THIRD TERM

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

SUBJECT FINANCIAL ACCOUNTING CLASS: S. S. S 2 DURATION 3 HRS

OBJECTIVE A cheque for #2000 paid to a creditor had been

1. A reserve is an amount in error in the cash column.Bank commission of
a. set aside from profit for an unknown #800 had not
liability b. of loss from trading activities c. of Been entered in the cash book.
profit from trading activities d. set aside from The debit side of the cash book(bank column)
profit for specific purpose. had been under cast by #5000
2.An amount set aside to meet expenses whose 9.The adjustment balance as per cash book is
value is not certain is a a. #10,500cr b. #5,800 c. #5,800dr d.#10,800dr
a. reserve b. liability c. provision d. prepayment 10. The balance as per cash book is
3.When allotment of shares is made applicants a. #8000cr b. #6000cr c. #6000dr d. #8000dr
for shares of a company become 11. The addition of prime cost and factory
a. promoter b. creditors c. debtors d. overheads is a. total factory overheads b.
shareholder market value of goods produced c. cost of
4.Goodwill may be brought into the books when goods produced d. work in progress
a. no partner retires b. assets are more 12. The manufacturing account is prepared
than liabilities c. profit for the period is high d. to determine the cost of
a new partner is admitted a. trading b. production c. factory overhead d.
5.A statement of affairs shows a. receipt and raw materials used.
payment b. revenue and expenditure c. financial 13.An example of direct expense is
position d. profit or loss a. insurance b. carriage inwards c. purchases of
6.Working capital is the excess of raw materials d. royalty
a. current assets over fixed assets b. current 14.A suspense account is used to
liabilities over current assets c. fixed assets over a. correct errors b. record errors detected until
current liabilities d. current assets over current corrected c. transfer errors d. report errors
liabilities Use the following to answer questions 15 and
7.Share premium is classified in the balance 16
sheet as a. fixed capital b. capital reserve 1/7/10 30/6/11
c. revenue reserve d. short term capital Stock 1,460 4200
8.Which of the following accounts or statement Motor van 3,600 3,200
is used to determine credit purchases figure in Creditors 600 700
an incomplete records? a. bank account b. Drawing during the year amounted to #1,500
control account c. profit and loss account d. 15.Opening capital is a. #5,660 b. #5,060
statement of affairs c. #4,460 d. #2,960
Use the following to answer questions 9 and 10 16.Closing capital is a. #8,100 b. #7,400 c.
# #6,700 d. #2,040
Balance as per cash book 8000cr 17.Assets acquired is recorded by debiting
Unpresented cheques 14,400 a. asset account.crediting cash account b. cash
Uncredited cheques 2,600 account,crediting asset account c. purchase of
business account,crediting sales of business
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account d. asset account, crediting purchase of a. trading account b. profit and loss
business account account c. manufacturing account d.
18. The accounting concept that states that a appropriation account
firms financial affairs must be separated from 28.Accounts payable is classified as a
that of the owner’s private transaction is a. prepayment b. provision c. current liability d.
a. business entity b. going concern c. long term liability
consistency d. duality 29.The accounting concept that provides that
Use the following information to answer accounting statements should not be influenced
questions 19 and 20 by personal opinion is
Ade Bola a. materiality b. periodicity c. objectivity d.
# # conservatism
Capital 40,000 30,000 30.Carriage outward expenses of a business are
Drawing 10,000 15,000 treated in the
Interest on drawing is 5%, profit is a. balance sheet b. income surplus account c.
shared equally profit and loss account d. trading account
Net profit for the period is #4,250 31. Sales of #3,000 to Atilola was debited to
19. Ade’s share of profit is Akinola account. This is an error of
a. #5,500 b. #4,250 c. #2,750 d. #1,250 a. compensation b. commission c. principle d.
20. Bola’s share of profit is transposition
a. #4,500 b. #4,250 c. #3,000 d. #2,750 32. A trial balance has credit total of #43,000
21. Share can be issued in the following way and debit total of #34,000.
except. a. at par b. at premium c. at A suspense account should be opened and
discount d. at book debited with a. #43,000 b. #34,000 c. #9,000
22. Which of the following date line is d. #4,500
correct for a profit and loss account? Use the following information to answer
a. for the year ended 31st dec. 2009 b. as at 31st questions 33 and 34
dec, 2009 c. for the period 31st dec 2009 d. as at cost of asset #100,000 depreciation 10% on
the year 2009 reducing balance basis
23.Factory wages form part of 33. Depreciation for the second year of use is
a. administration cost b. selling and a. #19,000 b. #10,000 c. #9,000 d. #1,000
distribution cost c. overhead cost d. prime cost 34. The net book value of the asset at the end
Use the following information to answer of the third year of use is
question 24 and 25 a. #80,000 b. #72,900 c. #70,000 d. #65,610
Sales ledger balances 01/06/12 9,000 35. The sum of money due from members of
30/06/12 30,000 a club which is yet to be paid at the end of the
Total for the month cash sales 10,000 accounting period is a. subscription in
Returns inwards 3,000 advance b. subscription in arrears c. excess
Cheque dishonoured 4,000 expenses d. excess income
24. The credit sales for the month is 36. The excess of assets over liabilities of a non
a. 36,000 b. 31,000 c. 20,000 d. 10,000 profit making organization is a. surplus b.
25. The total sales for the month is deficit c. working capital d. accumulated fund
a. 36,000 b. 31,000 c. 30,000 d. 20,000 37. An event that will not required a change in
26. Subscription can be divided into the profit sharing ratio of partners in a firm is
a. two b. three c. four d. five when a. a partner dies b. a partner retires c. a
27. In a manufacturing enterprise new partner is admitted d. partners assets
depreciation of plant is treated in the value appreciates
