Account Mock Examination Questions 3 2019/2020 Session – Senior Secondary School Three( SSS 3)
| EDUDELIGHT SECONDARY SCHOOL 1 BENSON AVENUE, LEKKI PHASE 1, LAGOS. |
MOCK EXAMINATION 2019/2020
SUBJECT: FINANCIAL ACCOUNT CLASS – SSS 3
TIME ALLOWED: 3:30HRS
Part 1 (objective) 25 marks
INSTRUCTION: Answer all questions from this part.
- The concept of double entry book-keeping states that (a) if you receive goods on credit, the seller becomes your creditors (b) for every debit entry there must be a corresponding credit entry (c) one party receives and another party gives value (d) purchases and sales are stated separately
- Outstanding rent of N300 is paid by the proprietor. The effect on the balance sheet is that (A) both the liability increase (b) both the liability and assets decrease (d) liability is decreased while the assets is increased
- Trade discount is (a) allowance for prompt payment (b) allowance for damaged goods (c) allowance for price list (d) discount on creditors
- The bank column in cash book shows a credit balance of N180. this means (a) a total payment of N180 (b) gross receipt of N180 (c) a leftover of N180 in the bank (d) an overdraft of N180
- Which of the following would be posted to the proprietor’s capital account? (a) gross profit (b) sales (c) net profit (d) gross loss
- The sales account is written up from:(a) a cash sales to customers only (b) credit sales to customers only (d) both cash credit sales
- When goods were sold for cash the credit entry goes to the (a) traders account (b) cash book (c) purchases accounts (d) sales accounts
- When a buyer returned damaged goods to the seller they received (a) profoma invoice (b) credit note (c) debit note (d) receipt
- Which of the following may have been recorded in the cash book and fail to appear in the bank statement? (a) bank charge and commission (b) cheque issued presented (c) bank lodgment (d) payment made in bank on standing order
- Which of the following belong to private ledger? (a) drawing (b) premises account (c) bank account (d) depreciation account
- Prime cost consist of (a) factory and cost of materials (b) overhead cost and direct cost (c) direct expenses, direct labour and direct materials (d) cost of sales, factory cost and cost of material
- Which of the following does not belong to the group? (a) straight line (b) insurance policy (c) reducing (d) accumulate
- Which of the following is the true uses of journal proper? I correction of errors II recording cash purchases III opening and closed accounting books (a) I only (b) II only (c) III only (d) I and III only
- Rent is apportioned to each department on the bases of (a) Area or space occupied (b) equality (c) turnover (d) purchases
- Which of the following errors affects the trial balance? (a) commission (b) omission (c) principle (d) lone entry
- A credit note for damaged goods must be entered first in the (a) purchases day book (b) sales day book (c) returns inwards book (d) returns outward book.
- The purchases of a typewriter for office use for N2,500.00 should be desired to (a) purchases day book (b) a bank account (c) cash account (d) assets account
- The sales day book will show goods sold (a) for cash only (b) on credit only (c) to wholesaler (d) to retailer
- when provision depreciation account is maintained the annual charge for depreciation shall be (a) debited to the profit and loss account (b) debited to the asset account and credited to the profit and loss account (c) debited to profit and loss account and credited to provision account (d) debited to asst account and credited to provision account
- The straight line depreciation is (a) a fixed sum set for the replacement of the asset (b) a fixed percentage of the balance of the asset at the end of the year (c) an estimated amount each year (d) an increase in the value of asset
- A motor car costing N10,000 was depreciated at 2% per annum by the diminishing balance method. Two years later it was sold for N6000. The net result of the sales was (a) N6400 (b) N6000 less (c) N4000 loss (d) N400 profit (e) 400 loss
- The balance of sales account is transferred to the trading account by (a) debiting the profit and loss account (b) debiting trading account (c) debiting the sales account (d) crediting the sales account
- Commission received is entered on the (a) credit side of the profit and loss account (b) credit side of the trading account (c) credit side of the cash book (d) debit side of the profit and loss account
- The salary of a shop keeper who sells goods would be charged in the (a) balance sheet (b) sales account (c) profit and loss account (c) trading account
- Carriage inward is shown on the (a) debit side of trading account (b) credited to trading account (c) debit side of profit and loss account (d) credit side of profit and loss account
- When shares are oversubscribed the promoter may decide to scale down the number of shareholding when this is done, the share are being (a) forfeited (b) issued as discounts (c) issued on prorate (d) issued at par
- Preliminary expenses of a limited liability company are (a) fixed asset (b) current asset (c) fictitious assets (d) fictions liability
- The authorized share capital of a limited liability company is the number of shares (a) offered for sales (b) called up (c) approved in the memorandum of association (d) paid up
- The cost of goods sold is N32,000 the gross profit is 25% on cost. Return inwards amount to N2,000, what is the value of sales? (a) N42,500 (b) N40,000 (c) N38,000
- Capital is the (a) liability of business to its proprietor (b) money owned by the company to others (c) money owned by the company by others (d) total of long term liability
- The document evidencing a disbursement of government fund is known as (a) bill (b) invoice (c) till book (d) payment voucher
- The authority of the accountant general to disburse from government fund is called (a) voucher (b) warrant (c) estimate (d) vote
- Where the cash book balance does not show a credit balance in a bank reconciliation, unpresented cheque is (I) added to cash book balance ( II) added to bank statement balance ( III) deducted from the cash book balance (a) I only (b) II only (c) III only (d) I and II only
- Which of the following statement is not true of a non-profit making organization? (a) income and expenditure account is prepared (b) income and expenditure account includes accruals and payment (c) income and expenditure account exclude capital receipts and capital payment (d) receipts and payment account is a substitute for income and expenditure account
- Carriage outwards in accounting term stand for amount spent on (a) goods purchases (b) goods sold (c) excess stock (d) goods for production
- If the opening stock is undervalued (a) goods available would be understated and gross profit overstated (b) goods available and gross profit would be undervalued (c) goods available would be overstated (d) cost of goods sold would be overstated
- Which of the following account are treated in the nominal ledger? I wages II discount allowed III Purchases (a) I only (b) II only (c) III only (d) I, II and III
- The capital sum which represents the difference between the assets and liability of a society or club is referred to as (a) consolidated fund (b) recurrent fund (c) accumulated fund (d) working capital
- Which of the following is not a liability? (a) accrued wages (b) credit (c)p repayment (d) insurance due but unpaid
- A business which converts raw materials to finished goods prepare (a) trading account and balance sheet (b) balance sheet (c) profit and loss and balance sheet (d) trading profit and loss account and balance sheet
- Which of the following is not a part of the central processing unit of a computer (a) arithmetical and logic unit (b)memory unit (c) input unit (d) control unit
- The double entry record to record the proceeds on the disposal of fixed assets is debit (a) Bank account, credit assets account (b) Assets disposal account ,credit bank account (c) provision for depreciation account, Credit assets disposal account (d) Asset disposal account, credit provision for depreciation account
- An underwriter for a company’s share is paid (a) interest (b) commission (c) dividend (d) salary
- Which of the following if found in a memorandum of association (a) names of directors (b) appointment of directors (c) object of the business (d) payment of dividend
- Administrative, selling and distributive expenses in a manufacturing firm are recorded in (a) trading account (b) manufacturing account (c) profit and loss account (d) balance sheet
- Which of the following is not a revenue to a local government (a) fines (b) licensees (c) personal income tax (d) tenement rate
Use the following information to answer question 47 and 48
Cash in hand 1,440
Cash at bank 2,440
Stock 2,500
Furniture and fittings 2,200
Creditors 1,000
- The capital is (a) N7,580 (b) N6,580 (c) N5,380 (d) N1,000
- The liability is (a) N7,580 (b) N6,580 (c) N5,380 (d) N1,000
- Which of the following is not an item in the profit and loss account (a)drawings (b) interest (c) salaries (d) Bad debts
- A loss made on the disposal of fixed assets is debited to (a) sales account (b) purchases account (c) profit and loss account (d) Capital account.
