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Question 1 Report
| Sales Ledger Control Accuont (Extract) | |||
| ₦ | ₦ | ||
| Bal. b/d | 18,400 | Bad debt written off | 1,500 |
| Sales | ? | Discount allowed | 500 |
| Cheque received from debtors | 25,000 | ||
| Cash received from debtors | 10,000 | ||
| Bal. c/d | ? | ||
If the discount allowed is 2.5% of sales, calculate the closing balance in the sales ledger account
Answer Details
Question 3 Report
| Sales Ledger | |||
| ₦ | ₦ | ||
| Bal. b/d | 20 000 | Sales returns | 10 000 |
| Sales | 40 000 | Discount allowed | 1 000 |
| Bal. c/d | ? | ||
If cheques of ₦40 000 were received but a cheque of ₦8 000 was dishonoured, the amount owed was
Answer Details
Question 4 Report
(i) Profits and looses will be shared unequally.
(ii) Interest is not allowed on capital.
(iii) Salaries are not allowed.
(iv) Interest is charged on drawings.
From the above, which of the following would apply where there is no agreement during partnership formation?
Answer Details
Question 5 Report
Use the information below to answer question
Net loss.......................₦2300
Capital........................₦10500
Liabilities....................₦7200
What will be the equity of the business?
Answer Details
Question 6 Report
The purchases ledger control account showed a credit balance of ₦525 000 on April 30, 2006.
This amount shows?
Answer Details
The purchases ledger control account showed a credit balance of ₦525 000 on April 30, 2006. This amount shows what a business enterprise owed its creditors. A purchases ledger control account is used to record the total amount owed to all creditors by a business enterprise. The credit balance in this account indicates that the total amount owed to creditors is less than the total amount paid to them by the enterprise. This situation arises when the enterprise has made more payments to its creditors than the total amount owed to them.
Question 7 Report
Given:
Prepaid b/f.......................?10 000
Cash paid during the year.........?20 000
The amount to be charged to the profit and loss account is?
Answer Details
Question 8 Report
A pension granted to any past president or vice-president shall be charged to the
Answer Details
A pension granted to any past president or vice-president is a payment made to these individuals after they have left office. The source of funding for these pensions is outlined in the constitution of the country. In many countries, including Nigeria, the constitution stipulates that pensions for past presidents or vice-presidents should be charged to a special pension fund. This fund is set up specifically to provide for the payment of these pensions. Therefore, the correct answer to the question is a special pension fund.
Question 9 Report
Use the information below to answer question
An asset was purchase for ₦343m in 2003.
The estimated life of the asset was 3 years with a residual value of ₦28m.
What was the asset value at the beginning of the third year?
Question 10 Report
Use the information below to answer question Debtors.................................₦20
Provision for bad debts..................10%
Provision for discount on debtors........5%Determine the amount provided for discount allowed on debtors?
Answer Details
Question 11 Report
Use the information below to answer questions
Given:
Returns inwards............₦1500
Cash.......................₦1550
Discount...................₦2850
Capital....................₦3800
Debtors....................₦900
Sundry.....................N?
The value of sundry expenses is 150% of returns inwards plus 50% of debtors
The total of the trial balance is?
Answer Details
Question 12 Report
| Receipts and Payments Account | |||
| ₦ | ₦ | ||
| Bal. b/f | 1,000 | Salaries | 5,000 |
| Donations | 5,000 | Secretariat expenses | 5,000 |
| Subscriptions | 7,000 | Dance expenses | 5,000 |
| Sales of refreshments | 11,000 | Refreshments | 15,000 |
| Entertainment | 21,000 | Bal. c/d | 15,000 |
| 45,000 | 45,000 | ||
Given:
Calculate the surplus income.
Answer Details
Question 13 Report
Use the information below to answer question An asset was purchase for ₦343m in 2003.
The estimated life of the asset was 3 years with a residual value of ₦28m.Using the straight method. The depreciation of the asset in the first year was?
Answer Details
To calculate the depreciation of an asset using the straight-line method, you subtract the residual value from the initial cost and divide the result by the estimated life of the asset in years. So, for this asset: - The initial cost was ₦343m - The estimated life of the asset was 3 years - The residual value was ₦28m Subtracting the residual value from the initial cost gives: ₦343m - ₦28m = ₦315m Dividing ₦315m by the estimated life of the asset gives us: ₦315m / 3 years = ₦105m per year Therefore, the depreciation of the asset in the first year using the straight-line method is ₦105m. So, the correct answer is option C: ₦105m.
Question 14 Report
Use the information below to answer questions
Balance as per cash book................?13560
Unpresented cheques.....................?5120
Uncredited lodgements...................?2300
Dividend received not entered
In the cash book........................?2000
Bank charges............................?280
Standing order payments.................?600
Balance as per bank statement............?
