000 shares authorized and 3,000
3,00,000
shares issued
Common stock, Tk. 10 par 100,000 shares authorized, 40,000 issued
400,000
Paid-in capital excess of par, preferred
50,000
Paid-in capital excess of par, common
75,000
Retained earnings
5,50,000
Total shareholders equity
13,75, 000
During 2010, the company involved in the following transactions concerning stockholders equity:
i)
On May 1, the board of directors declared a cash dividend of Tk. 5 per share on
common stock payable on June 2 to shareholders of record May 15.
ii)
Purchased 2,000 shares of its own outstanding common stock Tk.40 per share on June
30. The company uses the cost method for recording treasury stock.
iii) Issued 2000 shares of preferred stock at Tk. 150 per share on September 1.
iv) Reissued 1000 shares in treasury for equipment, the fair market value of equipment is
not determinable but the common shares of the company are currently selling in the
market at Tk. 35 per share.
v)
On October 1, the company declared a 10% stock dividend on the outstanding common
stock when the fair market value of stock is Tk. 45 per share.
vi) Issued the stock dividend on October 30.
vii) On December 1, the board of directors declared the cash dividend of Tk 5 per common
stock, and Tk.10 per share on preferred stock, payable on January 5, 2011 to the
shareholders of record December 14.
Required:
1)
Prepare journal entries to record the transactions.
2)
Prepare the December 31, 2010 stockholders equity section of the balance sheet.
[Marks: (4+16) = 20]
Page 2 of 5

Q. No. 3.
(a) XYZ Corporation carries an account in its general ledger called investments, which
contained the following debits for investment purchases and no credits.
Feb. 1,2014
April 1
July 1
Jordy Company common stock, Tk.100 par, 200shares

U.S. government bonds, 11%, due April, 2024, interest
payable April 1 and October 1, 100 bonds at Tk.1,000 each
Driver Company 12% bonds, par Tk.50,000, dated March
1, 2010, purchased at par plus accrued interest, interest
payable annually on March 1, due March 1, 2031
Tk.37,400
1,00,000
52,000
Required:
(i)
Prepare the entries necessary to classify the amounts into proper accounts,
assuming that all the securities are classified as available-for-sale.
(ii) Prepare the entry to record the accrued interest on December 31, 2014.
(iii) The fair values of the securities on December 31, 2024, were:
Jordy Company common stock
Tk. 33,800 (1% of total shares)
U.S. government bonds
1,24,700
Driver Company bonds
58,600
What entry or entries, if any, would you recommend be made?
(iv) The U.S. government bonds were sold on July 1, 2015, for Tk.119,200 plus accrued
interest. Give the proper entry.
(v) Now assume XYZS' investment in Jordy Company represents 30% of Jordy's
shares. Prepare the 2014 entries for the investment in Jordy stock. In 2014, Jordy
declared and paid dividends of Tk.9,000 (on September 30) and reported net income
of Tk.30,000.
(b) A Company begins trading on 1 January 2013 and sales of Tk.1,50,000 during the years
to 31 December 2013.At 31 December there are receivables of Tk.12,000.Of these it is
uncertain where Tk. 5,000 will be paid. Exercise your prudence to solve the matter.
(c) PMG company issued 12% bonds on June 30, 2004 with a par value of Tk.800,00 due in
20 years. They were issued at Tk. 98 and were callable at Tk.104. at any date after June
30, 2012. Because of lower interest rates and a significant change in the companys credit
rating, it was decided to call the entire issue on June 30, 2013, and to issue the new
bonds. New 10% bonds were sold in the amount of Tk. 1,000,000 at Tk.102. They mature
in 20 years. The company uses straight-line amortization. Interest payment dates are
December 31 and June 30.
Required:
i)
Prepare journal entries to record the retirement of the old issue and the sale of the new
issue on June, 2013.
ii) Prepare the entry required on December 31, 2013 to record the payment of the first 6
months interest and the amortization of premium on the bonds.
[Marks: (4+8+8) = 20]
Q. No. 4.
(a) Define Revenue as per IAS-18.
(b) A Tk. 210,000 fixed-price contract is entered into for the provision of services. At the end
of 2007, the first accounting period, the contract is thought to be 33% complete and costs
of Tk. 45,000 have been incurred in performing that 33% of the work.
Requirements:
Calculate the revenue to be recognized in 2007 on the alternative assumptions that:
(a) The costs to complete are reliably estimated at Tk. 90,000; and
(b) The costs to complete cannot be reliably estimated and it is thought that Tk. 40,000
of the costs incurred are recoverable from the customer.
Fill in the proforma below:
(a) Cost to complete are Tk. 90,000.
(b) Cost to complete cannot be estimated reliably.
Page 3 of 5

Q. No. 4. (Contd.)
(c)
LATENTILE LTD
Latentile Ltd is a newly-formed company, which uses a chemical process to manufacture a
revolutionary new roof covering, which it sells at a markup of 25% on cost. Its inventories
consist of raw material, work in progress and finished goods, and at the end of its first year
of trading it is having problems valuing inventories.
You ascertain the following information:
(1) Raw material:
(i) The process needs at least 100,000 kgs of clay to continue working, but a
physical inventory count reveals that the machinery contains 108,000 kgs.
(ii) The original cost of the initial 100,000 kgs to set up the process was 30p per kg
and you find an invoice to show that the last consignment of 20,000 kgs cost 31p
per kg. All other consignments in the year (a total of 200,000 kgs) cost 32p per kg.
(2) Work in progress:
(i) The work in progress is currently all 60% complete and you discover that there are
50,000 units currently going through the process.
(ii) The total number of complete units for the period was, as anticipated, 800,000.
(iii) The costs for the process for the period were as follows.
Tk.000
Raw materials
200
Direct labour
242
Factory overheads
191
Administrative expenses attributable to production
114
Distribution costs
90
(3) Finished Goods:
(i) There were 70,000 units in inventories.
(ii) Of (i) above, it was intended to sell 20,000 units at 75p per unit, a discount of one
third on normal selling price, in a future promotional campaign (a further 10p per
unit distribution costs is to be incurred).
Required:
(a) Explain how BAS 2 Inventories applies the accrual and the going concern bases of
accounting.
(b) For each of the above categories of inventory, suggest a method of valuation and show
the value as it would appear in the balance sheet.
(c) If the information regarding costs for the period were not available, suggest an alternative
method of valuing finished goods.
[Marks: (8+8+4) = 20]
Q. No. 5.
(a) The objective of IAS 36 Impairment of assets is to prescribe the procedures that an entity
applies to ensure that its assets are not impaired.
Required:
Explain what is meant by an impairment review. Your answer should include reference to
assets that may form a cash generating unit.
Note: you are NOT required to describe the indicators of an impairment or how impairment
losses are allocated against assets.
(b) (i)Telepath acquired an item of plant at a cost of $800,000 on 1 April 2010 that is used to
produce and package pharmaceutical pills. The plant had an estimated residual value of
$50,000 and an estimated life of five years, neither of which has changed. Telepath uses
straight-line depreciation. On 31 March 2012, Telepath was informed by a major customer
(who buys products produced by the plant) that it would no longer be placing orders with
Telepath. Even before this information was known, Telepath had been having difficulty
finding work for this plant. It now estimates that net cash inflows earned from the plant for
the next three years will be:
Page 4 of 5

(c)
Q. No. 5. (Contd.)
$000
Year ended: 31 March 2013
220
31 March 2014
180
31 March 2015
170
On 31 March 2015, the plant is still expected to be sold for its estimated realisable value.
Telepath has confirmed that there is no market in which to sell the plant at 31 March 2012.
Telepath's cost of capital is 10% and the following values should be used:
value of $1 at:
$
end of year 1
0.91
end of year 2
0.83
end of year 3
0.75
(ii) Telepath owned a 100% subsidiary, Tilda, that is treated as a cash generating unit.
On 31 March 2012, there was an industrial accident (a gas explosion) that caused
damage to some of Tilda's plant. The assets of Tilda immediately before the accident
were:
$000
Goodwill
1,800
Patent
1,200
Factory building
4,000
Plant
3,500
Receivables and cash
1,500
12,000
As a result of the accident, the recoverable amount of Tilda is $6.7 million.
The explosion destroyed (to the point of no further use) an item of plant that had a carrying
amount of $500,000.
Tilda has an open offer from a competitor of $1 million for its patent. The receivables and
cash are already stated at their fair values less costs to sell (net realisable values).
Required:
Calculate the carrying amounts of the assets in (i) and (ii) above at 31 March 2012 after
applying any impairment losses. Calculations should be to the nearest $1,000.
[Marks: (5+15) = 20]
= THE END =
Page 5 of 5

SUBJECT : 102. COST ACCOUNTING.
Time: Three hours
Full Marks: 100

Q. No. 1.
Moyuri Enterprise sells packages of blank video tapes to its customers. It also rents out tape of
movies and supporting events. It purchases packages of video tapes from Sony Trading at
Tk.14 a package. Sony pays all incoming freight to Moyuri Enterprise. No incoming inspection is
necessary because Sony has a superb reputation for delivering quality merchandise. Annual
demand is 13,000 packages at a rate of 250 packages per week. Moyuri Enterprise requires a
15% annual return on investment. The purchase order lead time is two weeks. Ordering cost per
order is Tk. 200. Insurance, handling, breakage and so on per year is Tk. 3.10.
Required: Calculate:
a)
Economic Order Quantity.
b)
Annual relevant total cost.
c)
Number of deliveries in a year.
d)
Time to place new order if the lead time is 2 weeks and 250 packages is sold per week.
e)
Considering the above information and also assume that 1 of 7 different levels of demand
will occur over the 2 weeks purchase order lead time and cost of stock out is Tk. 4 per
package, calculate optimum safety stock;
Total Demand
200
300
400
500
600
700
800
for two weeks
units units units units units units units
Probability
0.06 0.09 0.20 0.30 0.20 0.09 0.06
f)
If that relevant ordering cost per purchase order is Tk. 100 instead of Tk. 200, calculate
the cost of this prediction error (Compare with the EOQ as computed in requirement a).
[Marks: (3+3+2+2+7+3) = 20]
Q. No. 2.
(a) Jahan International is a manufacturing firm that uses job-order costing. At the beginning of
the year 2013, the company's inventory balances were as follows:
Raw materials................................ Tk. 36,000
Work in process ............................ Tk. 41,000
Finished goods .............................. Tk. 104,000
The company applies overhead to jobs using a predetermined overhead rate based on
machine hours. At the beginning of the year, the company estimated that it would work
21,000 machine hours and incurs Tk. 210,000 in manufacturing overhead cost. The
following transactions were recorded for the year:
a)
Raw materials were purchased, Tk. 346,000.
b)
Raw materials were requisitioned for use in production, Tk. 338,000 (Tk. 302,000
direct and Tk. 36,000 indirect).
c)
The following employee costs were incurred: direct labor Tk. 360,000; indirect labor
Tk. 68,000; and administrative salaries Tk. 111,000.
d)
Selling costs, Tk. 153,000.
e)
Factory utility costs, Tk. 29,000.
Page 1 of 4

Q. No. 2. (contd..)
f)
g)
h)
i)
j)
Depreciation for the year was Tk. 102,000 of which Tk. 93,000 is related to factory
operations and Tk. 9,000 is related to selling and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year
was 19,000 machine-hours.
The cost of goods manufactured for the year was Tk. 870,000.
Sales for the year totaled Tk. 1,221,000 and the costs on the job cost sheets of the
goods that were sold totaled Tk. 855,000.
The balance in the Manufacturing Overhead account was closed out to Cost of
Goods Sold.
Required:
Prepare the appropriate journal entry for each of the items above (a. through j.). You can
assume that all transactions with employees, customers, and suppliers were conducted in cash.
(b)
Rock Star, Inc., which uses a job-costing system, began business on January 1, 2013 and
applies manufacturing overhead on the basis of direct-labor cost. The following information
relates to 2013:
Budgeted direct labor and manufacturing overhead were anticipated to be Tk. 200,000
and Tk. 250,000, respectively.
Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct
material and direct labor:
Job #
Direct Materials
Direct Labor
1
Tk. 145,000
Tk. 35,000
2
320,000
65,000
3
55,000
80,000
Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of
cost. Job no. 3 remained in production.
Actual manufacturing overhead by year-end totaled Tk. 233,000. Rock Star adjusts all
under- and over-applied overhead to cost of goods sold.
Required:
i.
Compute the company's predetermined overhead application rate.
ii.
Compute Rock Star's ending work-in-process inventory.
iii.
Determine Rock Star's sales revenue.
iv.
Was manufacturing overhead under- or over-applied during 2013? By how much?
v.
Present the necessary journal entry to handle under- or over-applied manufacturing
overhead at year-end.
vi.
Does the presence of under- or over-applied overhead at year-end indicate that Rock
Star's accountants made a serious error? Briefly explain.
[Marks: (10+10) = 20]
Q. No. 3.
Tusuka Corporations factory is divided into four departments, two producing departments, (i)
cutting and (ii) finishing, and two service departments (iii) building and grounds and (iv) factory
administration departments.
Page 2 of 4