PAPER 2 (SECTION A): answer two questions from this section. 7 ½ marks each
- Explain the following accounts, in each case state the rules regarding the recording of transactions in debit and credit sides (a) personal account (b) real account (c) nominal account (d) liabilities account (e) assets account
- (a) explain five events that may lead to the dissolution of a partnership (b) state how the proceeds from a partnership is applied
- (a) State three uses of control account (b) list five items that are debited in the sales ledger control account (c) list four subsidiary books from which sales ledger control account are compiled
- (a) (i) explain reserves (ii)list two classification of reserves (b). state three ways in which reserves are utilized (c) list four examples of reserves
PART 2 (SECTION B): THEORY-Answer three questions from this section 20 marks each
5. The following trial balance was extracted from the books of Ajayi a sole proprietor as at 31st December, 2009
N N
Capital 50,000
Cash at bank 10,820
Leasehold premises 13,000
Plant and equipment 11,000
Furniture & fittings 6,000
Motor value 7,000
Stock 1/01/09 3,700
Wages and salaries 1,800
Debtors and creditors 850 750
6% loan 2,000
Purchases and sales 7,600 10,300
Office Expenses 80
Rent 200
Insurance 40
Discounts 20 40
Drawings 1,000
63,110
63,110
You are given the following additional information:
- stock at 31st December 2009 was valued N8,000
- The leasehold premises is for a term of 10 years
- Depreciation is to be charged as follows:
Plant and equipment 5%
Motor van 10%
Furniture & fitting 2 ½ %
- A debt of N10 is irrecoverable
- Provide for interest due on loan
- N80 was owing or office expenses
You are required to prepare:
i. Trading profit and loss account for the year ended 31st December, 2009 and
ii. balance sheet
- Sule runs two departments for suya and tea. The following balances were extracted from his ledger at 31st December 2016
DR CR
Sales:
Suya 5,000
Tea 4,500
Stock 1/1/2016
Suya(raw meat) 200
Tea 250
Purchases:
Raw meat for suya 2,000
Ingredient for suya 500
Tea bags 1,000
Milk and sugar for tea 600
Sundry expenses for suya 300
Salaries for assistance:
Suya 600
Tea 400
Electricity 240
Cleaning 110
General expenses 200
Debtors 3,100
9,500 9,500
You are given the following additional information
a. Stock at 31st Dec 2016 N
Suya (raw meat) 50
Tea bags 40
b. Electricity, cleaning and general expenses are apportioned equally between the two departments
Prepare a departmental form, the suya and tea trading and profit and loss account for the year ended 31st December, 2016
- . Below is an extract of the bank statement of Messers Jackson & Co. for April 2006
| DATE | DETAILS | DEBIT | CREDIT | BALANCE |
|
|
|
| ||
| 1/4/989 | Balance | 176,00cr | ||
| 4/4/1989 | Dasco enterprise | 40,000 | 216,000cr | |
| 5/4/1989 | Adebuya building | 60,000 | 276,000cr | |
| 7/4/1989 | Bisi cheque 011201 | 32,000 | 244,000cr | |
| 9/4/1989 | Jide cheque 011202 | 57.000 | 181,000cr | |
| 13/4/1989 | Okin & Co. cheque 011204 | 32,000 | 146,000cr | |
| 14/4/1989 | Bank charges | 7,280 | 146,920cr | |
| 15/4/1989 | Int. on fixed deposit | 4.000 | 150.920cr | |
| 18/4/1989 | Tolu & Co. cheque 011206 | 8,000 | 142,820cr | |
| 30/4/1989 | Kingsway cheque 011207 | 19,200 | 123,120cr |
You re given the following additional information:
- Cheque No. 011203 issued in favour of Taiwo Ajao and association for N24,000 was represented to the bank on 2nd May 1989
- Advice in respect of bank charges was received by Messrs Jackson & Co. on 6th May 2006
- Cherque issued in favour of Jide foods is for suppliers to the directors: (i) the cash book of Messsrs Jackson & Co. for April 1989 and (ii) a bank reconciliation statement as at 31st April 2006
- . The following was extracted from the books of Egbeyimi club of Aiyetoro for the year ended 31t Dec.1990
Receipt payment
Subscription N N
Donations 9,600
Interest received 6,900
Salaries 240
Scholarship 2,250
Drugs for the handicaps 2,220
Printing & stationary 2,070
Office furniture 510
Investment 2,090
Office stamp 4,500
14,540 14,540
You are also informed as follows:
- Subscription outstanding with member N300
- Accrual expenses:
i. salaries N300
ii. Scholarship N950
- Drugs N180
- Printing and stationery N240
You are required to prepare for the club
- income for account
- Balance sheet as at 31st December 2006.
- The following balances have been extracted from the books of Badagry East Local Government for the year ended 31st December, 2006.
HEAD PARTICULARS N
1001 Taxes 7,000,000
1002 Rates 4,500,000
1003 Local licenses 500,000
1004 Earning from commercial undertaking 200,000
1005 Rent on local Government properties 1,000,000
2001 Renovation of chairman’s office 2,000,000
2002 Construction of market stalls 1,500,000
2003 Office of the secretary 1,500,000
2004 Department of personnel management 2,000,000
2005 Department of finance and supplies 2,000,000
2006 Agriculture and community development 1,500,000
3001 External loans 2,000,000
3002 Grants 2,500,000
3003 miscellaneous receipts 1,500,000
You are required to prepare the Revenue and expenditure for the year ended 31st December, 2006.
