BOOK KEEPING FIRST TERM EXAMINATION SS 3

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

SUBJECT:      BOOK KEEPING            TIME ALLOWED: 3HRS         CLASS:           S.S 3

OBJECTIVES

1. The double entry system of bookkeeping was introduced by.
2. Adam Smith B.A.R. Jennings. C. Frank Wood.  D. Lucca Pacioli.
3. An item on the debit side of a petty cash book is.
4. Stationery. B. Transport. C. Float.   D. rent.
5. when a provision is made against doubtful debts, the business owner is applying
6. Entity Concept B. Matching Concept C. Prudence Concept.  D. Dual-aspect concept.
7. Items classified as assets in the balance sheet include.
8. overdraft. B. Drawings. C. Trademark. D. Creditors.
9. Purchases day book and returns outwards book are records kept by the
10. Seller. B. Buyers. C. Agents.    D. supplier
11. Individual accounts of supplier are maintained in the?
12. Personal Ledge B. sales ledger C. Purshases ledger   D. general ledger.
13. Members of co-operative society receive returns as
14. Dividends. B. Profit. C. Grants.   D. Commissions.
15. Eze bought goods for #10000 on credit and #4,500 for cash. He returned goods worth #1,500. The closing balance in his purchases account is
16. #16,000 B. #14,500 C.# 13,000    D.# 8,500
17. The statements of accounts that performs the dual roles of a journal and a ledger is.
18. Cash book. B. Sales Journal. C. Purchases journal  D. Trial balance
19. An amount given to a petty cashier at the beginning of an accounting period is
20. Reimbursement B. Float. C. imprest.   D. Disbursement
21. Records of a customer’s financial transaction with the bank is contained in the bank
22. Overdraft. B. List. C. account.  D. Statement
23. Lizzy limited bought a motor vehicle for use on credit from Egudap Motors, the entries in Lizzy books are: debit
24. Vehicle Account; credit Egudap Motors Account. B. Purshases Account; Credit Egudap Motors account. C., Purshases Account; Credit Vehicle Account.
25. Vehicle account; credit Bank Account.
26. Sales of #3,000 to Atilola was debited to Akinola’s account. This is an error of
27. compensation. B. commission. C. principle.    D. Transposition.
28. A trial balance has credit total of #43,000 and debit total of #34,000.A suspense account should be opened and debited with?

A.# 43,000    B.# 34,000   C. #9,000     D.# 4,500

15. Items in a Debtors Control Account include?
16. Credit purchases B. cash paid C. discount received   D. discount allowed.

Use the following information to answer question 16-17

Cost of asset- #100,000

Depreciation- 10% on a reducing balance basis

16. Depreciation for the second year of use is A. #19,000 B.# 10,000   C.# 9,000
17. #1,000
18. The net book value of the asset at the end of the third year of use is?
19. #80,000 B. #72,900 C. #70,000   D. #65,610
20. The sum of money due to be paid from a member of a club which is yet to be paid at the end of an accounting period is? A. Subscription in advance.B. subscription in arrears.
21. excess expenditure D. excess income.

19.Which of the following details is not found in purchases day book?

1. Date of purchase. B. Use of goods purchased. C. Cost of goods purchased.
2. A reference to how double entry is completed.
3. An example of source documents is. A. general journal. B. sales journal.
4. Credit note. D. Cash book.
5. Income and Expenditure Account is prepared to determine the
6. gross profit or loss. B. Net profit or loss. C. surplus or deficite.  D. accumulated fund or working capital.
7. The purchase of machinery entered in a nominal account is an error of
8. omission B. compensation C. commission. D. principle.
9. The amount paid for the acquisition of an existing business by an entrepreneur is?
10. retained value B. purchase consideration C. Selling price.  d. purchase price.
11. An item on the credit side of a Profit and Loss Account is
12. carriage outwards. B. carriage inwards. C. discount received.  D. discount allowed.
13. General is used to keep A. expenses account. B. income account. C. assets account.
14. debtors account
15. The concept that is a business is treated separately from those who have financial interest in it is A. prudence. B. entity.   C. objectivity.    D. consistency.
16. The total amount of bad debts written off is debited to the
17. balance sheet. B.receipts and payments account. C. trading account.
18. Profit and loss account.
19. Sales of #151 was entered in the books as #115. The entries to correct this error are: debit
20. Sales Account #36; credit Cash Account #36. B. Cash Account #36; credit Sales Account #36. C. Sales Account #115; credit Cash Account #115.  D. Cash Account #151; credit sales Account #151.
21. The documents which sets out guidelines for the internal management of a joint stock company is
22. Memorandum of Association. B. Articles of Association. C. Memorandum of Understanding.    D. Certificate of Incorporation.
23. The objective of a co-operative society is to protect the
24. position of the members. B. interest of the members. C. careers of the members.
25. dividend of the members.
26. A current assets item in the balance sheet of a sole trader is
27. drawings. B. creditors. C. debtors.    D. accruals.
28. Chucks bought goods worth #1,000 on credit and was given a discount of 21/2%.The discount receivable is . A. #75 B. #25.   C. #20.   D. #15.