Calculate the balance in the bank statement.
Answer Details
Question 15 Report
the receipt and payment s acpunt of a not-for-profit-making organization plays a similar role in a profit-making organization as?
Question 16 Report
The amount of subscriptions accrued is reported in the balance sheet under?
Answer Details
The amount of subscriptions accrued is reported in the balance sheet under the current liability. This is because subscriptions are considered as an obligation that the company owes to its subscribers, which must be fulfilled within the short-term period, usually one year or less. As a result, it is classified as a current liability, which is a debt or obligation that is expected to be settled within a year or the operating cycle of the business.
Question 17 Report
Use the information below to answer questions
Given:
Returns inwards............₦1500
Cash.......................₦1550
Discount...................₦2850
Capital....................₦3800
Debtors....................₦900
Sundry.....................N?
The value of sundry expenses is 150% of returns inwards plus 50% of debtors.
How much is sundry expenses?
Answer Details
First, we need to calculate the value of sundry expenses using the information given. We know that returns inwards are ₦1500, so 150% of returns inwards is: 150/100 x 1500 = ₦2250 We also know that debtors are ₦900, so 50% of debtors is: 50/100 x 900 = ₦450 Therefore, the value of sundry expenses is: ₦2250 + ₦450 = ₦2700 We can now fill in this value in the information given, and find the missing value: Returns inwards............₦1500 Cash.......................₦1550 Discount...................₦2850 Capital....................₦3800 Debtors....................₦900 Sundry.....................₦2700 To find the missing value, we need to use the basic accounting equation: Assets = Liabilities + Owner's Equity We can rearrange this equation to solve for the missing value: Assets - (Liabilities + Owner's Equity) = 0 We know the value of all the items except for "sundry", which we just calculated to be ₦2700. Plugging in the numbers, we get: (₦1500 + ₦1550 + ₦2850 + ₦3800 + ₦900 + ₦2700) - 0 = N Simplifying this expression, we get: ₦12400 = N Therefore, the missing value, which is the value of "sundry", is ₦12400. Answer: ₦2700
Question 19 Report
An accounting ratio that considers only quick assets to determine the short-term safety margin of a firm is the?
Answer Details
The accounting ratio that considers only quick assets to determine the short-term safety margin of a firm is called the acid test ratio. Quick assets are current assets that can be easily converted into cash, such as cash, marketable securities, and accounts receivable. The acid test ratio is a measure of a company's ability to pay off its current liabilities using only its quick assets. The formula for calculating the acid test ratio is as follows: Acid test ratio = (Quick assets / Current liabilities) A high acid test ratio indicates that a company has sufficient quick assets to cover its current liabilities, which are debts that are due within a year. This indicates that the company is in a good financial position to meet its short-term obligations. In summary, the acid test ratio is an important measure of a company's short-term liquidity and financial strength, and it helps investors and creditors assess the company's ability to meet its obligations in the short-term.
Question 20 Report
The gross profit disclosed in the branch stock adjustment account represents?
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Question 21 Report
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A company's authorized share capital was one million ordinary shares at ₦1 each. Issued 80% of its shares at ₦1.10 per share. 70k was payable on application, 25k on allotment, 10k due on first call and the balance on second call.
The total amount of money received on application was?
Answer Details
Question 23 Report
Goods worth N50 000 were sent at different times from head office to the branch during the year. By the end of the period, only N40 000 worth of goods had arrived at the branch. Which of the following is correct about the treatment of this transaction?
Answer Details
Question 24 Report
Use the information below to answer questions
........................1/7/2005............30/6/2006
Drawings.....................................₦3 000
Capital.................25 000...............₦42 500
Furniture...............6 500...............₦10 200
Additional capital during the year amounts to 300% of the drawings.
What is the amount of the additional capital?
Answer Details
The additional capital is calculated as 300% of the drawings, which is equal to 3 times the amount of the drawings. From the information given, the drawings amount to ₦3,000 for the year. Therefore, the additional capital is calculated as 3 x ₦3,000 = ₦9,000. So, the amount of additional capital is ₦9,000.
Question 25 Report
The process whereby a cheque received by one person is given to another is known as?
Answer Details
Question 26 Report
Use the information above to answer questions
Lighting..................₦2925
Rent......................₦2640
Salary....................₦4050
The expenses are for three different product:
Zema, Zeta and Zera. They are appointed on the basis of population. 4500 units of the products are produced, out of which 1260 and 2060 units are for zema and zeta respectively.
Find the salary charged to Zera product?