Q. No. 3. (contd..)
Service departments cost are allocated to producing departments (building and grounds based
on square feet and factory administration based on direct labour hours). In calculating
predetermined factory overhead rates, machine hours are used as the base in cutting and direct
labour hours as the base in finishing, the following data are relevant:
Particulars
Cutting
Finishing
Buildings ground
Factory
administration
Budgeted factory overhead
Tk. 100,000 Tk. 150,000
Tk. 60,000
Tk. 42,000
Direct labour hours
50,000
25,000
Machine hours
106,000
Square feet
50,000
30,000
1,000
2,000
Following data pertain to Job No. 302.
Cutting:
Direct material
Direct labour hours 3 hours @ Tk. 6.00
Machine hours
Finishing:
Direct material
Direct labour hours 5 hours @ Tk. 8.00
Tk. 45.00
Tk. 18.00
7
Tk. 10.00
Tk. 40.00
Required:
(a) Calculate predetermine factory overhead rate for the producing departments.
(b) Determine the total cost of Job No. 302.
[Marks: (10+10) = 20]
Q. No. 4.
(a) When ABC is used, why are manufacturing overhead costs often shifted from high volume
products to low volume products?
(b) The Maori Noveltry company makes a variety of souvenirs for visitors to New Zealand.
The Otago division stuffed Kiwi birds using a highly automated operation. A recently
installed activity-based-costing system has four activity centers.
Activity Center
Cost Driver
Cost per driver unit
Materials receiving and handling
Kilograms of materials
Tk. 1.2 per kg
Production set-up
Number of set-ups
Tk. 60 per set-up
Cutting, sewing and assembly
Number of units
Tk. 40 per unit
Packing and shipping
Number of orders
Tk. 10 per order
Two products are called Standard Kiwi and Giant Kiwi. They require 0.2 kg and 0.4 kg of
materials, respectively, at a material cost of Tk. 5.3 per kg for standard kiwi and Tk. 8.2 per kg
for giant kiwi. One computer-controlled assembly line makes all products. When a production
run of a different product is started, a set-up procedure is required to reprogram the computers
and make other changes in the process. Normally, 600 standard kiwis are produced per set-up,
but only 240 giant kiwis are produced per set-up. Products are packed and shipped separately,
so a request from a customer for, say, three different products is considered as three different
orders. The Auckland Zoo Gift Shop just placed an order for 100 standard kiwi and 50 giant
kiwis.
Page 3 of 4

Q. No. 4. (contd..)
Required:
i.
Compute the cost of products shipped to Auckland Zoo Gift Shop.
ii.
Suppose the products made for the Auckland Zoo Gift Shop required AZ to be printed
on each kiwi. Because of the automated process, printing the initials takes no extra time
or material, but it requires a special production set-up for each product. Compute the
cost of products shipped to Auckland Zoo Gift Shop.
iii.
Explain how the activity-based-costing system helps Maori Noveltry to measure costs of
individual products or orders better than a traditional system that allocates all nonmaterial costs based on labor hour.
[Marks: 4+(9+4+3) = 20]
Q. No. 5.
You are employed by SQ Company, a manufacturer of digital watches. The companys chief
financial officer is trying to verify the accuracy of the ending work in process and finished goods
inventories prior to closing the books for the year. You have been asked to assist in this
verification. The year-end balances shown on the companys books are as follows:
Units
Costs
Work in process, December 31 (50% complete as to
labor and overhead)
300,000
Tk.. 660,960
Finished goods, December 31
200,000
1,009,800
Materials are added to production at the beginning of the manufacturing process, and overhead
is applied to each product at the rate of 60% of direct labor cost. There was no finished goods
inventory at the beginning of the year. A review of the companys inventory and cost records
has disclosed the following data, all of which are accurate:
Costs
Units
Materials
Labors
Work in process, January 1
(80% complete as to labor and overhead)
200,000
200,000
315,000
Units started into production
1,000,000
Cost added during the year:
Materials cost
1,300,000
Labor costs
1,995,000
Units completed during the year
900,000
The company uses the weighted average cost method.
Required:
a)
Determine the equivalent units and costs per equivalent unit for materials, labor and
overhead for the year.
b)
Determine the amount of cost that should be assigned to the ending work in process and
finished goods inventories.
c)
Prepare the necessary correcting journal entry to adjust the work in process and finished
goods inventories to the correct balances as of December 31.
d)
Determine the cost of goods sold for the year assuming there is no under or over applied
overhead.
[Marks: (6+4+5+5) = 20]
= THE END =
Page 4 of 4

SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT.
Time: Three hours
Answer THREE questions from each part.
Full Marks: 100
PART A: MANAGEMENT (TOTAL MARKS 50)

Q.No.1.
(a) What do you mean by strategic planning?
(b) How would you formulate corporate level strategy and business level strategy?
(c) If you are given the responsibility for formulating strategy how would you use SWOT
analysis in your strategy formulation process? Explain.
[Marks: (5+5+6) = 16]
Q. No. 2.
(a) Suppose you are appointed as the GM finance & Accounts (F & A) in GP Limited what
role you must play? Why? Explain.
(b) You subordinate Manager (F & A) needs some skill to perform his duty efficiently. What
skills he must have to discharge his duties? Discuss.
(c) How would GP limited be benefited from your role & your subordinates skill? Explain.
[Marks: (5+5+6) = 16]
Q. No. 3.
(a) What is meant by delegation of authority?
(b) Why do you need to delegate your authority as the CFO of a group of companies?
Discuss.
(c) What steps would you take while delegating your authority to your subordinate? Explain.
[Marks: (4+5+7) = 16]
Q. No. 4.
(a) Why is decision making often described as the essence of a managerial job?
(b) Which of the programmed and non-programmed decision making needs more managerial
creativity? Why? Discuss.
(c) Name five decision problems and identify with reasons, if there are programmed or nonprogrammed decisions.
[Marks: (4+7+5) = 16]
Q. No. 5.
(a) What is Supply Chain Management (SCM)?
(b) If you are appointed as the Supply Chain Manager what functions you are expected to
perform? Discuss.
(c) How does Supply Chain Management increase operational efficiency of a company?
Explain.
[Marks: (3+8+5) = 16]
* Two marks are reserved for neatness and relevance.
Page 1 of 2

SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT.
PART B: MARKETING MANAGEMENT (TOTAL MARKS 50)
Q. No. 6.
(a) How would you say if your company is the market leader in the industry?
(b) If you are the runner-up what marketing strategy would you take to be the market leader?
(c) Suppose your company is preparing to go global what marketing strategies you
recommended? Why?
[Marks: (5+5+6) = 16]
Q. No. 7.
(a) What do you mean by consumer buying behavior? Discuss the factors influencing
consumers buying behavior.
(b) Discuss the strategies how accountants can influence consumers buying behavior.
(c) Describe the steps that the consumers follow in their buying behavior.
[Marks: (5+5+6) = 16]
Q. No. 8.
(a) Describe the major pricing strategies for a new product.
(b) Discuss why and how company adjust their price to different types of customers and
geographic locations?
(c) Why would a company consider cutting its prices? Discuss.
[Marks: (5+6+5) = 16]
Q. No. 9.
(a) Define marketing information systems and discuss its parts.
(b) Explain how changes in the demographic and economic environment affect marketing
decision.
(c) Define sustainable marketing and discuss its importance in todays competitive age.
[Marks: (4+6+6) = 16]
Q. No. 10.
Write short notes on any FOUR of the following:
(a) Marketing intelligence;
(b) Marketing logistics;
(c) Loss leader;
(d) Market Report;
(e) Sales Promotion;
[Marks: (4+4+4+4) = 16]
* Two marks are reserved for neatness and relevance.
= THE END =
Page 2 of 2

SUBJECT: 104. INFORMATION TECHNOLOGY.
Time: 2 hours 30 minutes
Full Marks: 80
Answer any FOUR of the following questions.

Q. No. 1.
(a) Why student of CMA should study information systems? Explain with example.
(a) What are the most common types of computer-based Information Systems used in
business organizations today?
(b) What are some of the challenges and potential problems of implementing an ERP system
for a large multinational corporation?
[Marks: (7+6+7) = 20]
Q. No. 2.
(a) Discuss, in brief, about contemporary approaches to Information Systems.
(b) What ethical, social and political issues are raised by Information Systems?
(c) What is Vendor Certification?
(d) What are the differences between MIS and DSS?
[Marks: (4 x 5) = 20]
Q. No. 3.
(a) What is SQL? Name and describe the three most SQL commands.
(b) How can you differ between Database software with Spreadsheet software?
(c) Write short note on Data Mining, Data Warehouse and Database Server.
(d) W hat is a hypermedia database? How does it differ from a traditional database? How is it
used for the web?
[Marks: (5+4+5+6) = 20]
Q. No. 4.
(a) What is Data havens?
(b) Discuss about 4G- Wireless Communications.
(c) What does e means for e-commerce? How do you differentiate between commerce and
e-commerce?
(d) Discuss about several ways to access the Internet.
[Marks: (4 x 5) = 20]
Q. No. 5.
(a) What is a group decision-support system (GDSS)? How does it differ from a DSS?
(b) What is natural language processing? What are the three levels of voice recognition?
(c) What are the sources of viruses and how it spread? How can you protect your computer
from viruses?
[Marks: (6+7+7) = 20)]
Q. No. 6.
(a) Discuss some of the most important applications of AI in business?
(b) What are intelligent agents?
(c) Define Computer crimes with two examples.
(d) Explain, in brief, the procedures of auditing information systems to control
computer crimes.
[Marks: (4 x 5) = 20]
= THE END =
Page 1 of 1

PROFESSIONAL LEVEL-II
SUBJECT : 201. ADVANCED FINANCIAL ACCOUNTING-I.
Time: Three hours
Full Marks: 100
Q No.1.
(a)
(b)
A lease is a finance lease or operating lease depends on the substance of the transaction
rather than the form. Explain the statement with reference to IAS-17.
United Leasing Company and Square Textiles Limited sign a lease agreement for
Equipment on 01 May, 2008 with the following terms and provisions:
The term of the lease is 5 (five) years and the lease agreement is non-cancellable.
Annual lease payment of Tk.84,910.60.
Economic life of the leased equipment is 10 (ten) years.
Bargain purchase option price of Tk.16,000.00 at the end of lease term.
Fair value of the leased equipment is Tk.3,64,000.00 at 01 May, 2008.
United Leasing Company pays executory costs directly to third parties for property
taxes of Tk.5,000.00 per year which are not included in annual lease payment.
Cost of the leased equipment is Tk.2,60,000.00 to United Leasing Company.
Incremental borrowing rate is 10% to Square Textiles Limited.
The collectability of the lease payments is reasonably predictable and there are no important
uncertainties surrounding the costs yet to be incurred by the United Leasing Company. It is
assumed that annual lease payment is due at the inception of the lease agreement and implicit
rate for United Leasing Company is also the same as assumed by Square Textiles Limited.
[Present Value of Tk.1 for n=5, i=10% is 0.62092, Present Value of Annuity Due of Tk.1 for n=5,
i=10% is 4.16986]
Required:
(i)
Discuss the nature of the lease to Square Textiles Limited and United Leasing Company.
(ii) Prepare a lease amortization schedule for Square Textiles Limited for 5 years lease term.
(iii) Prepare journal entries in the books of Square Textiles Limited to reflect the signing of the
lease agreement and to record the payments and expenses related to lease for 2008 and
2009 assuming accounting year ends on 31 December.
(iv) If Square Textiles Limited has incremental borrowing rate of 9% and not known the implicit
interest rate 10% used by United Leasing Company, what would be the capitalized amount
for leased equipment?
[Marks: (4+4+5+5+2) = 20]
Q. No. 2.
(a) Single entry in fact is an admixture of single entry, Double entry and no entry Explain
the statement.
(b) Mr. Khan desires you to prepare accounts for the year ended 31st March, 2014, no books
have been kept but the following facts are ascertained:
(i)
The bank Pass-book showed lodgments during the year of Tk.60,100 and
withdrawals of Tk.59,250.
(ii) Tk.5,000 had been placed on deposit account on 31st December 2012 at 8% per
annum and withdrawn with interest on 30th June 2013.
(iii) 3.50% National Defence Certificate of Tk. 10,000 (interest due dates 31st March and
30th September each year) had been purchased on 1st April 2013. Interest was
collected on due dates.
Page 1 of 4

