BOOK KEEPING FIRST TERM EXAMINATION SS 1

FIRST TERM

 

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

SUBJECT: BOOK KEEPING                 

TIME: 2HRS 30MINS  

CLASS: SS  1

OBJECTIVE

1. The preservation of records of all commercial transactions is referred to as book keeping
2. recording b. objective c. reporting d. posting
3. Credit transaction can create one of the following a. debtor b. purchase c. sales
4. depreciation
5. The recording of all financial transaction that place in an enterprise, commercial or other wise is referred to as a. accounting b. book keeping c. classification d. posting
6. One of the following can be referred to has reduction in value of asset
7. building b. depreciation c. income d. asset
8. Any good or property owned which have a money value are called
9. liabilities b. debts c. repayment d. assets
10. Which of the following is not a method of depreciation?
11. diminishing balance b. residual value c. sinking fund d. straight
12. The sales day book will show goods sold for/on a. cash and credit b. cash c. credit
13. hire purchase
14. Which of these documents is sent by the buyer of goods or services to the seller stating the quantity, quality, description and price of the goods a. an invoice b.debit note c. an order d. a receipt
15. The concept that assumes that the business will continue to operate for an indefinitely long period of time is termed a. going concern b. cost c. realization d. accrual
16. Current assets less current liabilities is a. assets b. capital owned c. capital d. working capital
17. Provisions made in respect of the loss in the value of fixed asset such as equipment is referred to as a. amortization b. depletion c. depreciation d. appreciation
18. Goods returned by the buyer is recorded in the seller’s books as
19. carriage inwards b. carriage outwards c. returns outward d. return inward
20. A subsidiary book is a book of a. final account b. final entry c. ledger entry d. original entry
21. A book keeping debited motor vehicle account instead of motor expenses account this is an error of a. commission b. original entry c. complete reversal of entry d. principle
22. Which of the following is an example of a subsidiary books?
23. cash book b. bank statement c. control account d. trial balance
24. Debts or obligations due to creditors are called a. assets b. debtor c. liabilities d. working capital
25. A vehicle costs #20,000 with  a life span of 5 years and the residual value for the period was #500 using straight line method calculate the annual depreciation

a.#4900 b.# 3900 c.#3800 d.#5900

18. When a buyer returns damaged goods to the seller, he receives a
19. consignment note b. credit note c. debit note d. goods returns
20. Umaru enterprises ltd bought 40 pairs of shoes at #45 each from lebbi shoe factory on credit

The transaction will first be recorded by umaru in the  a. cash book b. ledger c. principal journal d. purchases day book

Use the information below to answer question 20 -22

An asset that cost #40,000 is to be depreciated at the rate of 10% with the life span of 4yrs

20. Using diminishing balance method, what will be the depreciation charge for year 2?
21. #1,536 b. # 1920 c. # 2,400 d. #3600
22. Using reducing balance method, what is the net book value of the asset at the end of

year 2?           a. #15,000 b. #20,000 c. #26,244 d. #32,000

22. At the end of the third years the accumulated depreciation using straight line method is
23. #10,000 b. #12,000 c. #15,000 d. #16,000
24. The generally accepted approaches to the application of accounting concept is

known as      a. accounting concept b. accounting conventions c. accounting policies d. accounting bases

24. Assets – liabilities defines a. capital b. debtor  c. working d. working capital
25. The purchase of a typewriter for office use for #30,000 should be debited to
26. asset account b. bank account c. cash account d. purchases account
27. The document from which entries are transferred to the purchases day book is

the      a. waybill b. credit note c. purchase invoice d. sales invoice

27. The book keeping term used when making entries in the ledger accounts termed
28. posting b. recording c. reporting d. classifying
29. When a debt cannot be recovered it is called
30. doubtful debt b. bad debt c. provision d. reserves
31. The accounting concept that says every transaction must be in money terms

is called         a. going concern b. money measurement c. business entity d. cost

30. Which of the following assets would not depreciate due to passage of time?
31. machine b. building c. land d. furniture
32. The double entry system of book keeping was introduced by
33. Adam Smith b. A. R Jennings c. Frank wood d. Lucia pacioli
34. An item on the debit of a petty cash book is a. stationery b. transport c. float d. rent

 

