MID TERM TEST FIRST TERM FINANCIAL ACCOUNTING SS 1
FIRST TERM MID TERM TEST
Class: SS1 Subject: FINANCIAL ACCOUNTING Time:
ANSWER ALL QUESTIONS
- The process of recording, classifying, selecting, measuring, interpreting, and communicating financial data of an organization to enable users make decision is called _______ (a)management (b) organization (c) book keeping (d) accounting
- ICAN means ________ (a) international city of Africa in Nigeria (b) institute of chartered accountants of Nigeria (c) Indian country in Asia Nigeria (d) associate of accounting scheme
- Assets is equal to _______ (a) capital + loan (b) capital + liabilities (c) capital + assets (d) capital + stock
- A subsidiary record is a book (a) of original entry (b) containing the ledgers (c) found in the journal (d) containing the balance sheet
- Books of account consist of (a) ledger and subsidiary books (b) ledger and principal books (c) folios and subsidiary books (d) ledgers and cash book
- Which of the following is not a source document? (a) credit note (b) invoice (c) debit note (d) bank note
- A book that contains the account for the financial transaction of an organization is ________ (a) register (b) folio (c) journal (d) ledger
- The total sales of journal is entered on the (a) debit side of sales account (b) credit side of sales account (c) credit side of cash account (d) debit side of cash account
- The total of the purchase day book is posted to the purchase account in the ______ (a) private ledger (b) nominal ledger (c) purchase ledger (d) general ledger
- The amount shown on the returns outward represent the amount of goods (a) returned to customers (b) returned by suppliers (c) sent out on sale (d) bought for resale
- Which of the following will a supplier send to a customer whose invoice was under cast? (a) credit note (b) debit note (c) invoice (d) cheque
- In which of the following books will trade discount be recorded? (a) cash book (b) general ledger (c) purchase day book (d) invoice
- A sales journal is used to record (a) sales expenses (b) cash sales (c) sales return (d) credit sales
- Which of the following best describes the path of a transaction? (a) source document 🡪journal 🡪ledger (b) source document 🡪 ledger 🡪 journal 🡪 (c) journal 🡪 ledger 🡪 source document (d) journal 🡪 source document 🡪 ledger
- Which of the following is not an accounting concept? (a) periodicity (b) accuracy (c) consistency (d) objectivity
- The accounting concept which allows the use of a particular method for treating transaction for a reasonable number of year is (a) consistency (b) cost (c) accrual (d) conservation
- Profit are recognized when goods are sold. What concept is this? (a) realization (b) matching (c) periodicity (d) giving concern
- For every debit entry there is a corresponding credit entry. This is a principle of (a) single cash book (b) double entry (c) cash book (d) journal
- The sum of money given to a petty cashier out of which small payment is made is a/an (a) bonus (b) loan (c) advance (d) float
- Which of the following is a contra entry? (a) lodging of cheques into bank account (b) lodging of cash in hand into bank account (c) withdraw of cash for private use (d) fraudulent of discount received in the cash book
- A system where a separate cash book is maintained for small payment is (a) single entry (b) cash float (c) imprest (d) reimbursement
- Where both debit and credit entries of a transaction are shown In the cash book, it is described as ________ (a) contra entry (b) reversal entry (c) double entry (d) single column
- Which of the following is both a subsidiary book and a ledger (a) sales journal (b) purchases journal (c)returns inwards books(d) cash book
- Discount allowed is found in the _______ (a) debit side of the three column cash book (b) debit side of a two column cash book (c) credit side of a two column cash book (d) credit side of a three column cash book
- The bank column in the cash book shows a credit balance of #180. This means (a) a total payment of #180 (b) a gross receipt of #180 (c) a leftover of #180 with the bank (d) an overdraft of #180 cash
- A petty cash book can have (a) a debit balance only (b) a credit balance only (c) both debit and credit balances (d) a debit or nil balance
- An overdraft is usually shown as a (a) credit balance in the cash column of the cash book (b) debit balance in the cash column of the cash book (c) credit balance in the bank column of the cash book (d) debit balance in the bank column of the cash book
- Which of the following is the book of original entry for all payment and receipts whether by cash or cheque (a) sales day book (b) purchases day book (c) cash book (d) journal book
- Which of the following is not a petty cash book item? (a) stationaries (b) postage stamps (c) cutlass for gardeners (d) machinery
- A petty cashier spent #30,000 in a period and was left with #20,000. How much is the cash float? (a) #50,000 (b) #30,000 (c) #20,000 (d) #10,000
SECTION B
THEORY
ANSWER THREE (3) IN ALL
1a. Define book keeping and accounting
1b. List four Importance of book keeping and accounting
1c. List four users of bookkeeping and accounting
2a. Define the principle of double entry
2b. Open the necessary book of accounts and record the following transactions
- Mr. ojo started business with #40,000 cash
- Paid #450,000 cash for rent
- Received refund of insurance #300
- Bought motor vehicle #60 paying by cheque
3a. Define source document
3b. Enter the following transaction of Femi and sons enterprises in the sales day book for the month of Aug. 96 and post to the ledgers
Aug 1, 96 sold to Roger Mila
20 bags of sugar at #40 each
12 plates at #140 each
Aug 12, sold to Shorunmu
12 bags of cement at #45 each
5 packet of tea at #15 each
Trade discount at 10%
Aug 27, sold to muibat
15 shoes at #65 each
100 packet shirts at #13 each
Trade discount at 5%
4a. Define subsidiary books
- Give two reasons for subsidiary books
- Give six division of subsidiary books
- Write up a two column cash book from the following details and balance off as the end of the month
Jan 1 started business with capital #30,000
Jan 2 paid rent by cash #70
Jan 3 received loan from Pablo #500 by cheque
Jan 5 we paid olu by cheque #165
Jan 6 we paid general expenses in cash #300
Jan 9 withdraw #1,000 from cash fill and paid it into the bank account
Jan 10 cash sales paid directly into bank #3,000
Jan 12 banked cash #900
Jan 14 cash purchase #500
Jan 16 bought good by cheque #130
Jan 19 commission received by cheque
Jan 21 bought motor van by cheque #60
Jan 22 cash drawing by the proprietor #21
Jan 24 we paid biodun for goods bought #250, #150 in cash, and #100 by cheque
Jan 26 wages paid in cash #35
Jan 27 bought stationary paying by cash #75
Jan 28 withdrew #105 from bank for private use
Jan 30 rent received by cheque #45
Jan 31 cash sales #1,000
- Write up a two column cash book from the following details and balance off as the end of the month
Jan 1 started business with capital #30,000
Jan 2 paid rent by cash #70
Jan 3 received loan from Pablo #500 by cheque
Jan 5 we paid olu by cheque #165
Jan 6 we paid general expenses in cash #300
Jan 9 withdraw #1,000 from cash fill and paid it into the bank account
Jan 10 cash sales paid directly into bank #3,000
Jan 12 banked cash #900
Jan 14 cash purchase #500
Jan 16 bought good by cheque #130
Jan 19 commission received by cheque
Jan 21 bought motor van by cheque #60
Jan 22 cash drawing by the proprietor #21
Jan 24 we paid biodun for goods bought #250, #150 in cash, and #100 by cheque
Jan 26 wages paid in cash #35
Jan 27 bought stationary paying by cash #75
Jan 28 withdrew #105 from bank for private use
Jan 30 rent received by cheque #45
Jan 31 cash sales #1,000