Q. No. 2.(contd)
(iv)
(v)
(vi)
The foreign transactions and all payments for business purchases were passed
through the bank account. The takings were banked after meeting business
expenses Tk.3,500 and personal expenses Tk.4,000.
The Assets and Liabilities on 31st March 2014 were:
Taka
Stock
5,500
Book Debts
5,750
Bank Balance
1,600
Freehold Cottage
10,000
Trade Creditors
2,000
On 1st April 2013 the balance were:
Taka
Stock
5,000
Book Debts
5,250
Trade Creditors
1,000
Required:
From the above information, Mr. Khan requests you to help him. Prepare his Profit and Loss
Account for the year ended 31st March 2014 and a Balance sheet on that date.
[Marks: {5+(10+5)}=20]
Q. No. 3.
(a) In the context of accounting for deferred tax what are:
(i)
Permanent differences,
(ii) Timing Differences,
(iii) Short-term differences, and
(iv) Long-term differences.
(b) A Ltd. maintains deferred taxation account under liability method since 2012 and at the
year end the account shows a balance of Tk. 20 million.
Accounts for the year to 31 December 2013 have now been prepared and the following
taxation information compiled:
(i) Tax rates applicable to the company are:
2012
35.00%
2013
35.00%
(ii) Accounting depreciation charged in 2013 has been Tk.60 million but taxation laws
would allow Tk.100 million as depreciation for the year.
(iii) Besides, non-admissible items have been charged in accounts amounting to Tk.2.50
million.
(iv) Accounts show a profit of Tk.90 million for the year 2013.
Tax liability of 2012 has been recently settled at an excess of Tk.0.50 million provided in the
year.
Required:
Prepare the current and deferred taxation accounts of the company for the year ended 31
December 2013.
[Marks: (8+12) = 20]
Q. No. 4.
(a) Which method of translation is used to re measure the financial statements when a foreign
branch operates in highly inflationary economy?
(b) What do you understand by the expression Branch Adjustment Account? Explain clearly.
(c) Moohit Limited, a manufacturing business, exports some of its products through an
overseas branch whose currency is Florins which carries out the final assembly
operation before selling the goods.
Page 2 of 4

Q. No. 4.(contd)
The Trial Balance of the Head Office and the branch on June 30, 2012 were as under:
Head Office
Branch
Head of Account
Dr. (Tk.)
Cr. (Tk.) Dr. (FL) Cr. (FL)
Freehold building at cost
14,000
63,000
Debtors/Creditors
8,900
9,500
36,000
1,560
Sales
1,04,000
4,32,000
Issued share capital
40,000
Components sent to branch
35,000
Head Office/Branch
60,100
5,04,260
Branch-Cost of Sales
3,60,000
Provision for depreciation on machinery
1,500
56,700
H.O cost of sales (including goods sent to
59,000
branch)
Administrative cost
15,200
18,000
th
Stock on 30 June 2012
28,900
11,520
Profit & Loss Account
2,000
Machinery at cost
6,000
1,26,000
Remittances
28,000 2,72,000
Cash at bank
4,600
79,200
Selling and distribution cost
23,300
28,800
Total
2,20,000 2,20,000 9,94,520 9,94,520
Following adjustments are to be made:
(1) The cost of sales figure includes a depreciation charge of 10% per annum on the cost of
machinery.
(2) A Provision of Tk. 300 for unrealized profits in the branch stock is to be made.
(3) On 26th June, 2012 the branch remitted 16,000 FL this amount was received by the H.O
on 14th July, 2012 and realised Tk. 1,900.
(4) During May 2012, a customer of the branch by mistake paid the H.O for goods supplied by
the branch. The amount due from him was FL 320 which realised Tk. 36. It has been
correctly dealt with by H.O but not yet entered in the Branch Accounts.
(5) Provide commission at 5 percent of the net profits of the branch after charging such
commission which is payable to the Branch Manager.
(6) The exchange rates were; (a) At 1st July, 2011: 10 FL = 1 Taka; (b) At 30th June, 2012: 8
FL = 1 Taka: (c) Average rate for the year; 9 FL = 1 Taka; and (d) On date of purchase of
building and machinery:7 FL = 1 Taka.
Required:
You are required to prepare for internal use:
(i)
Branch Trail Balance (after above adjustments) in H.O currency.
(ii) Detailed Trading and Profit and Loss Accounts of H.O and the branch for the ending 30th
June, 2012.
(iii) Balance Sheet as at 30th June, 2012 (Combined) figures of the H.O and the branch).
Ignore taxation.
[Marks: 3+3+(4+5+5) = 20]
Page 3 of 4

Q. No. 5.
(a) When may profit and losses on construction contracts first be recognized? How does
recognition of a profit on a construction contract differ from the recognition of a loss?
(b) The following particulars related to two houses which a firm of builders had in course of
construction under contract:
Particulars
House A Tk.
House B Tk.
Work-in-progress on 1st January 2013 excluding of
Tk.8,000 estimated profit which was taken to profit &
loss account in 2012
140,000
Materials purchased
230,000
166,000
Wages
200,000
140,000
Electrical services and fittings
14,000
3,000
Road making charges
80,000
Contract prices (including road making)
600,000
400,000
Cash received upto 31st December 2013
600,000
240,000
Percentage of cash received to work certified
100%
66.67%
Value of materials in hand on 31st December 2013
4,000
5,400
Completed work not certified
25,000
Value of plant used on sites
120,000
60,000
Period of plant remained on sites during the year
10 months
8 months
The total establishment expenses incurred during the year 2013 amounted to Tk.1,22,400.
These are to be charged to the two contracts in proportion to wages. Depreciation of plant is to
be taken into account at the rate of 10% per annum.
Prepare the contract accounts (in columnar form) showing the profit or loss on each house for
the year 2013 and the sums which you consider appropriately transferable to the profit and loss
account.
[Marks: (5+15) = 20]
= THE END =
Page 4 of 4

SUBJECT : 202. MANAGEMENT ACCOUNTING.
Time: Three hours
Full Marks: 100
Q. No. 1.
(a) Why is adherence to ethical standards important for todays Professional Accountants.
What are the most common justification often given by some Managers who engage in
unethical behavior.
(b) What is the use of shadow price to the Management of manufacturing companies?
(c) Describe the six-sigma methodology for the improvement of an existing process.
[Marks: (6+5+9) = 20]
Q. No. 2.
Hasan pure water products company ltd. produces and sells pure water filtration unit. The
company has a good reputation in the local market and has had a steady growth in sales for the
past 5 years. However, increased competition has led the President of the company to believe
that an aggressive marketing campaign will be necessary next year to maintain the companys
present growth. The controller of the company has prepared the data for the current year 2014
in order to preparation for the next years marketing campaign:
Cost per pure water unit.
Variable cost :
Direct material costs :
Tk. 325.00
Direct labour costs :
Tk. 800.00
Variable manufacturing overhead :
Tk. 200.00
Variable marketing distribution cost :
Tk. 50.00
Total variable cost :
Tk. 1,375.00
Fixed cost :
Manufacturing :
Tk. 1,25,00,000.00
Marketing distribution :
Tk. 43,75,000.00
Total :
Tk. 1,68,75,000.00
Selling price unit :
Tk. 2,500.00
Expect sales :
20,000 units
Income tax rate :
40%
Required:
(i)
What is the projected net income for 2014?
(ii) What is the breakeven points in units for 2014?
(iii) The president has set the revenue target for 2015 at a level 22,000 units. He believes that
an additional marketing cost of Tk. 11,25,000.00 for advertisement in 2015 with all other
costs remaining constant will be required to attain the revenue target. What is net income
for 2015 if the additional cost Tk. 11,25,000.00 is spent and the revenue target is met ?
(iv) What is the breakeven point in revenues for 2015 if the additional cost is spent for
advertisement?
(v) If the additional cost of Tk. 11,25,000.00 is spent what are required 2015 revenues for
2015 net income to equal 2014 net income.
[Marks: (5+3+7+5) = 20]
Page 1 of 4

Q. No. 3.
a)
Benchmarking against other companies enables a company to identify the lowest cost
Producer. This amount should become the performance measure for next year Do you
agree? Please Explain.
b)
You are management accountant at Health Care Pharmaceutical Ltd. The company is
under Intense competition. Mr. President of the company has asked you to evaluate
whether the company should continue to manufacture Z-500 mg or import it from outside
the country. An agent has submitted a price to supply 30,000 units of Z-500 mg units to
the company will need for the next month of 2014 at price 20.50 each.
The following information regarding cost to manufacture 30,000 units of Z-500 mg in
January 2014 is given by the plant Manager:
Particulars of Costs
Cost for 30,000 Units in January 2014
Total
Unit costs
Direct Materials
1,95,000
6.50
Direct labour
1,20,000
4.00
Plant space rent
84,000
2.80
Equipment on leasing
36,000
1.20
Other manufacturing overhead
2,25,000
7.50
Total manufacturing cost
6,60,000
22.00
Additional information :
1)
Variable cost per unit will be the same per unit as shown in January 2014.
2)
The plant rental and equipment lease are annual contracts are going to be expensive to
remove out of. The plant Manager estimates that it will cost Tk. 10,000 to terminate the
rental contracts and Tk. 5,000.00 to terminate the equipment contracts.
3)
40% of the other manufacturing overhead is variable, proportionate to the direct
manufacturing labour cost. The fixed component of other manufacturing overhead is
expected to remain the same whether Z-500 mg is manufacture or import from outside.
4)
The company has just in-time policy which means that the inventory is negligible.
An independent analysis of competitive and other economic data the following factors are
to be considered:
i)
Price of direct materials are likely to be higher by 8% compared to previous month.
ii)
Direct manufacturing labour rate are likely to higher by 5%.
iii)
The plant rental contract can in fact be terminated by paying Tk. 10,000 but will not
have any need for this space if Z-500 mg is outsourced.
iv) The equipment lease can be terminated by paying Tk. 3,000.
But plant manager argues that you are ignoring the amazing continuous improvement that is
ocuring at the plant and that increase in direct materials prices and direct manufacturing labour
rates assumed by you will not occure.
Required
1. On the basis of the materials and labour cost estimates originally compiled with the plant
manager, should you recommend the Z-500 mg be produced at the company plant or imported
from outside?
2.On the basis of the independent analysis should you recommend that Z-500 mg be produced
or import? Show your computation.
[Marks: 6 + (7+7) = 20]
Page 2 of 4

Q. No. 4.
a)
Advance Technology Ltd has started a new division to manufacture and sell specially
designed tables for personnel computers. The Companys new plant is highly automated
and thus requires high monthly fixed cost.
Production cost :
Variable cost per unit :
Direct Materials
Tk. 1,860.00
Variable manufacturing costs
Tk. 40.00
Fixed manufacturing costs
Tk. 24,00,000.00
Selling and administrative Cost:
Variable 15% of sales
Fixed (total)
Tk. 16,00,000.00
The company regards all of its workers as a full-time employees and has a long-standing no-lay
off Policy. Furthermore, production is highly automated. Accordingly, the company has included
in its fixed manufacturing overhead costs all its labour costs. During the first month of operation,
the following activity was recorded.
Units produced
4,000.00
Units sold
3,200.00
Units selling price
Tk. 4,500.00
Required
1)
Compute the unit product cost under (a) Absorption costing (b) Variable costing.
2)
Prepare an income statement for the month using absorption costing.
3)
Prepare an income statement for the month using variable costing.
4)
Reconcile the profits reported under two methods.
b)
How does the use of JIT (JUST IN TIME) inventory method reduce or eliminate the
difference in reported net income between absorption costing and variable costing?
[Marks: (3+4+4+3)+6 = 20]
Q. No. 5.
a)
Why is process re-engineering a more radical approach to improvement than Total Quality
Management (TQM).
b)
Why is adherence to ethical standard important for the smooth functioning of an advanced
market economy?
c)
Arbee Pharmaceutical industries Ltd. produce Tablets in two department : Mixing and
Tablet Making.
The following are the additional information :
Mixing
Tablet making
Capacity per hour
1,500 grms
2,000 tablets
Monthly capacity (2,000 hours are available
in each department)
30,00,000 grms
40,00,000 tablets
fixed operating cost (Taka)
1,60,000
3,90,000
(Excluding direct materials)
Monthly production
20,00,000 grm
39,00,000 tablets
Page 3 of 4

Q. No. 5.(contd.)
Each tablet contains 0.5 grm of direct materials. The mixing Department makes 20,00,000 grms
of direct materials mixture because the Tablet Making Department has only enough capacity to
process 40,00,000 tablets. All direct materials cost are incurred in the Mixing Department. Arbee
incurs Tk. 15,60,000 direct material costs.
The Tablet Making Department manufactures only 39,00,000 tablets from the 20,00,000 grams
of mixture processed, 2.5% of the direct materials mixture is lost in the Tablet Making process.
Each tablet sells for Tk. 1,00. All costs other than direct materials are fixed costs.
Required
1)
An outside contractor makes the following offer: If Arbee will supply the contractor with
1,00,000 grms of mixture the contractor will manufacture 1,95,000 tablets at Tk. 0.12 per
tablet.
Should Arbee accept the contractors offer? show your computation.
2)
Suppose that Arbee has lost 1,00,000 grms of mixture in its Mixing Department. These
losses can be reduced to zero, if the company is willing to spend Tk. 90,000 per month in
quality improvement method. Should Arbee adopt the quality improvement method? Show
your computation.
3)
What are the benefit of improving quality in the Mixing Department Compared with
improving quality in the Tablet-Making Department.
[Marks: 5 + 5 (4+3+3) = 20]
= THE END =
Page 4 of 4

SUBJECT: 203. COMMERCIAL & INDUSTRIAL LAWS.
Time: Three hours
Full Marks: 100
Answer THREE questions from each Group, where Q. No. 5 and 10 are compulsory.
Use a fresh sheet for answering each question.
GROUP- A: COMMERCIAL LAWS

Q. No. 1.
(a) In relation to the law of contract, explain the meaning and effect of the intention to create
legal relationship.
(b) Under what circumstances a person aggrieved by the breach of the contract can file a suit
for specific performance?
(c) Robin writes a letter to Ripon offering to sell certain goods for Tk.1000 and asking Ripon to
reply by post. On receipt of the letter Ripon writes a reply accepting Robins offer and
posts it. The letter never reaches to Robin, who after waiting for three days sells the goods
to Rifat. Has Ripon any remedy against Robin?
[Marks: (5+5+5) = 15]
Q. No. 2.
(a)
Define Negotiable Instrument. Name the Negotiable Instruments that are recognised by
customs or usage.
(b)
Define endorsement. What are the essentials of a valid endorsement?

[Marks: (5+10) =15]
Q. No. 3.
(a) Explain No Consideration, No Contract.
(b) Narrate exceptions of the above comments with examples.
[Marks: (5+10) = 15]
Q. No. 4.
(a) Distinguish between dishonour by Non-Acceptance and dishonour by Non-Payment.
(b) What are the consequences of not sending notice of dishonour?
[Marks: (8+7) = 15]
Q. No. 5.
Write short notes on any four of the following:
(i)
Copy Right Act-2000
(ii) Voidable Agreement
(iii) Bill of Exchange
(iv) Condition and warranty
(v) Unpaid seller
[Marks: (4 x 5) = 20]
Page 1 of 2

SUBJECT: 203. COMMERCIAL & INDUSTRIAL LAWS.
GROUP- B: INDUSTRIAL LAWS

Q. No. 6.
(a) Define Trade Union and describe its objectives.
(b) What constitutes unfair labour practices by an employer?
[Marks: (8+7) = 15]
Q. No. 7.
(a) Briefly discuss the provisions in the Bangladesh Labour Act, 2006 for the protection of the
interest of the children.
(b) Describe the grievance handing procedures as laid in the labour Act, 2006.
[Marks: (8+7) = 15]
Q. No. 8.
(a) Discuss the liability of a factory owner in respect of providing first -aid appliances in his
factory.
(b) Enumerate the provision of restriction of employment of women in certain work in certain
period of time.
(c)
Discuss the provision workers of entitlement of festival holidays.

[Marks: (5+5+5) = 15]
Q. No. 9.
Discuss the procedure of settlement of industrial disputes.
[Marks: 15]
Q. No. 10.
Write short notes on any four of the following:
(i)
Industrial establishment;
(ii) Service Book;
(iii) Working hours for adolescent;
(iv) Labour Appellate Tribunal;
(v) Penalty for illegal strike or lock-out.
[Marks: (4 x 5) = 20]
= THE END =
Page 2 of 2

SUBJECT: 204. TAXATION.
Time: Three hours
Full Marks: 100
Q. No. 1.
Write short notes on the following:
(a)
(b)
(c)
(d)
(e)
E-TIN;
Universal self-assessment;
Final discharge;
Technical know-how;
Accelerated depreciation.
[Marks: (45) = 20]
Q. No. 2.
a)
What do you mean by Charge of minimum tax as per Income tax ordinance 1984 sec
16CCC? What is the minimum tax payable and who should pay this? Explain what do you
mean by the term receipts?
b)
What special tax treatment is introduced in respect of investment in residential building
and apartment as per sec 19BBBBB?
c)
What are the provisions available to set off losses as per sec 37 of IT ordinance 1984?
d)
What are the provisions available to carry forward of losses as per section 38 of IT
ordinances 1984?
[Marks: (5X4) = 20]
Q. No. 3.
Mr. Ameen is an employee of a private textile firm. From the following information regarding his
income for the year ended 30th June, 2013 calculate his taxable income and tax liability (if any).
His Basic salary per month was Tk. 12,000.00
He received @ 10% of his basic as Conveyance Allowances
He received @ 60% of his basic as House rent allowances
He received @ Tk. 3,000.00/Month as entertainment allowances
He received @ Tk. 1,200.00/Month as medical allowances.
He received two festival bonuses, each is equal to half of his monthly basic, during the year.
Both he and his employer contribute @ 10% of basic salary to recognized provident fund.
During the income year he received interest amounted Tk. 3,000.00 from the PF trustee. During
the year Mr. Ameen also received interest from 12% less Tax government securities amounted
Tk. 18,000.00.
He invested Tk. 3,00,000.00 in 10% approved securities on 1st July 2010. Bank had charged 5%
as collection charge. Mr. Ameen also received dividend from share of a public limited company
amounted Tk. 3,600.00, Interest from savings account amounted Tk. 2,250.00, Sale of forest
timber amounted Tk. 4,000.00 and he won a lottery amounted Tk. 3,00,000.00 (TDS was Tk.
60,000.00). During the year Mr. Ameen also purchased savings certificates of Tk. 16,200.00
and denoted Tk. 20,000 to Abahoni Club Limited.
[Marks: (15+5) = 20]
Page 1 of 3

Q. No. 4.
a)
Describe the price declaration procedure for charging VAT or VAT & SD, as the case may
be as per Rule 3 of VAT Rules.
b)
What are provisions available for exemptions from custom duty? Explain briefly.
[Marks: (10+10) = 20]
Q. No. 5.
The following adjusted accounts appeared in the records of ABC Ltd. for the year ended
December 31, 2012. Numbers in brackets refer to the items in Additional Information.
Revenues and Gains
Tk.000
Net sales
126,500
Interest
1,000 (1)
Gain on sale of shares
. 2,500 (2)
1,30,000
Costs and Expenses
Cost of goods sold
65,300
Salaries and wages
26,000 (3)
Security services
300 (4)
Audit and taxation services
500
Office rent
600
Donations
1,800 (5)
Board meeting attendance
300 (6)
fee
Other expenses
3,000 (7)
Depreciation
8,000 (8)
Corporate income tax
. 4,500 (9)
Total
110,300
Net profit
. 19,700
Dividends paid
. 9,000 (10)
Additional Information
(1) Interest revenue comprises interest on government bonds issued in 2009 and purchased
by ABC Ltd. in 2012.
(2) Gain on sale of shares arose from the following purchase and sale of shares of a company
listed with DSE and CSE:
Bought in 2010 cost
Tk.12,00,000
Sold in 2012 proceeds of sale
Tk.37,00,000
(3) Salaries and wages include inter alia salary of Finance Manager Tk.6,00,000
(consolidated) paid in cash (not by cheque or bank transfer), gratuity (unapproved)
provision of Tk.15,00,000 and gratuity payment of Tk.10,00,000.
(4) Security services include payments to a private security company. No VAT was deducted
at source from such payments.
(5) Donations were all paid in 2012 to ICMAB, specially designated for the purchase of library
books, computers and training materials.
(6) No income tax and VAT was deducted at source from Board meeting attendance fee paid
to 10 (ten) directors.
Page 2 of 3

Q. No. 5.(contd.)
(7)
Other expenses include inter alia:

(a) Entertainment expenses of Tk.5,00,000 spent on MDs birthday party; and
(b) Four foreign travels of MD, each costing Tk.2,00,000. All foreign trips were for
business purposes.
(8) ABC Ltd. has always used written down value depreciation and same depreciation rates
for both accounts and tax purposes.
(9) Corporate income tax is the amount estimated before preparation of the tax return. 60% of
the estimated amount of tax has been paid as advance tax during the year 2012.
(10) Dividend has been paid at the rate of 25%.
The company has a capital loss of Tk.10,00,000 carried forward from the assessment year
2010-2011.
ABC Ltd. is a publicly traded company.
Required:
Compute the total income and the total income tax liability of ABC Ltd. while making the above
computations, any no-compliances of the relevant provisions of the tax laws (income tax as well
as VAT) by the company are to be considered strictly in accordance with the legal provisions for
such non-compliances. If considered necessary, you may make assumptions in the light of the
relevant tax provisions.
[Marks: (17+3) = 20]
= THE END =
Page 3 of 3

PROFESSIONAL LEVEL-III
SUBJECT: 301. ADVANCED FINANCIAL ACCOUNTING-II.
Time: Three hours
Full Marks: 100
Question No. 1.
On 1 July 2008, Prime Ltd acquired 75% of the share capital of Eastern Ltd. at a cost of Tk. 276,000.
At this date, the capital of Eastern Ltd. consisted of 30,000 ordinary shares each fully paid, and
retained earnings were Tk. 60,000.
At 1 July 2008, Eastern Ltd. had not recorded any goodwill and all the identifiable assets and
liabilities of Eastern Ltd. were recorded at fair value.
The trial balances of the two companies as at 30 June 2013 are as shown below.
Trial Balances
as at 30 June 2013
Share capital
Retained earnings (1 July 2012)
General reserve
Current tax liability
Plant
Accumulated depreciation - plant
Shares in Eastern Ltd.
10% Debentures in Eastern Ltd.
Inventory
Other current assets
Deferred tax asset
Sales revenue
Cost of sales
Selling expenses
Other expenses
Financial expenses
Income tax expense
Interest received from debentures
Dividend revenue
Dividend paid
10% Debentures
Prime Ltd.
Dr. (Tk.)
Cr. (Tk.)
400,000
190,000
84,500
300,000
170,000
276,000
30,000
120,000
135,500
20,000
500,000
340,000
40,000
15,000
15,000
50,000
3,000
18,000
24,000
-Tk. 1,365,500
Tk. 1,365,500
Eastern Ltd.
Dr. (Tk.)
Cr. (Tk.)
300,000
145,000
50,000
29,000
700,000
305,000
155,000
15,000
50,000
800,000
585,000
75,000
15,000
5,000
55,000
24,000
Tk.1,679,000
50,000
1,679,000
Additional information
(a)
Intra-group sales for the year ended 30 June 2013 from Eastern Ltd. to Prime Ltd. Tk. 190,000.
Page 1 of 5

