Financial Account Second Term Examination Questions 2019/2020 Session – Senior Secondary School Three ( SSS 1, SSS 2, SSS 3)



                                    SUBJECT:    ACCOUNT   CLASS: S.S. 1


  1. Which of the following books of original entry is used to record all payment and receipts by cash or cheque? A. purchases day book. B. sales day book C. cash  book D general journal
  2. The following is not found in the adjusted cash book A. dishonoured cheque B. Dividend .C.uncredited cheque  D. bank charges
  3. When an amount is wrongly recorded in a wrong person’s account, the error committed is A. error of principle B. error of omission C. error of commission D. error of original entry
  4. A trial balance is prepared to A. detect error B. ascertain profit C. test arithmetical accuracy
  5. The statement that reveals the asset and liabilities of a firm at a glance is known as A.capial B. trial balance C. balance sheet D. ledger
  6. A fixed amount of money set aside for a petty expenses is  A. imprest  B. cash C. float D. capital
  7. Which of the following is not a liability  A. accruals wages B. rental arrears C.prepayments due but unpaid
  8. Which of the following belong to the nominal ledger A. fixed assets B.stock account C. salaries and wages D.debtors account
  9. A deduction from the sales price of goods if payment is made at a specified period of time is A. rebate B. quantity discount C cash discount D. trade discount
  10. The double entry for the purchase of a Motor van is debit  A. cash account and credit motor van account B. capital and credit cash account C. motor van account and credit cash account D ledger account and credit cash account
  11. An error of principle is made when A.a transaction as been completely omitted B. wrongly entered in a wrong person’s account entry has been made in a wrong class of account D. a wrong amount as been entered in the two account concerned
  12. If purchases account is overcast by N200 and Wages account is undercast by N200. This is an error of A.principle B. omission C. compensating D. commission
  13. Which of the following subsidiary book involved cash movement A. sales day book B. return inward journal C. cash journal D. purchases journal
  14. The major difference between a two column cash book and three column cash book is —————– column A. folio B. bank C. discount D contra
  15. Uncredited cheque is ————————- to the cash book balance    A added B. separated  C. deducted D. none of the above
  16. Which of the following is determined in a trading account A net profit B. capital C. gross profit D. discount
  17. An instruction given to the bank by its customer to carried a certain obligation on his behalf is known as A. dividend B. debit transfer C. standing order D. unpresented cheque
  18. Which of the following error will affect the trial balance A. error of principle B. compensating error C. partial omission D. omission

Use the information below to anwer question 19 and 20

Sales N500,000 , purchases N400,000 closing stock N50,000

  1. The cost of sales is A. 250,000 B. N100,000 C. N350,000 D. N750000
  2. The gross profit is A. 30,000 B. 250,000 C. 150,000 D. 100,000

Section Two:-  answer question one and any other two from this section:

  1. T uche maintains a business bank account with 2nd bank Nig. Ltd. The bank statement for the month of March 2010 shows a balance of N14,265 to his credit, while the cash book shows a debit balance of N13,380. Upon investigation, the following was revealed
  2. Uncredited cheques amounted to N6,000
  3. Cheque not presented to the bank by customers totaled N6,500
  4. The receipt side of the cash book was overcast by N300
  5. A dividend of N650 had not been entered in the cash book
  6. The bank deducted N125 for bank charges
  7. The bank had credited a cheque of N3,560 of B. uche to T. Uche’s account in error. 

You are required to prepare

  1. Adjusted cash book
  2. Bank reconciliation statement as at 31st March 2010.
  • (a). What is a trial balance    (b) list five items on the debit and credit side of the trial balance respectively.
  • (a),what is bank reconciliation statement. (b) list and explain five causes of differences between the cash book balance and the bank statement.
  • List and explain 4 errors not affecting the trial balance and 3 errors affecting the trial balance
  • (a). What is a journal (b) list out four uses of a journal


                             1 BENSON AVENUE, LEKKI PHASE 1, LAGOS.


SUBJECT: ACCOUNT                                  CLASS:           SS 2                             TIME: 2 Hr 30mins


SECTION A: OBJECTIVES- Answer all questions

          Use the following information to answer question 1 to 7                                                              manufacturing and trading account

                                                   N                                                                            N

Opening raw material              10,000                     Manufacturing cost         114,000  Purchases raw mat.                 60,000                                                                                                                    70,000                                                                                             Less opening stock mat.             8,000


          Direct labour                  20,000

          Direct expenses              20,000

          Factory overhead              2,000

                                                  114,000                                                       114,000

          Opening f.g                      10,000                  Sales                                   x    

         Add production cost                 ?               Less sales returns                    5,000

          Stock c/d                         12,000

Cost of raw-material consumed         ?

