@ wefgi-o8 THE INSTITUTE. OF BANKERS, BANGLADESH (1BB) Banking Diploma Examination, June, 2020 DAIBB Management Accounting (MA) Vine 3 hours und 30 minutes Full marks 100 98 marks-S0 iene full marks bse an five questions Different parts of a question should IN B The figures in the right margin in tutur inthe examination hall is permissible] ‘reansuvd inst same place Use of eae Marks 1 gad "Management Accounting. hetpfl_in_ managerial decision making."—Discuss the 5 statement, Mention the tools of decision: making, (0), Ditlerentiate between Management Accounting and Financial Accounting, 1 6 “Management Accounting is useful in Banking operation." Comment. 8 (a) Define the cost and explain the following types of cost 8 (i) Sunk cost (ii) Opportunity cost (i) Appraisal cost (iv) Period cost. (®) The Bay Engineering Co. Ltd. manufactured and sold 1,000 scaring machines in 2019. ry Following are the particulars obtained from the records of the company Taka Materials consumed 80,000 Wages paid 1,20,000 Manufacturing expenses 50,000 Salaries 60,000 Rent, Rates and Insurance 10,000 Selling expenses 30,000 General expenses 20,000 Sales 4,00,000 ‘The company plans to manufacture 1,200 scaring machines in 2020. You are required to submit fa statement showing the price at which these machines would be sold so as to earn profit of 10% on selling price. The following additional information is provided to you (i) Price of materials will rise 20% in the previous year. (ii) Wages rate will go up by 5%. ils and Manufacturing expenses will rise in proportion to the combined cost of mater wages. (iv) Selling expenses per unit will remain unchanged. (s) Other expenses per unit will remain unaffected by the rise in output. (a) Discuss the assumptions of Break-even. Analysis. (b) Income statement of a company for the year 2018 is given below : iii) Y Total Per unit Percentage of sales Sales (20,000) Tk. 12,00,000 Tk. 60 100% Less variable expenses Tk.9,00,000 Tk. 45 Contribution margin Tk. 3,00,000 Tk. IS Less fixed expenses ‘Tk. 2,40,000 [Net operating income ‘Tk. 60,000 ‘Management. wants to improve the company’s profit performance and has asked for an analysis of a number of items. Required : 7) Compute the company's CM ratio and variable expense ratio (ii) Compute the company’s break-even points in both units and sales Taka. (iiiy Assume that sales increase by Tk. 4,00,000 in next year. If cost behaviour pattern remain unchanged by how much will the company’s net operating income increase? Use CM ratio. (iv) Refer to original data, assume that next year management wants to eam profit of “Tk. 60,000. How much units will have to be sold to earn target profi (v) Refer to original data, compute the company’s margin of safety in both taka and percentage form. [Please turn over @ otto —_Marks mation is taken from the yeconds a two conypanien am the yeni nasty ‘Sun Textile Co, Ld, Moon Textile Co. 140 4 the following Suny dbors 3 20.000 wan stock v2 so.0H0 S300 Man capes __to.7s.000 naan Total assets T340s.000 Ao retin 4,00,000 9.80.00 title pasa 10.000 1.09.000 Retained earings "iso 680.000 34.65.000 15.00.40 sales 52,00,000 1.00.00 Cost of goods sold 34.00.000 56.00.000 Other operating expenses £00,000 9,00.000 interest expenses 60.000 10,000 Income taxe8 3.70,000 490.000 Dividends 10.000 190.000 Answer each ofthe following questions by making a comparison of one or more relevant Flos a) Which company is using the shareholders money more profitably 1b) Which company is better able to meet its current debts? ey Which company collects its receivables faster assuming all sales to be credit sales? fd) We you were 10 purchase the debentures of one company. which company's debenture would you buy? «ey Torhich oft companies woul! you give shorter bark loan of Th, 250.000 ‘ 1) Tong det ake each company fo conver an vesiment instock of gods fm eask? > © Which company retains the larger portion of income in the business? > 1 wpe natyring cashflow statement a credit officer can asess repayment capacity and / behaviour ofthe borrower” Justi the statment (by Condensed financial data of Cheng Ine. is as follows CHENG INC Comparative Balance Sheets December 31 Assets 2017 Taka Cash 80,800 Accounts receivables 92,800 Inventory 1,17,500 Prepaid