Account First Term Examination and Continous Assessment Questions 2019/2020 Session – Senior Secondary School ( SSS 1, SSS 2, SSS 3)

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EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^ST TERM EXAMINATION 2019/2020 SESSION

SUBJECT: ACCOUNTING CLASS: SS 1 TIME: 2hrs

OBJECTIVE: Answer all questions

The document used in correcting an undercharged account of the customers by the seller is the (a) credit note (b)debit note (c) receipt (d) invoice
The double entry principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
Asset – capital = (a) balance sheet (b) account (c) liability (d) money
————– needs accounting record mainly for budget making (a) tax authority (b) insurance (c) managers (d) government
Account may be classified into ——– major categories (a) 3 (b) 2 (c) 6 (d) 5
The total of the sales journal will be transferred to (a) sales inward account (b) sales outward account (c) sales ledger account (d) sales return account
The obligation of a company to the third party is known as (a) capital (b) asset (c) liability (d) income
Land and building is an example of (a) current asset (b) fixed asset (c) current liability (d) long term liability
The abbreviation A.N.A.N means (a) Association of Nigerian Accountants National (b) Association of Norway Accountants (c) Association of National Accountants of Nigeria (d) Association of new Accountants of Nigeria
The owner’s contribution to the business is referred to as (a) asset (b) liability (c) profit (d) capital
The following are not prime books of account except (a) sales ledger (b) cash ledger (c) purchases ledger (d) return inward journal
All purchases on credit are recorded in the ————— first (a)purchases ledger (b)purchases Journal (c)sales journal (d)purchases account
Which of the following is a short term liability (a) Accruals (b) Bank loan (c) share premium (d) Debenture
Entries at the beginning of a business is recorded in (a) sales journal (b) purchases journal (c) journal proper (d) cash journal
When part of the goods purchased are returned to the supplier as a result of defection, the goods are described as (a) return inward (b) return outward (c) carriage inward (d) carriage outward
Which of the following best defines book-keeping (a) statement of account (b) a book kept in order not to overburden the cash book (c) a systematic manner of recording business transaction (d) a statement showing assets and liabilities
Which of the following documents is used in operating a saving account (a) Bank teller (b) Travelers cheque (c) cheque book (d) Bank pass book
The following are source documents for cash sales except (a) cash sales invoice (b) Teller (c)Cash voucher (d) cash receipt
The document used for an overcharge account by the seller is the (a) credit note (b)debit note (c) receipt (d) invoice
Which of the following will best define balance sheet (a) form of trading account (b) proof of arithmetical accuracy (c) statement showing profit and loss (d) statement showing assets and liability of an organization
Which of the following is not a petty cash book item? (a) machinery (b) stamps (c) office pins (d) milk
Which of the following is not a long term liability? (a) debenture (b) preference share (c) long term loan (d) overdraft
Ledger accounts is classified into————— (a) personal, creditors and debtors account (b) company , non-company and government account (c) real, personal and nominal (d) joint, partnership and revenue account
Which of the following is an asset (a) bad debt provision (b) rent prepaid (c) wages accrued (d) sales
The double entry for goods purchased by cash is (a) Dr cash account and Cr purchases account (b) Dr purchases account and Cr cash account (c) Dr purchases account and Cr creditors account (d) Dr cash account and Cr
What effect with the purchase of asset on credit have on the balance sheet (a) increase Assets and Decrease Liabilities (b) increase Assets and increase Liabilities (c) increase both asset and Liability (d) decrease both Assets and Liabilities
The following are accounting concepts except (a) going concern (b) entity (c) dual (d) consistency
The following are books of original entry except (a) cash book (b) sales day book (c) purchases day book (d)the balance sheet
A transaction that complete is double entry in the cash book is called — entry (a) posting (b) overcast (c) contra (d) double
Given the value of assets to N6,000 and total liabilities to be N3500, what is the value of capital (a) N1500 (b) N2,500 (c) N3,500 (d) N4,500

