Accounting First Term Examination Questions 2019/2020 Session – Senior Secondary School ( SSS 2, SSS 3)

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EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^ST TERM EXAMINATION 2019/2020

SUBJECT: ACCOUNTING CLASS: SS 2

OBJECTIVE: Answer all questions Time: 2hrs

The sales accounts is written from (a) cash sales to customers only (b) credit sales to customer only (c) credit sales less cash sales (d) both credit and cash sales
Which of the following may have been recorded in the cash book and fail to appear in the bank statement? (a) bank charges and commission (b) cheque issued (c) bank lodgments (d) payment made by the bank on standing order
Which of the following accounts belongs to the personal ledger? (a) purchases account (b) merchant account (c) depreciation account (d) V. Okafor’s account
A sales of N2570 was recorded in the sales day book as N2750 the error committed was (a) compensating error (b) error of omission (c) error of original entry (d) error of principle
The drawings account of a sole proprietor is transferred to the (a) capital account (b) debit side of trading account (c) credit side of profit and loss account (d) current liabilities in the balance sheet
Which of the following shows the stock at start of an accounting period? (a) current assets in the balance sheet (b ) current liabilities in the balance sheet (c) trading account (d) profit and loss account
Discount allowed would appear on the (a) fixed asset in the balance sheet (b) debit side of trading account (c) long term liabilities in the balance sheet (d) debit side of profit and loss account
The concept of double entry book-keeping states that (a) if you receive goods on credit, the seller becomes your creditor (b)for every debit entry there is a corresponding credit entry party (c) purchases and sales are stated separately (d) for every seller there is a buyer
Pending the location of error, the differences disclosed in the trial balance is normally posted to (a) an adjustment account (b) a control account (c) a suspense account (d) a profit and loss account
A fixed amount of money set aside for petty expenses is called (a) imprest (b) float (c) receipt (d) fund
Carriage inward expenses of a business is treated in (a) trading account (b) balance sheet (c) appropriation account (d) profit and loss account
A deduction from the sales price of goods that is allowed if payment is made within a specified period of time is (a) trade discount (b) cash discount (c) quantity discount (d) rebate
The total of purchases day book is posted to the purchases account in the (a) purchases ledger (b) general ledger (c) private ledger (d) normal ledger
Which of the following error affects the trial balance? (a) commission (b) omission (c) principle (d) single entry
The sources document sent by the seller to the buyer when goods are returned is (a) credit note (b) purchases invoice (c) sales invoice (d) debit note
Which of the following does not belong to the group? (a) proprietor of a business (b) an entrepreneur (c) an investor (d) a debtor
Which of the following is not a liability? (a) accrued wages (b) rent arrear (c) prepayment (d) insurance due
The balance of the provision for depreciation account is shown in the (a) trial balance as a debit (b) trial balance as a credit (c) balance sheet as a fixed asset (d) balance sheet as a current liabilities
A trader set aside from his private fund N1500 for business purpose the N1500 would be referred to as (a) capital (b) loan (c) reserve (d) drawing
The bank column in the cash shows a credit balance of N160; this means (a) a total payment of N180 (b) a gross receipt of N180 (c) an overdraft of N 180 (d) a left over of N 180 cash.
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 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 entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854

Use the following to answer question 14 – 16

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) N75,000 c) N55,000 d) N32,500
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
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
Which of the following is not a petty cash book item ( a) Machinery (b) stamps (c) office pin d) Milk
A charge made by Banks on withdrawal of fund from a current account is (a) COT charges (b) Standing order ( c)Interest charges (d) Overdraft charges
of the following is not a long term liability (a) Debenture (b) Preference Share Capital ( c) Long-term Loan (d) Bank Overdraft
The following are Method of depreciation except (a) Straight Line Method (b) Diminishing balancing method (c) reducing Balance Method (d) Manufacturing method
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 return to the supplier as a result of defective the goods are described as (a) return inward (b) return outward (c) carriage inward (d) carriage outward
Which of the following best defined 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
Which of the following documents is used in operating a saving account (a) Bank teller (b) cheque book (c) pass book (d) statement

PART 2.

