Accounting Mock Examination Questions 2019/2020 Session – Senior Secondary School Three( SSS 3)
EDUDELIGHT SECONDARY SCHOOL
1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.
MOCK EXAMINATION 2020
SUBJECT: ACCOUNT CLASS: SS 3 TIME: 3hrs
OBJECTIVE: Answer all questions
- The objective of accounting information is to enable users to (a). prepare the financial statement (b) value stock (c) make decisions (d) prepare budget
- Trade discount are given for (a) bulk purchases (b) prompt payment (c) quick delivery (d) cash payment
- When closing stock are overstated, it would reduce (a) cost of sales and increases gross profit (b) gross profit and increase cost of sales (c) purchases and increase sales (d) sales and increases purchases
- Which of the following is not a source document (a) journal proper (b) sales invoice (c) debit note (d) credit note
- A fixed asset fully written down by a sole trader is now considered to be worth N5,000. The double entry required to effect this is debit (a) assets account and credit capital account (b) capital account and credit assets account (c) Asset account and credit purchases account (d) capital account and credit profit and loss account
- The process of entering transaction from one book to another is (a) posting (b) reading (c) numbering (d) listing
Use the following information to answer question 7 – 8
1/1/13 31/12/13
Stocks 1,400 1,900
Creditors 2,000 2,700
Cash paid to the creditors N8,000
Mark up on cost of sales 20%
- The total purchases is (a) N8,700 (b) N7,300 (c) N6,000 (d) N5,300
- The cost of sales is (a) N8,200 (b) N6,800 (c) N5,500 (d) N4,800
- Which of the following is not a trading account item (a) wages of machine operator (b) carriage inward (c) carriage outward (d) discount received (d) discount allowed
- Which of the following is an example of factory overheads (a) salary of marketing officer (b) salary of production officer (c) salary of accounting officer
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
Use the following information to answer questions 16-19
| N | |
| Land and building | 20,000 |
| Stock | 5,000 |
| Cash in hand | 1,000 |
| Profit and loss b/f | 14,000 |
| Rent owing | 400 |
| Creditors | 11,000 |
| Furniture and filleting | 7,500 |
| Motor vehicles | 12,500 |
| Debtors | 13,750 |
| Bank overdraft | 8,750 |
- 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
- 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 objective of trading account is to ascertain (a)credit purchases (b) cost of goods sold (c) gross profit (d) net profit
- 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 Obi had been in Obika’s account. this is an error of : (a) Omission (b) compensation (c) commission (d) original entry
- Rent payable of account is an example of a (a) (a) nominal account (b) real account (c) personal account (d) private account
- A provision is (a) is an amount set out for profit for other uses (b) an amount of loss from trading activities (c) an expenses of business to be paid for in cash (d) A loss in value of all business assets
- The term bad debts is used to describe (a) a debt that can not be received (b) a debt is long over due (c) an over charge on debtor’s account (d) a debt owned by former employee.
- The valve of current liabilities is (a) N32,750 (b) 20,150 (c) 19,750 (d) 11,000
- The value of current assets is (a) N28,500 (b) 20,150 (c) 19,750 (d) 17,000
- The opening capital is (a) N32,000 (b) 26,000 (c) 25,600 (d) 14,000
- The value of fixed assets is (a) N57,300 (b) N47,500 (c) 40,000 (d) 37,500
- Partner’s interest on capital is shown in the (a) profit and loss account (b) partners fixed capital account (c) profit and loss appropriation account (d) trading profit and loss account
- Which of the following is not prepared by a partnership (a) Trading Account (b) Profit and Loss Account (c) income and expenditure account (d) Balance sheet
- The cash realized from the sales of assets on dissolution of partnership is (a) debited to cash account and credited to asset account (b)credited to cash account and debited to assets account (c) debited to cash account and credited to realization account (d) debited to realization account and credited to cash account
- Subscription in advance is treated in the balance sheet of a non-profit making organization as (a) current assets (b) fixed assets (c) current liabilities (d) accumulated fund
- At the dissolution of a partnership, the dissolution expenses is (a) debited to realization account and credited to cash account (b) debited to cash account and credited to realization account (c) credited to cash account and credited to realization account (d) debited to partner’s current account and credited to realization account
- The capital of a non- profit making organization is known as (a) capital reserved (b) accumulated fund (c) development capital (d) endowment fund
- Given the following : Debtors (1/1/16) N4,000, Debtors (31/12/16) 2,000, cash received from customers N8,000, what will be the amount to be carried to the trading account (a) N10,000 (b) N6,000 (c) N16,000 (d) N2,000
- Prime cost consist of (a) direct material and direct labour only (b) direct material, direct expenses and direct labour (c) direct material, direct expenses, direct labour and overheads (d) direct material and direct expenses
- One of the following may be the cause of dissolution of a partnership (a) admission of a partner (b) asset taken over by partner (c) death of a partner (d) revaluation of assets
- Receipt and payment account is equivalent to (a) income and expenditure (b) cash account (c) trading account (d) profit and loss account
- 25% mark-up is equivalent to —————— margin (a) 50% (b) 331/3 % (c) 20% (d) 75%
- 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 current assets
- Outstanding rent of N300 is paid by the proprietor, the entry in the balance sheet is that (a) both asset and the liability are increased (b) both asset and the liability is decreased. (c) liability is increase while the asset is decreased (d) liability is decreased while the asset is increased
- When a buyer returns damaged goods to the seller, the buyer received a (a) profoma invoice (b) credit note (c) debit note (d) consignment note
- Trade discount is (a) allowance for prompt payment (b) allowance for damaged goods (c) allowance of price list (d) discount on debtors.