Question No. 1. (cont'd.......... )
(b)
Unrealized profits on inventory held at 1 July 2012: inventory held by Prime Ltd. purchased
from Eastern Ltd. at a profit before tax of Tk. 8,000.
(c)
Unrealized profits on inventory held at 30 June 2013: inventory held by Prime Ltd. purchased
from Eastern Ltd. at a profit before tax of Tk. 12,000.
(d)
Tax rate applicable is 30%.
Required:
Prepare the consolidation worksheet entries and consolidated financial statements for the year
ended 30 June 2013.
[Marks: 13+ (8+6+8) = 35]
Question No. 2.
Alpha Ltd. is seeking to expand its share of the pet care market and has negotiated to acquire the
operations of Beta Ltd. and the issued capital of Pie Ltd.
At 1 July 2012, the trial balances of the three companies were:
Assets:
Cash
Accounts receivable
Inventory
Shares in listed companies
Land and buildings (net)
Plant and equipment (net)
Goodwill (net)
Total Assets
Liabilities:
Accounts payable
Bank overdraft
Debentures
Mortgage loan
Contributed equity:
Ordinary shares of Tk. 10.00, fully paid
Other reserves
Retained earnings (30.06.2012)
Liabilities and Equity
Alpha Ltd.
Taka
145,000
34,000
56,000
16,000
70,000
130,000
6,000
Tk. 457,000
Beta Ltd.
Taka
5,200
21,300
30,000
22,000
40,000
105,000
5,000
Tk. 228,500
Pie Ltd.
Taka
84,000
12,000
25,400
7,000
36,000
25,000
5,600
Tk.195,000
65,000
0
50,000
100,000
40,000
0
0
30,000
29,000
1,500
100,000
0
200,000
15,000
27,000
Tk.457,000
150,000
6,500
2,000
Tk. 228,500
60,000
2,500
2,000
Tk. 195,000
Beta Ltd.
Alpha Ltd. is to acquire all assets (except cash and shares in listed companies) of Beta Ltd. Transfer
and installation costs are expected to be Tk. 7,600. The net assets of Beta Ltd. are recorded at fair
value except for:
Inventory
Land and buildings
Shares in listed companies
Accounts payable
Accrued leave
Carrying amount
Taka
30,000
40,000
22,000
(40,000)
0
Page 2 of 5
Fair value
Taka
26,000
80,000
18,000
(49,100)
(29,700)

Question No. 2. (cont'd............)
In exchange, the shareholders of Beta Ltd. are to receive, for every three Beta Ltd. shares held, one
Alpha Ltd. share worth Tk. 25 each. Costs to issue these shares will be Tk.1,200. Additionally, Alpha
Ltd. will transfer to Beta Ltd. its 'Shares in Listed Companies' asset, which has a fair value of
Tk.15,000. These shares, together with those already owned by Beta Ltd. will be sold and the
proceeds distributed to the Beta Ltd. shareholders. Assume that the shares were sold for their fair
values.
Alpha Ltd. will also give Beta Ltd. sufficient additional cash to enable Beta Ltd. to pay all its creditors.
Beta Ltd. will then liquidate. Liquidation costs are estimated to be Tk.15,000.
Pie Ltd.
Alpha Ltd. is to acquire all the issued capital of Pie Ltd. In exchange, the shareholders of Pie Ltd. are
to receive one Alpha Ltd. share, worth Tk. 25, and Tk. 15 cash for every two Pie Ltd. shares held.
Required:
(i)
Prepare the acquisition analyses and journal entries to record the acquisitions in the books of
Alpha Ltd.
(ii)
Explain in detail why, if Beta Ltd. has recorded a goodwill asset of Tk. 5,000, Alpha Ltd.
calculates the goodwill acquired via an acquisition analysis. Why does Alpha Ltd. not
determine a fair value for the goodwill asset and record that figure as it has done for other
assets acquired from Beta Ltd.?
(iii)
If Alpha Ltd. subsequently receives a dividend cheque for Tk. 1,500 from Pie Ltd. paid from
retained earnings earned before its acquisition of the shares in Pie Ltd. how should Alpha Ltd.
account for that cheque? Why?
(iv)
Shortly after the business combination, the liquidator of Beta Ltd. receives a valid claim of Tk.
25,000 from a creditor. As Alpha Ltd. has agreed to provide sufficient cash to pay all the
liabilities of Beta Ltd. at acquisition date, the liquidator requests and receives a cheque for Tk.
25,000 from Alpha Ltd. How should Alpha Ltd. record this payment? Why?
[Marks : 15+4+3+3) = 25]
Question No. 3.
(a)
All accounting professionals are responsible for acting in the public interest, and for promoting
professional ethics. The directors of Apex Ltd. feel that when managing the affairs of a
company the profit motive could conflict with the public interest and accounting ethics. In their
view, the profit motive is more important than ethical behaviour and therefore codes of ethics
are irrelevant and unimportant.
Required:
Discuss the above views of the directors regarding the fact that codes of ethics are irrelevant and
unimportant.
Page 3 of 5

Question No. 3. (cont'd............)
(b)
On 1 July 2011 Bruce Ltd, a New Zealand company, acquires all the issued shares in Haycarb
Ltd, a company incorporated in England. Exchange rates for the year ending 30 June 2012 are
as follows:
01 July 2011
Average rate for year
Ending inventory acquired (before year end)
30 June 2012
1.00
1.00
1.00
1.00
= NZ$2.00
= NZ$2.10
= NZ$2.20
= NZ$2.30
The income statement and balance sheet of Haycarb are shown below.The accounts are stated in .
Abbreviated income statement for Haycarb Ltd. for the year ended 30 June 2012 and details
for closing retained earnings are:
2,500
Sales
Cost of sales
Inventory - 01 July 2011
Purchases
Inventory - 30 June 2012
Administration expense
Depreciation expense
Profit
Income tax expense
Profit after tax
Retained earnings - 01 July 2011
Retained earnings - 30 June 2012
(500)
(2,000
450
(75)
(100)
275
(125)
150
150
300
Balance sheet for Haycarb Ltd. as at 30 June 2012
Assets:
Plant and equipment
Cash and debtors
Inventory
Total assets
Liabilities:
Bank loan
Trade creditors
Total liabilities
Net assets
Represented by:
Share capital
Retained earnings
01 July 2011
()
30 June 201
()
1,050
100
500
1,650
950
800
450
2,200
1,000
0
1,000
650
1,000
400
1,400
800
500
150
650
500
300
800
Required:
Translate the financial statements of Haycarb Ltd. into New Zealand dollars.
[Marks : (7+15) = 22]
Page 4 of 5

Question No. 4.
(a)
For the year ending 30 June 2012, Padma Ltd. reports net profit after tax of Tk. 1,000,000. At
the beginning of the year, Padma Ltd. had 800,000 fully paid ordinary shares. It also had
10,000 Tk.100, 12 per cent, cumulative preference shares outstanding. On 1 September 2011,
the company issued another 200,000 fully paid ordinary shares by way of a rights issue. The
right provided an additional share for each four held, and required the payment of Tk.15. The
last cum rights share price was Tk. 20. The basic EPS for the year ended 30 June 2011 was
Tk.1.95.
Required:
Compute the basic EPS amount for 2012 and provide the adjusted comparative EPS for 2011.
(b)
Consider the following segment information in relation to Malvern Ltd. For internal purposes,
the chief operating decision maker reviews four components of the organization when making
decisions about the resources to be allocated to the components of the organization and
assessing performance. Data relating to the four components is provided below:
Business segment
Mining
Manufacturing
Chemicals
Agriculture
Total
Segment
(Tk. 000)
500
125
100
800
1,525
Profit or loss
(Tk. 000)
(55)
(25)
5
100
25
Segment assets
(Tk. 000)
100
20
10
150
280
The total revenue of Malvern Ltd. is Tk. 1,600,000 and there is Tk. 75,000 in revenue that is
not allocated to an operating segment.
Required:
Determine which segments of Malvern Ltd. are reportable in accordance with the guidelines
provided in IFRS 8.
[Marks : (8+10) = 18]
= THE END =
Page 5 of 5

SUBJECT : 302. ADVANCED COST ACCOUNTING.
Time: Three hours
Full Marks: 100

Q. No. 1.
Fine Electronics manufactures a number of electronic products. One of the products is a small
battery. Company has set the following standards for variable costs to manufacture one battery.
Quantity/ Hours Price/Rate
Standard Cost
Direct Materials
?
Tk. 12 per kg.
?
Direct Labour
?
?
?
Variable Manufacturing
?
Tk.4 per hour
?
Overhead
Total variable standard
Tk.84
cost of one battery
During the month of May, 9,000 direct labor hours were recorded and 5,000 batteries were
manufactured. The actual cost to manufacture one battery was Tk.0.28 higher than the standard
cost. The following cost and variances information relates to May:
Materials
Direct labor
Variable manufacturing
used
overhead
Standard cost for May
?
Tk. 160,000
Tk. 32,000
Actual cost for May
Tk.200,000
?
Tk. 32,400
Price/Rate variance
?
?
Tk.12,000
Quantity/Efficiency variance
?
Unfavorable
Variable overhead spending variance
?
Variable overhead efficiency
?
variance
Required:
Compute the following:
a)
Materials standard cost for May production.
b)
Standard quantity of materials per unit.
c)
Price variance of materials.
d)
Standard direct labor rate for May.
e)
Rate and efficiency variance for direct labor cost.
f)
Spending and efficiency variance for variable manufacturing overhead cost.
[Marks: (2+2+4+4+4+4) = 20]
Q. No. 2.
a)
What is the purpose of a cost of production report?
b)
Distinguish between normal (unavoidable) spoilage and abnormal (avoidable) spoilage.
c)
Explain how normal and abnormal spoilage should be reported for management purpose.
Page 1 of 4

Q. No. 2.(contd..)
d)
Padma Incorporation produces antibiotic product in its three producing departments. The
following quantitative and cost data have been made available:
Particulars
Department
Blending
Testing
Terminal
Production data:
Started into production
8,000 kg
5,400 kg
3,200 kg
Transferred to next dept.
5,400
3,200
-----Transferred to finished goods
--------2,100
In process(100% materials, 1/3 labor and overhead)
2400
1800
----In process(100% materials, 2/3 labor and overhead)
--------900
Cost charged to departments:
Materials
Tk. 20,670
Tk. 7,980 Tk. 14,400
Labor
Tk. 11,160
Tk. 5,016 Tk. 11,520
Factory overhead
Tk. 5,580
Tk. 2,280
Tk. 5,040
Total
TK. 37,410
Tk.15,276 Tk. 30,960
Lost units are normal and apply to all production.
Requirement:
1.
Prepare a quantity schedule for each of the three departments.
2.
Prepare an equivalent production schedule for each of the three departments
3.
Compute the unit cost of factory overhead in the Blending Department.
4.
Compute the lost unit cost adjustment in the Testing Department if the unit cost transferred
in from the Blending Department is Tk.5.35
[Marks: {2+2+2+(4+4+3+3)} = 20]
Q. No. 3.
(a) Discuss the advantages and disadvantages of operating costing. Mentioned at least five
organizations where operating costing is suitable than that of others costing.
(b)
KNM is a public school having five buses each playing in different directions for the
transportation of its students. In view of a large number of students availing of the bus
service, the buses works two shifts daily both in the morning and in the afternoon. The
buses are garaged in the school. The work load of the students has been so arranged that
in the morning the first trip pick up senor students and in the second trip playing an hour
later picks up junior students. Similarly in the afternoon the first trip drops the junior
students and an hour later the second trips takes the senor student home.
The distance travelled by each bus one way is 8 Km. the school works 25 days in a month
and remained close for vacation in May, June and December. Bus fees however is
payable by students for all in 12 months in a year. The details of expenses for a year are
as under:
Drivers salary
Tk. 4,500 p.m.
Cleaners salary (1 Cleaner employed)
Tk. 3,500
Licence fee taxes etc.
Tk. 8,600 per bus
Insurance
Tk. 10,000
Repairs and maintenance
Tk. 35,000
Purchase price of the buses
Tk. 15,00,000 each
Life the bus
12 years
Scrap value
Tk. 300,000
Diesel cost
Tk. 20 per liter
Page 2 of 4

Q. No. 3.(contd..)
Each bus gives an average mileage of 4 Km per liter of diesel. Seating capacity of each bus is
50 students.
The seating capacity is fully occupied during the whole year.
Students picked up and dropped within a range of up to 4 Km. of distance from the school are
charged half fare and 50% of the students travelling in each trip in this category. Ignore interest.
Since the charges are to be based on average cost, you are required to:
1.
Prepare statement showing the expenses of operating a single bus and a fleet of 5 buses
for a year.
2.
Work out the average cost per student per month in respect of
(a) Students coming from a distance of 4 Km from the school;
(b) Students coming from a distance beyond 4 Km. from the school.
[Marks: 6+(10+2+2) = 20]
Q. No. 4.
(a) Why marketing cost has significant influence on net profit of an organization? Discuss
the importance of marketing cost in the manufacturing organization.
(b) Although Woodland Company managers realize that they need additional marketing
costs standards. They lack the personnel and finds at present to establish marketing
cost standards. They suspect the Woodland may be accepting orders that are too
small. As a result they analyzed the orders received last year and broke them down into
categories (1 to 20 items) as small; (21 to 100) medium and above 100 items are large.
The actual marketing costs incurred last year were as follows:
Marketing cost
Amount
Basis for distribution
Marketing personnel salaries
Tk. 27,000 Nos. of personnel
Marketing managers salary
20,000 Time spent
Sales people commission
3,000 Sales order
Advertising and direct selling
37,500 Sales taka
Packing and shipping
26,250 Weight shipped
Delivery
19,000 Weight shipped
Credit and collection
15,000 Nos. of orders.
An analysis of their records produced the following statistics:
Order sizes
Small
Medium
Large
Total
Number of personnel
5
3
1
9
Time spent by marketing manager
60%
10%
30%
100%
Amount of sale
Tk.250,000 Tk.300,000 Tk.200,000 Tk.750,000
Weight
6000 kg
2940 kg
1470 kg
10,410 kg
Number of orders
612
170
68
850
Required:
(a) Prepare a detail schedule showing the marketing cost per order size and marketing cost
as a percentage of total sales for each order size.
(b) Make recommendation to management about the size of order Woodland should
accept.
[Marks: 6+ (10+4) = 20]
Page 3 of 4

Q. No. 5.
(a)
Describe the difference between life-cycle costing and target costing?
(b)
The Carolina Company prepares lumber for companies who manufacture furniture. The
main product is finished lumber with a byproduct of wood shavings. The byproduct is sold
to plywood manufacturers. For July, the manufacturing process incurred $332,000 in total
costs. Eighty thousand board feet of lumber were produced and sold along with 6,800
pounds of shavings. The finished lumber sold for $6.00 per board foot and the shavings
sold for $0.60 a pound. There were no beginning or ending inventories.
Required:
Prepare an income statement showing the byproduct (i) as a cost reduction during production,
and (ii) as a revenue item when sold.
(c) Dawn and Kim just bought a bed and breakfast inn at a very attractive price. The business
had been doing poorly. Before they reopened the inn for business, they attended a
seminar on operating a high quality business. Now that they are ready to open the inn,
they need some advice on quality costs and management.
Identify four categories of quality costs. In addition, identify three items that would be classified
in each of the categories.
[Marks: (6+6+8) = 20]
= THE END =
Page 4 of 4

SUBJECT: 303. CORPORATE LAWS, GOVERNANCE & SECRETARIAL PRACTICE.
Time: Three hours

Full Marks: 100
Answer THREE questions from each part, where Q. No. 5 and 10 are compulsory.
Use a fresh sheet for answering each question.

PART- A: CORPORATE LAWS
Q.No.1:
(a) ABC is a Private Limited Company. They like to raise capital by issuing shares to the
public. Describe the steps required for the purpose?
(b) What are the object clauses of the Memorandum of Association of a public limited
company? Is there any scope for doing business beyond object clause?
[Marks: (10+5) = 15]
Q.No.2:
(a) What do you mean by placement share?
(b) What is the procedure for selling placement share?
(c) Is there any limitation on selling of such shares by sponsors share holders and directors?
[Marks: (5+5+5) = 15]
Q. No. 3.
A complaint has been made to the Registrar of Companies by 5 members requesting him to
direct the SEL Holdings Ltd. of which they are members to re-convene Annual General
Meeting(AGM) since they had not received the notice of the company for the AGM held on 30th
September, 2011. The Registrar of Joint Stock Companies and Firms issued show-cause notice
as to why such directions should not be issued to the Company. What would be your response
in this respect?
[Marks: 15]
Q. No. 4.
Mr. V, along with six other persons desires to float a company for charitable purposes, as
permissible under Section 28 of the Companies Act, 1994. He seeks your advise about the
procedure to be followed to give effect to the above proposal. Advise him.
[Marks: 15]
Q. No. 5.
Distinguish between the following (any four):
(a) Manager and Managing Director;
(b) Foreign Company and Joint Venture Company;
(c) Proxy and quorum;
(d) Fixed charge & Floating charge;
(e) Ordinary Business and Extra Ordinary Business;
(f) Ordinary Share and Preference Share.
[Marks: (4 x 5) = 20]
Page 1 of 2

SUBJECT: 303. CORPORATE LAWS, GOVERNANCE & SECRETARIAL PRACTICE.
PART- B: CORPORATE GOVERNANCE & SECRETARIAL PRACTICE.
Q. No. 6.
(a) Company Secretary is the Chief Compliance Officer of the Company. Do you agree?
Explain.
(b) Discuss the functions of the Company Secretary in a public listed company.
[Marks: (10+10) = 20]
Q. No. 7.
As Company Secretary, please advise the Chairman of your Company the procedures to be
followed on the followings:
(a) The Board of Directors would like to declare Bonus Shares against Revaluation Reserve.
(b) The Company wishes to go for IPO for Tk. 1,000 crore.
[Marks: (10+10) = 20]
Q. No. 8.
(a) A company cannot issue right share as an when they like. Discuss.
(b) Dividend warrants should be sent to the investors in time. What is the punishment for
failing to send dividend warrant in time?
[Marks: (10+5) = 15]
Q. No. 9.
(a) Discuss the weakness of present banking law with reference to irregular payment of loan
given to HALL MARKS GROUP by Sonali Bank.
(b) Suggest the improvement and remedies of the present banking law of the country.
[Marks: (10+5) = 15]
Q. No. 10.
Draft specimen resolutions for transacting the following items indicating the kind of meeting at
which the resolutions are to be passed and the type of resolution required:
(i)
(ii)
(iii)
(iv)
To open a branch office of the company.

To change registered office of the company from one city to another.
To close register of members or debenture holders.
To change the name of the company.
[Marks: (4 x 5) = 20]
= THE END =
Page 2 of 2

SUBJECT: 304. AUDITING.
Time: Three hours
Full Marks: 100

Q. No. 1.
You are an audit manager in X & Y Company, Chartered Accountants, The firm currently
audited Shouvik Food & Beverage Ltd. Another company Soumik Food & Beverage Ltd. a
competitor of Shouvik Food & Beverage Ltd has approached the audit firm to act as auditor.
Both the companies are highly competitive and Shouvik Food & Beverage Ltd is concerned that
if X & Y Company audits both the companies then confidential information could pass across to
Soumik Food & Beverage Ltd.
(a) Is it possible to accept the offer of Soumik Food & Beverage Ltd considering ISA 200
Objective and general principles governing an Audit of Financial Statement?
(b) Explain the safeguards that should implement by the firm to ensure that this conflict of
interest is properly managed.
(c) One of the general principles is Independence, Integrity and Objectivity. Write briefly your
understanding about the above principle and which provision in existing law will help to
strengthen the auditor Independence
(d) Write your own word about Professional competence and due care.
(e) The audit lends greater credibility to financial statement Do you agree with this
statement? Give your explanation in favour of your answer.
[Marks: (5 x 3) = 15]
Q. No. 2.
(a) Documentation is one of the basic principles of governing an audit, so that working paper
also essential for an auditor for future compliance.
i)
What is working paper and why an auditor keep the working paper at the time audit?
ii)
What types of documents generally included in working paper?
(b) What are differences between verification and confirmation?
(c) List the audit procedures which involve examination of subsequent events.
[Marks: (6+4+5) = 15]
Q. No. 3.
(a) Define Audit Committee. What are likely to include in the terms of reference of audit
committee as required for the companies listed in stock exchange of Bangladesh.
(b) During the external audit of XYZ Ltd. you discovered that the directors have accounted for
research & development costs inappropriately resulting in a material misstatement XYZs
financial statements.
Your firm plans to issue a modified audit opinion if the misstatement is not corrected as
per your firms request. During a conversation with your firms audit partner, XYZS
Managing Director, Mr. Shafique Ahmed, indicated that it is the directors intention to seek
the removal of your firm as external auditors if your firm issues a modified audit opinion in
respect of this matter.
What appropriate actions your firm should consider under the above circumstances?
[Marks: (5+10) = 15]
Page 1 of 2

SUBJECT: 304. AUDITING.
Q. No. 4.
(a) What do you understand by internal controls?
(b) BSA 315 sets out 5 (five) components of internal control each of which may have impact
on the audit process differently. Write at least 3 (three) components of internal control.
(c) The internal controls in a computerized environment include both manual procedures and
procedures designed by computer programs. Such manual and computer controlled
procedures comprise two types of control. Write down 2 (two) above controls.
(d) What controls will be put into place in the purchases system depend on the nature of the
company and the specific risks associated with the way it operates, but there are some
general controls which can be used to mitigate the risks. What are the general controls
which can be used to mitigate the risks?
[Marks: (2+5+4+4) = 15]
Q. No. 5.
(a) Audit and Assurance are always used together. What is the exact difference between
these?
(b) What are management representations? How do management representations work as
audit evidence? When management representations are required?
[Marks (5+10) = 15]
Q. No. 6.
(a) Your firm has just been appointed auditors of Maria Ltd. after the previous auditors were
removed following a dispute with the Directors. This dispute related to certain cost
capitalized by the directors, which the auditors believed should have been written off (the
audit report was qualified).
State the procedure; you would carry out regarding the opening balances.
(b) During the external audit of Robin Ltd. for the year ended 31st March 2013, the following
matters were discovered:
(i)
Cash receipts from customers, listed as outstanding lodgments in the bank
reconciliation at the year end, were cleared through the bank on 21st April 2013; and
(ii) A sales credit note, relating to a pre-year-end delivery of inventory, was issued to a
major customer on 20th April 2013.
Explain why these matters should be investigated further.
[Marks: (5+10) = 15]
Q. No. 7.
(a) Distinguish between independence in fact and independence in appearance. State three
activities that may not affect independence in fact but are likely to affect independence in
appearance.
(b) The audit report of Q Ltd. for the year 2011-12 contained a qualification regarding nonprovision of doubtful debts. As the statutory auditor of the company for the year 2012-13,
how would you report, if:
(i)
The company does not make provision for doubtful debts in 2012-13?
(ii) The company makes provision for doubtful debts in 2012-13?
[Marks: (5+5) = 10]
= THE END =
Page 2 of 2

PROFESSIONAL LEVEL-IV
SUBJECT : 401. FINANCIAL MANAGEMENT.
Time: Three hours
Full Marks: 100

