ACCOUNTING EXAM QUESTIONS FOR SS1 THIRD TERM
THIRD TERM SS1 ACCOUNT EXAMINATION QUESTIONS – EDUDELIGHT.COM
THIRD TERM EXAMINATION
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.
SUBJECT FINANCIAL ACCOUNTING CLASS: S. S. S 1 DURATION 3 HRS
OBJECTIVE
1.Which of the following is an impersonal nominal account?
a. Salaries account b. machinery account c. debtors account d. Creditors account
2. Profits are recognized when goods are sold. What concept is this?
a. Realization b. Matching c. Periodicity d. Going concern
3. A fixed amount set aside for petty expenses is? a. Imprest b. float c. receipt d. fund
4. The source document sent by the seller to the buyer when goods are returned is?
a. credit note b. purchases invoice c. petty cash book d. voucher
5. Carriage inward expenses of a business is treated in a. trading account b. balance sheet c. appropriation account d. profit and loss account
6. Which of the following is not a liability?
a. accrued wages b. creditors c. prepayments d. rent in arrears
7. Discount allowed is charged to
a. Trading account b. balance sheet c. current d. profit and loss account
Use the following information to answer questions 8 and 9
#
Opening stock 40000
Purchases 130000
Closing stock 32000
Sales 180000
8. What was the cost of goods sold?
a. #170000 b. 138000 c. 130000 d. 122000
9.What was the gross profit?
a. #58000 b. #540000 c. #42000 d. 10000
10. A ledger is a _____________
a. principal book of account b. book of original entry c. record of credit transaction d. summary of entries
11.One of the following is not found in the trial balance a. opening stock b. closing stock c. capital d. rent paid
12.In the preparation of bank reconciliation statement uncredited cheques are
a. added to the balance as per b. deducted from the balance as per bank statement c. added to the balance as per cash book d. ignored totally
Use the following to answer to answer questions 13 and 14
#
Balance as per cash book 18000
Dishonoured cheques 1200
Bank 300
Unpresented cheques 2400
13. The adjusted cash book balance is
a. #18900 b. #18000 c. #17700 d. #16500
14.The balance as per bank bank statement is
a. #21300 b. #18900 c. #16500 d. #14100
Use the following information to answer question 15 and 16
#
Purchases 2000
Opening stock 900
Closing stock 300
Sales 3850
15. Gross profit is
a. #1850 b. 1250 c. #950 d. #650
16. The cost of goods available for sale is
a. #3850 b. #2900 c. #2300 d. #2000
17. Which of the following doesn’t appear in the bank statement?
a. Dividend received b. Bank charges c. Uncredited cheque d. dishonoured cheque
18. An example of fictitious asset is
a. goodwill b. overdraft c. profit d. stock
19. Tolu purchased a machine for #6000 on credit.The effect is to debit ________ and credit the account of the supplier
a. cash b. creditor c. debtor d. machinery
20.Nominal ledger contains the following accounts EXCEPT
a. cash b. discount allowed c. rates and rents
d. sales
21. Which of the following is not a cause of depreciation? a. appreciation b. evaporation c. obsolescence d. tear
22. Which of the following is not a subsidiary book? a. sales day book b. purchases day book c. general journal d. trial balance
23. Which of the following is an example of subsidiary book? a. cash book b. bank statement c. control account d. trial balance
24.The accounting equation is
a. Assets =Capital + Income b. Assets=Capital +expenses-liuabilities c. Assets=capital+income-expenses d. Assets = Capital + liabilities
25. Purchase invoice is first entered in the
a. purchases account b. cash book c. sales journal d. purchases journal
26. In preparing a profit and loss account, a decrease in the provision for doubtful debts account is treated as
a. current liability b. expenses c. income d. current assets
27. Which of the following is not a method of depreciating fixed assets
a. revaluation b. straight line c. diminishing balance d. obsolescence
28.Bank reconciliation statement is prepared to reconcile the difference between
a. bank statement and credit transfer b. cash book and bank transfer c. bank statement and bank transfer d. cash book and bank statement
29.The balance sheet is prepared to reveal
a. the result of the operation for the period ended under review b. the financial position of the business c. the arithmetical accuracy of the ledger accounts d. the accruals and prepayments