          Gross profit of 20% on sales       x                                                              

  1. What is the total cost of raw materials consumed?                                                           (a) N144,00 (b) N114,000  (c) N 70,000   (d) N62,000
  2. What is the prime cost?                                                                                                         (a) N62,000 (b) N70,000 (c) 78,000 (d) 102,000
  3. What is the factory cost of production?                                                                                               (a) N114,000 (b) 102,00 (c) 78,000  (d) 62,000
  4. What is the cost of finished goods?                                                                                 (a) N114,000 (b) N150,000 (c) N102,000  (d) 30,000
  5. What is the net sale for the period?                                                                                 (a) N175,000 (b) N140,000 (c) 165,000 (d) 135,000
  6. What is the average cost of goods?                                                                        (a) N88,000 (b) N99,000 (c) 102,000  (d) 112,000
  7. What is the gross profit?                                                                                                             (a) N33,500 (b) 28,000 (c) 28,500 (d) 26,400
  8. Rent payable  account  is  an example of a                                                                                              (a) nominal account (b) real account (c) personal account (d) private account
  9. 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
  10. The term bad debts are used to describe                                                                                     (a) a debt that cannot be received  (b) a debt is long overdue (c) an over charge on debtor’s account   (d) a debt owned by former employee.                    

Use the following information to answer questions 11-14


  1. Land and building                                         20,000
    1. Stock                                                             5,000                          
    1. Cash in hand                                                   1,000
    1. Profit and loss b/f                                           14,000
    1. Rent owing                                                      400
    1. Creditors                                                        11,000
    1. Furniture and filleting                                      7,500
    1. Motor vehicles                                              12,500                         
    1. Debtors                                                       13,750
    1. Bank overdraft                                                 8,750
  2. The value of current liabilities is

 (a) N32,750 (b) 20,150 (c) 19,750 (d) 11,000

  1. The value of current assets is (a) N28,500 (b) 20,150 (c) 19,750 (d) 17,000
  2. The opening capital is (a) N32,000 (b) 26,000 (c) 25,600 (d) 14,000
  3. The value of fixed assets is (a) N57,300 (b) N47,500 (c) 40,000 (d) 37,500
  4. 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
  5. 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
  6. Outstanding rent of N600 is paid by the proprietor, the effect on the balance sheet is that  (a) both the liability are increased (b)  both the liability are increased.                   (c) Liability is increase while the asset is decreased (d) liability is decreased while the asset is increased.
  7. 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
  8. Trade discount is (a) allowance for prompt payment (b) allowance for damaged goods (c) allowance of price list (d) discount on creditors (e) discount on debtors.
  9. 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                        
  10. 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
  11. 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
  12. 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
  13. 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
  14. The capital of a non- profit making organization is known as (a) capital reserved (b) accumulated fund (c) development capital (d) endowment fund
  15. 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
  16. 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
  17. 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
  18. Receipt and payment account is equivalent to (a) income and expenditure                      (b) cash account (c) trading account (d) profit and loss account
  19.  25% mark-up is equivalent to —————— margin   (a) 50% (b) 331/3 %                          (c) 20% (d) 75%
  20. Average stock is derived by (a) adding the opening stock to the closing stock                (b) dividing the sum of the opening stock and closing stock by two(2)                              (c) dividing the differences of opening stock and closing stock by two(2)                            (d) ½ of purchases
  21. Given rent owing at 1/1/15 as N5, 000, 31/12/15 as N1, 000 and cash paid during the year as N8, 000. How much will be charged to profit and loss account                          (a) N5,000 (b) N13,000 (c) N4,000 (d) N12,000   

Use the following information to answer question 33 – 35

Abu and Bello are in partnership business sharing profit and loss in the ratio 2:3 with a total of fixed assets of N30, 000, liabilities of N4, 000. They decided to dissolve the partnership by selling all assets and paying out all liabilities. The fixed assets realized N20, 000; Goodwill was valued at N15, 000.

  • What is the share of profit of Abu   (a) N3,000 (b) N2,000 (c) N4,000 (d) N1,000
  • What is the share of profit of Bello (a) N3,000 (b) N2,000 (c) N4,000 (d) N1,000
  • The liability will be  (a) debited to realization account (b) credited to cash account (c) debited to cash account (d) credited to realization account
  • Subscription in arrears is treated as    (a) current liability (b) current asset                                (c) fixed asset (d) capital
  • Goodwill can be valued in partnership when (a) partners make profits                                              (b) large losses are made (c) a partner retires (d) a new branch is opened
  • When partners make drawing of stock items from the partnership, the accounting impact of the drawing is to increase partner’s (a) goodwill account                                            (b) current account credit balance (c) current account debit balance                       (d) profit and loss credit balance
  • An item of appropriation in a partners profit and loss account is (a) interest on partner’s capital (b) interest on partners’ loan (c) employees salaries                                (d) partners’ drawing
    • Subscriptions received during the year          N30,000
    • Subscription owed last year                           N4,000
    • Subscription received for next year               N6,000
  • The N6,000 subscription received is (a) current assets (b) current liability                 (c) fixed asset (d) capital                        

Part B

Answer only one question from this part.