Use the following information to answer question 30 – 34

January 1^st cash in hand N5,000

Cash at bank N10,000

Jan. 2^nd paid Momoh by cheque N1,500

Jan. 5^th paid transport by cash N200

Jan. 9^th received cheque from Grant N13,000

Jan. 15^th cash sales N8,000

Jan. 17^th paid Oche by cheque N11,200

Jan. 19^th paid Ugoro by cash N1000

Jan. 31^st paid wages cash N2,500

The cash in hand on 31/01/09 is (a) 2,200 (b) 2,078 (c) N1,642 (d) 578
The cash at bank on 31/01/09 1s (a)N10,300 (b) N9,300 (c) N7400 (d) N5,900
The total cash expenses is (a) 2,200 (b) N3,700 (c) N1,642 (d) 578
The total credit deposit to the bank is (a)N13,000 (b) 23,000 (c)N17400 (d) N5,900
A man purchased goods worth N6,700 and was granted 5% discount, how much is the value of the discount (a)N435 (b) N135 (c) N234 (d) N335
The accounting concept, which states that the affairs of the proprietor should be separated from that of the firm is (a) going concern (b) dual aspect concept (c) business entity concept (d) accrual concept
When part of the goods purchased by a consumer are returned to the organisation because they are defective, the goods are described as (a) returned inward (b) returned outward (c) carriage outward (d) carriage inward
Which of the following does not belong to the group (a)motor van (b) goodwill (c) capital (d) cash
The personal account of the customer is contained in the (a) purchase ledger (b) sales ledger (c) nominal ledger (d) personal ledger account
A sales day book is used to record (a) credit sales of fixed assets (b) cash sales of fixed assets (c) cash sales of stock (d) credit sales of stock

PART B

Answer question number one or two and any other two questions from this section.

State the effect of the following transaction on a balance sheet
Purchase machinery on credit
Cash paid to creditor
Goods sold for cash
Proprietor took cash out of the business
Receive cash from debtors
Purchase goods with cash
The proprietor introduces cash into the business
Deposit cash into bank
Purchase furniture for cash
Purchase goods on credit ( 20 marks)

Write up the cash book of Mr. Ajetumobi for the month of March 2018

Mar. 1. Started business with cash N8, 000

Mar. 2. Paid sundry expenses N2500

Mar. 3. Sold goods for cash N11, 000

Mar. 4. Paid rent and rate in cash N5000

Mar. 15. Bought fixtures in cash N4500

Mar. 20. Paid wages in cash N2000

Mar. 25. Cash sales to date N8, 500

Mar. 27. Paid rent N550

Mar. 27. Bought office machine N3500

Mar. 30.received from Ojo N8000 (20 marks)

(a) what is Book-Keeping ( 2 marks)

(b) Write out five uses of book keeping and Accounting (8 marks)

4. Write short note on the following

(i) Subsidiary Books

(ii) Ledger Account

(iii) Debit Note and Credit Note

(iv) Principles of Double Entry ( 10 marks)

5. (a) What are Source Documents (2 marks)

(b) List and explain at least four source documents. (8marks)

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^ST TERM EXAMINATION 2019/2020 SESSION

SUBJECT: ACCOUNTING CLASS: SS 2 TIME: 2hrs

OBJECTIVE: Answer all questions

Which of the following errors will not affect the trial balance (a) error of principle (b) compensating error (c) partial omission (d) complete reversal of entry
Discount allowed is found on the credit side of (a) purchase ledger control account (b) bad debt account (c) sales ledger control account (d) trading account
Which of the following is not a long term liability (a) Debenture (b) Preference Share Capital (c) Long-term Loan (d) Bank Overdraft
Royalty is a——– ( a) direct material b) direct labour (c) direct expenses (d) production cost
Opening stock + purchases is equal (a) total ( b) cost of goods sold (c) cost of goods available for sales (d) gross profit
Which of the following is not a nominal account item (a) electricity (b) insurance (c) rent (d) furniture and fittings
When part of the goods purchased are returned to the supplier as a result of defects the goods are described as (a) return inward (b) return outward Use the following to answer question 8 – 10

