Account Mock Examination Questions 2 2019/2020 Session – Senior Secondary School Three( SSS 3)
EDUDELIGHT SECONDARY SCHOOL
1 BENSON AVENUE, LEKKI PHASE 1, LAGOS
MOCK EXAMINATION 2019/2020
SUBJECT: ACCOUNT CLASS: SS 3 TIME: 3hrs 50minutes
- The two fundamental books of accounts are (a) return inward and outward (b) journal and ledger (c) discount allowed and received (d) credit note and debit note
- Which of the following is a capital expenditure (a) extension of building (b) repairs of generator (c) purchase of stock (d) purchase of stationery
- Expenses accrued at the end of the accounting year is treated in the balance sheet as (a) current assets (b) current liability (c) fixed assets (d) long term liability
- Another name for owner’s equity is (a) loan (b) debtors (c) capital (d) overdraft
- The reduction in the value of goodwill is (a) amortization (b) appreciation (c) depletion (d) depreciation
Use the following information to answer question 6 – 8
N
Opening Stock 4000
Purchases 12,000
Carriage inward 300
Return outward 322
Sales 20,000
Closing stocks 6000
- The cost of goods sold is (a) N16,300 (b) N15,978 (c) N10,022 (d) N9,978
- The cost of goods available foe sales is (a) N16,300 (b) N15,978 (c) N10,022 (d) N9,978
- The gross profit is (a) N12,300 (b) N11,978 (c) N10,022 (d) N9,978
- Which of the following is not recorded in a partnership appropriation account (a) interest on capital (b) partners drawings (c) share of profit (d) interest on drawings
- When a transaction is completely left out from the books, it is an error of (a) commission (b) omission (c) principle (d) compensation
- Which of the following is not a subsidiary book? (a) sales day book (b) purchase day book (c) general journal (d) trial balance
- In departmental account, rent is apportioned on the basis of (a) purchase (b) floor area occupied (c)number of personnel in each department (d) volume of sales
- The document used in governmental accounting to show evidence of cash receipts and payments is the (a) budget (b) warrant (c) votes (d) voucher
- Which of the following errors will affect the total of the trial balance?(a) compensating error (b) complete reversal of entry (c) error of addition (d) error of original entry
Use the following question to answer question 15 to 17
Okoro and Osuala are partners sharing profits and losses in the ratio 3:2 respectively. Their respective capitals were N40, 000 and N15, 000 and their drawings were N7, 000 and N5, 000. Interest on capital was 5% and interest on drawings was 10%. The net profit was N30, 000
- Okoro’s share of profit is (a) N17,070 (b) N16,070 (c) N11,380(d) N10,000
- Osula’s interest on drawings is (a) N2,000 (b) N750 (c) N700 (d) N500
- The total interest on capital is (a) N4,000 (b) N2,750 (c) N2,000 (d) N750
- Which of the following is an example of subsidiary book? (a) cash book (b) bank account (c) control account (d) trial balance
- Goods returned by buyer is recorded in the seller’s book as (a) carriage inwards (b) carriage outwards (c) returns outwards (d) returns inwards
- The method of ascertaining capital from incomplete records is by preparing the (a) cash book (b) statement of affairs (c) suspense account (d) control account
- A petty cashier operates with an imprestof N1,000 per week. At the end of the week he had disbursed N920. How much is needed to restore the imprest? (a) N1,920 (b) N1,000 (c) N920 (d) N80
- Accumulated fund is also referred to as (a) surplus (b) profit (c) deficit (d) capital
- Subscriptions owed by member of a club is a/an (a) asset (b) liability (c) profit (d) surplus
- Prime cost is derived by adding (i) cost of raw material consumed (ii) indirect expenses (iii) direct labour (iv) factory expenses (v) work in progress (vi) direct expenses (a) ii and iv only (b) iii and iv only (c) iv, v and vi only (d) ii, iii and v only
- The document from which entries are transferred to the purchase day book is the (a) way bill (b) credit note (c) receipt (d) invoice
- A book keeper debit motor vehicle account instead of motor van account. This is an error of (a) commission (b) original entry (c) complete reversal of entry (d) principle
