SS 2 Book keeping Third Term Examination

THIRD TERM

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

SUBJECT   BOOK KEEPING             CLASS: S. S. S 2  DURATION 3 HRS           

    OBJECTIVE

1. The concept which states that great care should be exercised in recognition of profit while all anticipated losses are adequately provided for is (a) Accrual b. Prudence c. Going concern d.  Business entity
2. Net profit is the difference between gross profit and(a) Total expenses b. Accrued expenses c. Cost of goods sold d. Cost of goods available for sale
3. Who is responsible for the recording of financial transactions of a business?(a) Auditor b. Manager c. Book-keeper d. Director
4. The accounting entries for provision made for doubtful debts is: debit        a. Profit and loss Account; Credit debtors account b. Debtors Account; Credit profit and Loss account c. Profit and loss account; credit provision for doubtful debts account  d. Provision for doubtful debts account; credit profit and loss account

Use the following information to answer questions 5 and 6.

Acquisition cost of machinery    #500,000

Installation cost            #50,000

Estimated useful life        5 years

Estimated residual            #10,000T

he depreciation value of the machinery is(a) #560,000 b. #550,000 c. #540,000 d. #500,000

Using the straight line method of depreciation, the annual depreciation charge is(a) #112,000 b. #110,000 c. #108,000 d. #100,000

1. The document a supplier sends to a customer to correct undercast on an invoice is(a) receipt b. credit note c. debit note d. waybill
2. Which of the following assets would not depreciate due to passage of time?(a) machine b. building c. land d. furniture

Use the following information to answer questions 9-11.

                      #

Opening stock        2,500

Closing stock        1,200

Sales                30,000

Purchases            14,000

Carriage inwards        1,500

Discounts allowed        600

Rent                300

1. The cost of sales is    a. #30,000 (b) #18,000 c. #16,800 d. #13,200
2. The gross profit is  a. #18,000 b. #16,800 c. #13,200 d. #12,300
3. The net profit is        a. #16,800 b. #15,500 c. #13,200 d. #12,300
4. Impersonal ledger contains    a. Income and expenditure accounts b. Debtors and creditors accounts c. Real and nominal accounts c. Capital and drawings
5. A dishonored cheque will be returned by the bank to the     a. Payee b. Drawee c. Cashier d. Depositor
6. The excess of expenditure over income of a not-profit-making organization in an accounting period is        a. Deficit b. Surplus c. Net profit d. Net profit

Use the following to answer questions 15 and 16

Tade bought goods on credit from Dopez

100 rulers at #50 each;

120 big notes at #100 each

5% trade discounts on the transactions

1. The total amount of goods bought on credit without the discount is   (a) #17,000 b. #16,150 c. #12,000 d. #5,000
2. The amount payable by Tade if discounts is considered is    a. #17,000 b. #16,150 c. #12,500 d. #5,000
3. The account which contains the summary of entries of individual accounts in the ledger is     a. Trading account b. Control account c. Profit and loss account d. Income and expenditure account
4. AN advantage of the consistency concept is that    a. Results of different year can be compared b. all known losses are adequately provided for c. the business will continue to exist in the foreseeable future d. all transactions affecting the business are recorded
5. Assets and expenditure are entered in the trial balance as                    a. Contra entries b. Debit entries c. Credit entries d. Double entries
6. Carriage inwards is classified as   A distribution expenses b. A trading expenses c. financial expenses d. An administrative expenses

Use the following to answer questions 21-23                    #        Capital        10,000

Motor van             68,000

Furniture             50,000

Creditors            25,000

Debtors            36,000

Bank                18,000

Accrued rent        4,000

1. The total asset is     a. #172,000(b) #54,000 c. #29,000 d. #25,000
2. The working capital is      a. 172,000 (b) #54,000 c. #29,000 d. #25,000
3. The current liability is      a. 172,000 (b) #54,000 c. #29,000 d. #25,000
4. Adamu failed to record a return inwards of #20,000 in the books. This is an error of     a. Omission b. Commission c. Principle d. Transportation
5. The letter “c” written under the folio column in the cash book indicates   (c) Credit entry b. Contra entry c. Credit sales d. Cash sales
6. The document sent by the seller to the buyer to correct an overcharge is    (a)Debit note b. Credit note c. Proforma invoice d. Consular invoice
7. The amount to be recovered when an asset is disposed at the  end of its useful life is  a. Salvage value b. Present value c. Market value d. Replacement value

Use the diagram below to answer 28-29

37. The diagram represents     a. Single column cash book b. Two column cash book c. Three column cash book d. Petty cash book
38. Letter “X” represents     a. Details column b. Receipts column c. Payments column d. Ledger column
39. The fixed amount of money set aside for petty expenses is    a. Float b. Capital c. provision d. Reserve
40. Carriage inwards is classified as a. a distribution expenses b. a trading expenses c. a financial expenses d. an  administrative expenses
41. When a current account holder is allowed to  withdraw in excess of his bank balance,it is called  a. borrowing b. credit drawing (c) debenture d. overdraft
42. Trial balance is used to test ———-accuracy of balances posted into ledger (a) accounting b. arithmetical c. auditing d. mathematical
43. Books of original entry can also be referred to as ——books  a. cash b. debit c. petty cash d. subsidiary
44. An allowance given to customers for prompt payment of their account is known  as   a. bonus b. cash discount c. dividend d. surplus
45. The physical counting of stock of goods on hand at a given period is known as     a. counting b. inventory c. requisition d. stock taking 
46. When a current account holder is allowed to withdraw in excess of his bank balance, it is called  a. borrowing b. credit drawing (c) debenture d. overdraft
47. The indebtedness of a business to outsiders is known as     a. assets b. capital c. deficit d. liabilities 
48. Assets that are non physical in nature easily convertible to cash are called (A) current asset b. fictitious asset c. intangible asset d. liquid asset

41.The following are current assets exceptb (a) bills payable b. cash in hand c. debtors d. stock

42.Which of the following is not credited to debtors control account? (a) bad debts b. bill receivable c. carriage outward d. credit notes issued

43. Which of the following is not an accounting concept?    a. accrual b. depreciation c. dual d. going concern

Use the information below to answer question 44 and 45

Capital         1000

Bank.              600

Purchases.   1,250

Sales             3,350

Stock.               650

Creditors          500

Fixed assets  1850

Drawings.          ?