Sales N100,000

Purchases N60,000

Opening Stock N30,000

Closing Stock N35,000

Bad debt N5,000

Discount Allowed N500

Discount received N650

Transport N1,000

What is the cost of goods sold (a) N160,000 (b) N75,000 c) N55,000 (d) N45,000
What is the Average Stock (a) N32,500 (b) N75,000 ( c) N55,000 d) N100,000
What is the Net Profit ( a) N45,000 ( b) N55,000 (c) N37,850 (d) N40,000
One of the causes of differences between the cash book and the bank statement is ( a)Discount received ( b) Provision for bad debt ( c) Uncredited cheque ( d) Discount allowed
One of these is found on the credit side of the partners appropriation account (a) drawing (b) interest on drawing (c) salary (d) interest on capital
Suppliers personal accounts are found in the (a) sales ledger (b) sales account (c) purchases ledger (d) purchases account
The double entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
The objective of Manufacturing account is to determine (a)credit purchases (b) cost of goods sold (c) cost of production (d) net profit
The purchases ledger control account is also referred to as (a) total debtors ledger control account (b) personal account (c) total creditors ledger control account (d) cash account
Purchases of goods from Obi had been in Obika’s account, this is an error of : (a) Omission (b) compensation (c) commission (d) original entry
Depreciation of machinery is treated under ———– by the manufacturing company (a) direct expenses (b) selling expenses (c) administrating expenses (d) indirect expenses
Opening stock + purchases – closing stock = (a) total sales (b) cost of goods sold (C)gross profit (d) prime cost
Which of the following is a nominal account (a) Goodwill Account (b) machinery account (c) account of the supplier (d) capital account
Which of the following is not treated in the profit and loss account (a) depreciation of motor van (b) discount allowed (c) debenture (d) discounts
An agreement made by partners to regulate and govern their business activities is (a) partnership act (b) partnership deed (c) partnership code (d) memorandum
Which of the following belongs to the sales ledger (a) bank account (b) creditors account (c) debtors account (d) rent and rate account
Which type of expenditure is shown on asset side of Balance sheets?                       (a) capital expenditure   (b) prepaid expenditure   (c) accrued Expenditure
(d) overdraft
                 use the information below to answer question 25 – 27
                                                                                                 N

Debtors 1/1/2015 1000

Cash from debtors 8000

Bad debt written off 400

Discount allowed 500

Discount received 125

Closing debtors balance 31/12/2015 3000

What was the amount of sales for the year (a) N8,900 (b) N11,900 (c) N10,500 (d)N9,900
The debtors balance to be shown in the balance sheet as at 31/12/15 is (a) N6,000 (b) N3,250 (c) N2,000 (d) N3,000
Total expenses that will appear in the profit and loss account will be (a)N1,150 (b) N1,900 (c) N1,250 (d) N 900
Financial Statement of business at any targeted point time in terms of assets and liabilities is called————–
a) Book Keeping (b) Profitability Statement (c) Balance Sheet (d) Audit
Financial Accounting considers transactions (a) in terms of money (b) important from business point of view (c) not in terms of money ( d) in terms of charity
Purchase of goods by cash N500 was correctly recorded in the cash account but was not recorded in any other book, the correction to this error is—- (a) debit cash and credit purchases (b) debit purchases and credit suspense (c) debit suspense and credit purchases (d) credit purchases and debit cash
Which of the following best defines book-keeping (a) statement of account (b) a book kept in order not to overburden the cash book (d) a systematic manner of recording business transaction
In a partnership business interest on capital is credited to the partner —– account (a) appropriation (b) current (c) trading (d) profit and loss
The following are source documents for cash sales except (a) cash sales invoice (b) Teller (c)Cash voucher (d) cash receipt
The document used for the correction of undercharged account by the seller is the ——— (a) credit note (b)debit note (c) receipt (d) invoice
The — is used to correct errors (a) credit note (b)suspense (c) journal (d) invoice
The double entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
The total direct cost incurred by a manufacturing firm is referred to as (a) royalty (b) prime cost (c) overhead cost (d) production cost
Interest on drawing of a partner is charged to (a) debit side of the appropriation account (b) credit side of the appropriation account (c) debit side of profit and loss account (d) credit side of profit and loss account
A book containing the rules and guideline of a partnership business is known as (a) partnership current account (b) partnership deed (c) partnership memorandum (d) partnership account
Accounting Policies and Procedures once decided should not be changed till any sound reason is made. This is known as (a) Accrual Concept (b) Conservatism (c) Business Entity Concept (d) Consistency

