Accounting 2

HIGHER SECONDARY CERTIFICATE 2028 Business Studies Group • English Version • Dhaka Education Board Accounting Second Paper Subject Code 254 Complete Chapter Notes Full syllabus • Labelled diagrams • Board style questions Prepared by Md Ahbab Hamid Khan ahbab.dev October 10, 2026

HSC 2028 • Accounting Second Paper • Code 254 1 Contents How this paper is examined 6 1 Accounting for Non-trading Concern 9 1.1 What this chapter is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.2 Key terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.3 What a non-trading concern is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.4 The three final statements and their order . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.5 Receipts and Payments Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.6 Income and Expenditure Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.7 Receipts and Payments against Income and Expenditure . . . . . . . . . . . . . . . . . 12 1.8 Subscription . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.9 Capital items and revenue items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.10 Consumable stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.11 Outstanding, prepaid, accrued and advance . . . . . . . . . . . . . . . . . .

HSC 2028 • Accounting Second Paper • Code 254 2 3 Cash Flow Statement 40 3.1 What this chapter is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.2 Key terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.3 What a cash flow statement is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.4 Features, objectives and importance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.5 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.6 Cash flow statement against income statement . . . . . . . . . . . . . . . . . . . . . . 42 3.7 The three activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 3.8 Operating activities: the direct method . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.9 Operating activities: the indirect method . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.10 Non-cash items and non-cash transactions . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.11 Finding a missing figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.12 Limits of the stat