8. Marks (a) What is break-even point? What are the assumptions of break-even point analysis? 1+3=4 (6) "Fixed cost may become variable and variable cost may remain fixed"-Do you 4 agree? Why? (c) The operating result of a company for the last two years were as under : 2x5=10 Year Sales Profit Tk. Tk. 2019 5,40,000 90,000 2020 6,00,000 1,20,000 Based on the above information, calculate : (i) The profit volume (P/V) ratio (ii) Fixed cost (iii) Break-even point (iv) Variable cost during the two periods () Margin of safety at a profit of Tk. 1,30,000 9. From the following trial balance and additional data of Java Limited, prepare : 10+3+8+7=28 () Multiple steps income statement (ii) Statement of changes in equity (iii) Classified balance sheet (iv) Closing entries and adjusting entries needed to show. Java Limited Trial Balance 31 December, 2020 Particulars Debit Particulars Credit Taka Taka Accounts receivable 2,90,000 Allowance for doubtful debts 5,000 Purchase 8,10,000 Accumulated depreciation (on furniture) 40,000 Inventory (01-01-2020) 60,000 Accumulated depreciation on building 3,00,000 Furniture 1,00,000 Sales 20,00,000 Building 14,00,000 Interest income 10,000 Goodwill 50,000 Bonds payable 2,55,000 Bad debts 60,000 Capital (6,000 shares of Tk. 100 each) 6,00,000 Salaries 2,20,000 Retained earnings (01-01-2020) 70,000 Interest expenses 10,000 60,000 Freight 70,000 Dividend paid 1,50,000 Total = 32,80,000 Total = 32,80,000 Additional data: (1) Closing inventory (on 31-12-2020) is Tk. 1,00,000. (ii) Depreciation on furniture @ 10%; on building @ 5%. (iii) Allowance for doubtful debts to be increased up to Tk. 8,000. (iv) Unpaid salaries and interest on bonds are Tk. 20,000 and Tk. 10,000 respectively. (W) Half () of the rent expenses to be considered as prepaid. 3x6=18 10. Write short notes on any six of the followings: (a) Matching Principles (b) Deferred Revenue Expense (c) Window Dressing (d) Reserve Vs. Provision (e) On-line Banking 0 Owner's Equity (g) Trend Analysis (h) Off-Balance Sheet Items [Please turn over Rent expenses CS Scanned with CamScanner