Q. No. 1.
Beta Developments Ltd. (Beta) wishes to determine the financial impact of using additional debt
financing to purchase additional assets. The following represents the current financial data for
Beta Developments Ltd.
Income Statement
For the Year Ended December 31, 2013
Tk.
Sales
8,500,000
Less: Costs and Expenses
6,375,000
Earnings before interest and tax
2,125,000
Interest
300,000
Earnings before tax
1,825,000
Tax
547,500
Earnings after tax
1,277,500
Balance Sheet
As of December 31, 2013
Assets
Tk.
Equity and Liabilities
Tk.
Non Current assets
6,250,000
Equity
3,250,000
Current assets
1,000,000
Long-term debt @10%
3,000,000
________
Current liabilities
1,000,000
Total assets
7,250,000
Total Equity and Liabilities 7,250,000
Assume that Beta intends to purchases an additional Tk.3 million of assets by issuing Tk.3
million in new bonds that pay 10 percent annual interest rate. Also assume that the costs and
expenses for Beta remain at 75 percent of sales and the tax rate remains at 30 percent.
Required:
a)
Calculate the current financial ratios for 2013 of Beta Developments Ltd. before the
purchase of the additional assets :
i)
net profit margin,
ii)
total asset turnover,
iii) financial leverage multiplier,
iv) return on total assets, and
v) return on equity.
b)
Now, assuming no other changes, determine the impact on Beta of purchasing the
additional Tk.3 million of assets if the newly purchased assets generate an additional Tk. 2
million in sales. What is the effect on the ratios calculated in part (a)? Is the purchase of
these assets justified on the basis of the return on common equity?
(c) Explain the difference between sensitivity analysis and scenario analysis. Apply your
answer to Beta.
[Marks: (10+6+4) =20]
Q. No. 2.
Alpha Ltd. an ungeared Company operating in the processed Food industry, is contem plating
the takeover Canada Agro product but is unsure how to value its target. Alpha Ltds analysis
have assembled the following information.
Page 1 of 4

Q. No. 2.(contd.)
(i)
Canada Agro products Balance sheet as at December 31, 2012.
Tk. In crore
Tk. 1,400
Fixed Assets (Net)

Current assets:
Inventory
Debtors
Cash
400
800
-
Current liabilities:
Trade creditors
Bank overdraft
(1000)
(300)
(100)
Net assets:
Tk. 1300
Financed by:
Issued share capital (Tk. 100 per share)
Tk. 1000
Profit and loss A/c
300
Share holders fund
Tk. 1,300
(ii) In its most recent period ending December 2012 Canada Agro products sales were Tk. 5000
crores, but after operating costs and others expenses including depreciation charge of Tk. 200
crore, its profit after tax was Tk. 200 crore. This figure includes an extra ordinary item (Sale of
property was Tk. 50 crore). The full year dividend was Tk. 50 crore in total, paid about a year
ago.
(iii) Canada Agro product has recently followed a policy of increasing dividends by 12% per
annum. Its shareholders required rate of return is 17%.
(iv) Alpha Ltds P/E Ratio is 14:1 Canada Agro Products 8:1.
(v) More efficient utilization of Canada Agro Products asset could generate annual operating
savings of Tk. 50 crore per annum after tax.
Required:
(a) What is the current market value of Canada Agro Products share?
(b) Why might the market value differ from book value?
(c) What rate of return does Canada Agro Product currently achieve for its share holders?
(d) As CFO of Alpha Ltd. you are required to assess the value of Canada Agro Product using
discounted cash flow approach. (carefully specify any assumption which you make)
[Marks: (5 x 4) = 20]
Q. No. 3.
(a) The CEO of the Padma Security Systems Ltd. has recently attended a seminar on leasing.
He was very impressed by the views expressed by one of the speakers that leasing was the
most viable option for acquiring an asset. The CEO has directed in the board meeting that
the company must go for lease option for acquiring new equipment for one of its department.
The CFO of company has assured the CEO that decision of acquiring the equipment would
be taken in the best interest of the company and asked you to recommend the most viable
course of action. The following data has been collected by the finance department of Padma
Security Systems Ltd.
The equipment could be acquired on lease for a 4-year contract period. The lease payment
of Tk. 500,000 per year is to be paid at the beginning of each year. The lease would also
include maintenance of the equipment.
The equipment could also be purchased for Tk.2,000,000, financing the purchase by a bank
loan for the net purchase price. Under the borrow-to-purchase arrangement, Padma Security
Systems Ltd., would have to maintain the equipment at a cost of Tk.40,000 per year, payable
at year end. The company charge depreciation @ 30 % pa on diminishing balance method
for such type of equipment. The depreciation allowance is fully allowed for tax purposes. The
expected residual value of the machine after four years is Tk. 400,000. Padma Security
Systems Ltd., plans to replace the lathe machine after four years irrespective of whether it
leases or buys. The company has a tax rate of 35% and it's after tax cost of debt is 13%.
Page 2 of 4

Q. No. 3.(contd.)
Required:
(i)
Calculate the PV of the equipment cost under lease and purchase option.
(ii) Would you support the CEO's view that lease is most viable option to purchase the
equipment.
(b) Consider two stocks, A and B:
Expected Return (%)
Standard Deviation (%)
Stock A
18
12
Stock B
20
13
____________________________________________________________________
Required:
(i)
State the condition for a zero-standard deviation portfolio of these two stocks.
(ii) What is the expected return of a portfolio comprising stocks A and B, when the portfolio is
constructed to derive the standard deviation of portfolio return to zero.
(c) What might be the reasons for mergers and acquisitions?
[Marks: (10+5+5) = 20]
Q. No. 4.
(a) A.R. Traders currently earns Tk. 3 per share. His return on equity is 25 percent and he
retains 50% of its earnings (both figures are expected to be maintained in definitely). Stock
of similar risk are priced to return 15%.
Required:
What is the intransic value of A.R. Traders stock?
(b) As a firm is operating in a nature industry. Novex Industrial is expected to maintain a
constant dividend payout ratio and constant growth rate of earnings for the foreseeable
future. Earning were Tk. 4 per share in the recently completed fiscal year. The dividend
payout ratio has been constant 50 percent in recent years and is expected to remain so.
Novex return on equity is expected to remain 15 percent in the future and you require 12
percent return on the equity.
Required:
(i)
Using the constant growth dividend discount model, calculate the current value of Novex
equity share. After an aggressive acquisition and marketing program it now appears that
Novexs EPS and ROE will grow rapidly over the next two years. You are aware that the
dividend discount model can be useful in estimating the value of the equity even when the
assumption of constant growth does not apply.
(ii) Calculate the current value of Novexs equity using the dividend discount model, assuming
the Novex dividend will grow at a 20% rate for the next two years, returning in the third
year to the historical growth rate for the foreseable future.
[Marks: 8+(6+6) = 20]
Q. No. 5.
(a) At a recent board meeting of Paramount Ltd, a shareholder director suggested that the
companys remuneration committee should consider scrapping the companys current
share option scheme, since executive directors could be rewarded by the scheme even
when they did not perform well. A second shareholder director disagreed, saying the
problem was that even when executive directors acted in ways which decreased the
agency problem, they might not be rewarded by the share option scheme if the stock
market were in decline.
Required:
Explain the nature of the agency problem and discuss the use of share option schemes as a
way of reducing the agency problem in a stock-market listed company such as Paramount Ltd.
Page 3 of 4

Q. No. 5.(contd.)
(b)
XYZ Co is a medium-sized company whose ordinary shares are all owned by the
members of one family. It has recently begun exporting to a European country and
expects to receive 500,000 in six months time. The prospect of increased exports to the
European country means that XYZ Co needs to expand its existing business operations in
order to be able to meet future orders. All of the family members are in favour of the
planned expansion, but none are in a position to provide additional finance. The company
is therefore seeking to raise external finance of approximately $1 million.
Required:
Discuss the reasons why small and medium-sized entities (SMEs) might experience less conflict
between the objectives of shareholders and directors than large listed companies.
(c)
Discuss how the shareholders of a company can assess the extent to which they face the
following risks, explaining in each case the nature of the risk being assessed:
(i)
Business risk;
(ii) Financial risk;
(iii) Systematic risk.
[Marks: (8+6+6) = 20]
= THE END =`
Page 4 of 4

SUBJECT : 402. STRATEGIC MANAGEMENT ACCOUNTING.
Time: Three hours
Full Marks: 100

Question No. 1.
(a) Discuss the issues and complications that may arise when multinational corporations
conduct performance measurement and comparisons among divisions located in different
countries.
(b) Key information for the South Division (SD) of Eva Industries for 2013 follows:
Revenues
Tk. 25,000,000
Operating income
Tk. 3,000,000
Total assets
Tk. 16,650,000
South Divisions managers are evaluated and rewarded on the basis of ROI defined as
operating income divided by total assets. Eva Industries expects its divisions to increase ROI
each year.
Next year, 2014, appears to be a difficult year for South Division. South Division had planned a
new investment to improve quality but, in view of poor economic conditions, has postponed the
investment. ROI for 2014 was certain to decrease if SD had made the investment.
Management is now considering ways to meet its target ROI of 20% for next year. It anticipates
revenues to be steady at Tk. 25,000,000 in 2014.
(i)
Calculate SDs return on sales (ROS) and ROI for 2013.
(ii) (a) By how much would SD need to cut costs in 2014 to achieve its target ROI of 20%,
assuming no change in total assets between 2013 and 2014?
(b) By how much would SD need to decrease total assets in 2014 to achieve its target ROI
of 20%, assuming no change in operating income between 2013 and 2014?
(iii) Calculate SDs RI in 2013 assuming a required rate of return on investment of 15%.
(iv) SD wants to increase RI by 50% in 2014. Assuming it could cut costs by Tk. 75,000 in
2014, by how much would SD need to decrease total assets in 2014?
[Marks: 5 +(3+4+4+4)]
Question No. 2.
Rapid Growth Ltd., an Australian Company, is considering whether to establish a new
subsidiary operation in New Zealand. The cost of the fixed assets investment would be $2
million in total, with $1.5 million payable at once and the remainder payable after one year. An
investment of $500,000 in working capital would be required at the beginning of the project. A
further investment of $100,000 in working capital would be required at the end of 2nd year.
The management of the Rapid Growth expect all their investment to justify themselves
financially within a 4 year planning horizon. The company will be able to recover 80% of its
investment in working capital after four years. The net disposal value of the fixed assets after
four years is expected to be nil.
Page 1 of 5

Question No. 2.(contd..)
The operation would incur fixed costs of $1,440,000 per annum in the first year, including
depreciation of $800,000. The company uses reducing balance method of depreciation which is
approved by the taxation authority for tax purposes. these costs, excluding depreciation, are
expected to increase by 5% per annum because of inflation. The operation would involve the
manufacture and sale of a standard unit, with a selling price and unit variable cost of $24 and
$12 per unit respectively in year 1 and expected annual increase because of inflation of 4% and
7% respectively. Annual sales are expected to be 140,000 units.
The company's money cost and tax rate are 14% and 30% respectively.
Is the project viable?
[Marks: 20]
Question No. 3
(a) When cost-based transfer pricing is used between subunits of a large organization,
describe how to avoid making suboptimal decisions.
(b) Aromatic Co. is a company specializing in the manufacture and sale of baths. Each bath
consists of a main unit plus a set of bath fittings. The company is split into two divisions, A
and B. Division A manufactures the bath and Division B manufactures sets of bath fittings.
Currently, all of Division As sales are made externally. Division B, however, sells to
Division A as well as to external customers. Both of the divisions are profit centers. The
following data is available for both divisions:
Division A
Current selling price for each bath
Costs per bath:
Fittings from Division B
Other materials from external suppliers
Labour
Annual fixed overheads
Annual production and sales of baths
Maximum annual market demand for baths
Division B
Current external selling price per set of fittings
Current price for sales to Division A
Costs per set of fittings:
Materials
Labour costs
Annual fixed overheads
Maximum annual production and sales of sets of fittings
(Including internal and external sales)
Maximum annual external demand for sets of fittings
Maximum annual internal demand for sets of fittings
Page 2 of 5
Tk. 450
Tk. 75
Tk. 200
Tk. 45
Tk. 7,440,000
80,000
80,000
Tk. 80
Tk. 75
Tk. 5
Tk. 15
Tk. 4,400,000
200,000
180,000
80,000

The transfer price charged by Division B to Division A was negotiated some years ago between
the previous divisional managers, who have now both been replaced by new managers. Head
Office only allows Division A to purchase its fittings from Division B, although the new manager
of Division A believes that he could obtain fittings of the same quality and appearance for Taka
65 per set, if he was given the autonomy to purchase from outside the company. Division B
makes no cost savings from supplying internally to Division A.
Required:
a) Under the current transfer pricing system, prepare a profit statement showing the profit for
each of the divisions and for Aromatic Co as a whole. Your sales and costs figures should
be split into external sales and inter-divisional transfers, where appropriate.
b) Head Office is considering changing the transfer pricing policy to ensure maximization of
company profits without de-motivating either of the divisional managers. Division A will be
given autonomy to buy from external suppliers and Division B to supply external customers
in priority to supplying to Division A.
Calculate the maximum profit that could be earned by Aromatic Co if transfer pricing is
optimized.
[ Marks: 5+(7+8) =20]
Question No. 4.
Farm Fresh Ltd. is a manufacturer of farm equipment that is sold by a network of distributors
across Canada. The Service Division manufactures spare parts for the various models of farm
equipment and sells these through the distribution centres. In January last year, a JIT system
was implemented in the Service Division to reduce inventory costs. This has now been in place
for a year, and the results are as follows:
(i)
(ii)
The average inventory of spare parts has now reduced from $1,100,000 to $300,000.
Projected annual insurance costs of $160,000 have declined by 60 per cent due to the
lower average cost of inventory.
(iii) A leased 8,000 square metre warehouse, previously used for inventory storage, was not
used all year. The division paid $22,400 annual rent for the warehouse and was able to
sub-let three-quarters of the building to several tenants at $5 per square metre. The
remainder of the space was not used.
(iii) Two warehouse employees whose services were no longer needed were transferred to
the purchasing department of the Service Division in January last year at the start of the
JIT implementation, to assist in the coordination of the JIT program. Their total annual cost
was $76,000, which continued to be charged to the indirect labour portion of the fixed
overhead.
(iv) Even though employees needed to work overtime to manufacture 7,500 spare parts, lost
sales due to stock-out totaled 3,800 spare parts. The overtime premium amounted to $12
per part manufactured. The use of overtime to manufacture spare parts was virtually nonexistent prior to the introduction of JIT.
Prior to the decision to implement JIT, the Service Division of Farm Fresh had completed its
budget. The budgeted income statement, without any adjustments for the JIT system, is as
follows. Farm Freshs incremental cost of borrowing is 15 per cent per annum.
Page 3 of 5

Farm Fresh Ltd.
Service Division
Budgeted Income statement
Sales revenue (280,000 spare parts)
Cost of goods Sold:
Variable
Fixed
$12,320,000
$5,320,000
2,240,000
7,560,000
$4,760,000
Gross margin
Selling and administrative expenses:
Variable
Fixed
$1,400,000
1,110,000
2,510,000
$2,250,000
150,000
$2,400,000
300,000
$2,100,000
Operating profit
Other revenue
Profit before interest and income taxes
Interest expense
Profit before income taxes
Required:
(a) Calculate the cash savings (or loss) for the Service Division of Farm Fresh Ltd. for the first
year of operation of JIT. (Hint: You will need to include the forgone contribution margin on
lost sales that has resulted from the introduction of JIT)
(b)
Discuss any factors that should be considered before a company implements JIT.
[Marks: (14+6) = 20]]
Question No. 5.
(a)
(b)
Set out the four perspectives of performance measurement that is incorporated in the
Balanced Score Card. Outline some limitations in relation to the Balanced Score Card.
Beta Chocolate Company manufactures two popular chocolate bars, the Star bar and the
Moon bar. Both chocolate bars go through the Mixing Department, where the various
ingredients are combined, and then enter the Coating Department, where the bars are
coated with chocolate. The Star bar is coated with both white and dark chocolate to
produce a swirled effect. A material shortage of an ingredient in the Moon bar limits
production to 250 batches per day. Production and sales data are presented in the
following table. Both chocolate bars are produced in batches of 200 bars.
Use of capacity in hours per batch of product
Mixing
Coating
Available daily
capacity in hours
525
500
Star
1.5
2.0
Page 4 of 5
Moon
1.5
1.0

Management believes that they can sell all of their daily production of both the Star and
Moon bars. Other data follow:
Selling price per batch

Cost per batch
Monthly fixed costs (allocated evenly between
both products)
Star
$ 300
100
375,000
Moon
$ 350
225
375,000
Required:
(i)
Formulate the objective function and all of the constraints in order to maximize contribution
margin. Be sure to define the variables.
(ii) How many batches of each type of chocolate bar (Star and Moon) should be produced to
maximize the total contribution margin?
(iii) Calculate the contribution margin at the optimal solution.
[Marks: {7+(3+7+3)} = 20]
= THE END =
Page 5 of 5

SUBJECT: 403. STRATEGIC MANAGEMENT AND ORGANIZATIONAL BEHAVIOUR.
Time: Three hours
Full Marks: 100
Answer any THREE questions from Group A and TWO questions from Group B.
All questions carry equal marks.

GROUP A: . STRATEGIC MANAGEMENT (TOTAL MARKS 60)
Q. No. 1.
(a) Companys strategy is the game plan that management use to stake out a market position.
Do you agree? Discuss.
(b) What are the most trustworthy signs of a good management? Explain.
(c) Discuss the five tasks of strategic management.
[Marks: (6+4+10) = 20]
Q. No. 2.
(a) Assume that your business firm is passing through a crisis situation in terms of sales
revenue and market share. Identify and explain some turnaround strategy to overcome
this crisis situation.
(b) Explain offensive strategies used to build market share.
(c) Explain the concept of end game or slow exit strategy.
[Marks: (10+5+5) = 20]
Q. No. 3.
(a) What do you mean by globalization strategy? Discuss globalization strategies being used
by MNCs.
(b) What factors are responsible for an effective strategic alliance?
(c) Discuss the risks involved in strategic alliance with the foreign partners.
[Marks: (5+8+7) = 20]
Q. No. 4.
(a) What are the challenges ahead for the new generation entrepreneurs of Bangladesh?
(b) How they should be equipped to successfully face these challenges?
(c) Discuss some significant entrepreneurial start-up strategies.
[Marks: (5+8+7) = 20]
Q. No. 5.
(a) What do you mean by e-commerce?
(b) How does internet technology impact company and industry value chains? Discuss.
(c) How does e-commerce revamp manufacturing economics and industry value chains?
[Marks: (4+8+8) = 20]
Page 1 of 2

SUBJECT: 403. STRATEGIC MANAGEMENT AND ORGANIZATIONAL BEHAVIOUR.
GROUP B: ORGANIZATIONAL BEHAVIOUR (TOTAL MARKS 40)
Q. No. 6.
(a) What is meant by organizational change?
(b) What are the different sources of resistance to organizational change?
(c) As a manager, how would you manage resistances to organizational change? Explain.
[Marks: (4+9+7) = 20]
Q. No. 7.
(a) What is personality?
(b) Explain the factors that determine personality.
(c) Identify the characteristics of Type A and Type B personality.
[Marks: (3+7+10) = 20]
Q. No. 8.
(a) What is positive organizational culture?
(b) Discuss the factors that create and sustain an organizational ethical culture.
(c) Describe the relationship between ethical culture & performance of an organization.
[Marks: (4+6+10) = 20]
Q. No. 9.
(a) What are the significances of behavioral model in management?
(b) Discuss the challenges of behavioral approaches to management.
(c) What is the role of CMAs in shaping the sound organizational behavior of their
organization?
[Marks: (6+8+6) = 20]
= THE END =
Page 2 of 2

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

Q. No. 1.
(a) For what purposes the Cost Auditor refers to financial records while conducting Cost Audit
of an entity?
(b) How does a cost audit report aid the management information system of a company?
(c) Cost Audit can appropriately be called as an Efficiency Audit Explain.
Marks: (4+5+5) = 14]
Q. No. 2.
(a) Distinguish the following:
(i)
Cost Audit and Performance Audit.
(ii) Operations Audit and Quality Audit.
(iii) Social Audit and Environmental Audit.
(b) Prepare a checklist of the areas you would touch upon while doing (i) cost audit and (ii)
internal audit in a knit textile factory.
(c) What evidences you would look for while making observations in the cost audit report of a
manufacturing company with respect to the following:
(i)
Uses of raw materials.
(ii) Repair and Maintenance cost.
[Marks: (6+4+4) = 14]
Q.No.3.
(a) Describe the benefits of Cost Audit?
(b) What are the qualifications and disqualifications of a Cost Auditor as per cost audit report
rules 1997.
[Marks: (6+6) = 12]
Q.No.4.
(a) As a regulatory body, Bangladesh Securities and Exchange Commission made it
mandatory to submit quarterly report to BSEC for all listed Companys enlisted with Dhaka
Stock Exchange and Chittagong Stock Exchange. Do you think that BSEC can appoint
Cost Auditor to verify those quarterly report. Describe the areas in which you will
concentrate as a Cost Auditor.
(b) By the passage of time RMG Sector has become the life blood for the economy of
Bangladesh. But the owners of RMG Sector is demanding different incentives from the
Govt. on account of implementation of minimum wages. Do you think that introduction of
Cost Audit in RMG Sector will help Government to take decision in this respect.
[Marks: (5+5) = 10]
Page 1 of 2

SUBJECT: 404. COST AND MANAGEMENT AUDITING.
PART B: MANAGEMENT AUDITING (MARKS 50)
Q.No.5:
(a) The aim of Management Audit is to identify existing and potential management
weaknesses within an organization and to recommend ways to rectify these weaknesses.
Define Management Audit from the perspective of this statement.
(b) A management audit process typically consists of three phases: Diagnostic overview; Indepth Review; and Implementation program. Describe these three processes of
management audit.
[Marks: (6+6) = 12]
Q.No.6:
(a) Distinguish among economy, efficiency and effectiveness.
(b) How management audit helps in reducing cost through value chain analysis?
(c) What are the qualities and functions of a management auditor? A management audit team
should be multidimensional. Discuss and elucidate.
[Marks: (3+4+7) = 14]
Q. No. 7.
(a) Describe the roles and responsibilities of the following, in the light of new corporate
governance guidelines of Bangladesh Securities and Exchange Commission, in
establishing good corporate governance in an organization:
(i)
Company Secretary;
(ii) Independent Director;
(iii) Chief Finance Officer /Head of Finance.
(b) Explain how the following affects establishment of corporate governance in an
organization:
(i)
Professional ethical standards;
(ii) Professional competence;
(iii) Independence.
[Marks: (6+6) = 12]
Q. No. 8.
(a) As the Management Auditor of a Non-Bank Financial Institution which is engaged in the
acquisition of securities and trading in such securities, list out the special points that may
be covered in your audit?
(b) As a Management Auditor of a large organization you have been asked to carry out the
review of Marketing Policies as a part of corporate development. Prepare a questionnaire
for carrying out such a review.
[Marks: (6+6) =12]
= THE END =
Page 2 of 2

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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA APRIL, 2014 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.

Full Marks: 100

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Answer must be brief, relevant, neat and clean.

Use fresh sheet for answering each question.

CMA APRIL, 2014 EXAMINATION

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Answer any TEN questions, FIVE questions from each part.

Show computations, where necessary.

Answer must be brief, relevant, neat and clean.

Start answering each question from a fresh sheet.

Full Marks: 100

PART A : BUSINESS MATHEMATICS

If 3 . 5 = +5 . 3 show that x log( ) = log .

[Marks: (5+5) = 10]

CMA APRIL, 2014 EXAMINATION

Ounces per pound of nutrient

(b) Given A = 2 1 2 and B = 2 4 3 . Show that ( AB)' = B ' A'.

[Marks: (5+5) = 10]

The total cost function of a firm is C ( x) =

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Answer must be brief, relevant, neat and clean.

Use fresh sheet for answering each question.

CMA APRIL, 2014 EXAMINATION

GROUP B: INTERNATIONAL BUSINESS

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

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.

Less: Loss on sale of equipment

Income before income tax

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

Jordy Company common stock, Tk.100 par, 200shares

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

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.

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

CMA APRIL, 2014 EXAMINATION

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

Answer THREE questions from each part.

Answer must be brief, relevant, neat and clean.

Start answering each question from a fresh sheet.

Full Marks: 100

PART A: MANAGEMENT (TOTAL MARKS 50)

* Two marks are reserved for neatness and relevance.