SS1 FINANCIAL ACCOUNTING

THIRD TERM EXAM

1. _______is the unit of capital (A) capital (B) shares (C) discount (D) cheque
2. The ledger is the final destination of all transactions is ____book (A) cash book (B)
subsidiary book (C) book of ledger (D) sales book
3. _____are ledgers for creditor account and debtor account (A) sales ledger (B) personal
ledger (C) private ledger (D) statement account
4. ____are account for properties, item of expenditure and income
(A) personal account (B) impersonal account (C) real account (D) nominal account
5. Trading account is prepared to show ___and ____ (A) capital and sales (B) profit and loss
(C) gross profit and gross loss (D) sales and purchase
6. ____is a cash book that represent three account (A) bank (B) bank statement (C) three
column cash book (D) discount allowed
7. ____is given to the customer for prompt payment of other account (A) trade discount (B)
discount allowed (C) bank (D) discount received
8. ___is the total cash and credit sales during the trading period (A) purchase (B) sales (C)
closing stock (D) wages
9. ____is the systematic recording of transaction on a daily basis in the appropriate books (A)
financial (B) book keeping (C) management (D) profit
10. Cash column is cash___ (A) receipt (B) credit (C) sales (D) rent
11. Two column cash book contain ___and____ (A) cash and particular (B) cash and receipt
(C) cash and bank (D) debit and credit
12. The following are the users of accounting except one (A) competitor (B) employees (C)
reliable (D) managers
13. ____is the broader sense done with human conduct in relation to what is right or wrong (A)
behavior (B) transparency (C) ethics (D) accounting ethics
14. _____is a book for recording debts led particulars of all money received and paid (A) petty
cash book (B) ledger (C) cash book (D) cash bank
15. ____is the record in a double entry system that is kept for each class of asset, liability and
expense (A) accounting (B) account (C) personal account (D) ledger
16. ____is an order made by the customer to the bank to make regular payments (A) uncredited
cheque (B) unpresented cheque (C) standing order (D) interest
17. ____is the account that shows the net profit and net loss (A) profit and loss account (B)
opening and closing account (C) sales and purchase (D) inward and outward
18. ____are goods bought for resale (A) purchase (B) sales (C) wage (D) stock
19. What is accounting?
20. What is book keeping?
21. What is bank?

SECTION B: ESSAY
Answer one question and any other three question
Prepare bank reconciliation statement
1. on 31st march 1990, Ogundele’s cash book showed a debit balance of N2,000. His bank
statement showed a balance of N2,270 on comparison, the following were found
a. Cheque drawn amounting to N1,500 had not been presented for payments
b. A standing order of N600 to a club was not taken into consideration
c. Bank charges of N50 were entered in the bank statement only
d. A dividend of N300 was paid directly into the bank and not received in the book
f. A customer, Bolaji paid N120 directly into the bank without notifying the firm
e. Cheques for N1,000 were entered into cash book and paid to the bank but had not been
cleared and thus not credited
B. List types of account
2. From the following trial balance of Joel, drawn up a trading, profit and loss account for the
year ended 31st Dec 1996
Dr Cr
Capital N22,636
Stock N2,368
Carriage outwards N200
Carriage inwards N310
Returns inwards N205
Sales N18,600
Purchase N11,874
Returns outward N322
Salary and wages N3,862
Rent N306
Insurance N78
Sundry expenses N664
Advertising N216
General expenses N480
Land and building N5,000
Furniture & fitting N1,800
Motor car N350
Debtors N3,896
Bank N10,482
Creditors N1,731
Drawings N1,200
N43,289 N43,289

Stock at 31st December 1996 was N3,000

You are required to:
(i) prepare trading, profit and loss account
(ii) balance sheet
3. The following details and balance off as at the end of the month 1995
January 1 started business with capital in cash N3,000
January 2 paid rent by cash N70
January 3 received loan from Pablo N500 by cheque
January 5 we paid Olu by cheque N165
January 6 we paid general expense in cash N300
January 9 withdrew N4,000 from cash bill and paid it into the bank account
January 12 banked cash N900
January 14 cash purchase N500
January 16 bought goods by cheque N130
January 19 commission received by cheque N50
January 21 bought motor van by cheque N60
January 22 cash drawing by the proprietor N21
January 24 we paid Biodun for goods bought N250, N150 in cash N100 by cheque
January 26 wages paid in cash N35
January 27 bought stationery paying cash N75
January 28 withdrew N105 from bank for private use
January 30 rent received by cheque N45
January 30 cash sale N1,000
You are required to prepare two column cash book
4a. Give 10 reasons for disagreement between the cash book and the bank statement
b. Give three importance of account
5a. List and explain the types of Account
b. What is bank statement?