30. The excess of cost of goods sold over net sales is
a. Gross profit b. gross loss c. net profit d. net loss
31. Investors in a business are mainly interested in the firms a. liquidity b. debt
c. management d. Profitability
32. Which of the following items is found on the debit side in a trial balance?
a. provision for doubtful debts b. discount allowed c. discount received d. returns outward
33. The claim of a proprietor of a business entity on its assets is
a. liabilities b. capital c. drawings d. funds
34. Entries in the purchases journal are transferred to the
a. receivable ledger b. payable ledger c. general ledger d. private ledger
35. A reduction in price to encourage prompt payment is
a. trade discount b. quantity discount c. cash discount d. seasonal discount
36. Which of the following activities will increase profit?
a. depreciation charges b. reduction in provision for doubtful debts c. undervalued
closing stock d. return inwards
37. Cost of goods sold is calculated as
a. opening stock + purchases – closing
b. opening stock + sales – closing c. opening
stock + purchases + closing stock
d. opening stock +sales +closing stock
38.The concept which states that revenue is recognized when goods are sold is
a. accrual concept b. going concern concept c. business entity concept d. periodicity concept
39. A fall in the value of a fixed asset due to technological changes is described as
a. superfluity b. wear and tear c. obsolescence
d. depletion
40. The amount set aside out of profit to strengthen the financial position of the
business is a. provision b. reserve c. depreciation d. surplus
41. An amount from a customer,kofi has been credited to another customer,kofigos
account. This is an error of
a. principle b. commission c. original entry d. complete reversal
42. Current assets less current liabilities is
a. working capital b. capital employed c. fluctuating capital d. fixed capital
43. External users of accounting information include
a. employee b. management c. bankers d. directors
44. Every asset should have
a. a non monetary value b. tangible and intangible qualities c. monetary cost and
future benefit d. an inadequate monetary value
Use the following information to answer question 45 and 46
Sales 120,000
Purchases 100,000
Opening stock 10,000
Closing stock 20,000
45. The cost of goods sold is
a. 120,000 b. 110,000 c. 90,000 d. 30,000
46. The gross profit or loss is
a. 30,000 b. 20,000 c. 10,000 d. 15,000
47. The documents that shows the evidence of payment is called
a. debit note b. invoice c. receipt d. voucher
48. Return inwards is also called
a. purchases return b. sales return c. goods on sale or return d. goods in transit
49. Return outward is also called
a. sales return b. purchase return c. goods return d. goods bought
50. The decrease in the value of assets is called
a. goodwill b. depreciation c. asset d. revaluation
THIRD TERM SS1 ACCOUNT EXAMINATION QUESTIONS – EDUDELIGHT.COM
THEORY
PART ONE. ANSWER ANY TWO QUESTION
1. a What is accounting?
(b) List and explain any five types of depreciation
(c)Define bad debts
2.(a) What is trial balance?
(b) Differentiate between discounts allowed and discounts received
(c) State the reasons for granting discounts
3.(a) State any five subsidiary books
(b) Differentiate between accruals and pre-payments
(c) What is balance sheet?
4. a state five users of accounting information
b explain three accounting concept and convention
c. explain the types of discount
PART 2: Answer question 4 and any other two(2) question.