Answer only one question from this part

The following balance were extracted from the books of Francis-Fortune Enterprises on 31^st December, 2015

Freehold Premises 50,000

Capital 81,445

Trade Debtors 28,750

Trade Creditors 26,150

Furniture and Fitting (cost N22,500) 16,250

Rent 950

Electricity 675

Provision for bad and doubtful debt(1/1/2015) 288

Office Equipment ( cost N20,000) 15,500

Stock (1/1/2015) 7,750

General expenses 2,350

Rates 625

Cash in hand 137

Bank Overdraft 4,475

Bank charges 375

Purchases 60,750

Sales 74,000

Carriage inward 395

Salaries 1,700

Discount allowed 485

Discount received 332

Additional information: (a) closing stock N6635 (b) salaries in arrears N875 (c) prepaid expenses: rent N150, rates N138 (d) provision for bad debts to be reduced to N225 (e) all fixed assets are to be depreciated at 5% on cost. You are required to prepare a: (i) trial balance as at 31^st Dec. 2015, and (ii) Trading profit and loss account for the year ended 31^st Dec.2015. (20 marks)

Alli, Bello and Chinedu are partners. They agreed to share profit and loss in the ratio 3:2:1 respectively. The following balances was extracted from their books as at 31/12/2015

Trading income 88,000

Bank interest received 2,600

Salaries 25,000

Rent 7,000

Stationery and Printing 2,500

Accountancy and audit fees 1,630

Subscription to trade association 5060

Travelling expenses 700

Sundary office expenses 800

Debtors 130,000

Investment interest 6,000

Capital account: Alli 2,400 cr

Bello 1,600 cr

Chinedu 800 cr

Current account : Alli 1,200 Dr

Bello 800 Dr

Chinedu 400 Dr

Additional information:

(a). outstanding creditors: stationery N70, sundary office expenses N240

(b). Chinedu is to be credited with a partnership salary of N6,000

(c). 5% interest is allowed on capital for the full year, no interest is allowed on current account.

(d). provide 2% of debtors as bad debt

You are required to prepare:

(i). profit and loss account and

(ii). Partnership appropriation account for the year ended 31^st December 2015. (20 marks)

PART 3

Answer only two questions from this part

Explain (a) three errors that wound affect the trial balance (b) suspense account (10 marks)

(a). What is manufacturing account (b). explain the following terms (i) prime cost (ii) factory over-heads (iii). Work in progress (iv). Finished goods (v). profit on manufacturing (10 marks)

Draw a comprehensive format of the debtors ledger control account and creditors ledger control account (10 marks)

write short notes on the following:

a. Revenue reserves

b. Capital reserves

c. Provision for bad debts

d. Discount allowed and Discount received ( 10 marks )

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^ST TERM EXAMINATION 2019/2020

