FINANCIAL ACCOUNTING FIRST TERM EXAMINATION SS 3
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.
SUBJECT: FINANCIAL ACCOUNTINGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â TIME: 3HRSÂ Â Â Â Â Â Â Â Â Â Â Â CLASS: SSÂ 3
OBJECTIVE
- Which of the following is the effect of a reduction in provision for doubtful debt?
- reduction in net profit b. reduction in cash balance c. reduction in gross profit d. increase in gross profit
- The reward given to a debenture holder is called a. profit b. reserves c. premium d. interest
- Subscription in advance is an example of a. prepayment b. accrual c. debtors d. provision
- Which of the following is an example of personal account?
- stock b. fixtures c. equipment d. debtors
Use the following to answer question 5 to 10
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Sales                                                                         45000
Opening stock                                                             20000
Closing stock                                                              30000
Expenses                                                                   15000
Fixed assets                                                              40000
Debtors                                                                     10000
Creditors                                                                    5000
Purchases                                                                  25000
- The cost of goods sold is a. #45000 b. #30000 c. #25000 d. #15000
- Net profit is           a. #45000 b. #30000 c. #15000 d. #20000
- Net profit percentage is a. 100% b. 67% c. 50% d. 33%
- Current ratio is a. 16:1 b. 15:1 c. 8:1 d.2:1
- Working capital is a. #60000 b. #45000 c.#40000 d. #35000
- Gross profit percentage is a. 100% b. 67% c. 50% d. 33%
- Working capital is measured by the excess of
- current asset over current liabilities b. fixed asset over current asset c. current asset over fixed asset d. long term liabilities over fixed assets
- Overdraft is usually shown as a. credit balance in the cash column of the cash book b. debit balance in the cash column of the cash book c. debit balance in the loan account d. credit balance in the bank column of the cash book
Use the following information to answer question 13 to 17
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Purchases:              raw materials                                               20000
Finished goods                                         15200
Stock 1/1/89           raw materials                                                3000
Work in progress                                           2500
Wages                    direct                                                     22800
Indirect                                                 7200
Factory expenses          electricity                                              12000
Insurance                                              2000
Stock 31/12/89        raw materials                                               4000
Work in progress                                         4500
- What is the cost of raw materials available? a. #23000 b. #22500 c. #20000 d. #19000
- The cost of materials used is a. #23000 b. #21000 c. #20000 d. #19000
- The prime cost is a. #49000 b. #45800 c. #43800 d. #41800
- The amount of factory overhead is a. #28200 b. #23200 c.# 21200 d. #19200
- The cost of manufactured goods is a. #67500 b. #65500 c. #63000 d. #61000
- A suspense account is used to a. agree the trial balance b. record sales c. record purchases
- correct an errors
- A sales day book is used to record a. cash sales of stock b. credit sales of stock c. cash and credit sales of stock d. cash sales of fixed asset
- Which of the following fixed assets is not depreciable?
- building b. tools c. land d. motor van
Use the following information to answer questions 21 to 24
Fixed assets                                          12000
Current asset                                          5000
Current liabilities                                   2300
Capital                                                             10000
Longterm liabilities                                4700
- What is the total asset? a. #17300 b. #17000 c. #15000 d.#14700
- What is the total net asset? a. #10000 b. #14700 c. #15000 d. #17000
- Total liabilities amount to a. #17000 b. #14700 c. #12300 d. #7000
- The working capital is a. #10000 b. #2700 c.#7300 d. #7000
- Which of the following is not charged to manufacturing account?
- raw materials b. factory wages c. distribution expenses d. direct expenses
Use the following to answer questions 26 to 29
Debtors                                                 30000
Creditors                                     20000
Opening stock                                       15000
Closing stock                              18000
Wages                                        3000
Salaries                                                 10000
Purchases                                   30000
Sales                                           60000
- The gross profit percentage is a. 67% b. 55% c. 50% d. 45%
- The net profit percentage is a. 100% b. 67% c. 50% d. 33%
- The working capital is a. #48000 b. # 33,000 c. # 28000 d. #10000
- The stock turnover is a. 4.0 times b. 3.6 c. 3.3time d. 1.6 times
- one of the following is not a liabilities a. loan b. accruals c. debtors d. creditors
- The successful of distributing shares to successful applicants is
- allocation b. appointment c. allotment d. application
- The accounting entries for cash realized from the sale of assets on dissolution of
partnership is debit
- cash account credit partners capital account b. asset account credit cash account
- cash account credit realisation account d. realisation account credit cash account
- The parties who are paid last in the event of winding up are
- preference shareholders b. debenture holders c. ordinary shareholders d. trade
creditors
Use the following information to answer question 34 and 35
Receipt and payments 31st December 2016
#Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â #
cash at bank.       460. new equipment    200
subscription        520.  cleaners wages.   540
donations.           500.   stationery.            140
sales of tickets.  490.   repairs                  110
entrance fees.     670
- The surplus for the year is a. #1,970 b. #1,890 c. #1,650 d. #1,390
- The total income received for the year is a. #2,640 b. #2,180 c. #1,890 d. #1,690
- In incomplete records, opening capital is ascertained by preparing
- closing capital b. control account c. statement of affairs d. statement of single entry
Use the following information to answer questions 37 to 39
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Authorized share capital :
75,000 ordinary share capital         750,000
25,000 6% preference shares.       250,000
1,000,000
Issued and paid up capital :
50,000 ordinary shares.                 500,000