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balance is a. cash balance b. debit balance
Use the following information to c. credit balance d. bank balance
answer 38 and 39 48. Chuks bought goods worth #1,000 on
Receipt and payment 31st December 2016 credit and was given on discount of 21/2%.
# # the discount receivable is a. #75 b. #25 c.
Cash in hand 460 new equipment. 200 #20 d. #15
Subscription 520 cleaners wages. 540 49. A current asset item in the balance sheet
Donations. 500 stationery. 140 of a sole trader is
Sales of tickets 490. repairs. 110 a. drawings b. creditors c. debtors d. accruals
Entrance fee. 670 50. An obligation which a business owes
38. The surplus for the year is another business or a person is
a. #1,970 b. #1,890 c. #1,690 d. #1,390 a. an asset b. an expenses c. an income d. a
39. The total income received for the year is liability
a. #2,640 b. #2,180 c. #1,890 d. #1,690 PART 1 ANSWER ANY TWO QUESTION
40. The parties who are paid last in the event FROM THIS PART
of winding up are 1a. Differentiate between shares and
a. preference shareholders b. debenture debentures
holders c. ordinary shareholders b.State the three way by which shares can be
b. trade creditors issued
41. The process of distributing shares to c. What is purchase consideration?
successful applicants is 2a.What are the component of financial system?
a. allocation b. appointment c. allotment d. b. Differentiate between money market and
application capital market
42. The double entry system of bookkeeping c. Define goodwill
was introduced by 3a. State three features of income and
a. Adam Smith b. A. R Jamming c. Frank wood expenditure account
d. Lucia pacioli b. State three reasons for preparing
43. Items in a debtors control account manufacturing account
include c. Differentiate quoted and unquoted
a. credit purchases b. cash paid c. discount company
received d. discount allowed 4a. State the reasons for dissolution of
44. Income and expenditure account is partnership
prepared to determine the a. gross profit or b. Differentiate between receipt and
loss b. net profit or loss c. surplus or deficit d. payment and income and expenditure
accumulated fund or working capital c. What is suspense account
45. The document which sets out guidelines PART 2 ANSWER QUESTION FOUR ANY
for the internal management of a joint stock OTHER TWO QUESTION FROM THIS
company is a. memorandum of association b. PART
article of association c. memorandum of 4. Union bank plc issued 50,000 shares of
understanding d. certificate of incorporation #1 each at par payable as follows
46. The objective of a cooperative society is to On application 30k
protect the a. position of the members b. On allotment 20k
st
interest of the members c. career of the On 1 call 25k
members d. dividend of the members On final call 25k
47. When the debit side total of a ledger is All the shares were subscribed and allotted and
greater than the credit side total the all cash received including the call money.
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You are required to prepare the following 7. Bayo and Sayo are in partnership they
accounts agreed to dissolved the partnership on 31st
i. cash book December 1993 and to sell the business
ii. application and allotment The balance sheet on that date was as follows
iii. 1st call # #
iv. final call Capital account
v. share capital account Bayo. 74,882. Goodwill. 10,000
5.Bakare had taken over Obasanjo business on Sayo. 5102. Plant & equipment 14,216
1st January 2000 on the basis of the last balance Loan Bayo. 20,000. Stock. 49,164
sheet Creditors. 27,192. Debtors. 36,152
Which is as follows: Cash. 17,644
# # 127,176. 127,176
Capital 95,400 Premises 63,000 Profit and losses are shared between the two
Creditor 20400 stock 28,800 partners in ratio 3:5 respectively
Debtors 18,900 The asset realized as follows
Bank 5,100 Debtors. 32,042
115,800 115,800 Stock 41,155
Additional information: Plant and equipment 17,165
a. The purchase consideration was agreed Goodwill 3,500
at #138,000 Dissolution expenses 473
b. The business takes over the asset at the Prepare the necessary account
book value with the exception of premises 8. The following information were
which is taken over at #84,000 and stock at extracted from the ledger of Eniola
#27,600. He did not take over the bank balance. Limited for the month of August 2002
show the balance sheet of Bakare. #
6. Mr David Enterprises keeps his books on 1/8. Debit balance sales ledger. 10,005
a single entry basis. The following information Debit balance purchases ledger. 195
relates to his business for the year 1998 and 31/8 sales of goods. 25,000
1999. return inwards 2000
1st feb 1998 31st jan. 1999 bad debt written off. 300
# # discounts received. 550
Motor car 3,000 3,000 discounts allowed. 275
Stock 2,000 2,500 purchases. 16,750
Debtors 3,100 4,500 cash received 12,475
Cash 250 300 cash paid. 8,100
Creditors 2,950 2,900 return outwards. 500
Bills payable - 400 customer cheques dishonored. 1,000
Loan from Olabisi- 600 interest charged to customers on account 50
Investment - 2000 Required : prepare sales ledger and purchases
In addition, David has drawing of #500 on ledger control account
account and also introduced #300 as additional 9. The super Nig Ltd takes over the
capital. following assets and liabilities standing in the
You are required to ascertain the opening books of a private business on 1st January 1991
capital,the net profit and to prepare a ballgame Balance sheet
sheet as at 31st January 1999 Capital. 16,100. Freehold premises 6,000
Plant and machinery 2000
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Stock. 7,600
Creditors 1200. Furniture 200
Debtors. 1000
Cash. 500
17,300. 17,300
The purchase consideration is #20,000 and it is
to be discharged by issue to the vendor of
10,000 ordinary shares #1 each fully paid, 1000
preference of #5 each fully paid and the balance
in cash.
The company valued the freehold premises at
#5,500,stock at #7,000 create a provision for
bad debts equal to 5% of debtors the cash
balance of #500 is not taken over.
show the journal entries in the book of super nig
Ltd on 1st January 1991