SUBJECT: ACCOUNTING CLASS: SS 1

OBJECTIVE: Answer all questions Time: 2hrs

which of the following subsidiary books is used to record all payments and receipts by cash (a) sales day book (b) cash book (c) purchase day book (d) general Journal
A ledger is a (a) principal books of account (b) book of original entry (c) records of credit transaction (d) summary of entries
The realization concepts state that (a) revenue is recognized as at when a transaction takes place (b)similar items should be treated in similar ways (c) transaction must be expressed in monetary terms (d) revenue and expenditure should not be anticipated
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 trading concern is returned to suppliers 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
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 liabilities (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
One of the following is a prime book of account (a) sales day book (b) purchases ledger (c) sales ledger (d) return inward ledger
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 long term liability (a) Accruals (b) Bank overdraft (c) credit purchases (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 by the customer as a result of defective the goods are described as (a) return inward (b) return outward (c) carriage inward (d) carriage outward
Which of the following best defined 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
Which of the following documents is used in operating a saving account (a) Bank teller (b) Traveler’s 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
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 entries principle of accounting was developed in the year (a) 1894 (b)1494 (c) 1887 (d) 1854
Liability + capital = (a) balance sheet (b) account (c) asset (d) money
————– needs accounting record mainly for decision making (a) tax authority (b) insurance (c) managers (d) employees
The ledger account may be classified into ——– (a) 4 (b) 6 (c) 5 (d) 7
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 (b) Association of Norway accountants (c) Association of National Accountants (d) Association of new Accountants
The owners contribution to the business is referred to as (a) asset (b) liability (c) profit (d) capital
The total of purchases day book is posted to the purchases account in the (a) purchases ledger (b) general ledger (c) private ledger (d) normal ledger
Which of the following error affects the trial balance? (a) commission (b) omission (c) principle (d) single entry
The sources document sent by the seller to the buyer when goods are returned is (a) credit note (b) purchases invoice (c) sales invoice (d) debit note
Which of the following does not belong to the group? (a) proprietor of a business (b) an entrepreneur (c) an investor (d) a debtor
Which of the following is not a liability? (a) accrued wages (b) rent arrear (c) prepayment (d) insurance due
The balance of the provision for depreciation account is shown in the (a) trial balance as a debit (b) trial balance as a credit (c) balance sheet as a fixed asset (d) balance sheet as a current liabilities
A trader set aside from his private fund N1500 for business purpose the N1500 would be referred to as (a) capital (b) loan (c) reserve (d) drawing
The bank column in the cash shows a credit balance of N160. this means (a) a total payment of N180 (b) a gross receipt of N180 (c) an overdraft of N 180 (d) a leftover of N 180 cash.

PART TWO.

Answer question one (1) or two (2) and any other two questions from this part.

Adeola is a dealer in general merchandise. The following are the transaction for the month of June 2015.

June 1. Sold goods to Bola N20,000 less 10% discount

June 4. Purchase from kazeem the following:

200 iron rods at N20 each

100 fillers atN30 each

Invoice subject to 10% discount

June 6. Purchase from clitton ltd 10 bottle of gin @ N30 each

June 7. Returned 60 iron rods purchased on the 4^th June , to kazeem

June 9. Sold the following to Ngozi:

300 bags of cement at N15 each, less 5% trade discount, 150 tins of at N10 per tin

June 18 Ngozi returned 10 bags of cement bought on the 9^th

June 20. Sold to ife:

80 iron rods @ N50 each

110 bags of cement @ N16 each

250 fillers @ N35 each

Invoice subject to 15% discount

June 21. Ife was allowed 50% reduction on the total invoice price of goods damaged on transit

June 30. Purchased from femi:

100 bags of cement @ N15 each

500 gallons of oil paints @ N20 each

300 metal sheets @ N18 each. you are required to write up the following:

Sales day book (b) sales return day book (c) purchase day book (d) purchase day return book (20 Marks)

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)

(a). What is ledger (b) list and explain three classification of ledger account (c) list six account found in the nominal account ( 10 marks)
Explain (a) three errors that wound affect the trial balance (b) suspense account ( 10 marks)
(a).What is cash book? (b). state five benefits of keeping accounting records in a business (c) list five source documents used in preparing cash book ( marks )
Define and list two classification of the following given at least 3 examples of each classification (a) Assets (b) Liabilities ( 10 marks )

EDUDELIGHT SECONDARY SCHOOL

1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.

