Third Term Examination 2023/2024 SESSION

Name___________________________________________
SUBJECT: F/ACCOUNTING DURATION: 2 Hours
CLASS: SS1

1. Departmental account is use to _ (a) revealed the unprofitable department (b) surplus profit (c)
monitor affairs (d) purchases day book
2. Return inward is also called ___ (a) purchase return (b) sales return (c) carriage on return (d)
goods in transit
3. The purpose of trading account is to ascertain (a) gross profit (b) net profit (c) surplus (d)capital
4. Which of the following is an intangible asset (a) fixed asset (b) current asset (c) fictitious asset
5. Which of the following is not an account (a) debtor account (b) creditor account (c) trial balance
(d) cash book
6. Trade discount are given for ___ (a) bulk purchase (b) prompt payment (c) quick delivery (d)
cash payment
7. A balance sheet shows only (a) fixed asset and current liability (b) asset and long term liability (c)
asset and liability (d) asset and capital
8. The process of entering transaction from one book to another is (a) reading (b) posting (c)
numbering (d) listing
9. Which of the following is not a balance sheet item (a) discount received (b) motor van (c)
creditor (d) cash
10. When there is difference between the balance in the cash book and bank statement, there is
need for ___ (a) reconciliation (b) decision (c) dismantling (d) discussion
11. Reconciliation is necessary in order to test the accuracy of posting in the ___ (a) trading account
(b) cash book (c) petty (d) trial balance
12. ___ is the amount deducted by the bank for services rendered (a) divided (b) standing order(c)
bank charges (d) credit transfer
 13. ___ should be adjusted and deducted from the cost of goods available for sales (a) opening
stock (b) drawings (c) closing stock (d) prepaid income
14. The sum of money given to petty cashier out of which small payments are made is ____ (a)
bonus (b) loan (c) advance (d) float
15. Which of the following is not a cause of depreciation (a) inflation (b) wear and tear (c) erosion
and decay (d) obsolescence
16. The accounting principle which states that for every debit entry, there is a corresponding credit
entry is ___ (a) realization concept (b) dual aspect concept (c) entity concept (d) going concern
concept
17. The two fundamental books of accounts are ___ (a) return inward and outward (b) discount
allowed and received (c) journal and ledger (d) credit note and debit note
18. Which of the following trial will affect the totals of a trial balance? (a) compensation error(b)
complete reversal of entry (c) error in addition (d) error in original entry
19. Accumulated fund is also referred to as ___ (a) surplus (b) profit (c) deficit (d) invoice
20. Purchases in accounting refers to the goods bought for ___ (a) repairs (b) resale (c)permanent
use (d) owner’s use
21. Carriage inward is ___ (a)credited to the trading account (b) debited to the account (c) credited
to the profit and loss account (d) debited to the profit and loss account
22. When a buyer is undercharged, the seller forwards ___ (a) a debit note (b) a credit note (c) a
receipt (d)an invoice
23. Which of the following asset is not depreciable (a) building (b) tools (c) land (d) motor van
24. The following are the causes of depreciation except (a) wear and tear (b) proper usage (c)
depletion (d) obsolesce.
25. Standing order is the _____(a)order made by customer to the bank (b) Dishonoured cheque (c)
credit transfer ( d) Direct debit .
26. ____ is the account prepared to reconcile the cash book and bank statement
27. _____is trading account
28. _________ is depreciation
29. ______________ cause wear and tear of an assets
30. __________ and ______________ are the primary classification of account
THOERY
Answer all questions in this section

1a. Explain the following

(i) Bank reconciliation statement
(ii)Bank statement
(iii) Trading account
1b.write short not on the following :
a.Standing order
b.Unpresented cheque
c.Dishonoured cheque
2a.what is depreciation?
2b.explain three (3) factors that are taken into consideration in determining annual depreciation charge.

3.The cash book of olaoluwa and sons’ ltd with a balance of # 2000 did not agree with the balance of
the bank statement of #2270on 30th November 1996. An examination of record reveal the following
(a) Bank charges amounting to N50 entered in the bank statement has not reflected in the book.
(b) Cheque amounting to #1500 issued in favor of creditor and entered the cash book has not been
presented at the 30th November 1996.
(c) Dividend of #300 had been credited directly to his account by the bank.
(c) A customer along paid #120 directly into the bank without notifying the firm
(e) A cheque amounted to #1000 on 30th November not credited by the bank.
(f) a standing order of #600 to an organization was not taken into consideration
You are required to prepare the bank reconciliation statement
4.The following balance were extracted from the book of oladele enterprises for the year ended 31st
December 1991.
Sales : #
Department A 52,000
Department B. 68,000
Department C 30,000
Purchases :
Department A. 30,000
Department B. 45,000
Department C. 25,000
Insurance. 800
Commission paid. 3,500
Rent and rates. 2,460
Delivery expenses. 700
Administration expenses. 4,560
Discount received. 770
Salaries. 18,300
Advertising. 1,210
Depreciation. 2,100

Opening stock :

Department A. 7,000
Department B. 12,000
Department c. 3,000
Closing stock:
Department A. 10,500
Department B. 15,000
Department c. 5,000
Additional information:
Expenses are to be apportioned on the following basis :
a.salaries , depreciation, rent and rates, administration expenses _equally
b.Discount received_ purchases
c.Advertising , commission,and delivery expenses_sales
d. Insurance _ratio 5:3:2 to A ,B and C respectively
You are required to prepare departmental, trading, profit and loss account for the year ended 31st
December 1990.