PART B

Answer question one and any other two from this section

Dotun and Ajetumobi are in partnership sharing profit and loss in the ratio 3:2. the following is the trial balance as at 31^st December 2017

Trial balance Dr Cr

N N

Capital: Dotun 100,000

Ajetumobi 50,000

Drawings: Dotun 6,000

Ajetumobi 5,000

Purchases 12,000

Sales 40,000

Sales returns 4,000

Purchases returns 2,000

Stock 1^st Jan 2017 10,000

Carriage inwards 1,200

Salaries and wages 15,000

Bad debts 1,000

Office expenses 2,400

Loan – Okafor 14,000

Provision for doubtful debts 300

Discount allowed 1,150

Discount received 1,100

Building at cost 30,000

Machinery at cost 109,100

Cash at bank 8,000

Motor van at cost 50,000

Electricity 50

Provision for depreciation motor van 10,000

Debtor s 20,000

Creditors 10,000

Bills payable 9,000

Bills Receivable 37,500

Current account balance: Dotun 7,500

Ajetumobi 1 1,000

283,800 283,800

Additional information:

(a) stock at close N20,000 (b) electricity prepaid N500 (c) interest on drawings 5% (d) partnership salary Dotun N8,000 (e) salaries and wages accrued N3,000 (f) interest on capital at 10% (g) depreciation motor van 10% (h) provision for bad debt is to be increased to N600 (i) Dotun withdrawn goods for his own use N7,000

You are require to : (a) prepare to trading, profit and loss account for the year ended 31^st December, 2017 (b) Partners capital account (c) balance sheet as at 31^st December, 2017. (20 marks)

The following balances were extracted from the books of The Learningfield enterprises on 30^th June 2016.

Purchase ledger ( cr ) 1/6/16 7,532

Sales ledger ( dr ) 1/6/16 7,948

Purchases day book 90,454

Sales day book 77,530

Return outward day book 3,960

Return inward day book 14,180

Cheque received from customers 56,680

Cheque paid to supplier 61,860

Cash refund from a supplier who was overpaid 240

Discount allowed 3,774

Discount received 2,678

Credit notes received 280

Debit notes issued 530

You are required to prepare:

Debtors ledger control account
Creditors ledger control account (10 marks)
(a) Define Partnership Account (2marks)

(b) State at least five content of the Partnership agreement ( 8 marks )

Draw a comprehensive format of the debtors ledger control account and creditors ledger control account (10 marks)
List and explain ten contents of the manufacturing, Trading and profit and loss account. ( 10 marks )
List and explain five errors affecting the trial balance and three errors not affecting the trial balance ( 10 marks )

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^st TERM CONTINUOUS ASSESSMENT TEST FOR 2019/2020 SESSION

SUBJECT: Account CLASS: SS2 TIME: 45mins

Which of the following errors will not affect the trial balance (a) error of principle (b) compensating error (c) partial omission (d) complete reversal of entry
Discount allowed is found on the credit side of (a) purchase ledger control account (b) bad debt account (c) sales ledger control account (d) trading account
Which of the following is not a long term liability (a) Debenture (b) Preference Share Capital (c) Long-term Loan (d) Bank Overdraft
Opening stock + purchases is equal (a) total ( b) cost of goods sold (c) cost of goods available for sales (d) gross profit
Which of the following is not a nominal account item (a) electricity (b) insurance (c) rent (d) furniture and fittings
One of the causes of differences between the cash book and the bank statement is a)Discount received b) Provision for bad debt c) Uncredited cheque d) Discount allowed
Suppliers personal accounts are found in the (a) sales ledger (b) sales account (c) purchases ledger (d) purchases account
The double entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
The purchases ledger control account is also referred to as (a) total debtors ledger control account (b) personal account (c) total creditors ledger control account (d) cash account
Purchases of goods from Obi had been in Obika’s account, this is an error of : (a) Omission (b) compensation (c) commission (d) original entry

Part B. Answer only one question from this section

List and explain ten contents of the manufacturing, Trading and profit and loss account. ( 10 marks )
List and explain five errors affecting the trial balance and three errors not affecting the trial balance ( 10 marks )

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^ST TERM EXAMINATION 2019/2020 SESSION

