ACCOUNTING EXAM QUESTIONS FOR SS3 FIRST TERM
SS3 ACCOUNTING EXAMINATION QUESTIONS FIRST TERM – EDUDELIGHT.COM
FIRST TERM EXAMINATION
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.
SUBJECT: FINANCIAL ACCOUNTING
TIME: 3HRS
CLASS: SS 3
OBJECTIVE
1. Which of the following is the effect of a reduction in provision for doubtful debt?
a. reduction in net profit b. reduction in cash balance c. reduction in gross profit d. increase in gross profit
2. The reward given to a debenture holder is called a. profit b. reserves c. premium d. interest
3. Subscription in advance is an example of a. prepayment b. accrual c. debtors d. provision
4. Which of the following is an example of personal account?
a. stock b. fixtures c. equipment d. debtors
Use the following to answer question 5 to 10
#
Sales 45000
Opening stock 20000
Closing stock 30000
Expenses 15000
Fixed assets 40000
Debtors 10000
Creditors 5000
Purchases 25000
5. The cost of goods sold is a. #45000 b. #30000 c. #25000 d. #15000
6. Net profit is a. #45000 b. #30000 c. #15000 d. #20000
7. Net profit percentage is a. 100% b. 67% c. 50% d. 33%
8. Current ratio is a. 16:1 b. 15:1 c. 8:1 d.2:1
9. Working capital is a. #60000 b. #45000 c.#40000 d. #35000
10. Gross profit percentage is a. 100% b. 67% c. 50% d. 33%
11. Working capital is measured by the excess of
a. current asset over current liabilities b. fixed asset over current asset c. current asset over fixed asset d. long term liabilities over fixed assets
12. Overdraft is usually shown as a. credit balance in the cash column of the cash book b. debit balance in the cash column of the cash book c. debit balance in the loan account d. credit balance in the bank column of the cash book
Use the following information to answer question 13 to 17
#
Purchases: raw materials 20000
Finished goods 15200
Stock 1/1/89 raw materials 3000
Work in progress 2500
Wages direct 22800
Indirect 7200
Factory expenses electricity 12000
Insurance 2000
Stock 31/12/89 raw materials 4000
Work in progress 4500
13. What is the cost of raw materials available? a. #23000 b. #22500 c. #20000 d. #19000
14. The cost of materials used is a. #23000 b. #21000 c. #20000 d. #19000
15. The prime cost is a. #49000 b. #45800 c. #43800 d. #41800
16. The amount of factory overhead is a. #28200 b. #23200 c.# 21200 d. #19200
17. The cost of manufactured goods is a. #67500 b. #65500 c. #63000 d. #61000
18. A suspense account is used to a. agree the trial balance b. record sales c. record purchases
d. correct an errors
19. A sales day book is used to record a. cash sales of stock b. credit sales of stock c. cash and credit sales of stock d. cash sales of fixed asset
20. Which of the following fixed assets is not depreciable?
a. building b. tools c. land d. motor van
Use the following information to answer questions 21 to 24
Fixed assets 12000
Current asset 5000
Current liabilities 2300
Capital 10000
Longterm liabilities 4700
21. What is the total asset? a. #17300 b. #17000 c. #15000 d.#14700
22. What is the total net asset? a. #10000 b. #14700 c. #15000 d. #17000
23. Total liabilities amount to a. #17000 b. #14700 c. #12300 d. #7000
24. The working capital is a. #10000 b. #2700 c.#7300 d. #7000
25. Which of the following is not charged to manufacturing account?
a. raw materials b. factory wages c. distribution expenses d. direct expenses
Use the following to answer questions 26 to 29
Debtors 30000
Creditors 20000
Opening stock 15000
Closing stock 18000
Wages 3000
Salaries 10000
Purchases 30000
Sales 60000
26. The gross profit percentage is a. 67% b. 55% c. 50% d. 45%
27. The net profit percentage is a. 100% b. 67% c. 50% d. 33%
28. The working capital is a. #48000 b. # 33,000 c. # 28000 d. #10000
29. The stock turnover is a. 4.0 times b. 3.6 c. 3.3time d. 1.6 times
30. one of the following is not a liabilities a. loan b. accruals c. debtors d. creditors
31. The successful of distributing shares to successful applicants is
a. allocation b. appointment c. allotment d. application
32. The accounting entries for cash realized from the sale of assets on dissolution of
partnership is debit
a. cash account credit partners capital account b. asset account credit cash account
c. cash account credit realisation account d. realisation account credit cash account
33. The parties who are paid last in the event of winding up are
a. preference shareholders b. debenture holders c. ordinary shareholders d. trade
creditors
Use the following information to answer question 34 and 35
Receipt and payments 31st December 2016
# #
cash at bank. 460. new equipment 200
subscription 520. cleaners wages. 540
donations. 500. stationery. 140
sales of tickets. 490. repairs 110
entrance fees. 670
34. The surplus for the year is a. #1,970 b. #1,890 c. #1,650 d. #1,390
35. The total income received for the year is a. #2,640 b. #2,180 c. #1,890 d. #1,690
36. In incomplete records, opening capital is ascertained by preparing
a. closing capital b. control account c. statement of affairs d. statement of single entry
Use the following information to answer questions 37 to 39
#
Authorized share capital :
75,000 ordinary share capital 750,000
25,000 6% preference shares. 250,000
1,000,000
Issued and paid up capital :
50,000 ordinary shares. 500,000
20,000 6% preference shares. 200,000
700,000
Reserves:
general reserve. 100,000
share premium. 75,000
profit and loss account. 13,000
