FIRST TERM EXAMINATION

Examination malpractices may lead to a repeat of the subject or

suspensions don’t be involved.
SUBJECT: BOOK KEEPING TIME ALLOWED: 3HRS CLASS: S.S 3
OBJECTIVES
1. The double entry system of bookkeeping was introduced by.
A. Adam Smith B.A.R. Jennings. C. Frank Wood. D. Lucca Pacioli.
2. An item on the debit side of a petty cash book is.
A. Stationery. B. Transport. C. Float. D. rent.
3. when a provision is made against doubtful debts, the business owner is applying
A. Entity Concept B. Matching Concept C. Prudence Concept. D. Dual-aspect concept.
4. Items classified as assets in the balance sheet include.
A. overdraft. B. Drawings. C. Trademark. D. Creditors.
5. Purchases day book and returns outwards book are records kept by the
A. Seller. B. Buyers. C. Agents. D. supplier
6. Individual accounts of supplier are maintained in the?
A. Personal Ledge B. sales ledger C. Purshases ledger D. general ledger.
7. Members of co-operative society receive returns as
A. Dividends. B. Profit. C. Grants. D. Commissions.
8. Eze bought goods for #10000 on credit and #4,500 for cash. He returned goods worth
#1,500. The closing balance in his purchases account is
A. #16,000 B. #14,500 C.# 13,000 D.# 8,500
9. The statements of accounts that performs the dual roles of a journal and a ledger is.
A. Cash book. B. Sales Journal. C. Purchases journal D. Trial balance
10. An amount given to a petty cashier at the beginning of an accounting period is
A. Reimbursement B. Float. C. imprest. D. Disbursement
11. Records of a customer’s financial transaction with the bank is contained in the bank
A. Overdraft. B. List. C. account. D. Statement
12. Lizzy limited bought a motor vehicle for use on credit from Egudap Motors, the entries in
Lizzy books are: debit
A. Vehicle Account; credit Egudap Motors Account. B. Purshases Account; Credit Egudap
Motors account. C., Purshases Account; Credit Vehicle Account.
D. Vehicle account; credit Bank Account.
13. Sales of #3,000 to Atilola was debited to Akinola’s account. This is an error of
A. compensation. B. commission. C. principle. D. Transposition.
14. A trial balance has credit total of #43,000 and debit total of #34,000.A suspense account
should be opened and debited with?
A.# 43,000 B.# 34,000 C. #9,000 D.# 4,500
15. Items in a Debtors Control Account include?
A. Credit purchases B. cash paid C. discount received D. discount allowed.

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Use the following information to answer question 16-17
Cost of asset- #100,000
Depreciation- 10% on a reducing balance basis
16. Depreciation for the second year of use is A. #19,000 B.# 10,000 C.# 9,000
D. #1,000
17. The net book value of the asset at the end of the third year of use is?
A. #80,000 B. #72,900 C. #70,000 D. #65,610
18. The sum of money due to be paid from a member of a club which is yet to be paid at the
end of an accounting period is? A. Subscription in advance.B. subscription in arrears.
C. excess expenditure D. excess income.
19.Which of the following details is not found in purchases day book?
A. Date of purchase. B. Use of goods purchased. C. Cost of goods purchased.
D. A reference to how double entry is completed.
20. An example of source documents is. A. general journal. B. sales journal.
C. Credit note. D. Cash book.
21. Income and Expenditure Account is prepared to determine the
A. gross profit or loss. B. Net profit or loss. C. surplus or deficite. D. accumulated fund or
working capital.
22. The purchase of machinery entered in a nominal account is an error of
A. omission B. compensation C. commission. D. principle.
23. The amount paid for the acquisition of an existing business by an entrepreneur is?
A. retained value B. purchase consideration C. Selling price. d. purchase price.
24. An item on the credit side of a Profit and Loss Account is
A. carriage outwards. B. carriage inwards. C. discount received. D. discount allowed.
25. General is used to keep A. expenses account. B. income account. C. assets account.
D. debtors account
26. The concept that is a business is treated separately from those who have financial interest
in it is A. prudence. B. entity. C. objectivity. D. consistency.
27. The total amount of bad debts written off is debited to the
A. balance sheet. B.receipts and payments account. C. trading account.
D. Profit and loss account.
28. Sales of #151 was entered in the books as #115. The entries to correct this error are:
debit
A. Sales Account #36; credit Cash Account #36. B. Cash Account #36; credit Sales Account
#36. C. Sales Account #115; credit Cash Account #115. D. Cash Account #151; credit sales
Account #151.
29. The documents which sets out guidelines for the internal management of a joint stock
company is
A. Memorandum of Association. B. Articles of Association. C. Memorandum of
Understanding. D. Certificate of Incorporation.
30. The objective of a co-operative society is to protect the
A. position of the members. B. interest of the members. C. careers of the members.
D. dividend of the members.
31. A current assets item in the balance sheet of a sole trader is
A. drawings. B. creditors. C. debtors. D. accruals.

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32. Chucks bought goods worth #1,000 on credit and was given a discount of 21/2%.The
discount receivable is . A. #75 B. #25. C. #20. D. #15.