1^ST TERM EXAMINATION 2019/2020

SUBJECT: ACCOUNTING CLASS: SS 3

OBJECTIVE: Answer all questions Time: 2hrs:30min

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 (e) for every seller there is a buyer
Outstanding rent of N300 is paid by the proprietor. The effect on the balance sheet is that (A) liability increase (b) both the liability and assets decrease (d) liability is decreased while the assets is increased (e) both liability and asset remain unchanged
Trade discount is (a) allowance for prompt payment (b) allowance for damaged goods (c) allowance for price list (d) discount on creditors (e) discount on debtors
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) net loss (c) drawing (d) net profit
The sales account is written up from:(a) a cash sales to customers only (b) credit sales to customers only (d) both cash and 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 (e) cash
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 unpresented (c) bank lodgment (d) payment made in bank on standing order (e) opening bank over draft
Which of the following belong to private ledger? (a) Debtors account (b) premises account (c) bank account (d) depreciation account (e) rent and rate 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 diminishing (c) reducing balancing (d) accumulate
Which of the following are 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
The principle of double entry book keeping is that; (a) ever debtor must have creditor (b) every account debited there must be immediately credited (c) for every debit there must be a corresponding credit (d) for very double credit there must be a double debited (e) for every item there must be a double entry
Which of the following errors affects the trial balance? (a) commission (b) omission (c) principle (d) lone entry
A credit note from suppler for damaged goods first be enter in the (a) purchases day book (b) sales day book (c) cash book (d) returns inwards book (e) 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 (e) sales account
The sales day book will show goods sold (a) for cash only (b) on credit only (c) to wholesaler (d) to retailer
whom provision depreciation account is maintained the annual change 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 (e) debited to the provision account and credited to assets 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) N6000 less (b) N4000 loss (c) N400 profit (d) 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 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 (d) 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 (e) issued at premium
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 (d) N32,000
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 market for the issue of newly introduce share is called (a) money market (b) secondary market (c) primary (d) stock exchange
The capital market can be sub-divided into —— (a) 2 (b) 4 (c) 3 (d) 5
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 (e) II and III 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 (e) I and II only
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) repayment (d) insurance due but unpaid
A business which converts raw materials to finished goods prepare (a) Manufacturing, trading and profit and loss account and balance sheet (b) balance sheet (c) profit and loss and balance sheet (d) trading profit and loss account and balance sheet

PART 2

ANSWER TWO QUESTIONS EACH FROM EACH SECTION IN THIS PART.

SECTION 1.

Learning field Ltd Manufacturers of pure waters 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)

The following balance was extracted from the book of Alakija industry for the year ended 31^st December, 2015

Raw materials purchased 100,000

Direct wages 40,000

Salaries 10,000

Carriage on raw materials 2,600

Carriage on finished goods 3,400

Sales 250,000

Factory expenses 12,000

Insurance 8,000

Rent 20,000

Printing and stationery 900

Discount allowed 2,160

Returned outward on raw materials 3,920

Returned inward 2,760

Provision for bad debts 760

Bad debt written off 1,570

Additional information:

(a). Stock: 1/1/15 31/12/15

Raw materials 12,000 8,000

Work in progress 15,000 6,000

Finished goods 6,000 4,700

(b). 75% rent and insurance are chargeable to manufacturing account

(c ). Plant and machinery was valued at N80,000 on 1/1/15. N5,000 is to be provided for depreciation for the year

You are required to prepare:

(i). Manufacturing account and (ii). Trading and profit and loss account for the year ended 31/12/15 ( 20 marks )

Alli, Bello and Chinedu are partners. They agreed to share profit and loss in the ratio 3:2:1 respectively. The following balances was extracted from their books as at 31/12/2015

Trading income 88,000

Bank interest received 2,600

Salaries 25,000

Rent 7,000

Stationery and Printing 2,500

Accountancy and audit fees 1,630

Subscription to trade association 5060

Travelling expenses 700

Sundary office expenses 800

Debtors 130,000

Investment interest 6,000

Capital account: Alli 2,400 Cr

Bello 1,600 Cr

Chinedu 800 Cr

Current account : Alli 1,200 Dr

Bello 800 Dr

Chinedu 400 Dr

Additional information:

(a). outstanding creditors: stationery N70, sundary office expenses N240

(b). Chinedu is to be credited with a partnership salary of N6,000

(c). 5% interest is allowed on capital for the full year, no interest is allowed on current account.

(d). provide 2% of debtors as bad debt

You are required to prepare:

(i). profit and loss account and

(ii). Partnership appropriation account for the year ended 31^st December 2015. ( 20 marks )

SECTION 2.

Explain the meaning of the following terms (a) preliminary expenses (b) reserves (c)shares (d) debentures (10 marks)
(a) What is stock exchange (b) states the functions of the stock exchange market (10 marks)
What is a trial Balance? 2marks (b) distinguish between bad debt and provision for bad debt 8marks

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