expenses 28,400 Investment 143.000 Equipment 2,70,000 242,500 Accumulated depreciation (50,000) __(52.000) ‘Total Taka 682,500 __5.14.750 Liabilities and shareholders’ equity Accounts payable 112,000 67.300 Accrued expenses payable 16,500 17.000 Bonds payable 1,10,000 1.50.00 ‘Common stock 20,000 1.75.00 Retained earings 224,000 _1.05.450 Fotal Taka 6,82,900 __5.14.7508 3 CHENG INC Income statement to the sent ened December 11, 2017 ark Sates nevenue 1k 492.780 Less Cost of ponds sed Last Operating expenses foseTenling depreciation 12.110 Depreciation expenses o,s00 Income to expenses Mt Interest expenses ww 2.3,8K0) Loss oi disposat at plant assets 7.400 54.900, Net meome Additional information; (1) New equipment costing 1k. 85,000 was purchased for cash during the year 2) Old equipment having. an original cost of Tk. 57,500 sold for cash Tk, 1,500. (3) Bonds matured and were pai off at face value for eash. (4) A cash dividend of Th, 40.350 was declared and paid during. the year. hhlows using the indirect method. Required : Prepare a statement of fa, What_do you mean by Capital Budgeting? State the factors which influence Capital “5 Budgeting (6) 10 projects have the Following. eash-flows 's Period Project-A — Project-B 0 10.000 10,000 1 5.000 2 5.000 3 5.000 4 5.000 28,000 Required : (i) Determine the IRR of each project. Hi) Assuming. a requited rate of retum of 10%, determine the NPV of each project {1it) Which projet should be selected? fa) “There are some danger of excessive working capital and inadequate working capital” 6 Explain the statement. () The Bourd of Dirvctors of Rawnok Engineering Ltd. request you to prepare a statement 1 showing the working capital requirements for a level of activity "at 20.000 units of production. ‘The following information is available for your calculation Per unit cost aka Raw materials 90 Direct labour , 40 Ovetheads ——— Total cost B05; 60 Selling price per unit 265 Additional information : (i) Raw materials are in stock on average one month Gi), Materials are in process on average two weeks (iii) Finished goods are in stock on average one month {ivy Credit allowed by suppliers are one month (vy Lime 11 lag, in payment of wages 15 weeks (vi) Lime to lag in payment from debtors 2 months (iy Average time lag in payment of overheads 1 month, 20% of the output is sold in eash, Casi in hand expected to be Th. $0,000 Itis assumed that 4 weeks is equivalent to a month. (a) Discuss briefly the importance of budgetary control system with special reference to 2 Banking Organization ot and standard 8 fb) Mow we can achieve control of business operations of a bank through bud costing techniques? [Please turn over4 9. (a Explain the economics and importance of leasing () Faster Housing 11d) needs. to acquire the use of a crane for real ¢ considering whether to buy or lease. The crane costs Th. 1000 uD Staight line depreciation toa cet salvage vale at the end vf 5 gears tn 5 years. Eastern Housing. St payable in 5 equal company is in the 40% tax bracket Required : Advise the company which of the options will be beneficial for the company 10. Write sort notes on any five of the followings rolling budget (Q)-Axing accounts receivables & Operating leverage ed budgeting Management report (x). 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RO 1 sre ore ere Sf game secre BAe woe wT RH FAG CORTE *RLAT WARLAS Say TS Sed ereTCAN eee ee =o TREOTTTS S array aoe BATE? ore cats sere ate aA ETRE BAT ATTA TRSOTT AIS S040 Bet edie Sh seaeaa we eo are eee? eoTE TM ye UF =20 MATS BFS AGATE Say Bory ferdteet sa « (orm oor Bay Pantene an. . -_ eeQ- % 2 a) Tena ser tem $a HF oe HH oye wera ser) ort cars HE MBI SE FETE gaia SoH 9 OOS Sat a 1g marfearste 4 y Tee fobme Bye wr ser ze Bye AS CMR BIAE SHE We eet Bay Were we ey fara Bargriree ‘stare B Bom ware <2 BATH BCA BT fay sees (®) ms (2) B8rary (9) ferme core wre yy fae aie fadtas wae 99,0 aneece Bt afar, ed gon Be yR abe UR Bde ) A 30 fee (8) Stcea wis afe Recars BT o-d2¢0 5 (6) eorRTes aH afe FB her 0.30 (8) aR ee ahs e% (weer dot faxette er): Brave fafemn oo on ore tre 2 (st) 8 frre aes oe Se ere arene fre sfee act HASTE Cofad war ATE (%) AURA ws THE 90% fete: obo fre fence ena fora Ba RCE OE, AIRES erg UTS BS} ese@ atgh_ov THE INSTITUTE