SUBJECT: ACCOUNTING CLASS: SS 3 TIME: 2hrs

OBJECTIVE: Answer all questions

Use the following to answer question 1 – 3

Sales N100,000

Purchases N60,000

Opening Stock N30,000

Closing Stock N35,000

Bad debt N5,000

Discount Allowed N500

Discount received N650

Transport N1,000

What is the cost of goods sold (a) N160,000 (b) N75,000 (c) N55,000 (d) N45,000
What is the Average Stock (a) N32,000 (b) N32,500 (c) N55,000 (d) N100,000
What is the Net Profit ( a) N45,000 (b) N55,000 (c) N39,000 ( d) N37,850
One of the causes of differences between the cash book and the bank statement is (a)Discount received ( b) Provision for bad debt (c) Uncredited cheque ( d) Discount allowed
Gilt edge security are —— (a)Risk bearing security ( b) less Risk bearing security (c) High Risk bearing Security (d) Discount allowed
A machine cost N20,000 was to be used for 5yrs and at the end will be sold for N5,000 what will be the depreciation per year using the Straight line method (a) N15,000 (b) N5,000 c) N3,000 (d) N6,000
If the reducing balance method is applied to assets in question 18 above, the rate of depreciation is (a) 60% (b) 24.2% (c) 42.2% (d) 10%
The double entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
The unit of capital of a limited liability company is known as (a) capital (b) share (c) debenture (d) accumulated fund
One of the following is not an institution involved in the capital market (a) Central bank (b) insurance company (c) commercial bank (d) building society
The objective of trading account is to ascertain (a)credit purchases (b) cost of goods sold (c) gross profit (d) net profit
A fixed loan capital to an organization back up a certificate evidence is called (a) overdraft (b) bank loan (c) debenture (d) stock
Which of the following is a contra entry (a)lodgment of cheque into bank account (b) lodgment of office cash into the bank account (c) withdrawal of cash for private use (d) treatment of discount received in the cash book
Purchase of goods from Uchenna had been in Uchechi’s account. this is an error of : (a) Omission (b) compensation (c) commission (d) original entry
The obligation of a company to the third party is known as (a) capital (b) asset (c) liability (d) income
Land and building is an example of (a) current asset (b) fixed asset (c) current liability (d) long term liability
The abbreviation I.C.A.N means (a) Institute of Chartered Accountants of Norway (b) Institute of Chartered Accountants of Niger (c) Institute of Chartered Accountants of Nigeria (d) Association of new Accountants of Nigeria
The owners contribution to the business is referred to as (a) asset (b) liability (c) profit (d) capital
A man purchased goods worth N2,275 and was granted 5% discount, how much did he pay for the goods? (a)N2,161 (b) N2,171 (c) N2,616 (d) 2700
The following are source documents for cash sales except (a) cash sales invoice (b) Teller (c)Cash voucher (d) cash receipt
The document used for an overcharge account by the seller is the (a) credit note (b)debit note (c) receipt (d) invoice
The act of recording the action price of buying an asset can be linked to — (a) Cost Concept (b) Materiality (c) Money Measurement Concept (d) identity
The total of the sales journal will be transferred to (a) sales inward account (b) sales outward account (c) sales ledger account (d) sales return account
The offer made to sell part of the existing security to the public is referred to as (a) offer for subscription (b) offer for sale (c) offer by placement (d) offer by introduction
Revenue earned during a financial period should be counter checked according to (a) Accounting Period Concept (b) Cost Concept (c) Matching Concept (d) Dual Aspect Concept
The money set aside out of profit to meet a specific purpose is known as (a) asset (b) liability (c) reserves (d) provisions
Errors in the ledger can only be corrected through (a)journal proper (b) sales day book (c) purchases day book (d) control account

Use the following statement to answer question 28-30

Fixed Assets N7000

Stock N1500

Debtors N800

Creditors N2000

Cash in hand N1700

Capital N19000

What is current ratio (a) 3:1 (b) 25:1 (c)2:1 (d) 1.25:1
What is the quick ratio (a) 3:1 (b) 2.5:1 (c)2:1 (d) 1.25:1
The working capital is (a) N4000 (b) N2000 (c)N1700 (d) N1200
Which of the following ratio is used to measure solvency (a) gross profit ratio (b) current ratio (c) gearing ratio (d) net profit ratio
A receipt and payment account is similar to (a) income and expenditure account (b)profit and loss account (C) Cash Account (d) sales account
The double entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854