Answer Details
To calculate the salary charged to the Zera product, we need to first find the proportion of the total production that is allocated to Zera. Total production = 4500 units Production allocated to Zema = 1260 units Production allocated to Zeta = 2060 units Production allocated to Zera = Total production - Production allocated to Zema - Production allocated to Zeta Production allocated to Zera = 4500 - 1260 - 2060 Production allocated to Zera = 1180 units Now, we need to allocate the total salary expenses to the three products based on their production proportion. Total salary expenses = ₦4050 Proportion of salary expenses for Zema = (1260/4500) x ₦4050 = ₦1134 Proportion of salary expenses for Zeta = (2060/4500) x ₦4050 = ₦1860 Proportion of salary expenses for Zera = (1180/4500) x ₦4050 = ₦1056 Therefore, the salary charged to the Zera product is ₦1056. Hence, option (C) is the correct answer.
Question 27 Report
A company has departments X, Y and Z. Department X occupies a space of Y while Z occupies half the space of Y. If the company pays ₦70 000 on rent, what is the amount of rent that should be allocated to Y?
Answer Details
Question 28 Report
Stock valuation is useful because it forms the sales department on the?
Answer Details
The statement "Stock valuation is useful because it forms the sales department on the prices that will affect profitability" is incorrect and doesn't make sense. Stock valuation is the process of determining the value of a company's inventory, which is typically one of the largest assets on its balance sheet. The valuation of stock helps a business to know the value of its inventory at any given point in time. By knowing the value of its inventory, a business can make informed decisions about its production, marketing, and sales strategies. For example, if the stock valuation is low, it may indicate that the business is producing too many goods or is holding onto too much inventory. In this case, the business may need to adjust its production or sales strategies to increase sales and reduce the inventory levels. Stock valuation can also help a business to determine the cost of goods sold, which is a key factor in calculating profitability. By knowing the cost of goods sold, a business can determine the prices it needs to charge for its products to make a profit. Therefore, stock valuation is useful because it helps a business to make informed decisions about its production, marketing, and sales strategies based on the value of its inventory. It also helps a business to determine the cost of goods sold, which is important in calculating profitability.
Question 29 Report
Expense paid during the conversion of a partnership to a company are
Answer Details
Question 30 Report
Use the information below to answer questions.Entrance fees.........................₦1200
Subscriptions(including ₦850 arrears).₦4310
Donations received....................₦1500
Proceeds from sales...................₦2300
Total payments........................₦8200
Depreciation..........................₦2100
Closing cash balance..................₦1110The club deposited 200% of the closing cash balance in he bank during the period.Determine the opening cash balance of the
Answer Details
Question 31 Report
Given:Opening capitaL................₦7 000
Additional capital.............₦3 500
Net............................₦2 500
Closing........................₦10 250The drawings for the period stand at?
Answer Details
To find out the drawings for the period, we need to calculate the difference between the opening capital and the closing capital, while taking into consideration any additional capital introduced during the period. The calculation is as follows: Opening capital + Additional capital - Drawings = Closing capital Substituting the given values, we have: ₦7,000 + ₦3,500 - Drawings = ₦10,250 Solving for Drawings, we get: Drawings = ₦7,000 + ₦3,500 - ₦10,250 = ₦10,500 - ₦10,250 = ₦250 Therefore, the amount of drawings for the period is ₦250. Option C - ₦2500 is incorrect as it is the value of the net, not the drawings. Option D - ₦2570 is also incorrect as it is neither a given value nor the correct calculation.
Question 32 Report
A sole trader purchased goods in cash worth ₦2000 at 2% discount and made a cash sale of ₦1000 at the same rate of discount. Determine the amount of discount allowed?
Question 33 Report
Journal proper is used in recording?
Answer Details
Journal proper is used in recording transactions that are not regular or that cannot be recorded in any other type of journal. It is also known as a general journal, and it is used for transactions such as adjusting entries, correcting entries, and other unique transactions that do not fit into the regular sales, purchases or cash journals. Journal proper is a very important part of the accounting system, as it allows for the proper recording of all transactions that occur in a business. By using a journal proper, a business can ensure that all transactions are recorded accurately, which helps in the preparation of financial statements and other reports.
Question 34 Report
Use the information below to answer questions.
Entrance fees.........................₦1200
Subscriptions(including ₦850 arrears).₦4310
Donations received....................₦1500
Proceeds from sales...................₦2300
Total payments........................₦8200
Depreciation..........................₦2100
Closing cash balance..................₦1110
The club deposited 200% of the closing cash balance in he bank during the period.
Calculate the total figure for the receipt and payments account?
Answer Details
Question 35 Report
If Mr. Ajasin paid his creditors ₦5000 out of ₦20 000 owed, what would be the effect of this transaction on the accounting equation?
Answer Details
When Mr. Ajasin paid his creditors ₦5000 out of the total amount owed ₦20,000, it means that the company's liabilities decreased by ₦5000 since they were able to pay off some of their debts. This transaction would have no effect on the total assets since the money used to pay off the creditors was already accounted for as a liability. Thus, there is no change in the total assets of the company. Therefore, the correct answer is: "A decrease in the total liabilities by ₦5000".
