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
d. double entry posting
2. 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
c. receipt d. sales journal
4. Joseph returned goods worth #2,800 to Patrick. Joseph receives
a. an invoice b. a statement of account c. a debit note d. a credit note
5. 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
c. credited to the profit and loss account d. credited to the appropriation account
7. Which of the following is an asset? a. accrued wages b. rent arrears c.
prepayment
d. insurance owing
8. A purchase day book is used to record… a. cash transaction b. credit purchase c.
cash sales
d. 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
th
9. The cash in hand on 30 June is…… a. #2,220 b. # 2078 c. #1,642 d. #720
th
10. The cash at bank on 30 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?
a. realization b. matching c. periodicity d going concern
13. Which of the following is a real account items? a. goodwill b. fixtures c. debtors
d. interest
14. 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?
a. provision for doubtful debt b. bad debt written off c. carriage inward d. carriage
outwards
18. The accounting entry for a withdrawal of #800 cash from the bank is
a. credit bank debit cash b. credit cash debit bank c. debit drawings credit cash d.
credit drawings debit sales
19. The maximum level of cash held by a cashier under an imprest is a/an
a. vote b. float c. reimbursement d. advance
20. A debit balance of #2,000 in a cash account means that
a. 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
d. both debit and credit balance
25. A statement that shows the financial position of an organization is
a. trial balance b. balance sheet c. cash book d. control account
26. The account that shows both the cash and bank transaction of an enterprise is
a. appropriation account b. trading account c. profit and loss account d. cash book
27. Which of the following is not a personal account?
a. Bolaji account b. drawings account c. pz plc account d. cash account
28. Discount can be divided to trade discount and……. a. allowed b. received c.
cash discount
d. trade discount
29. The following are on the debit side of the trial balance except…..a. cash b. bank c.
machinery
d. overdraft
30. When a cheque is issued an is not taken to bank it is called…. a. uncredited cheque
b. unpresented cheque c. bank errors d. credit transfer
31. The right hand side of a ledger is called….. a. ledger b. balance c. debit d.
credit
32. The items in a three column cash book cash divided into… a. five b. six c. four
d. two
33. 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
a. discount column b. cash column c. bank column d. ledger folio
40. The lodgement of business cash into the business bank account is an example of
a. contra entry b. bank reconciliation c. self balancing ledger d. reversal
41. A petty cashier received a float of N120 and spent N84. The imprest is a. N204 b.
N120
 c. N84 d. N36
42. The source document used to make entries in the purchases day book is ………
a. debit note b. credit note c. invoice d. receipt
43. A book that contains individual accounts of suppliers is the …………………
a. purchases ledger b. general ledger c. nominal ledger d. sales ledger
44. Which of the following subsidiary books involves cash movement?
a. sales day book b. purchases day book c. returns inward book d. petty cash book
45. Sales less return inward is referred to as ….. a. sales b. sales return c. turnover
d. sales book
46. Which of the following is entered in the general journal?
a. purchase of goods b. sales of goods on credit c. returns inward d. acquisition of
fixed asset
47. 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
c. Define petty cash
2. Write short note on the following
i. 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 31st 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 31st October 1999.
Stock as at 1st 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
st
Stock at close 31 dec 2017 was #11,700
You are required to prepare: Trading profit and loss account for the year ended 31st dec
2017
7. On 9th 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:
a. A cheque #500 from owa was received and entered in the cash book but not
recorded in the bank statement.
b. Standing order #430 had not been entered in the cash book.
c. Cheques for #500 were not honoured by the bank.
d. The following cheques were drawn but had not been presented for payment: G.
Ayo #350 C.Tunde #300.97
e. A dividend of #200 was paid directly into the bank.
f. 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
st
31 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