4. The following Trial balance was extracted from the books of Mr. Ebinpejo on 31st December 1997
| Dr # | Cr # | |
| Capital | 27,000 | |
| Sales | 44,952 | |
| Purchases | 155,663 | |
| Returns | 546 | 1,272 |
| Opening stock | 3,438 | |
| Drawings | 2,100 | |
| Salaries | 1,884 | |
| Manufacturing wages | 11,568 | |
| Leasehold factory | 8,057 | |
| Rent, Rates and insurance | 2,082 | |
| Carriage inwards | 693 | |
| Carriage outwards | 972 | |
| Office expenses | 2,856 | |
| Plant and Machineries | 7,200 | |
| Provision for bad debts | 972 | |
| Discounts received | 354 | |
| Debtors and Creditors | 12,691 | 5,094 |
| Cash at bank | 663 | |
| Cash in hand | 3,720 | |
| Salesman commission | 3,261 | |
| Office furniture | 1,050 | |
| Bad debts | 1,200 |
79,644 79,644
Additional information:
a. Depreciation is to be provided on cost as follows: Leasehold premises 20%;Plant and machinery 25%;Office furniture 10%
b. The provision for bad debts is to be made up to #1,500
c. The value of the stock as at 31st December was #1,678
d. Unexpired insurance premium amounting to #250 is to be carried forward to next year.
You are required to prepare:
a. Trading, Profit and loss accounting for the year.
b. Balance sheet as at that date.
5. Yusuf maintains a business bank account with Access Bank plc. The Bank statement received for the month of March 1999 showed a balance of #14265 to his credit while according to his cash book, he should be having #13380 subsequent investigation revealed the following.
a. Two cheques AOOIII for #3400 and X222419 for #6000 deposited to the bank on 28th March 1999 were not credited by the until 2nd April 1999
b. A cheque for #3000 received from a customer in full settlement of a debt of #3300 had been entered in the cash book at full value of debt
c. A cheque for #6500 issued to Jango ltd had not been presented for payment.
d. Dividend of #650 from PZ ltd had been paid direct to bank
e. The bank deducted total of #125 as it charges.
f. The bank had credited a cheque of #3560 of V.Amaka in error ton T.Emeka account
You are required to prepare
a. Adjusted cash book
b. Bank reconciliation statement for the Month of March 1999
6. A motor cost #51,200. It will be kept for 5 years and then sold at an estimated figure of #12,150. Show the calculations of the figures for depreciation for each year using:
a. Straight line method.
b. Reducing balance method – 25% rate of depreciation.
7. The following balances were extracted from the books of omoyajowo enterprises on
31st December 2001
Freehold property 200,000
Capital. 180,000
Trade debtors 28,000
Furniture and fittings 20,000
Rent. 950
Electricity. 600
Provision for bad debts. 200
Office equipment. 12,050
Stock. 7,000
General expenses 2,000
Rate. 600
Cash in hand. 130
Bank charges 300
Purchases 148,000
Sales. 162,000
Carriage inwards 300
Discount received 600
Sundry expenses. 800
Salaries. 1700
Discount. allowed. 450
Trade creditors 76,000
Required : extract a trial balance
8. Write up a three column cash book from the following details, balance off at the end
of the month
1998
Jan 1 Started business with #5,000 in the bank
2 Received a cash loan of #600 from soji
3 Bought motor car paying by cheque #70
4 Paid wages with cheque #270
7 Paid rent in cash #70
8 Cash withdrawn from the bank #300
9. Bought goods for cash #170
12 cash drawings #150
15. we settle the following accounts by cheque less 5% discount :sayo #300,ajayi 280
biodun #600
17 cash purchases #180
19 the following paid us their account with cheque less 5% discount olu #250 Ismaila
#160
20 received loan from ayodele by cheque #2,000
24 cash sales paid directly into bank #700
25 paid insurance by cash #100
26. drawing by cash #50
27 paid rent by cheque #200
29 bought motor van paying by cheque #234
30. cash withdrawn from the bank #400
9. Write up a two column cash book from the following
2010
April 4 started business with cash in hand #150,000 and cash at bank #50,000
5 cash sales. #60,000
6 paid for recharge cards in cash #2,000
9 purchase of goods with cheque #10,000
12 received from m. Adeleye by cheque #30,000
17 paid rent with cash #5,000
20 withdrew cash from bank #9,000
23 cash sales paid direct into the bank #25,000
25 paid general expenses with cheque. #6,000
27 receive from shagari by cheque #4,500
29 paid salary in cash #5,000
31 purchase of goods with cheque #10,000
THIRD TERM SS1 ACCOUNT EXAMINATION QUESTIONS – EDUDELIGHT.COM
FINANCIAL ACCOUNTING
(1) Which of the following is the book of original entry for all payments and receipt whether by cash or cheque
(a) Sales day book (b) Purchase day book (c) Cash book (d) journal book
(2) Which of the following fixed asset is not depreciable