33. When the debit side total of a ledger is greater than the credit side total, the balance is
A. cash balance. B. debit balance C. credit balance. D. bank balance.
34. An obligation which a business owes another business or person is
A. an asset. B. an expenses. C. an income. D. a liability.
35. Subscription in arrears of a not-for-profit making organization is treated in the balance
sheet as a A. fixed asset. B. current asset. C. current liability D. long-term liability.
36. The amount for a vehicle bought on credit for office use is recorded in the
A. cash book B. purchases day book. C. purchases returns journal. D. general journal.
Use the following information to answer question 37-38.
#
Debtors 14,000
Creditors 6,000
Bank 5,000
Accruals 4,000
Stock 3,000
Provision for doubtful debts 2,000
37. The amount of current assets in the balance sheet is A. #22,000 B. #20,000
C. #12,000 D. #10,000
38. The working capital is A. #22,000 B. #20,000 C. #12,000 D. #10,000
39. A transaction in which the buyer promises to fulfil his financial obligation at a later date is
recorded in the books of the buyers as A. contract transaction B. Bank transaction
C. credit transaction D. Cash transaction
40. The capital of a sole proprietorship business is recorded in the
A. sales ledger B. impersonal ledger C. private ledger D. general ledger
SECTION B
ANSWER ANY TWO QUESTIONS FROM THIS SECTION
1. Explain the following accounting concepts
a. Business entity b. Going concern c. Accruals d. Historical cost e. Money measurements
2. a. What is trial balance?
b. Explain the following type of errors I. Omission II. Principle III. Commission iv. Original
entry
3. a. What is final account?
b. Differentiate between I. cash discount and trade discount II. discount allowed and
discount received
4. Explain the following terms in book keeping
a. Bad debt b. Provision for bad debt c. Accrued income d. Prepaid expenses e. Accrued
expenses
SECTION C
ANSWER ANY THREE QUESTIONS FROM THIS SECTION
5. The following balances relate to sales and purchases ledger of favour enterprises for the
month of August 2018
Debtors 1st August 2018. 16,264
Creditors 1st August 2018. 6,975
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Credit sales. 27,067
Credit purchase. 10,341
Purchases returns. 2,386
Sales returns. 2,825
Cash paid to creditors. 7,123
Cash paid to debtors 18,429
Discount allowed. 2,518
Bad debt. 1,136
Discounts received. 1,197
Cash refunded to customers 560
Required :prepare total debtors control account and total creditors control account
6. Ayomide a book keeper extracted the following information from the books of a trader in
June 2018
June 1 David a customer was incorrectly debited with #5,000 being value of goods sold to
Alex
June 8 Goods worth #3,000 were returned to Precious. The returns was entered in returns
inwards book
June 10 Sales of #3,690 to Chidubem were entered in the books as #3,609
June 13 Goods worth #6,000 withdrawn by the owner for personal use has been omitted
from the books
June 14 Purchase of furniture for #10,000 was debited to purchases account
June 15 Installation charges of #10,500 incurred on plant and machinery was charged for
legal expenses account
Prepare a journal to correct these errors
7. The following balances were extracted from the books of Grace on 31st March. 2015
# #
Capital. 350,000
Drawings. 7200
Stock at 1st April 2014. 34,800
Purchases and sales. 160,500. 250,400
Returns. 5,500. 4,500
Carriage inwards. 2,600
Carriage outwards. 9,300
Debtors and creditors. 52,000. 27,000
Bad debt. 1,600
Salaries and wages. 29,800
Electricity. 8,700
Office expenses. 5,900
Land and building at cost. 250,000
Equipment at cost. 100,000
Depreciation land & building. 25,000
Depreciation equipment. 19,000
Discounts. 3,600. 7,200
Provision for doubtful debts 2,800,
Cash and bank. 14,300,
Total. 685,800. 685,800
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Additional information
a. Closing stock #29,000
b. Electricity owing #4,000 and salaries prepaid #5,800
c Provision for doubtful debts is to be reduced to #1,500
d. Provide for depreciation of fixed assets as follows :
Land & building 5% on cost, Equipment 10% on diminishing balance basis
Required : prepare trading, profit and loss account for the year ended 31st March 2015 and
a balance sheet as at that date
8. Balam started business 1st April, 2015 with a capital of #300,000.The following is the
summary of his business transaction during the month.
April 2 bought goods for cash. 130,000
April 3 cash sales. 170,000
April 5 furniture bought for cash. 60,000
April 5 cash sales. 240,000
April 6 lent to zanu. 50,000
April 16 paid wages. 120,000
April 19 sundry expenses. 1,000
April 25 drawings. 40,000
April 30 payment for rent. 35,000
Required :
Write up the ledger account, extract the trial balance as at 30th April 2015
9. Okeowo a trader, uses periodic inventory system. The business records show the
beginning inventory of 900 unit at #10 each on 1st January 2015. The purchases and issues
of the items during the month are as follows:
Date. Receipt. Price. Issues
Unit. # unit
Jan 5. 1,200. 11. -
Jan 7. - - 1,500
Jan 11 3,000. 12. -
Jan 15. - - 1500
Jan 17. 4,000. 13. -
Jan 22. - - 4,200
Jan 24. 900. 15. -
Jan 27. - - 1,200
A physical count indicates 1,600 units in inventory at month end. You are required to
calculate the :
a. Cost of goods sold using FIFO b. Value of closing stock using FIFO