FIRST TERM EXAMINATIONS ACCOUNTING SS 1

FIRST TERM

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

SUBJECT:             FINANCIAL ACCOUNTING             CLASS: SSS 1           TIME APPROVED: 3HRS

 

OBJECTIVE

1. A subsidiary book is a …. a. book of account b. summary of entries c. books of original entry
2. double entry posting
3. A trade discount is a…a. trading account items b. profit and loss account items c. appropriation

account items d. receipts and payments item

3. Which of the following is not a source document for recording sales? a. debit note b. credit note
4. receipt d. sales journal
5. Joseph returned goods worth #2,800 to Patrick. Joseph receives
6. an invoice b. a statement of account c. a debit note d. a credit note
7. Carriage inwards is charged to….a. trading account b. appropriation account c. purchases

account d. profit and loss account

6. Discount allowed is …..a. credited to trading account b. debited to profit and loss account
7. credited to the profit and loss account d. credited to the appropriation account
8. Which of the following is an asset?  a. accrued wages b. rent arrears c. prepayment
9. insurance owing
10. A purchase day book is used to record… a. cash transaction b. credit purchase c. cash sales
11. credit sales

Use the following information to answer questions 9 to 11

#

June 1 Cash in hand                                   620

Cash at bank                                7500

June 2 Paid Grace by cheque                2500

June 5 Paid transport by cash                 52

June 9 Received cheque from Dan                4600

June 15         Cash sales to date             2800

June 17         Paid  temi by cheque        2200

June 19         Paid beloved by cheque   200

June 30         Paid wages by cash                     2500

9. The cash in hand on 30^th June is…… a. #2,220 b. # 2078 c. #1,642 d. #720
10. The cash at bank on 30^th June is ….. a. #10,100 b.#8,900 c.#7,200 d. #5,900
11. The total cash payment during the month is….. a. #3420 b. #2,078 c. #1,642 d. #578
12. Profit are recognized when goods are sold. what concept is this?
13. realization b. matching c. periodicity d going concern
14. Which of the following is a real account items? a. goodwill b. fixtures c. debtors d. interest
15. Gross profit is calculated in the… a. trading account b. profit and loss account c. appropriation

account d. partners current account

 

 

 

 

 

Use the following information to answer questions 15 to 16

#

Opening stock                                                     50,000

Purchases                                                           140,000

Closing stock                                                        42,000

Sales                                                                  190,000

15. What is the cost of goods sold? a. #170,000 b. #148,000 c. #130,000 d. #122,000
16. What is the gross profit? a. #58,000 b. #50,000 c. #42,000 d. #10,000
17. Which of the following items is found on the credit column of the trial balance?
18. provision for doubtful debt b. bad debt written off c. carriage inward d. carriage outwards
19. The accounting entry for a withdrawal of #800 cash from the bank is
20. credit bank debit cash b. credit cash debit bank c. debit drawings credit cash d. credit drawings debit sales
21. The maximum level of cash held by a cashier under an imprest is a/an
22. vote b. float c. reimbursement d. advance
23. A debit balance of #2,000 in a cash account means that
24. cash in hand is #2,000 b.cash has been overspent by #2,000 c. total cash paid is #2000 d. total cash received was less by #2,000

Use the following information to answer questions 21 to 23

$

Sales                                                                                        183,400

Purchases                                                                                 168,000

Opening stock                                                                           20,000

Closing stock                                                                            48,900

Carriage outwards                                                                           2,400

Carriage inwards                                                                           5,000

Returns inwards                                                                           10,000

Expenses                                                                                  15,000

Returns outwards                                                                           8,000