(a) Building (b) Bulding (c) Tools (c) Land (d) Motor van
(3) Prepayment is shown in the balance sheet as
(a) Current account (b) liability (c) Capital (d) fixed asset
(4) A trial balance is
(a) an attempt to balance the account (B The credit balance of the account
(c) List of all balances extracted from the ledger (d) the debit balance of the account
(5) The purpose of a trading account is to ascertain
(a) sales (b) Gross profit or loss (c) Net profit or loss (d) appropriated profit
6 The balance sheet is a statement showing
(a) all assets and liabilities (b) All balances (c) Credit entries
(d) Debit entries on the business
Use the following information to answer question 7 to 9
N
Stock 1/1/17 4, 500
sales 13, 500
Purchase 5,000
Carriage inward 500
stock 31/12/17 4,200
Return inwards 600
7. Calculate the cost of sales
8. calculate the net sales
9. Gross profit
10. discount allowed is a charge made against
(a) Trading A/c (b)Profit and loss A/C (c) Appropriation A/C (d) Current A/C
11. Opening stock + purchase + carriage inwards is equal to
(a) Total sales (b) Cost of goods sold (c) cost of good available for sale (d) gross profit
12. Carriage inwards are incurred on goods
(a) On display (b) sold (c) in process (d) purchase
13. Which of the following is not an asset
(a) Bad debt provision (b) Rent in arrears (c) sales (d) accrued wages
14. Which of the following expenses the accounting equation?
(a) Capital + assets + liabilities (b) Asset – liabilities = capital (c)Liabilities – capital = asset
(d) Asset + capital = liabilities
15. Excess of current asset over the current liabilities is called ____________
(a) Running capital (b) working capital (c) circulating capital (d) Real capital
16. ______________ is the situation whereby a firm has no working capital
(a) overdraft (b) over trading (c0 over buying (d) over selling
17. Total asset less current liabilities means __________
(a) Capital employed (b) Circulating capital (c) working capital (d) current capital
18. _____________ is the indebtedness of the business to outsiders
(a) asset (b) Capital (c) Liabilities (d) Income
19. The sales day book is used to record
(a) Cash and credit sales (b) Credit sales (c) cash sales (d) sales to middlemen
20. The systematic recording of business transaction is monetary terms is
(a) Auditing (b) Book – keeping (c) debiting (d) crediting
21. An allowance given to a customer by a supplier for prompt payment is
(a) Trade discount (b) discount received (c) discount allowed (d) cash discount
22. Which of the following is a n example of direct examples
(a) Royalties (b) Carriage inward (c) Carriage outward (d) Manufacturing wages
23. When a transaction is completely left out from the books, it is an error of
(a0 Commission (b) Omission (c) Principle (d) compensation
24. Which of the following errors will affect the total f a trial balance
(a) complete reversal of entry (b) compensating error (c) Error of original entry
(d) Error in addition
25. The going concern concept assumes that
(a) Every transaction is represented by a debit and credit entry
(b) the currency must not change (c) the firm is a legal entity
(d) The business will continue to operate indefinitely
26. The concept which deals with the exclusion of trivial item in the accounting records is
(a) consistency (b) going concern (c) Materiality (d) money measurement
27. The distinguishing feature between a two column and three cash book is
(a) Discount column (b) Bank column (c) Ledger column (D) ledger folio
28. The lodgment of business cash into the business bank account is an example of
(a) Central entry (B) Bank reconciliation (c) Self balancing (d) Reversal entry
29. Purchase account is over cast by N200 . this is
(a) An error of omission (b) Compensating error (c) Error of commission
(d) Error of principle
30. The income accruing to debenture holder is called ______
(a) interest (b) net profit (c) shares
31. The amount by which assets exceed specific liabilities is called______ (a) reserve (b) provision (b) bonus
32. A subsidiary record is a book _____ (a) of original (b) found in the journal
(c) containing the ledgers
33. In which ledger is the control account prepared? (a) General ledger (b) sales ledger (c) purchases ledger
34. A suppliers personal accounts are found in the _____ (a) purchases ledger (b) sales account (c) sales ledger
35. A business firm incurs labour cost in installing machinery. This should be treated as _______ (a) machinery cost (b) salaries (c) wages
36. Which of the following is an impersonal nominal account? (a) salaries account (b) machinery account (c) creditors account
Instruction: Use the information below to answer questions 8 and 9.