33. Items classified as an assets in the balance sheet include
34. overdraft b. drawings c. trade mark d. creditors
35. Purchases day book returns outwards book are records kept by the
36. seller b. buyer c. agent d. suppliers
37. Individual account of the suppliers are maintained in the
38. personal ledger b. sales ledger c. purchases ledger d. general ledger
39. The statement of account that performs the dual roles of a journal and a

ledger is                a. cash book b. sales journal c. purchases journal d. trial balance

37. Exercise bought goods for #10,000 on credit and #4,500 for cash. He returned

goods worth #1500.the closing balance in his purchases account is

1. #16,000 b. #14,500 c. #13,000 d. #8,500
2. Records of a customer’s financial transactions with the bank is contained in

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

39. An example of source document is
40. general journal b. sales journal c. credit note d. cash book
41. Items in the debtors control account include
42. credit purchase b. cash paid c. discount received d. discount allowed

SECTION B

ANSWER TWO QUESTION FROM THIS SECTION

1a.      Differentiate between accounting concept and convention

1. Explain any three accounting concept and two convention

2a.      Define depreciation

1. state six method of depreciation
2. define bad debts

3a.     State the causes of depreciation

1. Explain any five types of errors that does not affect the agreement of trial

balance

4a.      define ledger

1. state three errors that affect trial balance
2. state two types of ledger

SECTION C (Answer any three question fro these section)

5. An asset cost #80,000 and is to be depreciated at the rate of 20% with the life span of 5yrs. Using the reducing balance method. i. calculate the depreciation for 5 years
6. Show the ledger entries a. asset account. b. depreciation account
7. profit and loss account d. balance sheet extract
8. A business started trading on 1^st January 2002. During the two years ended 31^st December 2002 and 2003. The following debt were written off to bad debts account on the dates stated

#

15^th July  2002                                           blessing                                 500

30^th September 2002                                  chinedu                               600

15^th November 2002                                  sesi.                                        650

23^rd april 2003                                          salem                                   450

31^st august 2003                                      blessing                               700

30^th October 2003                                 sophia                                             560

On 31^st December 2002 the total debtors remaining were #65,000. It was decided to make provision for doubtful debts of #4500

On 31^st December 2001, the total debtors remaining were #55,000. It was decided to make provision for doubtful debts of #5,550. Prepare the necessary account.

7. A machine cost #40,000 and has a life of 4 years after which it can be sold for #7800.

Calculate the depreciation using sum of the year digit

8. Write up a two column cash book from the book of Blessing enterprise

Jan 1 started business with #150,000 cash, #90,000 bank

Jan  3 cash sales #40,00

Jan 6. purchases by cheque #7,000

Jan 9  salaries by cash #9,000

Jan 10 sales #6,000

Jan 12 paid the following by cash: Lola #6,000,tola #4,000,remi #3,000

Jan 15 receive from the following by cheque : chichi #6,000 chioma #4,500

Jan 18  sales #13,000

Jan 23.  drawings  #7,000

Jan 26.  paid bola by cheque #8,000

Jan 28.  loan receive from ola #6,000

Jan 30.  sales paid directly into the bank #8,500

9. Write up a single column cash book from the book of mama

Sept 1 capital #70,000

Sept 3  sales.  #6,000

Sept 5. Purchases #8,000

Sept 7  salaries #5,500

Sept 10 sales #7,000

Sept 13  transport expenses #4,000

Sept  17 loan interest #3,000

Sept  20 sales #9,500

Sept 25  purchases #8,500

Sept 27  drawings #2,000

Sept 30  paid wages #6,500

 

 

 

 

                         

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

SUBJECT: BOOK KEEPING                  TIME: 1HR 30MINS   CLASS: SS  3

OBJECTIVE

1. Which of the following is not prepared by a partnership? a. trading account b. profit and loss account c. income and expenditure account d. profit and loss appropriation account
2. Which of the following is a component of prime cost?  a. depreciation b. royalty c. factory rent d. factory electricity
3. The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is a. going concern b. entity c. consistency d. realization
4. The term used to denote the capital of a not for profit making organization is
5. annuity fund b. nominal capital c. circulating capital d. accumulated fund
6. The portion of an authorized capital that has been allotted to subscribers
7. called up capital b. paid up capital c. issued d. nominal capital
8. A partner who only make capital contribution but does not take part in the management of the partnership business is a/an a. ordinary partner b. limited partner c. dormat partner d. nominal
9. Which of the following is not found in the personal ledger?  a. debtors account b. creditors account  c. capital account d. nominal account
10. Purchases ledger control account can also be referred to as a. creditors control account b. sales ledger control account c. debtors control account d. purchases ledger.
11. An increase in the provision for doubtful debts results in a/an a. increase in gross profit b. decrease in the gross profit c. decrease in net profit d. increase in net profit

Use the following information to answer questions 10 -11

The health department of fune local government incurred the following expenditure in n2012

Construction of hospital wards                                              500,000

Purchase of hospital beds                                                 60,000

Salaries and wages                                                                     90,000

Purchase of drugs                                                                      75,000

Purchase of x-ray machine                                                     250,000

10. What is the capital expenditure for the year?
11. #750,000 b. #810,000 c. #710,000 d. #500,000
12. The amount of recurrent expenditure is a. #165,000 b. #155,000 c. #200,000 d. #155,500
13. Returns inwards can be corrected by issuing a. credit note b. debit note c. voucher d. receipt
14. At the end of the trading period,cost of goods sold is debited to the trading account while cost of services is debited to the a. balance sheet b. manufacturing account c. trading account d. profit and loss account

Use the following information to answer question 14- 17

#

Opening stock                                                                  6000

Purchases                                                                         15000

Carriage inwards                                                             500

Returns outwards                                                           522

Returns inwards                                                              300

Sales                                                                                  30000

Closing stock                                                                    7000

14. The cost of goods available is a. #21,000 b. #15,000 c. #31,000 d. #20,978
15. What is the cost of goods sold? a. #14,978 b. #16,978 c. #13978 d. #15,978
16. The net sales is a. #27,000 b. #29,700 c.#29,000 d. #29,300
17. The gross profit is a. #15,722 b. #14,733 c. #14,722 d. #13,722
18. Which of the following has a credit balance? a. returns inwards account b. machinery account c. sales account d. cash account
19. A book showing the financial statement of an organization is called
20. trading account b. balance sheet c. profit and loss account d. partnership account
21. Business organization can be classified into a. four b. six c. three d. five
22. The following except one is the source of fund of business organization
23. loan from bank b. loan from government c. retained earning d. debtors
24. One of the following can bring to an end a sole trading
25. bankruptcy b. legal entity c. profit d. sickness
26. an account referred to as a self balancing account is called
27. balance sheet b. cash book c. control account d. trading account
28. A business owned and managed by an individual is called
29. partnership b. sole trader c. limited company d. cooperative society

Use the following  information to answer questions 25-29

SALES LEDGER CONTROL ACCOUNT

1999                                                                      1999

Jan 1              balance b/d                1300                          jan 1              balance b/d   86

31             Sales                         7630                                                bank                6555

Dishonoured cheques        250                                       discount         345

Stopped cheques        100                                                  returns          130

Balance c/d                 92                                        purchases ledger           360

Balance c/d             1896

9372                                                                       9372

25. The amount of #7,630 represent a. total credit sales b. total of all the debtors of the firms c. the total sales for the month d. cash sales only
26. The amount of #6,555 described as “bank” represents a. cash sales for the month, including discounts b. cash sales for the month excluding discounts c. receipt from trade debtors only d. receipts from all the debtors the business
27. The balance of #92 represents the i. amount necessary to balance the account ii. Sum due to the customers iii. Amount due from the customers a. I and ii only b. I only c. ii only d. iii only
28. The items purchases ledger #360 means i. cash purchases during the period ii. Credit purchases during the period iii. Trade debtors set off  against debts on purchases a. I only b. ii only c. iii only d. I and ii only
29. The balance of #1896 represents i. the sum required to balance the account ii. Amount due to the customers iii. Amount due from customers a. I only b. ii only c. iii only d. I and iii only
30. Which of the following may cause depreciation? a. wear and tear b. consumption c. profit d. assets
31. A non profit making organisation can raise funds from the following sources

except            a. donations b. fines c. Levies d. shares

32. The following expenses are charged to profit and loss account except
33. carriage inwards b. carriage outwards c. insurance d. rates and rent
34. Which of the following is the correct number in constituting a partnership

business?              a. 1-10 b. 2-20 c. 3-30 d. 4-40

34. Sales minus cost of goods sold is equal to
35. gross profit b. closing stock c. net profit d. opening stock
36. The schedule or list that shows the debit and credit balances extracted from

the ledger is called                a. balance sheet b. cash book c. journal d. ledger

Use the following information to answer questions 36 to 39

Trading account for the year ended 31st December 2012

#                                           #                              #

opening stock                         15,000.         sales.             16,000

Add X.                                        2,500.             less Z.         500.                    15,500

Add carriage inward                 300

2,800

less.  Y.                                       550.                               2,250

17,250

less closing stock.                       3,000

Cost of goods sold.                     14,250.