OF BANKERS, BANGLADESH BBY Banking Diploma fxamimation, June, 2020 bane International Crade and Fore Time—3 hours Full marks—ivo Pass marks —S0 INB. The figures in ther from grou ane pdb marks fasiwer ony fou giuesta Lanad one preston trom group is) Group \ Marks 1 Write short notes on any five of the followings 4x5 20 fa) Packing edit (hy Open postion fo} Cross rate: fy Foreign correspondents. fey Clean bill of lading (P Umernaiional Monetary Pond IMP) ig Bren 2 Distinguish berween any four pars s 0 fa) Back to back EC and transterabie 1 (hy Fixed exchange rate and floating exchange rate fey Documentary LC aad documenary co. colic fd) Loan agaist imported merchandise (iM) ard! lou aganist trust receipt ver burro bury voila 3. Discuss the rights and responsibiliues of the following types of 7 +647 banks unde: a documentary (etter oF credit 20 fa) LC opening bank fb) Advising bank 5 fey Negotiating bank 5 Explain the underyang toa ! : % 20 foreign exiaige Wau. ous) Bang ue We f if the control is withdraw: 5. What is offshore bankir setiss the apsirnciioas given by the 12+8-20 Bangladesh Bank to the banks Sas: yeas to ensure discipline for lending offshore funds throug’ their offshore units. [Please turn overge. iv ; yy Discuss the types of preshipment — credits the banks in Bangladesh provide to finance exports from the country. Discuss the underlying risks associated with these credits and the ‘an be taken to mitigate them Describe the sources of black money in Bangladesh and how it is transferred. abroad. Please offer your suggestions to curb the flow of black money out of the country Currently the xchat te of Bangladesh taka is maintained at a predetermined level by the Bangladesh Bank through market intervention making it look like a floating exchange rate system. How this policy has impacted on the country’s exports and imports and balance of payments? What, in your opinion would be an ideal exchange rate sy.tem to ensure economic growth and creation of new jobs. Group B #ased on the following data please work out the exchange rate of Euro and the amount to be paid to the client for buying an export bill of F ure 10,000 fa) USS$I Th 817830 84.9950 (b) Eurol = US $ 1-1230--1-1250 fc) Usance period of the bill = 180 days (dj Transit period — 10 days fe) Profit margin Tk. 0:1250 per Euro Overhead cost Tk. 0-10 per Euro (gy) Interest rate S% pa [N.B. Assume a year as 360 days. Please show your rough calculations} Using the following data please calculate the exchange rate for retiring an import bill of Euro 25,000 and the amount to be debited to the customer's account : fa) Exchange rates in the interbank market Euro | US $ 1-1075—1-1574 USS$1 Th.842000 84-9500 measures that a) Profit margin 73 % (c) Your Nostro Account abroad debited 15 days earlier in respect of this bill. (dj Rate of interest 10% per annum IN.B. Assume a ycar as 360 days. Please show your rough calculations] Marks. 10+10, 10+10 =20 15+5 =20 20¢ PENN THE INSTITUTE OF BANKERS, BANGLADESH (BB) Banking Diploma Fxamination, June, 2020 DALBR International Trade and F Time. 3 hours Full marks — 100 50 eign Exchange (FE) Pass m: “figures in the right margin indicave pall avirks. Answer a from group Cand one question from group B.J four questions Group A Marks | Write short notes on any five of the followings 445-20 fai Packing credit (by Open position fc) Cross rate (dt) Foreign correspondents fe) Clean bill of lading () International Monetary Fund (IMF) (yg) Brexit 2 Distinguish between any four pairs fa) Back to back LC and transferable LC (b) Fixed exchange rate and floating exch fc) Documentary LC and docun, (d) Loan against imported met trust receipt fe) buro and Euro dollar andise (LIM) and loan against 3. Discuss the rights and responsibilities of the following types of banks under a documentary letter of credit : fa) LC opening bank (b) Advising bank . (c) Negotiating bank Explain the underlying boasctis for imposition or ee rol on 1278-20 foreign exchange Wansuctious in Banglaaesh. Wuae will happett if the control is withdrawn? 12+8=20 5. What is offshore banking? (Jiscuss the instructions given by ne Bangladesh Bank to the banks last year to ensure discipline for lending offshore funds through their offshore units: [Please turn over