BOOK KEEPING FIRST TERM EXAMINATION SS 2

FIRST 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
2. Accrual b. Prudence c. Going concern d. Business entity
3. Net profit is the difference between gross profit and
4. Total expenses b. Accrued expenses c. Cost of goods sold d. Cost of goods available for sale
5. Who is responsible for the recording of financial transactions of a business?
6. Auditor b. Manager c. Book-keeper d. Director
7. The accounting entries for provision made for doubtful debts is: debit      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                     #10,000

5. The depreciation value of the machinery is
6. #560,000 b. #550,000 c. #540,000 d. #500,000
7. Using the straight line method of depreciation, the annual depreciation charge is
8. #112,000 b. #110,000 c. #108,000 d. #100,000
9. The document a supplier sends to a customer to correct undercast on an invoice is
10. receipt b. credit note c. debit note d. waybill
11. Which of the following assets would not depreciate due to passage of time?
12. 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

9. The cost of sales is #30,000
10. #18,000 c. #16,800 d. #13,200
11. The gross profit is #18,000 b. #16,800 c. #13,200 d. #12,300
12. The net profit is #16,800 b. #15,500 c. #13,200 d. #12,300
13. Impersonal ledger contains Income and expenditure accounts b. Debtors and creditors accounts c. Real and nominal accounts c. Capital and drawings
14. A dishonored cheque will be returned by the bank to the Payee b. Drawee c. Cashier d. Depositor
15. The excess of expenditure over income of a not-profit-making organization in an accounting period is 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

15. The total amount of goods bought on credit without the discount is
16. #17,000 b. #16,150 c. #12,000 d. #5,000
17. The amount payable by Tade if discounts is considered is #17,000 b. #16,150 c. #12,500 d. #5,000
18. The account which contains the summary of entries of individual accounts in the ledger is Trading account b. Control account c. Profit and loss account d. Income and expenditure account
19. AN advantage of the consistency concept is that 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
20. Assets and expenditure are entered in the trial balance as      Contra entries b. Debit entries c. Credit entries d. Double entries
21. Carriage inwards is classified as
22. 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

21. The total asset is #172,000
22. #54,000 c. #29,000 d. #25,000
23. The working capital is 172,000
24. #54,000 c. #29,000 d. #25,000
25. The current liability is 172,000
26. #54,000 c. #29,000 d. #25,000
27. Adamu failed to record a return inwards of #20,000 in the books. This is an error of Omission b. Commission c. Principle d. Transportation
28. The letter “c” written under the folio column in the cash book indicates
29. Credit entry b. Contra entry c. Credit sales d. Cash sales
30. The document sent by the seller to the buyer to correct an overcharge is
31. Debit note b. Credit note c. Proforma invoice d. Consular invoice
32. The amount to be recovered when an asset is disposed at the end of its useful life is Salvage value b. Present value c. Market value d. Replacement value

Use the diagram below to answer 28-29

28. The diagram represents Single column cash book b. Two column cash book c. Three column cash book d. Petty cash book
29. Letter “X” represents Details column b. Receipts column c. Payments column d. Ledger column
30. The fixed amount of money set aside for petty expenses is Float b. Capital c. provision d. Reserve
31. Carriage inwards is classified as
32. a distribution expenses b. a trading expenses c. a financial expenses d. an administrative expenses
33. When a current account holder is allowed to

withdraw in excess of his bank balance,it is called  a. borrowing b. credit drawing

1. debenture d. overdraft
2. Trial balance is used to test ———-accuracy of balances posted into ledger
3. accounting b. arithmetical c. auditing d. mathematical
4. Books of original entry can also be referred to as ——books a. cash b. debit c. petty cash d. subsidiary
5. An allowance given to customers for prompt payment of their account is known

as   a. bonus b. cash discount c. dividend d. surplus

37. 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
38. When a current account holder is allowed to withdraw in excess of his bank balance, it is called a. borrowing b. credit drawing
39. debenture d. overdraft
40. The indebtedness of a business to outsiders is known as a. assets b. capital c. deficit d. liabilities
41. Assets that are non physical in nature easily convertible to cash are called
42. current asset b. fictitious asset c. intangible asset d. liquid asset

41.The following are current assets except

1. bills payable b. cash in hand c. debtors d. stock

42.Which of the following is not credited to debtors control account?

1. bad debts b. bill receivable c. carriage outward d. credit notes issued
2. 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 31^st 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 31^st July 1999 were rent #760,travelers commission and expenses #1,230,electricity #112
2. Stock at 31^st 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 31^st 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 31^st 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 31^st 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 31^st march,2014

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

Opening stock          1^st Jan     500 @  #2 each

Deliveries          6^th Jan     160@ #2.20

20^th Jan   180 @#2.25

Issues

2^nd Jan                     300

16^th 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