- Which of the following is not true of capital expenditure? (i) assets required for the purpose of earning income (ii) extension of office building (iii) it is incurred and its full benefits consumed one period of account (a) I only (b) ii only (c) I and ii only (d) ii and iii only
Use the following information to answer questions 6-8
N
Sales 58,000
Opening stock 7,000
Purchases 32,000
Carriage inward 1,000
Carriage outward 1,500
Returns inward 500
Closing stock 2,500
- What is gross profit? (a) N31,000 (b) N30,000 (c) N 20,500(d) N20,000
- What is the net profit? (a) N15,000 (b) N14,500 (c) 13,500 (d) 13,000
- What is the net sale? (a) N35,000 (b) 40,000 (c) 57,500 (d) 58,500
- In the absence of a partnership deed, capital contributed by partners attracts an interest of? (a) 0% (b) 5% (c) 10% (d) 15%
- Which of the following does not belong to the group? (a)debtors (b)electricity (c) salaries (d) sundry expenses
- Which of the following is a fictitious asset? (a) building (b) debtors (c) prepaid expenses (d) preliminary expenses
- Which of the following is not current asset? (a) cash (b) debtors (c) machinery(d) prepayment
PART 2 (SECTION A)
- Explain the following types of account and in each case, state the rules regarding the recording of transactions in debit and credit side :
- Personal account (b) Real account (c) Nominal Account (d) liabilities account (d) profit and loss account (e) assets account
- (a) explain five events that may lead to the dissolution of a partnership (b) state how the proceeds from dissolution of partnership are applied
- (a) state the uses of control account (b) state five items that are debited to the sales ledger control account (c) state five 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 example of reserves
SECTION B.
- Ogun and Dapo are in partnership sharing profit and loss in the ratio 3:2. the following is the trial balance as at 31st December 1995
Trial balance Dr Cr
N N
Capital: Ogun 100,000
Dapo 50,000
Drawings: Ogun 6,000
Dapo 5,000
Purchases 12,000
Sales 20,000 Sales returns 4,000
Purchases returns 2,000
Stock 1st Jan 1995 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 17,500
Current account balance : Ogun 1,500
Dapo 1,000
400,900 400,900
Additional information: (a) stock at close N15,000 (b) electricity prepaid N20 (c) interest on drawings 5% (d) partnership salary Ogun N2,000 (e) salaries and wages accrued N1,000 (f) interest on capital at 10% (g) depreciation motor van 10% (h) provision for bad debt is to be reduced to N200 (i) Ogun withdrawn goods for his own use N7,000
You are require to : (a) prepare to trading, profit and loss account for the year ended 31st December, 1995 (b) Partners capital account . (15 marks)
- The following balances were extracted from the books of learningfield enterprises on 30th june 2015.
N
Purchase ledger ( cr ) 1/6/14 7,532
Sales ledger ( dr ) 1/6/14 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 (15 marks)
- The following balance were extracted from the books of Francis-Fortune Enterprises on 31st December, 2015
N
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 31st Dec. 2015, and (ii) Trading profit and loss account for the year ended 31st Dec.2015. (15 marks)
8. Below is a summary of the receipt and payments of unity club for the year ended 31st Dec. 2015
N
Balance 01/1/15 48,310
Proceeds from dance 36,150
Transfer to bank deposit 120,000
Rates 10,000
Wages paid 72,300
Entrance fees received 5,000
Subscription received 300,000
Equipment bought 40,000
Repairs 16,172
General expenses 48,896
Stationery bought 9,790
Interest received on bank deposit 12,000
Donation received 4,200
Additional information (a) wages of N4,800 were due and unpaid at 31st December 2015 (b) Rates prepared amounted to N2,000 (c) general expenses include N3,000 owing since the previous year. (d) of the subscriptions received N8,000 was in arrears the previous year while N20,000 was paid in advance for the coming year. In addition N12,000 was still owing at 31st December, 2015 (e) the club had the following properties on 1st January 2015.
N
- Club house 960,000
- Equipments 600,000
- Bank deposit 400,000
- (f) Depreciate club house by 5% and equipment including additions within the year by 10%.
You are required to prepare: (i) receipt and payment account for the year ended 31st December 2015 (ii) Income and expenditure account for the year ended 31st December 2015 (iii) Balance sheet as at that date. 15 marks
- 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.