A man purchased goods worth N2,275 and was granted 5% discount, how much is the value of the discount (a)N2,161 (b) N1,161 (c) N141 (d) 114
The document used in correcting an undercharged account of the customers by the seller is the (a) credit note (b)debit note (c) receipt (d) invoice
Incomes and expenditures need to be recorded in books of account as and when there is any transaction not waiting till their payment. This concept is known as (a) Accrual Concept (b) Double Entry Bookkeeping (c) Objectivity (d) Money Measurement Concept
The following can lead to the dissolution of partnership except (a) Death of a partner (b) Retirement of a partner (c) elapse of the contract period (d) lack of advertisement
Long term business financing can be best obtained from the (a) money market (b) capital market (c) loan market (d) mediating market
One of the following Assets can be acquired through hire purchase (a) stock (b) capital (c) Machinery (d) goodwill
The double entry record for the sale of Assets for cash is
Debit asset account and credit sales account (b) debit cash account and credit asset account (c) credit asset account and debit sales account (d) credit cash account and debit asset account

PART Two

Answer two questions from each section in this part.

Section 1.

(a). What is dissolution of Partnership ? ( 2marks)

(b) Give three reasons that could rise to “ dissolution of Partnership” (3marks)

(a) What is trial Balance? ( 2marks) (b) distinguish between bad debt and provision for bad debt ( 3marks)
List and explain five items that may cause discrepancies between the cash book and the bank statement. (5marks)

section 2.

Ada, Victor and Ndu are in Partnership sharing profit and losses in the ratio 3:4:2. The balance sheet as at 3ist December 2011 was as follows:

Capital: Ada 13,800 Fixed Assets 24,780

Victor 25,000 Stock 13,552

Ndu 16,075 Debtors 30,000

Creditors 14,567 cash 2,780

Loan 1,670

71,112 71,112

On the 1^st of January 2011, they dissolved the partnership and the following events occurred

Ada took one of the Assets ( Motor Van) at a value of 800

The remainder of the fixed assets realized 20,000

The debtors realized 28,000

The creditors were paid off 13,500

Liquidation expenses was 750

Stock realized 13,000

The loan was settled.

Required:

(a). Realization Account

(b). Cash Account

(c). Capital Account of the partners 20marks

Learning field Ltd Manufacturers of bottled water has its authorized capital as N800,000 made up of 600,000 ordinary shares of N1 each and 400,000 3%preference shares of N0.50 each. During the year ended 31^st December 2011, the following balances were extracted from the financial records of the company

Issued and paid up capital

Ordinary share of N1 each 500,000

3% preference share of N0.50 each 100,000

General reserve 30,000

Goodwill 20,000

5% Debenture 20,000

Stock 31/12/2011 25,000

Net profit for the year 80,000

Land and Building at cost 517,500

Fixtures and Fitting at cost 25,000

Motor Vehicle at cost 80,000

Provision for depreciation fixtures and fitting 2,500

Provision for depreciation motor vehicle 16,000

Creditors 10,000

Debtors 50,000

Bank 40,000

Cash 1,000

Additional information:

Provision is made for the preference shares divided. The directors recommend ordinary shares dividend of 4%
Goodwill to be written off over four years

Prepare:

Appropriation account for the year ended 31^st December 2011.
Balance sheet as at that date. 20 marks

On 31^st September 2011, Mr. Akala’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.
Cheque drawn amounting to N1,500 had not been presented for payment.
A standing order of N600 to a club was not taken into consideration.
Bank charges of N50 were entered in the bank statement only.
A dividend of N300 was paid directly into the bank account and not recorded in the cash book
Cheque of N1,000 was entered into the cash book and paid to the bank but had not been cleared and thus not credited.
A customer, Adekanbi, paid N120 directly into the bank without notifying the firm.

You are required to prepare

The adjusted cash book and
The bank reconciliation statement. 20 marks

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^st TERM CONTINUOUS ASSESSMENT TEST FOR 2019/2020 SESSION

SUBJECT: Account CLASS: SS3 TIME: 45mins

The objective of trading account is to ascertain (a)credit purchases (b) cost of goods sold (c) gross profit (d) net profit
A fixed loan capital to an organization back up a certificate evidence is called (a) overdraft (b) bank loan (c) debenture (d) stock
Which of the following is a contra entry (a)lodgment of cheque into bank account (b) lodgment of office cash into the bank account (c) withdrawal of cash for private use (d) treatment of discount received in the cash book
Purchase of goods from Uchenna had been in Uchechi’s account. this is an error of : (a) Omission (b) compensation (c) commission (d) original entry
The obligation of a company to the third party is known as (a) capital (b) asset (c) liability (d) income
Land and building is an example of (a) current asset (b) fixed asset (c) current liability (d) long term liability
The abbreviation A.N.A.N means (a) Association of Nigerian accountants (b) Association of Norway accountants (c) Association of National Accountants of Nigeria (d) Association of new Accountants of Nigeria
The owners contribution to the business is referred to as (a) asset (b) liability (c) profit (d) capital
The act of recording the actual price of buying an asset can be linked to — (a) Cost Concept (b) Materiality (c) Money Measurement Concept (d) identity
Land and building is an example of (a) current asset (b) fixed asset (c) current liability (d) long term liability

Part B. answer any two questions from this section

(a) What is a company account (b). list and explain four documents needed in the formation of a company
List and explain at least five function of the capital market
Write short note on the following i. preference share ii. Ordinary shares iii. Share premium iv. Capital reserve

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^st TERM CONTINUOUS ASSESSMENT TEST FOR 2019/2020 SESSION

SUBJECT: Account CLASS: SS1 TIME: 45mins

Account may be classified into ——– major categories (a) 3 (b) 2 (c) 6 (d) 5
The total of the sales journal will be transferred to (a) sales inward account (b) sales outward account (c) sales ledger account (d) sales return account
The obligation of a company to the third party is known as (a) capital (b) asset (c) liability (d) income
Land and building is an example of (a) current asset (b) fixed asset (c) current liability (d) long term liability
The abbreviation A.N.A.N means (a) Association of Nigerian accountants national (b) Association of Norway accountants (c) Association of National Accountants of Nigeria (d) Association of new Accountants of Nigeria
The owners contribution to the business is referred to as (a) asset (b) liability (c) profit (d) capital
The following are not prime books of account except (a) sales ledger (b) cash ledger (c) purchases ledger (d) return inward journal
All purchases on credit are recorded in the ————— first (a)purchases ledger (b)purchases Journal (c)sales journal (d)purchases account
Which of the following is a short term liability (a) Accruals (b) Bank loan (c) share premium (d) Debenture
Entries at the beginning of a business is recorded in (a) sales journal (b) purchases journal (c) journal proper (d) cash journal

Parts B. answer all questions in this part.

What is book-keeping ( 2marks )
Write out three importance of book-keeping ( 3 marks )
List and explain four source documents ( 5 marks )

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^st TERM CONTINUOUS ASSESSMENT TEST (2) FOR 2018 SESSION

SUBJECT: Account CLASS: SS1 TIME: 45mins

Ledger accounts is classified into (a) personal, creditors and debtors account (b) company , non-company and government account (c) real, personal and nominal (d) joint, partnership and revenue account
Which of the following is an asset (a) bad debt provision (b) rent prepaid (c) wages accrued (d) sales
The double entry for goods purchased by cash is (a) Dr cash account and Cr purchases account (b) Dr purchases account and Cr cash account (c) Dr purchases account and Cr creditors account (d) Dr cash account and Cr
What effect with the purchase of asset on credit has on the balance sheet (a) increase Assets and Decrease Liabilities (b) increase Assets and increase Liabilities (c) increase both asset and Liability (d) decrease both Assets and Liabilities
The following are accounting concept except (a) going concern (b) entity (c) dual (d) consistency
The following are books of original entry except (a) cash book (b) sales day book (c) purchases day book (d)the balance sheet
A transaction that complete is double entry in the cash book is called ——— entry (a) posting (b) overcast (c) contra (d) double
Given the value of assets to N6,000 and total liabilities to be N3500, what is the value of capital (a) N1500 (b) N2,500 (c) N3,500 (d) N4,500
Which of the following does not belong to the group (a)motor van (b) goodwill (c) capital (d) cash
The personal account of the customer is contained in the (a) purchase ledger (b) sales ledger (c) nominal ledger (d) personal ledger account