20,000 6% preference shares.      200,000
700,000
Reserves:
general reserve.                               100,000
share premium.                                  75,000
profit and loss account.                    13,000
5% debentures.                                100,000
creditors.                                            60,000
proposed dividend.                           66,000
1,114,000
- What is the total of the share capital? a. #1,000,000 b. #875,000 c. #700,000 d. #500,000
- Calculate the total capital reserves a. #175,000 b. #100,000 c. #75,000 d. #66,000
- What is the total revenue reserves? a. #175,000 b. #105,000 c. #25,000 d. #13,000
- The maximum amount which a firm is allowed to raise by way of selling shares is ——-
capital
- authorized b. called – up c. issued d. paid -up
- Debenture is classified under which of the following heading
- Â current asset b. current liability c. fixed assets d.long term liability
- The term bad debts means debt … a.owed by a customer  b. owed by a supplier
- receipt from sales of goods d. rent from premises sublet
- The purchase of a photocopying machine for office use for #50,000 should be debited
to ——–account
- asset b. bank c. cash d. purchases
- The financial plan of government for a year is contained in the
- budget b. cash book c. gazette d. vote book
- The reward given to a shareholder is
- dividend b. interest c. premium d. profit
- An example of fictitious asset is
- cash at bank b. debtors c. goodwill d. prepayment
- Suppliers account are found in the —–ledger
- general b. nominal c. private d. purchases
- Damaged goods returned by a customer is usually accompanied by
- credit note b. debit note c. proforma invoice d.return note
- One of the following is not a method of depreciation
- Straight line b. reducing balance c. Petty d. revaluation
- The excess of current assets over current liabilities is ——- capital
- authorized b. issued c. nominal d. working
SECTION B:Â ANSWER ANY TWO QUESTION FROM THIS SECTION
1a.     define accounting
- what are the function of stock exchange
- Write short note on the following
- Consignee II. Consignor  III. delcredere commission iv.jobber v. broker
3a.     What is capital market?
- differentiate between capital market and money market
4a.     What is bank reconciliation statement?
- Explain any five causes of disagreements between cash book and bank statement
SECTION C: ANSWER QUESTION 6 AND ANY TWO QUESTION FROM THIS SECTION
- The profit and loss account of Okere nig ltd showed a balance on appropriation of #25000 and the net profit for the year was #97000. It was decided to deal with the balance as follows:
- To provide for #5000 corporation tax.
- To pay a dividend on 60,000 6% preference shares of #1 each
- To pay a dividend of 10% on the 100000 ordinary shares.
- To write off the existing balance of goodwill #6000
- Transfer #8000 to general reserve
- To carry forward the balance.
- Debtors 10,000
- Creditors 15,000
- Furniture 50,000
- Machinery 50,000
- Cash 50,000
- Bank 47, 400
Prepare the profit and loss appropriation account and balance sheet
- Prosperous industries is a small business producing and selling food beverage.
The following list of balances have been extracted from the books as at 31st December 1999
#
Sales                                                                                    255000
Purchases of raw materials                                                          49000
Carriage inward on raw materials                                                3000
Carriage outwards on finished goods                                       2000
Wages-factory operatives                                                             48250
Salaries –factory supervisors                                           13250
Management and clerical staff                                33000
Sales and marketing staff                                                 29000
General expenses                                                                  5875
Electricity and rent                                                               17000
Insurance                                                                              3375
Advertising                                                                           6000
Discount received                                                                 2500
Plant and machinery                                                              26000
Delivery van                                                                        10000
Stock at 1/1/98: raw materials                                                9500
Work in progress                                                              6250
Finished goods                                                             12000
Stock at 31/ 12/98: raw materials                                                8250
Work in progress                                                              9000
Finished goods                                                             14500
Additional information:
- Depreciation for the year is to be as follows:
plant and machinery at 13% per annum.
Delivery van at 25% per annum
- At 31/12/98 insurance prepaid was #475 and general expenses owing amounted to #225
- Apportionment of expenses is to be made as follows:
factory                             administration
Electricity and rent                                          85%                                 15%
Insurance and general expenses                         70%                                   30%
You are required to prepare:
- A manufacturing account
- A trading,profit and loss account for the year ended 31st December 1999.
- On March 1 1999,seye purchased a motor car from Alaba for cash price of #20,920.
he agreed to pay for it in 3 equal installment of N6000 at the rate of 10% per annum.
depreciation was allowed at 12% on cost. Deposit N6000.
prepare :
- motor car account b. Alaba account c. interest payable account
- provision for depreciation account e. profit and loss account
- Temidayo limited issued 200,000 ordinary shares of #1 each at #1.25k per share payable as
follows:
20k on application
45k on allotment (including premium)
30k on first call
30k on second call
Required show the ledger entries to record the above transaction
- The following information was extracted from the books of Igbaotun club of eko for the
year ended December 1998
Receipt
#
Subscription.      6900
Donations.          9600
Interest received 240
16,740
Payment
Salaries.               2250
Scholarship.                    2220
Drugs for the handicap  2070
Printing and stationery.     510
Office furniture.                 3090
Investment.                        4500
14,640
Additional information
- Outstanding subscription #400
- Accrued expenses :
Salaries. 400
Scholarship 920
Drugs 190
Printing and stationery 340, creditors 5, 340
Prepare :
- Income and expenditure account
b balance sheet as at that date