OLURIN started business on 1st January, 1998 with the following assets:
Motor Van 195,000
Buildings 300,000
Stock of Goods 35,000
In addition, she had cash of N60,000, out of which N20,000 was borrowed from a friend.
37. The capital of the business is _____ (a) N500,000 (b) N520,0000 (c) N480,000
38. The liabilities of the business amount to ___ (a) N20,000 (b) N40,000 (c) N80,000
39. Which of the following is a primary source of entry into the debtors’ ledger?
(a) sales invoices (b) suppliers invoices (c) payment vouchers
ACCOUNTING EXAM QUESTIONS FOR SS1 THIRD TERM
THEORY
On the 31st march 2017, Rachael’s cash book showed a debit balance of N2,270. on comparison, the following were found.
(a) Cheques drawn anointing to N1, 500 ha not been presented for payment
(b) A standing order N600 to a club was not taken into consideration.
(c) A dividend of N300 was paid directly into the Bank and not recorded in the cash book.
(d) Bank charges of N50 were entered in the bank statement only.
(e) Cheque for N1,000 were entered into the cash book and paid to the Bank but had not been cleared and thus not credited.
(f) A customer, Bolaji , paid N120 directly into the Bank without notifying the firm.
2(a) What is trial balance
(b) state four (4) errors that cannot be disclosed by the trial balance .
3(a) Explain the term “Accounting concepts)
(b) Explain the following concept
(i) Going, concern
(ii) Matching
(iii) materiality
(iv) Money measurement
(v) consistency
4.The following are the list of balance taken from ledger of okokwo, a sole trader as at
31st Dec 2017 N
stock at 1st January 17 5,850
Plant and machinery at cost 36,450
Accumulated depreciation 14,570
Sales 96, 400
purchases 48,800
Discount received 1,200
Discount allowed 1,330
Purchases returned 540
sales return 770
Rent and rates 2,490
Debtors 6,359
Drawing 8,470
Stock at 31st, Dec 17 6,200
Capital 24,930
Cash at Bank 2,200
You are required to prepare Trading , profit and loss account . for the year ended 31st Dec 2017
(5) . Ojo Enterprises started business on January 207 with a capital of N16,000. the following transactions were carried out during the month of January
January 1 Purchased furniture by cash N2,400
January 2 Purchased stationery N200 cash
January 3 Purchased goods by cash N3,500
January 4 Purchased goods on credit from Nagogo 5,000
January 15 sold goods for cash N6,000
January 18 Sold goods for charlotte Umedo on credit 2,400
January 20 Paid advertisement expenses 200 cash
January 25 Paid Nagogo n3,500 cash being part of settlement of goods purchased
January 28 Paid rent in cash N300
January 31st Paid salaries and wages N600 cash
ACCOUNTING EXAM QUESTIONS FOR SS1 THIRD TERM