THEORY ANSWER ALL QUESTIONS

State the effect of the following transaction on a balance sheet

Purchase machinery on credit
Cash paid to creditor
,;NG9
Goods sold for cash
Proprietor took cash out of the business
Receive cash from debtors
Purchase goods with cash

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^st TERM CONTINUOUS ASSESSMENT TEST (2) FOR 2018 SESSION

SUBJECT: Account CLASS: SS2 TIME: 45mins

Which of the following best defines book-keeping (a) statement of account (b) a book kept in order not to overburden the cash book (d) a systematic manner of recording business transaction
In a partnership business interest on capital is credited to the partner —– account (a) appropriation (b) current (c) trading (d) profit and loss
The following are source documents for cash sales except (a) cash sales invoice (b) Teller (c)Cash voucher (d) cash receipt
The document used for the correction of undercharged account by the seller is the (a) credit note (b)debit note (c) receipt (d) invoice
The ————- is used to correct errors (a) credit note (b)suspense (c) journal (d) invoice
The double entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
The total direct cost incurred by a manufacturing firm is referred to as (a) royalty (b) prime cost (c) overhead cost (d) production cost
Interest in drawing of a partner is charged to (a) debit side of the appropriation account (b) credit side of the appropriation account (c) debit side of profit and loss account (d) credit side of profit and loss account
A book containing the rules and guideline of a partnership business is known as (a) partnership current account (b) partnership deed (c) partnership memorandum (d) partnership account
Accounting Policies and Procedures once decided should not be changed till any sound reason is made. This is known as (a) Accrual Concept (b) Conservatism (c) Business Entity Concept (d) Consistency

THEORY

Show the journal entries necessary to correct the following errors:

(a). Sale to Ojo N500 was completely omitted from the books.

(b). Goods purchased from Ibrahim N300 was entered in Abraham account

( c ). Sales account was under cast by N80 so also the salary account

( d). Commission received of N150 was entered in sales account

(e). Discount allowed of N870 was recorded in error to the debit side of discount received. ( 10 marks )

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^st TERM CONTINUOUS ASSESSMENT TEST (2) FOR 2019/2020 SESSION

SUBJECT: Account CLASS: SS3 TIME: 45mins

Revenue earned during a financial period should be counter checked according to (a) Accounting Period Concept (b) Cost Concept (c) Matching Concept (d) Dual Aspect Concept
The money set aside out of profit to meet a specific purpose is known as (a) asset (b) liability (c) reserves (d) provisions
Errors in the ledger can only be corrected through (a)journal proper (b) sales day book (c) purchases day book (d) control account

Use the following statement to answer question 4-6

Fixed Assets N7000

Stock N1500

Debtors N800

Creditors N2000

Cash in hand N1700

Capital N19000

What is current ratio (a) 3:1 (b) 25:1 (c)2:1 (d) 1.25:1
What is the quick ratio (a) 3:1 (b) 2.5:1 (c)2:1 (d) 1.25:1
The working capital is (a) N4000 (b) N2000 (c)N1700 (d) N1200
Which of the following ratio is used to measure solvency (a) gross profit ratio (b) current ratio (c) gearing ratio (d) net profit ratio
A man purchased goods worth N2,275 and was granted 5% discount, how much is the value of the discount (a)N2,161 (b) N1,161 (c) N141 (d) 114
The document used in correcting an undercharged account of the customers by the seller is the (a) credit note (b)debit note (c) receipt (d) invoice
Incomes and expenditures need to be recorded in books of account as and when there is any transaction not waiting till their payment. This concept is known as (a) Accrual Concept (b) Double Entry Bookkeeping (c) Objectivity (d) Money Measurement Concept

Theory

Write short note on the followings (i). Consignor (ii). Del-Credere Commission (iii). Proforma invoice (iv). Consignee (v). Hirer ( 10 marks )
(i)What is hire purchase (ii) differentiate between hire purchase and installment payment ( 10 marks )

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