33. When the debit side total of a ledger is greater than the credit side total, the balance is
34. cash balance. B. debit balance C. credit balance.   D. bank balance.
35. An obligation which a business owes another business or person is
36. an asset. B. an expenses. C. an income.   D. a liability.
37. Subscription in arrears of a not-for-profit making organization is treated in the balance sheet as a A. fixed asset. B. current asset.  C. current liability  D. long-term liability.
38. The amount for a vehicle bought on credit for office use is recorded in the
39. cash book B. purchases day book. C. purchases returns journal. D. general journal.

Use the following information to answer question 37-38.

#

Debtors 14,000

Creditors 6,000

Bank 5,000

Accruals 4,000

Stock 3,000

Provision for doubtful debts 2,000

37. The amount of current assets in the balance sheet is A. #22,000 B. #20,000
38. #12,000 D. #10,000
39. The working capital is A. #22,000 B. #20,000  C. #12,000  D. #10,000
40. A transaction in which the buyer promises to fulfil his financial obligation at a later date is recorded in the books of the buyers as A. contract transaction B. Bank transaction
41. credit transaction D. Cash transaction
42. The capital of a sole proprietorship business is recorded in the
43. sales ledger B. impersonal ledger C. private ledger   D. general ledger

SECTION B

ANSWER ANY TWO QUESTIONS FROM THIS SECTION

1. Explain the following accounting concepts
2. Business entity b. Going concern c. Accruals d. Historical cost e. Money measurements
3. a. What is trial balance?
4. Explain the following type of errors I. Omission II. Principle III. Commission iv. Original entry
5. a. What is final account?
6. Differentiate between I. cash discount and trade discount II. discount allowed and discount received
7. Explain the following terms in book keeping
8. Bad debt b. Provision for bad debt c. Accrued income d. Prepaid expenses e. Accrued

expenses

SECTION C

ANSWER ANY THREE QUESTIONS FROM THIS SECTION

5. The following balances relate to sales and purchases ledger of favour enterprises for the month of August 2018

Debtors 1st August 2018.       16,264

Creditors 1st August 2018.       6,975

Credit sales.                             27,067

Credit purchase.                     10,341

Purchases returns.                  2,386

Sales returns.                           2,825

Cash paid to creditors.          7,123

Cash paid to debtors            18,429

Discount allowed.                  2,518

Bad debt.                                1,136

Discounts received.              1,197

Cash refunded to customers 560

Required :prepare total debtors control account and total creditors control account

6. Ayomide a book keeper extracted the following information from the books of a trader in

June 2018

June 1 David a customer was incorrectly debited with #5,000 being value of goods sold to

Alex

June 8 Goods worth #3,000 were returned to Precious. The returns was entered in returns

inwards book

June 10 Sales of #3,690 to Chidubem were entered in the books as #3,609

June 13 Goods worth #6,000 withdrawn by the owner for personal use has been omitted

from the books

June 14 Purchase of furniture for #10,000 was debited to purchases account

June 15 Installation charges of #10,500 incurred on plant and machinery was charged for

legal expenses account

Prepare a journal to correct these errors

7. The following balances were extracted from the books of Grace on 31st March. 2015

#                      #

Capital.                                                                             350,000

Drawings.                                            7200

Stock at 1st April  2014.                  34,800

Purchases and sales.                    160,500.                         250,400

Returns.                                               5,500.                              4,500

Carriage inwards.                               2,600

Carriage outwards.                            9,300

Debtors and creditors.                    52,000.                             27,000

Bad debt.                                             1,600

Salaries and wages.                        29,800

Electricity.                                           8,700

Office expenses.                               5,900

Land and building at cost.           250,000

Equipment at cost.                       100,000

Depreciation land & building.                                        25,000

Depreciation  equipment.                                              19,000

Discounts.                                      3,600.                       7,200

Provision for doubtful debts                                         2,800,

Cash and bank.                            14,300,

Total.                                           685,800.                   685,800

Additional information

1. Closing stock #29,000
2. Electricity owing #4,000 and salaries prepaid #5,800

c  Provision for doubtful debts is to be reduced to #1,500

1. Provide for depreciation of fixed assets as follows :

Land & building 5% on cost, Equipment 10% on diminishing balance basis

Required : prepare trading, profit and loss account for the year ended 31st March 2015 and

a balance sheet as at that date

8. Balam started business 1st April, 2015 with a capital of #300,000.The following is the

summary of his business transaction during the month.

April 2 bought goods for cash.      130,000

April 3 cash sales.                            170,000

April 5 furniture bought for cash.    60,000

April 5 cash sales.                            240,000

April 6 lent to zanu.                            50,000

April 16 paid wages.                         120,000

April 19 sundry expenses.                    1,000

April 25 drawings.                               40,000

April 30 payment for rent.                  35,000

Required :

Write up the ledger account, extract the trial balance as at 30th April 2015

9. Okeowo a trader, uses periodic inventory system. The business records show the

beginning inventory of 900 unit at #10 each on 1st January 2015. The purchases and issues of the items during the month are as follows:

Date.         Receipt.  Price.       Issues

Unit.       #              unit

Jan 5.      1,200.      11.            –

Jan 7.       –              –               1,500

Jan 11     3,000.     12.            –

Jan 15.     –               –             1500

Jan 17.    4,000.      13.           –

Jan 22.     –              –              4,200

Jan 24.      900.        15.           –

Jan 27.        –           –              1,200

A physical count indicates 1,600 units in inventory at month end. You are required to

calculate the :

1. Cost of goods sold using FIFO b. Value of closing stock using FIFO