1.  Tunde, Tayo and Talabi who share profit and losses in the ratio 2:3:1 decided to dissolve their partnership as at 31st December 2018

Balance sheet as at 31st December 2018

Capital account:                                            Fixed Assets:

                                                                   Building                         2,500

 Tunde     3,000                                           Equipment                     1,500

Tayo          2,500                                           Motor car                        1,250

Talabi      1,500              7,000                                                            5,250

                                 Current Asset

Current Account:                                          Stock                      900

Tunde           100                                             Debtors            1,400

Tayo             50                                                    Bank              700               3,000             

Talaabi      250                  400

Creditors                           850   

                                      8,500                                                                         8,500                                                              

Additional Information: (a) the following assets were realised

                             Equipment            900

                             Stock                    950

                             Goodwill              1,500

                             Debtors                1,350

(b) the motor was taken over as follows Tunde N400 : Tayo  N500 : Talabi N250

(c) the building was taken over by Tayo at a value of N2,750

(d) the creditors were discharged for N800 and cost of dissolution were N500.                                  You are required to prepare the necessary accounts.  20 marks

2. Below is a summary of the receipt and payments of Ikoyi club for the year ended 31st Dec. 2016


Balance 01/1/16                                                                                          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, 2016 (e) the club had the following properties on 1st January 2016.


  1. Club house                                                                          960,000
  2. Equipments                                                                         600,000
  3. Bank deposit                                                                       400,000
  4. (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 2016 (ii) Income and expenditure account for the year ended 31st December 2016  (iii) Balance sheet as at that date.  20 marks

Part 3. Answer  any two questions from this part

  1.  (a)  what is dissolution of partnership?     1. (b) list at least five reason necessary for the dissolution of partnership ( 10 marks )
    1. Define the following accounting ratio and state the formula applicable to each of them I. Margin  II. Mark-up III. Rate of stock turn over IV. Gross profit percentage ( 10 marks)
    1. State the meaning and treatment of the following (a) subscription in arrears (b) subscription in advance (c) expenses in advance (d) accumulated fund (e)  subscription received
    1. Give at least five differences between the receipt and payment account and the income and expenditure account (10 marks)


SUBJECT:    FINANCIAL ACCOUNT         CLASS:            .S.S 3


  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 (e) for every seller there is a buyer
  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 (e) both liability and asset remain unchanged
  3. 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
  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) net loss (c) sales (d) net profit (e) gross loss
  6. The sales account is written up from:(a) a cash sales to customers only (b)  credit sales to customers only (d) cash sales less cash discounts (e) 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 (e) customer account
  8. When a buyer returned damaged goods to the seller they  received  (a) profoma invoice (b) credit note (c) debit note (d) receipt (e) cash
  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 cash (c) bank lodgment  (d) payment made in bank on standing order (e) opening bank over draft
  10. Which of the following belong to private ledger? (a) drawing (b) premises account (c) bank account (d) depreciation account (e) rent and rate 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 diminishing (c) reducing (d) accumulate (e) depreciation
  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 II only (e) I and III only
  14. 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
  15. Which of the following errors affects the trial balance? (a) commission (b) omission (x) principle (d) original entry (c) lone entry
  16. 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.
  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 (e) sales 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. 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
  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 (e) a fixed percentage of the cost other asset written off each year
  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 account (e) 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 (e) debit side of the trading 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 (e) manufacturing 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 (e) debit side of cash book
  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 (e) issued at premium
  27. Preliminary expenses of a limited liability company are (a) fixed asset (b) current asset (c) fictitious assets (d) fictions liability (e) current 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 (e) subscripted
  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 (e) N32,000
  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 (e) total of the short term liability
  31. The document evidencing a disbursement of government fund is known as (a) bill (b) invoice       (c) till book (d) payment voucher (e) local purchase
  32. The authority of the accountant general to disburse from government fund is called (a) voucher    (b) warrant (c) estimate (d) provision (e) 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 (e) II and III 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) receipt and payment account deal with cash transactions only (e) receipts and payment account is a substitute for income and expenditure account
  35. Carriage outwards in accounting term for amount spent  on (a) goods purchases (b) goods sold (c) excess stock (d) goods for production (e) return back
  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 (e) I and II only
  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 (e) general serve
  39. Which of the following is not a liability? (a) accrued wages (b) credit (c) repayment (d) insurance due but unpaid (e) rent arrears
  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 (c0 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

  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

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 developments for suya and tea. The following  balances were extracted from his ledger at 31st December 2016

                                                                                    DR                                          CR


                        Suya                                                                                                    5,000

Stock 1/1/16                                                                                        4,500

Suya(raw meat)                                      200

Tea                                                         250


                        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
    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 Amansie 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 licences                                                                 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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