21. The gross profit is a. $47,200 b. $42,200 c. $37,200 d. $19,800
22. The net profit is a. $42,200 b. $37,200 c. $32,700 d. $19,900
23. The cost of goods sold is a. $185,100 b. $139,200   c. $136,2000 d. $19,800
24. The petty cash book has        a. a debit balance only b. a credit balance only c. a nil balance
25. both debit and credit balance
26. A statement that shows the financial position of an organization is
27. trial balance b. balance sheet c. cash book d. control account
28. The account that shows both the cash and bank transaction of an enterprise is
29. appropriation account b. trading account c. profit and loss account d. cash book
30. Which of the following is not a personal account?
31. Bolaji account b. drawings account c. pz plc account d. cash account
32. Discount can be divided to trade discount and……. a. allowed b. received c. cash discount
33. trade discount
34. The following are on the debit side of the trial balance except…..a. cash b. bank c. machinery
35. overdraft
36. When a cheque is issued an is not taken to bank it is called…. a. uncredited cheque
37. unpresented cheque c. bank errors d. credit transfer
38. The right hand side of a ledger is called….. a. ledger b. balance c. debit d. credit
39. The items in a three column cash book cash divided into… a. five b. six c. four d. two
40. A petty cash account has an imprest of N6000. If N2000 were left, how much will be

re-imbursed at the end of the period?    a. N8,000 b. N6,000 c. N4,000 d.N2,000

Use the following information to answer question 34-38

Land and building N26,000,furniture N20,000,machinery N18,000 cash N10,00 stock N5,000 debtors N7,000 creditors N25,000 loan N5,000 capital N28,000

34. What is the total asset? a. N54,000 b. N86,000 c. N44,000 d. N74,000
35. What is the total liability? a. N58,000 b.N68,000 c. N88,000 d. N78,000
36. What is the current asset? a. N40,000 b. N22,000 c. N32,000 d. N42,000
37. What is the current liability? a. N30,000 b. N20,000 c. N58,000 d. N33,000
38. what is the fixed asset? a. N30,000 b. N64,000 c. N58,000 d. N54,000
39. The distinguishing feature between a two column and three column cash book is
40. discount column b. cash column c. bank column d. ledger folio
41. The lodgement of business cash into the business bank account is an example of
42. contra entry b. bank reconciliation c. self balancing ledger d. reversal
43. A petty cashier received a float of N120 and spent N84. The imprest is a. N204 b. N120
44. N84 d. N36
45. The source document used to make entries in the purchases day book is ………
46. debit note b. credit note c. invoice d. receipt
47. A book that contains individual accounts of suppliers is the …………………
48. purchases ledger b. general ledger c. nominal ledger d. sales ledger
49. Which of the following subsidiary books involves cash movement?
50. sales day book b. purchases day book c. returns inward book d. petty cash book
51. Sales less return inward is referred to as ….. a. sales b. sales return c. turnover d. sales book
52. Which of the following is entered in the general journal?
53. purchase of goods b. sales of goods on credit c. returns inward d. acquisition of fixed asset
54. External users of accounting information include…….. a. employees b. management c. bankers

d.directors

48. Unpresented cheques are cheques …… a. that have been recorded in the cash book,but not by

the bank b. that have been received by the bank,but not recorded in the cash book c. returned by

the bank d. written,but not handed over to customers

49. Goods returned to a supplier is …… a. debited to returns outwards account b. credited to

returns outwards account c. debited to returns inwards account d. credited to returns inwards

account

50. The balance sheet is prepared to reveal ….. a. financial records b. arithmetical accuracy of

the ledger c. the accruals and prepayment d. financial position of the business

SECTION B

PART 1         ANSWER TWO QUESTION FROM THIS PART

1a.      What is trial balance?                   b.           State the uses of trial balance

1. Define petty cash
2. Write short note on the following
3. gross loss ii. Net loss iii. Carriage outward iv. Discount allowed v. salea

3a.      What is bank statement?     b.           Write short note on the following

i.bank error ii. Uncredited cheque iii. Standing order iv. Dishonoured cheque v.credit transfer

4a.      State rules applicable to a trial balance?

Explain the source document

 

 

PART TWO            (QUESTION FIVE IS COMPULSORY)ANSWER THREE QUESTION FROM THIS PART

5. Write up the following transactions in the cash book of Blessing and show the balances of cash in hand and at the bank on 31^st January.

Jan 1   Balances:                                                              #

Cash in hand                                                      5,250

Cash at bank                                                      64,525

Jan 3   Received remittance of #12,650 from olu

Jan 4 Paid Sesi’s account of #8,200 by cheque,deducting 7% cash discount.