- John received a cheque from Dauda , a debtor , in payment of goods purchased by Dauda on credit. The transaction will be recorded in John’s (a) cash book and sales ledger (b) nominal ledger and sales ledger (c) cash book and purchases ledger (d) nominal ledger and purchases ledger
Use the following information to answer question 28 and 29
N
Prime cost 4,000
Factory overheads 6,000
Stock on 1/1/09 work- in- progress 1,000
Stock on 31/12/09 work- in- progress 2,000
Returns inwards 800
Sales 20,000
- Cost of production is (a) N10,000 (b) N9,000 (c) N8,000 (d) N6,000
- Net sales for the period is (a) N20,000 (b) N 20,800 (c) N19,200 (d) N10,000
- The total value received by a company as consideration for shares issued constitutes (a) paid-up capital (b) authorized capital (c) working capital (d) capital employed
- The first calculating machine in data processing was (a) abacus (b) pascal (c) punched cards (d) digital
- The going concern concept assumes that (a) every transaction is represented by a debit and credit (b) the currency must not change (c) the firm is a legal entity (d) the business will continue to operate indefinitely
- Which of these following is not a purpose for which share premium may be utilized (a) issuing fully paid bonus shares (b) writing of preliminary expenses (c) settling sales men commission (d) providing for redeemable preference shares
- A debenture is a ——————————- (a) loan capital raised by a company (b) money given to a company as a gift (d) accrued expenses (d) share capital
- The concept which deals with the exclusion of trivial items in the accounting record is (a) consistency (b) going concern (c) materiality (d) money measurement
- Which of the following is not an example of capital reserve? (a) share premium (b) retained profits (c) surplus on revaluation of assets (d) pre- incorporation profits
- Goods sent to branch are recorded in the head office’s books at (i) selling price (ii) cost price plus mark-up percentage (iii) cost price (a) I and ii only (b) I and iii only (c) ii and iii only (d) I ,ii and iii
- Computer memory sizes are measured in (a) kilometres (b) kilowatts (c) kilobytes (d) centimetres
- Rent owing by a department is treated in the balance sheet as (a) asset of the business (b) asset of the department (c) liability of the business (d) liability of the department
- When shares are issued to the public and issuing company has not requested for payments, it is referred to as (a) authorized capital (b) paid-up capital (c) uncalled capital (d) unissued capital
Use the following information to answer questions number 41 and 42
Ogogo’s Sales Ledger Control Account
N N
Balance b/d 25,180 Discounts allowed 1,936
Sales 43,220 Sales returns 1,884
Dishonouredcheque 542 Cash received from customers xxxx
Balance c/d 5,122
68,942 68,942
- Net sales is (a) N41,878 (b) N41,336 (c) N41,284 (d) N39,400
- The total cash received from customers is (a) N68,942 (b) N60,000 (c) N43,220 (d) N41,336
- The diagrammatic representation of the workings of the computer program is (a) flow chart (b) desk top (c) key board (d) bytes
- The process of recording financial transactions of governments is (a) management accounting (b) financial accounting (c) cost accounting (d) public sector accounting
- A bank statement shows a debit balance of N475 after the entry of an uncredited cheque of N800. The new balance is ——————————————– (a) N365 overdraft (b) N325 (c) N1,275 (d) N1,275 overdraft
- The business entity concepts ——– (a) separate the business transactions from the owners transactions (b) record transactions outside the business (c) does not separate the owners transactions from the business transactions (d) involves other business transactions
- Which of the following is not used in public sectors accounting (a) cash book (b) trial balance (c) profit and loss account (d) bank reconciliation statements
- The concepts which state that assets should not be recorded at their current market value is (a) money measurement (b) materiality (c) cost (d) entity
- Provision for depreciation of delivery van is charged to (a) trading account (b) profit and loss account (c) appropriation account (d) manufacturing account
- Which of the following date lines is correct for a profit and loss account (a) for the year ended 31st December 2009 (b) as a 31st December 2009 (c) for the period of 31st December 2009 (d) as at the year 2009.