Question 36 Report
Given:
Stock at start:
Raw materials................₦57 000
Work-in-progress.............₦42 000
Finished goods...............₦71 000
Purchase of raw materials amount to ₦81 000, direct labour is ₦38 000 and factory overhead ₦29 000.
Calculate the prime cost?
Answer Details
Question 37 Report
| Receipts and Payments Account | |||
| ₦ | ₦ | ||
| Bal. b/f | 1,000 | Salaries | 5,000 |
| Donations | 5,000 | Secretariat expenses | 5,000 |
| Subscriptions | 7,000 | Dance expenses | 5,000 |
| Sales of refreshments | 11,000 | Refreshments | 15,000 |
| Entertainment | 21,000 | Bal. c/d | 15,000 |
| 45,000 | 45,000 | ||
Given:
Calculate the surplus income.
Answer Details
Question 38 Report
Use the information below to answer questions
Balance as per cash book................₦13560
Unpresented cheques.....................₦5120
Uncredited lodgements...................₦2300
Dividend received not entered
In the cash book........................₦2000
Bank charges............................₦280
Standing order payments.................₦600
Balance as per bank statement............?
What is the adjusted cash book balance?
Answer Details
The adjusted cash book balance is ₦14,680. To calculate the adjusted cash book balance, we start with the balance as per cash book, which is given as ₦13,560. We then make adjustments for the unpresented cheques and uncredited lodgements. Subtracting the unpresented cheques of ₦5,120 from the balance as per cash book gives ₦8,440. We then add the uncredited lodgements of ₦2,300 to get ₦10,740. Next, we add the dividend received of ₦2,000 that was not entered in the cash book to get ₦12,740. We then subtract the bank charges of ₦280 and the standing order payments of ₦600 to get the adjusted cash book balance of ₦14,680. Therefore, the adjusted cash book balance is ₦14,680, which is option (i).
Question 39 Report
Given:
Bank overdraft..............₦2000
Cash........................₦2000
Furniture...................₦4000
Calculate the total amount on the credit side of the trial balance?
Answer Details
Question 40 Report
Use the information below to answer question
Net loss.......................₦2300
Capital........................₦10500
Liabilities....................₦7200
Find the value of the total assets?
Answer Details
Question 41 Report
Use the information below to answer question .
Debtors.................................₦20
Provision for bad debts..................10%
Provision for discount on debtors........5%
The provision for bad debt is?
Answer Details
Question 42 Report
The federal government approved ?140m to local governments W, X, Y and Z. The amount is to be shared on the basis of 40% equality, 35% population and 25% internal revenue generation. Calculate the share of local government W on equality?
Answer Details
The share of local government W on equality can be calculated as follows: Share on equality = 40% of ₦140m = (40/100) x ₦140m = ₦(40/100) x 140,000,000 = ₦56,000,000 Therefore, the share of local government W on equality is ₦56m.
Question 44 Report
| Sales Ledger Control Accuont (Extract) | |||
| ₦ | ₦ | ||
| Bal. b/d | 18,400 | Bad debt written off | 1,500 |
| Sales | ? | Discount allowed | 500 |
| Cheque received from debtors | 25,000 | ||
| Cash received from debtors | 10,000 | ||
| Bal. c/d | ? | ||
If the discount allowed is 2.5% of sales, calculate the closing balance in the sales ledger account
Question 45 Report
Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3. On admitting Takwa, the profit and loss sharing ratio was charged to 1:1:1. Suppose Takwa paid ₦30 000 for goodwill , this amount would be?
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Question 46 Report
In the trading and profit and loss account of a manufacturing organization, purchases are?
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Question 47 Report
(i) Facilitating the preparation of final accounts
(ii) Making the existence of error easy to detect
(iii)Checking the accuracy of positions periodically.From the above, which of the following are among the uses of control accounts?
Answer Details
Question 48 Report
A pension granted to any past president or vice-president shall be charged to the?
Answer Details
Question 49 Report
Given:
Shaku Company Ltd.
Stock..........................₦3600 000
Cash at hand...................₦800 000
Cash at bank...................₦2400 000
Debtors........................₦580 000
Trade creditors................₦920 000
Bank overdraft.................₦200 000
Tax liabilities................₦600 000
Salary owed to staff...........₦180 000
Determine the working capital?
Question 50 Report
Use the information below to answer questions ........................1/7/2005............30/6/2006Drawings.....................................₦3 000
Capital.................25 000...............₦42 500
Furniture...............6 500...............₦10 200Additional capital during the year amounts to 300% of the drawings.
Calculate the net profit or loss made during the year.
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