Jan 4   Received cash from salem amounting to #4,000

Jan 5   Paid #7,000 cash into the bank

Jan 6   Paid wages #8,500 by cash

Jan 11   Paid chinedu account #3,200 by cheque deducting 3.5% discount

Jan 12    Received #8,500,less 6% discount from david and banked the amount

Jan 13    Cashed a cheque for #9,000 and paid wages,#8,500 by cash

Jan 15     Received #6,000 less 6% discount from sola by cheque and paid it into the bank

Jan 18     Received #9,550 from silas and allowed him #550 cash discount. The cheque was paid into the bank forthwith

Jan 19    Paid the account of oranmiyan #875 by cash

Jan 20    Received cash #7,000 less 3.5% discount from oloye

Jan 20    Paid wages #8,500 in cash

Jan 24    Paid john #6,500 by cheque after deducting 5% discount

Jan 25    Received from abiola #15,250 and paid the amount into the bank.

Cash discount #850 was allowed

Jan 27     Cashed a cheque for #9,000 and paid  #8,500 of proceeds in wages

6. The following balances were extracted from Blessings Enterprises for the year ended 31^st October 1999.

Stock as at 1^st Nov 1995              10,750

Discounts received                              900

Carriage inwards                                6,750

Discounts allowed                                3,000

Returns outwards                                3,250

Rent                                              950

Rates                                             750

Electricity                                     1250

General expenses                                600

Returns inwards                                1280

Sundry expenses                                630

Postages                                        550

Sales                                             300,000

Rental income                                4,350

Purchases                                      90,000

Carriage outward                                700

Stock at close 31^st dec 2017 was #11,700

You are required to prepare: Trading profit and loss account for the year ended 31^st dec 2017

7. On 9^th march 1999, SESI cash book showed a debit balance of #5,770.43. His bank statement showed a balance of #5,170.45.

The reasons for the difference were as follows:

1. A cheque #500 from owa was received and entered in the cash book but not recorded in the bank statement.
2. Standing order #430 had not been entered in the cash book.
3. Cheques for #500 were not honoured by the bank.
4. The following cheques were drawn but had not been presented for payment: G. Ayo #350 C.Tunde #300.97
5. A dividend of #200 was paid directly into the bank.
6. Bank charges of #30.95 had been recorded in the bank statement only.

You are required to prepare Bank Reconciliation Statement

8. The following balances extracted from the books of BLESSING Enterprises on 31^st dec 2008

N

Freehold property                                                                                          60,000

Capital                                                                                                           81,445

Trade debtors                                                                                                28,750

Trade creditors                                                                                               26,150

Furniture and fittings(cost N22,500)                                                            16,500

Rent                                                                                                                 950

Electricity                                                                                                      675

Provisions for bad debts 1/1/98                                                                         288

Office equipment(cost N20,000)                                                                         15,500

Stock 1/1/98                                                                                                      7,750

General expenses                                                                                          2,350

Rates                                                                                                              625

Cash in hand                                                                                                  137

Bank overdraft                                                                                                    4,475

Bank charges                                                                                                 373

Purchases                                                                                                      60,750

Sales                                                                                                              74,000

Carriage inwards                                                                                          395

Salaries                                                                                                       1,700

Discounts allowed                                                                                         485

Discount received                                                                                         332

You are required to prepare trial balance

9. The following transactions were recorded in the month of September,1998

N

Sep 2                        balance on hand                                           200,000

Sep 6                        bought postage stamps                                  28,000

Sep 7                       paid medical expenses                          48,000

Sept 12                     bought stationery                                           28,500

Sept 16                    paid transport expenses                        68,000

Sept 20                    paid medical expenses                          40,800

Sept 22                    paid for postage stamps                          6,200

Sept 22                    paid for transport expenses                                18,800

Sept 24                     bought stationery                                            6,600

Sept 24                    paid transport expenses                        32,600

Sept 28                     bought postage stamps                                  8,500

Sept 30                    paid medical expenses                             26,500