Assignment on Business Management

...

2/10,n/30

[7] Description [8] Quantity [9] Rate [10] Amount

Gasoline

Grease

5 litre

2 K.G

60

300

300

600

[11] Less: Trade discount @ 10%

900

90

[12] Net payable 810

[13] Sd/

Manager

ABC Company Ltd.

63 Dilkusha C/A

Dhaka-1000

CREDIT NOTE AS SOURCE DOCUMENT:

[1] CREDIT NOTE

[2] Preparer: ABC Company Ltd.

63 Dilkusha C/A

Dhaka-1000

[3] Credit note no. 055 [4] Date: 13 June 2010

[5] Receiver: Rahman Ship Breakers

5 Station Road. Comilla

[6] Description [7] Quantity [8] Rate [9] Amount

Gasoline returned non-maintenance of specification

[10] Less: Trade discount @ 10%

5 litre 60 300

30

[11] Net payable 270

[12] Sd/

Manager

ABC Company Ltd.

63 Dilkusha C/A

Dhaka-1000

SYNOPSIS

Accounting-Knowledge Level

Prepared by Mohammad Shahidul Islam MBA, ACA

Books of original entries

Theory [Tricky question]

Are those books where financial transactions are recorded first. Books of original entries are:

 Daily sales book

 Daily purchase book

 Cash book/Petty cash book

 Remittance advice

 Pay slip

Suggested Questions:

1. Define books of original entry. What are the main books of original entry?

2. State which books of original entry the following transactions would be entered into:

a) Payment to a supplier a cheque for Tk. 450

b) Send an invoice to customer for Tk. 650

c) Buy envelops for Tk. 12

d) Receive an invoice from a supplier for Tk. 300

e) Pay Tk 500 to customer through online transfer

f) Customer returns goods for tk. 250

g) Return goods to supplier for tk. 504

h) Customer pays you a cheque for tk. 500

Answer:

(a) Cash book (b) Sales book (c) Petty cash book (d) Purchase book (e) Cash book (f) Sales

book (g) Purchase book (h) Cash book

SYNOPSIS

Accounting-Knowledge Level

Prepared by Mohammad Shahidul Islam MBA, ACA

Cash book and imprest petty cash

[Theory + Math]

Cash book functions with cash and bank receipts and payments. It also incorporate discount received and

discount allowed.

Imprest petty cash is a systematic recording of petty cash at which the exact amount of petty cash is

reimbursed at intervals to maintain a fixed float. Features of petty cash imprest system are as below:

o In each reporting/re-imbursement date outstanding balance in petty cash book will be same

o Amount of re-imbursement will be exactly the accumulated amount of vouchers

o Cash in hand and amount of vouchers will be equal to the amount of fixed float

MATH-1:

The petty cash float in a business has an imprest amount of Tk. 200. At the end of March vouchers in the

petty cash box totaled Tk. 136.

(a) What is the amount to be reimbursed?

(b) Calculate cash in hand in the imprest system.

Answer-1:

(a) Tk. 136

(b) Tk. 200

MATH-2:

Transactions of a Company during the year 2010 was as follows. Prepare cash book:

(a) Cash sale: receipt of Tk. 94 (including VAT @ 15%);

(b) Payment from credit customer XYZ Tk. 380;

(c) Cheque received from as a short term loan from PQR Tk. 1800;

(d) Cash sale: receipt of Tk 141 (including VAT @ 15%);

(e) Cash received for dale of machine Tk 1200 (no VAT);

(f) Payment to supplier Tk 120;

(g) Payment of telephone bill Tk. 376 (including VAT Tk. 76);

(h) Tk. 100 withdrawn from bank for petty cash;

(i) Payment of Tk. 1,500 to Otobi for new furniture (no VAT);

Answer-2:

Please refer to page 62 and 63 of the Manual

Past Questions:

1. What is petty cash under imprest system?

2. Petty