1 . (a) What is accounting information? How can a banker be benefited from accounting information’?
(b) Discuss the role of accounting in creating the process for values and accountability.
(c) What do you mean by conceptual framework of accounting? State the qualitative characteristics of accounting information.

2. (a) Define GAAP. State the importance and necessity of GAAP.
(b) What are accounting assumptions? Explain them with example. 8
(ç) What is cost-benefit constraints? Explain. 4

3 (a) State the effects of transactions over accounting equation.
(b) "Assets and expenses recording process are same”—Explain.
(c) "Income and liability accounts always show credit balance.” Why?
(d) What is visible and invisible transactions? Give some examples.

4 (a) Differentiate between expired and unexpired cost.
(b) How would you classify errors in book keeping? What errors does double entry unable to prevent and why?
(c) There was an error in the trial balance of A & Co. Ltd. on 3 1 st
December, 2017 and the difference in books was carried to suspense account. The following errors were detected after the close study of the books :—
(I) Tk. 900 received from Mr. Ahmed was posted to the debit of his account.
(ii) Tk. 400 being purchase returns were posted to the debit of purchase account.
(iii) Discounts Tk. 650 received were posted to the debit of discount accounts.
(iv) Tk. 1,000 paid for repairs to motor car was debited to Motor Car Account as Tk. 600.
(v) Tk. 1000 paid to H & Co. was debited to the account of B & Co.
Give Journal entries to rectify the above errors, and state what amount was carried to the Suspense Account.

5 (a) What is meant by receivables? Discuss about the classification of receivables
(b) What is allowance for doubtful accounts? Distinguish between had debts expense and allowance for doubtful accounts.
(c) Information related to Kap Shin Company for 2017 is summarized below
Total credit sales                                     Tk.21,00,000
Accounts Receivable at December 31           8,37,000
Bad debts written off                                        33,000
Required
(i) What amount of Bad debt expenses will Kap Shin Company report if it uses the direct write off method of accounting for bad debts?
(ii) Assume that Kap Shin Company estimates its had debts expense to be 2% of credit sale. What amount of bad debts expenses will Kap Shin record if it has an allowance for doubt full accounts credit balance of Tk. 4,000?
(iii) Assume that Kap Shin Company estimates its bad debts expense based on 6% of accounts receivable. What amount of had debt expense will Kap Shin record if it has an allowance for doubtful account credit balance of Tk. 3,000?
(iv) Assume that the same facts as in (iii), except that there is a Tk. 3,000 debit balance in allowances for doubtful accounts. What amount of had debt expenses will Kap. Shin record?

6. (a) Which cost elements are included in inventory? What practical problems arise by including the cost of such elements?
(b) Differentiate between periodic and perpetual inventory system.
(c) Salsabil Autosales uses a FIFO perpetual inventory system. On April 1. the new car inventory records show total inventory Tk 72.000 consisting of the followings :—

Model	Units	Unit Cost
A	2	Tk. 21000
B	2	15000

During April the following purchases and sales ere made on account: