BOOK KEEPING EXAM QUESTIONS FOR SS2 THIRD TERM
SS2 BOOK KEEPING EXAM QUESTIONS THIRD TERM – EDUDELIGHT.COM
THIRD TERM EXAMINATION
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.
SUBJECT BOOK KEEPING
CLASS: S. S. S 2
DURATION 3 HRS
OBJECTIVE
1. The concept which states that great care should be exercised in recognition of profit while all anticipated losses are adequately provided for is
a. Accrual b. Prudence c. Going concern d. Business entity
2. Net profit is the difference between gross profit and
a. Total expenses b. Accrued expenses c. Cost of goods sold d. Cost of goods available for sale
3. Who is responsible for the recording of financial transactions of a business?
a. Auditor b. Manager c. Book-keeper d. Director
4. The accounting entries for provision made for doubtful debts is: debit a. Profit and loss Account; Credit debtors account b. Debtors Account; Credit profit and Loss account c. Profit and loss account; credit provision for doubtful debts account d. Provision for doubtful debts account; credit profit and loss account
Use the following information to answer questions 5 and 6.
Acquisition cost of machinery #500,000
Installation cost #50,000
Estimated useful life 5 years
Estimated residual #10,000
5. The depreciation value of the machinery is
a. #560,000 b. #550,000 c. #540,000 d. #500,000
6. Using the straight line method of depreciation, the annual depreciation charge is
a. #112,000 b. #110,000 c. #108,000 d. #100,000
7. The document a supplier sends to a customer to correct undercast on an invoice is
a. receipt b. credit note c. debit note d. waybill
8. Which of the following assets would not depreciate due to passage of time?
a. machine b. building c. land d. furniture
Use the following information to answer questions 9-11.
#
Opening stock 2,500
Closing stock 1,200
Sales 30,000
Purchases 14,000
Carriage inwards 1,500
Discounts allowed 600
Rent 300
9. The cost of sales is a. #30,000
b. #18,000 c. #16,800 d. #13,200
10. The gross profit is a. #18,000 b. #16,800 c. #13,200 d. #12,300
11. The net profit is a. #16,800 b. #15,500 c. #13,200 d. #12,300
12. Impersonal ledger contains a. Income and expenditure accounts b. Debtors and creditors accounts c. Real and nominal accounts c. Capital and drawings
13. A dishonored cheque will be returned by the bank to the a. Payee b. Drawee c. Cashier d. Depositor
14. The excess of expenditure over income of a not-profit-making organization in an accounting period is a. Deficit b. Surplus c. Net profit d. Net profit
Use the following to answer questions 15 and 16
Tade bought goods on credit from Dopez
100 rulers at #50 each;
120 big notes at #100 each
5% trade discounts on the transactions
15. The total amount of goods bought on credit without the discount is
a. #17,000 b. #16,150 c. #12,000 d. #5,000
16. The amount payable by Tade if discounts is considered is a. #17,000 b. #16,150 c. #12,500 d. #5,000
17. The account which contains the summary of entries of individual accounts in the ledger is a. Trading account b. Control account c. Profit and loss account d. Income and expenditure account
18. AN advantage of the consistency concept is that a. Results of different year can be compared b. all known losses are adequately provided for c. the business will continue to exist in the foreseeable future d. all transactions affecting the business are recorded
19. Assets and expenditure are entered in the trial balance as a. Contra entries b. Debit entries c. Credit entries d. Double entries
20. Carriage inwards is classified as
a. A distribution expenses b. A trading expenses c. financial expenses d. An administrative expenses
Use the following to answer questions 21-23 # Capital 10,000
Motor van 68,000
Furniture 50,000
Creditors 25,000
Debtors 36,000
Bank 18,000
Accrued rent 4,000
21. The total asset is a. #172,000
b. #54,000 c. #29,000 d. #25,000
22. The working capital is a. 172,000
b. #54,000 c. #29,000 d. #25,000
23. The current liability is a. 172,000
b. #54,000 c. #29,000 d. #25,000
24. Adamu failed to record a return inwards of #20,000 in the books. This is an error of a. Omission b. Commission c. Principle d. Transportation
25. The letter “c” written under the folio column in the cash book indicates
a. Credit entry b. Contra entry c. Credit sales d. Cash sales
26. The document sent by the seller to the buyer to correct an overcharge is
a. Debit note b. Credit note c. Proforma invoice d. Consular invoice
27. The amount to be recovered when an asset is disposed at the end of its useful life is a. Salvage value b. Present value c. Market value d. Replacement value
Use the diagram below to answer 28-29
X Folio Date Particulars Totals V/N Item 1 Item 2 Item 3 Item 4
28. The diagram represents a. Single column cash book b. Two column cash book c. Three column cash book d. Petty cash book
29. Letter “X” represents a. Details column b. Receipts column c. Payments column d. Ledger column
30. The fixed amount of money set aside for petty expenses is a. Float b. Capital c. provision d. Reserve
31. Carriage inwards is classified as
32. a. a distribution expenses b. a trading expenses c. a financial expenses d. an administrative expenses
33. When a current account holder is allowed to
withdraw in excess of his bank balance,it is called a. borrowing b. credit drawing
c. debenture d. overdraft
34. Trial balance is used to test ———-accuracy of balances posted into ledger
a. accounting b. arithmetical c. auditing d. mathematical
35. Books of original entry can also be referred to as ——books a. cash b. debit c. petty cash d. subsidiary
36. An allowance given to customers for prompt payment of their account is known
as a. bonus b. cash discount c. dividend d. surplus
37. The physical counting of stock of goods on hand at a given period is known as a. counting b. inventory c. requisition d. stock taking
38. When a current account holder is allowed to withdraw in excess of his bank balance, it is called a. borrowing b. credit drawing
c. debenture d. overdraft
39. The indebtedness of a business to outsiders is known as a. assets b. capital c. deficit d. liabilities
40. Assets that are non physical in nature easily convertible to cash are called
a. current asset b. fictitious asset c. intangible asset d. liquid asset
41.The following are current assets except
a. bills payable b. cash in hand c. debtors d. stock
42.Which of the following is not credited to debtors control account?
a. bad debts b. bill receivable c. carriage outward d. credit notes issued
43. Which of the following is not an accounting concept? a. accrual b. depreciation c. dual d. going concern
Use the information below to answer question 44 and 45
Capital 1000
Bank. 600
Purchases. 1,250
Sales 3,350
Stock. 650
Creditors 500
Fixed assets 1850
Drawings. ?
