THAMES VALLEY COLLEGE

KILOMETRE 1O, SAGAMU-IKORODU ROAD, SAGAMU, OGUN STATE

NAME_______________________________________________ DURATION: 2HOUR 30MINS

INSTRUCTION: ANSWER ALL QUESTIONS

8. Which of the following is the principal
1. Cross referencing among different books book of account?
of account is achieved with the use of A. General Journal
___ B. Sales book
A. columns C. Purchases book
B. reference numbers D. Ledger
C. folio
D. margin 9. Which of the following is not contained
in the Ledger?
2. A ledger is a ___ A. date of transaction
A. summary of entries B. description of the transaction
B. book of original entry C. folio number of transaction
C. book of account D. address of the customer
D. double entry posting
10. A trial balance is a list of ___
3. The purchase of a typewriter for office A. current assets
use for N70, 000 should be debited to B. current liabilities
___ C. debit and credit balances
A. bank account D. debtors and creditors
B. purchases account
C. cash account 11. Which of the following is entered in the
D. equipment account general journal?
A. purchase of goods
4. Purchases in accounting refers to goods B. sales of goods on credit
bought for __ C. returns inwards
A. repairs D. acquisition of fixed assets
B. permanent use
C. resale 12. Which of the following is an example of
D. owner’s use a subsidiary book? ____
A. cash book
5. When goods are sold for cash, the credit B. bank statement
entry goes to the ___? C. trial balance
A. trader’s account D. suspense account
B. cash account
C. customer’s account 13. Which of the following is not a purpose
D. sales account of financial accounting ___
A. determining profit
6. Which of the following is not a source B. fixing prices
document? C. credit dealings
A. a debit note D. determining cash balance
B. a credit note
C. an invoice 14. The maximum level of cash held by a
D. a payment receipt cashier under an imprest system is a/an
7. The two fundamental books of account __
are ___ A. vote
A. Cash Book and Petty Cash Book B. float
B. Receipt and Invoice C. reimbursement
C. Journal and Ledger D. advance
D. Notes and Coins

YEAR 10 FINANCIAL ACCOUNTING SECOND MID TERM TEST Page 1

 A. the first entry made in it is on the
15. When both debit and credit enry of a debit side
transaction are shown in the cash book, it B. there are more entries on the debit side
is described as __ than on the credit side
A. contra entry C. total value of debit entries is more
B. reversal entry than total value of credit entries
C. double entry D. there is no entry at all on the debit
D. single entry side

16. The purchase of a typewriter for office

use for N65, 000 should be debited to __
A. bank account
B. purchases account
C. cash account
D. equipment account

17. A trial balance is prepared to __

A. detect fraud
B. ascertain losses in a trading period
C. determine opening capital
D. test arithmetical accuracy of ledger
entries

18. Returns inwards is also called __

A. carriage inwards
B. carriage outwards
C. purchases returns
D. sales returns

19. The payment of ₦5,000 for rent was

debited to electricity account. This is an
error of __
A. principle
B. omission
C. original entry
D. commission

20. An account is said to have a debit

balance because __

YEAR 10 FINANCIAL ACCOUNTING SECOND MID TERM TEST Page 2

SECTION B- THEORY PART
Instruction: Answer any two questions from this section
1. From the following information write up a three column cash book of Favour Stores
balance off at the end of the month, and show the relevant discounts accounts as they
would appear in the general ledger:
2016
March 1 Balance brought forward:
Cash in hand ₦21,100
Cash at bank ₦89,840

“ 2 We paid each of the following accounts by cheque, in each case we deducted 5%

cash discount: T. Ankrah ₦8,000; Asafo ₦26,000; Kojo ₦44,000
“ 4 Talabi paid us a cheque for ₦9,800
“ 6 Cash sales paid direct into the bank ₦14,900
“ 7 Paid insurance by cash ₦6,500
“ 9 The following persons paid us the following accounts by cheque, in each case
1
deducted a discount of 2 %: Dambo ₦16,000; Apiah ₦6,400; Andrah ₦5,200
2
“ 12 Paid motor expenses by cash ₦10,000
“ 18 Cash sales ₦98,000
“ 21 Paid Salaries by cheque ₦12,000
“ 23 Paid rent by cash ₦6,000
“ 28 Received a cheque for ₦50,000 being a loan from Atadika
“ 31 Paid for stationery by cheque ₦8,700 (9 marks)
1b. Explain the following: (i) Trade discount (ii) Cash discount (iii) Trial balance
(6 marks)

2. From the balances of Daniel Enterprises for the year ended 31st December, 2000
$
Bank Overdraft 7,000
Machinery 40,000
Debtors 8,000
Loan 5,000
Bill payable 3,752
Furniture and Fittings 33,361
Stock of goods 71,000
Purchases 100,000
Sales 250,000
Drawings 3,260
Discount Allowed 839
Carriage inwards 1,110
Discount received 254
Cash 18,000
Provision for bad debts 730
Bad debts 68
Rent 156
Bills receivable 5,000
Sundry expenses 300
Accumulated depreciated-Furniture 1,700

YEAR 10 FINANCIAL ACCOUNTING SECOND MID TERM TEST Page 3

 Return inwards 2,130
Return outwards 1,250
Capital 9,000
Advertising 150
General Expenses 160
Creditor 5,000
Required
a. Classify the following transactions with Amounts above into Assets and Liabilities
(6 marks)
b. Prepare Trial balance as at 31st December, 2000 (9 marks)

3. The following information was extracted from the books for the month of January, 1997.
₦
Jan 1. Receipt 1,000
Jan 1. Petrol 40
Jan 2. Postage stamp 15
Jan 3. One realm of typing paper 30
Jan 4. Settlement of account- Dani 150
Jan 15. Office cleaning material 20
Jan 18. Travelling 40
Jan 20. Refunds of a clerk’s bus fare 20
Jan 21. Car polish 30
Jan 22. Petrol and oil 70
Jan 23. Petrol 140
Jan 24. Registered mail 30
Jan 25. Settlement of account- Brown 250
Jan 27. Settlement of account- Smith 60
Jan 28. Carbon paper 40
Required: (a) Enter the above transactions into Petrol, Postage Stamp, Office Expenses,
Transportation expenses, Personal ledger using imprest system and balance off the petty cash
book. (10 marks)
3b. Explain five reasons why a trader will grant discount to his customers (5 marks)

YEAR 10 FINANCIAL ACCOUNTING SECOND MID TERM TEST Page 4