Gross profit.                                    ?

15,500.                                                    15,500

 

 

36. The letter X represent a. carriage inwards b. goods available for sale c. purchases
37. returns inwards
38. The letter Y represent a. returns outwards b. carriage inwards c. gross loss d. returns

inwards

38. The letter Z represent a. carriage outwards b. goods available for sale c. purchases
39. returns  inwards
40. What was the amount of gross profit?      a. #2,800 b. #2,500 c. #2,250 d. #1,250

Use the following information to answer questions 40 to 42

Mr Ben, a transporter,purchased a motor van for the sum of #800,000.it would be kept in use for 5 years, with a scrap value of #70,000. using a straight line method of depreciation.

40. What is the value of the motor van at the end of the first year?
41. #730,000 b. #654,000 c. #645,000 d. #525,000

SECTION B:ANSWER TWO QUESTIONS FROM THIS SECTION

1a.    What is partnership?

1. Who is a sole proprietorship?
2. State the types of business organization

2a.      What are the uses of control account?

1. Explain the two types of control account

3a.      State five items on the debit side of purchases ledger control account

1. State five items on the credit side of sales ledger control account
2. What is control account?

4a.      What is contra entries?

1. State the features of sole trading
2. What is book keeping?

SECTION C

ANSWER ANY THREE QUESTIONS FROM THIS SECTION

5. the following was extracted from the book of Gold

#

Sales ledger balance 1/1/99                                                                    36,869

Purchases ledger balance 1/1/99                                                         46,986

Sales day book                                                                                  105,435

Purchases day book                                                                           89,665

Return inwards day book                                                                      2,350

Credit notes received                                                                            4,475

Debit notes issued                                                                                875

Cheques paid to suppliers                                                             75,250

Discounts allowed                                                                                        2,345

Discounts received                                                                                       3,330

Bad debts written off                                                                        4,200

Cheque received from customers                                                 116,230

You are required to prepare :

1. Debtors control account
2. Creditors control account
3. A machine cost #600,000 it will be useful for 5years the scrap value is #30,000

calculate the depreciation using reducing balance method.

Note: show all workings

7. Write up a two column cash book from the following transaction

jan 1 started business with #60,000 cash #180,000 bank

Jan 2 purchases by cash #18,000

Jan 5 cash sales #9,000

Jan 7 paid wages  by cheque #25,000

Jan 14 stationery bought #7000

Jan 16 cash paid directly into the bank #45,000

Jan 18 receive from Jose #6,000 by cash

Jan 22 receive from tom by cheque #4,000

Jan 24 paid beloved by cheque #25,000

Jan 27 paid salaries by cash #18,000

Jan 29 cash banked #7,000

Jan 31 drawings #6000

8. From the following information calculate the first in first out(fifo)

Receipt Jan 5. 6000 @ #4.5

Jan 7  4000 @ #3.8

Jan 25 5500 @ #7

Jan 30 1200 @ #5

Issued.  Jan 9  7000

Jan 15. 7200

Jan 27.  2000

 

9. A machine cost #900,000,it as a life span of 4 years and the scrap value is #70,000

Calculate the depreciation using straight line method and open the necessary ledger

 

                