SECTION A
- Explain any three of the following ( a) computer error (b) garbage in garbage out (c) downtime (d) debugging (e) computer service bureau/ cyber café
- In the context of company account explain the following (a) promoter (b) prospectus (c) underwriting (d) bonus issue (e) dividend
- (a) explain three reasons why accountant will consider end of the year adjustments (b) explain how the following items are treated in the trading profit and loss account and the balance sheet (i) provision for doubtful debts (ii depreciation of fixed assets (iii) accrued income (d) prepaid expenses
- (a) what is single entry accounting system (b) state two characteristics of single entry accounting system (c) state three disadvantages of single entry accounting system
SECTION B
- The following information was extracted from the books of Akala enterprises
June 1: cash balance brought forwardN40, 000
June 2: bank balance brought forward N112,000
June 3: paid rent by cash N20,000
June 4: received loan from Osaro N10,000 by cheque
June 5: paid general expenses by cash N600
June 6: bought goods by chequeN60,000
June 7: deposit cash at bank N30,000
June 8: sold goods N185,000 by cash
June 9: sold goods and received cheque N194,000
June 10: bought goods from Ali N82,000 on credit
June 11: commission received by chequeN520
June 12: bought stationery by cash N150
June 13: sold goods N200,000 by cash
June 14: withdrew cash from bank NN43,000
June 15: sold goods and paid proceed to bank N200,000
June 16: bought motor van by cheque N60,000
June 18: paid Odion for goods bougth N5,000 by cheque
June20: paid part of Osaro’s loan by cash N5,000
June 23: withdrew cash from the bank N48,500
June 25: paid James for goods bought N25,000: N20,000 in cash, N5,000 by cheque
June 28: paid wages in cash N75,000
June 29: rent received by cash N2,500
June 30: cash sales N120,000
You are required to write up a two column cash book for the month.
- The following information was extracted from the books of Adesanya trading company which has three departments
Books Electronics Clothing
N NN
Stock —— ( 01/01/2017) 120,000 180,000 240,000
Purchases 3,720,000 4,380,000 3,240,000
Stock —— ( 31/12/2017 ) 240,000 360,000 480,000
Sales 4,800,000 5,400,000 4,200,000
Wages and salaries 120,000 60,000 180,000
Furniture 360,000 180,000 240,000
Motor van 300,000 360,000 240,000
Additional information: (i) the following expenses could not be traced to ant department:
Insurance N180,000
Rent N120,000
Advertising N60,000
General expenses N900,000
(ii) The company decided to apportion the insurance and rent in proportion to sales. Advertising and general expenses to be apportioned in the ratio 2:1:1 respectively
You are required to prepare a Departmental Trading and Profit and Loss Account for the year ended 31st December 2017.
- The following balance was extracted from the of Haruna enterprise for the month of February 2018.
N
Balance ———– 1stfeb. 2018
Sales ledger 320 dr
165 cr
Purchases ledger 275 cr
150 dr
Transactions during February 2018:
Cheques received from debtors 1850
Discount allowed 75
Credit purchases 3,400
Credit sales 5,200
Discount received 128
Cash paid to suppliers 1,400
Cheques paid to creditors 1,156
Cheques from credit customers dishonoured 250
Bills receivable 690
Bills payable 480
Returns outward 115
Interest charged on outstanding debtors balance 120
Bad debts 360
Cash from credit customers 2,200
Refund to customers for over payment 100
Debit balance in respect of some supplier set-off against their balance
In the sales ledger 400
Balance on 28th February 2018:
Purchase ledger 142 dr
Sales ledger 167 cr
You are require to prepare:
(i) Sales ledger control Account (b) Purchase ledger control Account
- Romeo and Juliet are in partnership, sharing profit and losses equally. They decided to dissolve the partnership on 30th April 2018. As at that date the partnership balance sheet is as follows:
Romeo and Juliet balance sheet as at
30th of April 2018
N N
Capital fixed Assets:
Romeo 600,000 plant and machinery 650,000
Juliet 550,000 delivery van 280,000
Fixtures and fittings 170,000 1,100,000
Current Account: Current Assets:
Romeo 150,000 Stock 90,000
Debtors 55,000
Cash 45,000 190,000
Current Liabilities :
Trade Crediors 100,000 Current Account:
Juliet 110,000
1,400,000 1,400,000
Additional information:
- The following were realized from the Assets N
Plant and Machinery 580,000
Delivery Van 225,000
Stock 110,000
Debtors 50,000
(ii). Creditors were paid off in full (iii). Dissolution expenses totaled N50, 000 (iv) fixtures and fittings were taking over by Romeo for N50, 000
You are required to prepare (a). Realization Account (b). Partners’ capital Account in columnar form (c) cash Account
- The following balances were extracted from the books of Akinyemi Local government. N
Bank balances 20,600
Licences 127,560
Rates 43,000
Rent from shops 87,000
Court fees 90,000
Salaries 193,000
Stationery 53,560
Purchase of bed 104,000
Maintenance of vehicle 80,500
Telephone 15,000
Purchase of drugs 18,400
Repair of roads 63,000
Grants from local government 200,000
You are required to prepare the (a). Trial balance (b). Receipts and payments account of the local government.