5% debentures. 100,000
creditors. 60,000
proposed dividend. 66,000
1,114,000
37. What is the total of the share capital? a. #1,000,000 b. #875,000 c. #700,000 d. #500,000
38. Calculate the total capital reserves a. #175,000 b. #100,000 c. #75,000 d. #66,000
39. What is the total revenue reserves? a. #175,000 b. #105,000 c. #25,000 d. #13,000
40. The maximum amount which a firm is allowed to raise by way of selling shares is —– capital
a. authorized b. called – up c. issued d. paid -up
41. Debenture is classified under which of the following heading
a. current asset b. current liability c. fixed assets d.long term liability
42. The term bad debts means debt … a.owed by a customer b. owed by a supplier
c. receipt from sales of goods d. rent from premises sublet
43. The purchase of a photocopying machine for office use for #50,000 should be debited to ——–account
a. asset b. bank c. cash d. purchases
44. The financial plan of government for a year is contained in the
a. budget b. cash book c. gazette d. vote book
45. The reward given to a shareholder is
a. dividend b. interest c. premium d. profit
46. An example of fictitious asset is
a. cash at bank b. debtors c. goodwill d. prepayment
47. Suppliers account are found in the —–ledger
a. general b. nominal c. private d. purchases
48. Damaged goods returned by a customer is usually accompanied by
a. credit note b. debit note c. proforma invoice d.return note
49. One of the following is not a method of depreciation
a. Straight line b. reducing balance c. Petty d. revaluation
50. The excess of current assets over current liabilities is ——- capital
a. authorized b. issued c. nominal d. working
SS3 ACCOUNTING EXAMINATION QUESTIONS FIRST TERM – EDUDELIGHT.COM
SECTION B: ANSWER ANY TWO QUESTION FROM THIS SECTION
1a. define accounting
b. what are the function of stock exchange
2. Write short note on the following
I. Consignee II. Consignor III. delcredere commission iv.jobber v. broker
3a. What is capital market?
b. differentiate between capital market and money market
4a. What is bank reconciliation statement?
b. Explain any five causes of disagreements between cash book and bank statement
SECTION C: ANSWER QUESTION 6 AND ANY TWO QUESTION FROM THIS SECTION
5. The profit and loss account of Okere nig ltd showed a balance on appropriation of #25000 and the net profit for the year was #97000. It was decided to deal with the balance as follows:
1. To provide for #5000 corporation tax.
2. To pay a dividend on 60,000 6% preference shares of #1 each
3. To pay a dividend of 10% on the 100000 ordinary shares.
4. To write off the existing balance of goodwill #6000
5. Transfer #8000 to general reserve
6. To carry forward the balance.
7. Debtors 10,000
8. Creditors 15,000
9. Furniture 50,000
10. Machinery 50,000
11. Cash 50,000
12. Bank 47, 400
Prepare the profit and loss appropriation account and balance sheet
6. Prosperous industries is a small business producing and selling food beverage.
The following list of balances have been extracted from the books as at 31st December 1999
#
Sales 255000
Purchases of raw materials 49000
Carriage inward on raw materials 3000
Carriage outwards on finished goods 2000
Wages-factory operatives 48250
Salaries –factory supervisors 13250
Management and clerical staff 33000
Sales and marketing staff 29000
General expenses 5875
Electricity and rent 17000
Insurance 3375
Advertising 6000
Discount received 2500
Plant and machinery 26000
Delivery van 10000
Stock at 1/1/98: raw materials 9500
Work in progress 6250
Finished goods 12000
Stock at 31/ 12/98: raw materials 8250
Work in progress 9000
Finished goods 14500
Additional information:
a. Depreciation for the year is to be as follows:
plant and machinery at 13% per annum.
Delivery van at 25% per annum
b. At 31/12/98 insurance prepaid was #475 and general expenses owing amounted to #225
c. Apportionment of expenses is to be made as follows:
factory administration
Electricity and rent 85% 15%
Insurance and general expenses 70% 30%
You are required to prepare:
a. A manufacturing account
b. A trading,profit and loss account for the year ended 31st December 1999.
7. On March 1 1999,seye purchased a motor car from Alaba for cash price of #20,920.
he agreed to pay for it in 3 equal installment of N6000 at the rate of 10% per annum.
depreciation was allowed at 12% on cost. Deposit N6000.
prepare :
a. motor car account b. Alaba account c. interest payable account
d. provision for depreciation account e. profit and loss account
8. Temidayo limited issued 200,000 ordinary shares of #1 each at #1.25k per share payable as
follows:
20k on application
45k on allotment (including premium)
30k on first call
30k on second call
Required show the ledger entries to record the above transaction
9. The following information was extracted from the books of Igbaotun club of eko for the year ended December 1998
Receipt
#
Subscription. 6900
Donations. 9600
Interest received 240
16,740
Payment
Salaries. 2250
Scholarship. 2220
Drugs for the handicap 2070
Printing and stationery. 510
Office furniture. 3090
Investment. 4500
14,640
Additional information
a. Outstanding subscription #400
b. Accrued expenses :
Salaries. 400
Scholarship 920
Drugs 190
Printing and stationery 340, creditors 5, 340
Prepare :
a. Income and expenditure account
b balance sheet as at that date
SS3 ACCOUNTING EXAM QUESTIONS FIRST TERM – EDUDELIGHT.COM