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

SUBJECT: BOOK KEEPING                  TIME:2HRS 30MINS   CLASS: SS  1

OBJECTIVE

1. The act of supplying goods or services to satisfy human wants is called
2. recording b. transaction c. marketing d. classifying
3. The property of a business are called. a. liabilities b. assets c. debt d. capital
4. The principle of double entry was postulated by
5. Richard grafton b. luca paciolo c. lord lugard d. akintola Williams
6. The application of the science of accounting in the keeping of books of account is known as            a. accountancy b. transactions c. book keeping d. financing
7. Every transaction has_____ parts a. two b. four c. five d. six
8. Transaction can be divided into a. credit and income b. cash and credit c. cash and expenses d. receipt and payment
9. If a trader purchases goods for cash valued at #400, he will credit cash account and debit his ____ a. sales account b. purchases account c. creditor account d. debtors account
10. If a trader sells goods for cash valued at #300 he will debit his cash and credit his____
11. purchase account b. sales account c. goods account d. cash account
12. One of the following is often referred to as the principal book of account
13. journal b. ledger c. cash book d. trial balance
14. One of the following is an example of an asset a. creditors b. owing c. loan d. cash
15. Assets that are acquired and retained in the business is termed
16. current asset b. fixed assets c. current liabilities d. longterm assets
17. All of these are parties to business transactions except a. suppliers and buyers b. creditors and debtors c. sellers and buyers d. promoter and vendors
18. One of the following is an example of fixed asset
19. cash b. debtors c. equipment d. creditors
20. Expenses paid for in one period but not entirely consumed or used until later period is called          a. accrued expenses b. prepaid expenses c. prepaid income d. accrued income
21. What is the effect of assets withdrawal on the capital of a business?
22. decrease b. increase c. growth d. no effect
23. One of the following defines the equation of accounting
24. assets = capital – liabilities b. assets = capital x liabilities c. assets = capital/liabilities d. assets = capital + liabilities
25. Which of the following is treated in the balance sheet as a liability?
26. debtors b. creditors c. cash d. prepayment
27. Which of these terms used in booking means the same as making entries in various ledger accounts? a. posting b. recording c. classification d. analyzing
28. Written evidences of business transactions that describe the essential facts of those transactions are referred to as a. subsidiary books b. source document c. prime books d. original books
29. The document which covers small payments for expenses credited to the petty cash book is a. statement of account b. petty cash receipt c. petty cash voucher d. receipt
30. Assets which can be seen or touched are classified as
31. intangible assets b. liquid assets c. wasting assets d. tangible assets
32. Convertible assets are also referred to as a. wasting assets b liquid assets c. fixed assets d. current asset
33. Goods bought on credit are first entered in the
34. cash book b. ledger c. journal proper d. purchases day book
35. The process of transferring entries from journal to ledger account is
36. journalization b. posting c. summarization d. single accounting
37. A document a supplier sends to customer to correct under cast on an invoice is
38. receipt b. credit note c. debit note d. waybill
39. journal can be classified into a. two b. three c. four d. five
40. Ledger can be classified into a. three b. six c. two d. seven
41. Who is responsible for the recording of financial transactions of a business?
42. auditor b. manager c. book keeper d. director
43. A sales journal is used to record a. sales expenses b. cash sales c. credit sales d. sales returns
44. An evidence of payment for goods bought is a. invoice b. receipt c. voucher d.pay

slip

31. The following are source documents except
32. cheque stub b. invoice c. receipt d. purchase order
33. The principle of double entry in book keeping states that
34. every debtor must have a creditor b. every account debited must be credited
35. for every debit entry there must be a corresponding credit entry d. for every

double debit, there must be a double credit

33. Which of the following is not a real account
34. furniture and fittings b. land and building c. losses or gains d. machinery
35. Which of the following is not an external user of accounting information?
36. creditor b. customer c. government d. manager
37. In book keeping every transaction must have ——- entries
38. four b. six c. two d. one

 

36. The monetary value of a fixed asset is recorded in
37. nominal account b. real account c. personal account d. control account
38. Returns of goods sold on credit will be posted to
39. purchases day book b. returns inwards journal c. sales day book d. returns

outwards journal

38. The act of entering transactions in the books of account is
39. casting b. posting c. journalizing d. writing
40. Sales day book is used to record
41. cash sales of stock b. credit sales of stock c. cash sales of fixed assets
42. credit sales of fixed assets
43. Purchases day book is used in recording
44. purchases b. cash purchases c. credit purchases d. purchases returns

THEORY: ANSWER ANY FIVE QUESTION FROM THESE PART

1a.      Define asset

1. differentiate between asset and liabilities
2. What is a journal?

2         list and explain the types source document

3a.      differentiate between debtors and creditors

1. state the importance of book keeping

4a.    what are the uses of journal?

1. Define ledger
2. Define transaction

5a.      Separate the following into asset and liabilities

Land and building, debtors , cash , creditors , overdraft , owings , loan, bank, furniture , plant and machinery, capital , stock

1. explain the types of transaction

6a.      state the uses of source document

1. what are the qualities of a book keeper?

7a.        what is source document?      b.      What is a liability?

1. state the beneficiaries of book keeping

8a.      state the uses of ledger    b.      explain the types of ledger

9a.     Who is a debtor?

1. define creditor
2. state the types of subsidiary books

N