Drawings are always estimated at 50% of capital.

44.       What is the total of the trial balance? 
45. #3900 b. #3950 c.# 4200 d. #4850
46.       Calculate the amount of the drawing 
47. #450 b.# 500 c.# 625 d. #750
48.       The double entry system of book keeping was introduced by
49. Adam Smith b. A. R. Jennings c. Frank wood d. Lucca pacioli
50.   An item on the debit side of a pretty cash book is   a. stationery b. transport c. float d. rent
51.       Eze bought goods for #10,000 on credit and #4,500 for cash.he returned goods 

 worth #1,500. The closing balance in his purchases account is            a. #16,000 b. #14,500 c. #13,000 d. #8,500

49. The statement of accounts that performs the dua roles of a journal and a ledger is
50. cash book b. sales journal c. purchases journal d. trial balance 
51. Records of a customers financial transactions with the bank is contained in the 

  bank      a. overdraft b. list c. account d. statement 

 THEORY

PART 1        ANSWER TWO QUESTION FROM THIS PART

1a.    Differentiate between fifo and lifo

1. State the classes of ledger
2. Define depreciation

2a.    State purpose of stock valuation

1. differentiate between bad debt and doubtful debt
2. Define trading account

3a.    State the purpose of receipt and payment

1. What is accumulated fund?
2. state five items on the debit side of the profit and loss account

4a.     State the classes of ledger

1.     Explain three accounting concept
2.     state three errors affecting the agreement of a trial balance 

PART 2        ANSWER QUESTION FOUR AND ANY TWO QUESTION FROM THIS PART

4. Below is the balances extracted from the books of Favour on 31st July 1999:

    Sales                307,442

    Sales ledger control          28,860

    Stock                    21,488

    Trade subscription                  104

    Telephone and postage            884

    Travelling commission      14,968

    Salaries              10,432

    Rent paid                  2,280

    Purchases            253,066

    Purchases ledger control      12,358

    Printing expenses            1,578

    Petty cash in hand                  32

Equipment and furniture        3,240

Electricity                    812

Insurance                    504

Miscellaneous expenses        3,046

Drawings- Grace              7,054

Discount allowed                  770

Discounts received              1,452

Cash at bank                  8,464

Capital        bal 1/8/98    36,814

Bad debts written off            484

Additional information:

1. Amount owing by Grace on 31st July 1999 were rent #760,travelers commission and expenses #1,230,electricity #112
2. Stock at 31st July, 1999 was #19,112
3. Provision:

        Accountancy charges #462

        Doubtful debts #580

1. Office furniture and equipment is to be depreciated by 10 percent.

You are required to prepare:

1. Trading profit and loss account for the year ended 31st July 1999
2. A balance sheet as at that date
3. Daniel social club was formed on April 1, 2013 with 50 members each paying an annual subscription of D12. The following information was extracted from the books of the club on 31st march,2014.

(i)    Amount realized during inauguration – D3000,expenses on inauguration D1000

(ii)    All members paid their subscription with the exception of five members who were still owing by 31st march.2014

(iii)    Gate fees from organized football match were D500 and expenses incurred D300

(iv)    Proceeds from end of the year dance amounted to D4000 and expenses on dance D2,000

(v)    Honorarium to officers amounted to D520 and sundry expenses D1,120

(vi)    Amount paid for damages to furniture during dance D300.

You are required to prepare for the year ended 31st march,2014

1. receipt and payment account
2. income and expenditure account
3. The following information is available about a component

Opening stock    1st Jan    500 @  #2 each

      Deliveries    6th Jan    160@ #2.20

            20th Jan   180 @#2.25

Issues

2nd Jan            300

16th Jan              210

Use the following method to calculate closing stock

1. LIFO
2. FIFO
3. Write the three column cash book from the following transactions 

July 1 balance brought forward cash #3,000 bank #9,000

 2 the following were paid by cheque less 10% discount Sola #450,

   Sobowale #3,000

   3 cash sales #17,000

   4 rate paid by cash #1,800

   5 the following paid us by cheque in each case deducting 15% discount 

    Ayodele #16,000 Sure #4,200

    6 withdraw cash from bank for private use #1,000

    10 withdrew cash from bank for business use #6,000

13 cash purchases #500

14 bought goods paying by cheque #90

25 bought building by cash #300

30 paid insurance by cash #20

31 kayode lent us #1000 cash 

8.       A plant costing 10,000 and has a residual value of #1250 with an estimated life of 4 years. Calculate the depreciation using straight line method and  prepare the necessary ledger 
9.         The following errors were discovered from the books of David
10.       A sale of fittings #100 had been entered in the sales account 
11.       Purchase of motor car #400 had been entered in error in the motor expenses 
12.       Purchase of goods from favour #76 was entered in the accounts as #67
13.       Discount allowed of #50 was entered in error on the debit of discount    received 
14.     A receipt of cash from another #150 had been entered on the credit of cash  account and debit side ayo account. 

              You are required to show the journal entries necessary to correct the error