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.         

  1. 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
  2. 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
  3. Trade discount is (a) allowance for prompt payment (b) allowance for damaged goods (c) allowance for price list (d) discount on creditors
  4. 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
  5. Which of the following would be posted to the proprietor’s capital account? (a) gross profit  (b) sales (c) net profit (d) gross loss
  6. 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
  7. When goods were sold for cash  the credit entry goes to the (a) traders account (b) cash book (c) purchases accounts (d) sales accounts
  8. When a buyer returned damaged goods to the seller they  received  (a) profoma invoice (b) credit note (c) debit note (d) receipt
  9. 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
  10. Which of the following belong to private ledger? (a) drawing (b) premises account (c) bank account (d) depreciation account
  11. 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
  12. Which of the following does not belong to the group? (a) straight line (b) insurance policy  (c) reducing (d) accumulate
  13. 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
  14. Rent is apportioned to each department on the bases of (a) Area or space occupied (b) equality (c) turnover (d) purchases
  15. Which of the following errors affects the trial balance? (a) commission (b) omission (c) principle  (d) lone entry
  16. 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.
  17. 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
  18. The sales day book will show goods sold (a) for cash only (b) on credit  only (c) to wholesaler     (d) to retailer
  19. 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 
  20. 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
  21. 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
  22.  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
  23. 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
  24. 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
  25. 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
  26. 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
  27. Preliminary expenses of a limited liability company are (a) fixed asset (b) current asset (c) fictitious assets (d) fictions liability
  28. 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
  29. 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
  30. 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
  31. The document evidencing a disbursement of government fund is known as (a) bill (b) invoice    (c) till book (d) payment voucher
  32. The authority of the accountant general to disburse from government fund is called (a) voucher    (b) warrant (c) estimate  (d) vote
  33. 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
  34. 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
  35. Carriage outwards in accounting term stand for amount spent  on (a) goods purchases (b) goods sold (c) excess stock (d) goods for production  
  36. 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
  37. 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  
  38. 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
  39. Which of the following is not a liability? (a) accrued wages (b) credit (c)p repayment (d) insurance due but unpaid  
  40. 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
  41. 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
  42. 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
  43. An underwriter for a company’s share is paid (a) interest (b) commission (c) dividend (d) salary
  44. 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
  45. 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
  46. 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

  1. 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 
  2. (a) explain five events that may lead to the dissolution of a partnership (b) state how the proceeds from a partnership is applied 
  3. (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
  4. (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:

  1. stock at 31st December 2009 was valued N8,000
  2. The leasehold premises is for a term of 10 years
  3. 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
    N N                 N
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:

  1. Cheque No. 011203 issued in favour of Taiwo Ajao and association for N24,000 was represented to the bank on 2nd May 1989
  2. Advice in respect of bank charges was received by Messrs Jackson & Co. on 6th May 2006
  3. 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:

  1. Subscription outstanding with member N300
  2. Accrual expenses:

i.          salaries N300

ii.         Scholarship N950

  1. Drugs  N180
  2. Printing and stationery N240

You are required to prepare for the club

  1. income for account
    1. Balance sheet as at 31st December 2006. 
  2. 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.

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