Drawings are always estimated at 50% of capital.
44. What is the total of the trial balance?
a. #3900 b. #3950 c.# 4200 d. #4850
45. Calculate the amount of the drawing
a. #450 b.# 500 c.# 625 d. #750
46. The double entry system of book keeping was introduced by
a. Adam Smith b. A. R. Jennings c. Frank wood d. Lucca pacioli
47. An item on the debit side of a pretty cash book is a. stationery b. transport c. float d. rent
48. Eze bought goods for #10,000 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
49. The statement of accounts that performs the dua roles of a journal and a ledger is
a. cash book b. sales journal c. purchases journal d. trial balance
50. Records of a customers financial transactions with the bank is contained in the
bank a. overdraft b. list c. account d. statement
SS2 BOOK KEEPING EXAM QUESTIONS THIRD TERM – EDUDELIGHT.COM
THEORY
PART 1 ANSWER TWO QUESTION FROM THIS PART
1a. Differentiate between fifo and lifo
b. State the classes of ledger
c. Define depreciation
2a. State purpose of stock valuation
b. differentiate between bad debt and doubtful debt
c. Define trading account
3a. State the purpose of receipt and payment
b. What is accumulated fund?
c. state five items on the debit side of the profit and loss account
4a. State the classes of ledger
b. Explain three accounting concept
c. state three errors affecting the agreement of a trial balance
PART 2 ANSWER QUESTION FOUR AND ANY TWO QUESTION FROM THIS PART
4. Below is the balances extracted from the books of Favour on 31st July 1999:
Sales 307,442
Sales ledger control 28,860
Stock 21,488
Trade subscription 104
Telephone and postage 884
Travelling commission 14,968
Salaries 10,432
Rent paid 2,280
Purchases 253,066
Purchases ledger control 12,358
Printing expenses 1,578
Petty cash in hand 32
Equipment and furniture 3,240
Electricity 812
Insurance 504
Miscellaneous expenses 3,046
Drawings- Grace 7,054
Discount allowed 770
Discounts received 1,452
Cash at bank 8,464
Capital bal 1/8/98 36,814
Bad debts written off 484
Additional information:
a. Amount owing by Grace on 31st July 1999 were rent #760,travelers commission and expenses #1,230,electricity #112
b. Stock at 31st July, 1999 was #19,112
c. Provision:
Accountancy charges #462
Doubtful debts #580
d. Office furniture and equipment is to be depreciated by 10 percent.
You are required to prepare:
i. Trading profit and loss account for the year ended 31st July 1999
ii. A balance sheet as at that date
5. Daniel social club was formed on April 1, 2013 with 50 members each paying an annual subscription of D12. The following information was extracted from the books of the club on 31st march,2014.
(i) Amount realized during inauguration – D3000,expenses on inauguration D1000
(ii) All members paid their subscription with the exception of five members who were still owing by 31st march.2014
(iii) Gate fees from organized football match were D500 and expenses incurred D300
(iv) Proceeds from end of the year dance amounted to D4000 and expenses on dance D2,000
(v) Honorarium to officers amounted to D520 and sundry expenses D1,120
(vi) Amount paid for damages to furniture during dance D300.
You are required to prepare for the year ended 31st march,2014
a. receipt and payment account
b. income and expenditure account
6. The following information is available about a component
Opening stock 1st Jan 500 @ #2 each
Deliveries 6th Jan 160@ #2.20
20th Jan 180 @#2.25
Issues
2nd Jan 300
16th Jan 210
Use the following method to calculate closing stock
a. LIFO
B. FIFO
7. Write the three column cash book from the following transactions
July 1 balance brought forward cash #3,000 bank #9,000
2 the following were paid by cheque less 10% discount Sola #450,
Sobowale #3,000
3 cash sales #17,000
4 rate paid by cash #1,800
5 the following paid us by cheque in each case deducting 15% discount
Ayodele #16,000 Sure #4,200
6 withdraw cash from bank for private use #1,000
10 withdrew cash from bank for business use #6,000
13 cash purchases #500
14 bought goods paying by cheque #90
25 bought building by cash #300
30 paid insurance by cash #20
31 kayode lent us #1000 cash
8. A plant costing 10,000 and has a residual value of #1250 with an estimated life of 4 years. Calculate the depreciation using straight line method and prepare the necessary ledger
9. The following errors were discovered from the books of David
a. A sale of fittings #100 had been entered in the sales account
b. Purchase of motor car #400 had been entered in error in the motor expenses
c. Purchase of goods from favour #76 was entered in the accounts as #67
d. Discount allowed of #50 was entered in error on the debit of discount received
e. A receipt of cash from another #150 had been entered on the credit of cash account and debit side ayo account.
You are required to show the journal entries necessary to correct the error
SS2 BOOK KEEPING EXAM QUESTIONS THIRD TERM – EDUDELIGHT.COM
