Financial Accounts Examination Questions for Senior Secondary School

3RD TERM EXAMINATION
CLASS: s. S. S.
1        subject: financial accounting
1.      The banker on who a cheque is drawn is referred to as the (a) drawer (b) drawee (c) payee (d) recipient (e) donor
2.      Fixed Assets include__________ (a) prepayment (b) stock (c) accrual (d) land (e) debenture
3.      A balance sheet is a (a) form of trading account (b) proof of arithmetical accuracy of postings (c) a statement showing profits at a certain date (d) a statement showing assets
and liabilities at a certain date
4.      A date of goods to Audu was not posted. This is an error of (a) omission (b) compensation (c) commission (d) principle

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5.      Use the following information to answer questions 5 to 7
6.                                                                                             #
7.      Debtors (1/1/98)                                                       2,000
8.      Debtors (31/12/98)                                                  1,250
9.      Cash received from Debtors                                   6,000
10. Bad debt written off                                                    750
11. Discount allowed                                                        500
12. Discount received                                                       125
13. What was the amount of sales for the year? (a) #8,500
(b) #6,625 (c) #6,500 (d) #6,000
14. Assuming a gross profit of #3,000, what was the net profit? (a) #3,375 (b) #2,625 (c) #2,000
15. The objective of accounting information is to enable users to (a) prepare the financial statements (b) value stock (C) make decisions (d) prepare budgets
16. Which of the following date lines is correct for a profit & loss account (a) for the year ended 31st December 2009 (b) as at 31st December 2009 (c) for the period 31st December
2009 (d) as at the year 2009
17. Provision for depreciation on delivery van is charge to (a) trading (b) profit and loss account (c) appropriation account (d) manufacturing account
18. The going concern concept assumes that (a) every transaction is represented by a debit and credit entry (b) the currency must not change (c) the firm is a legal entity (d) the business will continue to operate indefinitely
19. The two fundamental books of accounts are (a) returns inwards and outward (b) journal and ledger (c) discount allowed and received (d) credit not and debits note
20. The major reasons why we prepare trading account at is
to ascertain (a) gross profit / gross loss (b) net profit (c) net loss (d) all of the above
21. Which of the following does not belong to the group (a)
plant and machinery (b) land and building (c) freehold premises (d) stock
22. Final account is an account of a sole trader (a) Yes
(b) No (c) May be (d) None of the above
23. ________is the reasons why we prepare profit & loss account (a) net profit / loss (b) gross profit / loss (c) overhead profit (d) A & B
24. Trial balance prepared to (a) detect fraud (b) ascertain losses (C) ascertain profits (d) test arithmetical accuracy of entries made in the ledger
25. _______is a statement of the assets at a particular amount in times and the liabilities and proprietor’s capital (a) trading account (b) trial balance (c) balance sheet (d) balance note
26. Goodwill, patents and trade mark and classified under
(a) fixed assets (b) current assets (c) intangible assets (d) wasting assets
27. One of the reasons why some people practice single entry system is__________ (a) they think it is not necessary for them to practice double entry (B) they believe that double entry system is only meant for married people (c) they think their account is too small and it will
sound so funny and stressful to practice double entry (d) A & C
28. The concept of double entry book – keeping states that (a) if you receive goods on credit the seller becomes your creditor (b) for every debit entry, there must be a corresponding credit entry (c) one partyreceives and another pert gives value (d) A & C

INSTRUCTION: Answer any three questions here but number 5 is compulsory

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•   a. What is single entry accounting system?            (5marks)
b. State two characteristics of single entry accounting system (5marks)
c. State three disadvantages of single entry accounting system (3marks)      WAEC May/ June 2011
•   a. Explain how the following items are treated in the profits & loss account and balance sheet
•         Depreciation on fixed assets
•         Provision for doubtful debts (2marks)               WAEC
May / June 2011
b. State any three errors that will affect the agreement of trial balance
•   Write short note on the following
•         Gross profit (2marks)
•         Net profit (2marks)
•         Current assets (2marks)
•         Fixed assets (2marks)
•         Working capital (2marks)
•   A. Define the term suspense account (4marks)
b. Explain the following terms
•         Trading account (2marks)
•         Profit & loss account (2marks)
•         Balance sheet (2marks)
•   The following trial balance was extracted
from the books of Alajebi enterprises for the year ended 30th June, 2007
                                                   Debit              Credit
Capital                                       20,000
Stock
                                                18,200
Purchases and
Sales                                     178,000          280,000
Returns inward /
outward                                3,400              1,700
Discount                                 1,320              1,560
Debtors and
Creditors                               32,000            24,600
Carriage
outwards                                4,250         
Rent and
rates                                     7,480
Wages and
salaries                               17,740
Machinery at
cost                                     150,000
Provision for depreciation
(Machinery)                            20,000
Provision for bad
debt                                     7,200
Bad
debts                                   1,060
General office
expenses                               3,890
Cash at
bank                                      47,720         

                        465,060              465,060


Additional Information


•   Stock as at 30/6/07 was valued at #16,700
•   The proprietor had withdrawn goods worth
#5,600. This has not been reflected in the books
•   Wages of #2,260 is owed white rent of #1,400 had been prepaid
•   Provision for bad debt is to be reduce to #6,000
•   Provide for depreciation of machinery at 10% reducing balance

            

You are required to prepare
•         Trading, profit & loss account for the year ended 30th June, 2007
•         A balance sheet as that date                                   WASSCE
June 2009
•   Write note on the following adjustment made in final account
•         Prepayment
•         Provision for doubt debt and bad debt
•         Accrued expenses
•         Provision for discount allowed


3RD TERM EXAMINATION
CLASS: S. S. S. 2                                                    
 subject: financial accounting


•   Which of the following is debited to partner’s current account? (a) capital (b) interest on capital (c) drawing(d) share of profit
•   Which of the following books of original entry is used to record all payments and receipts by cash or cheque? (a) cash book (b) purchases day book (c) general journal (d) sales day book
•   S. Sule sets aside from his private funds #20,000 for businesses purpose. The #20,000 is referred to as (a) drawings (b) loan (c) capital (d) profit
•   Prepayment is treated in the balance sheet of a firm as a (a) current asset (b) fixed asset (c) current liability (d) current profit

•   Partners whose liabilities are restricted to their financial contribution to the partnership in the event of winding up are (a) ordinary partners (b) limited partners (c) document partners (d)sleeping partners


THEORY

Answer any two questions from here
•   a. State three uses of control account          (3marks)
b. List five items that are debited in the sales ledger control account (5marks)
c. List two items that are credited in the sales total
account     (2marks)                    WAEC 2012
•   a. Explain five events that may lead to the dissolution of a
partnership           (5marks)
WAEC 2012
b. What is single entry accounting system?
c. State two characteristics of single entry system (2marks)
•   Ojewande Daniel cash book failed to agree
with his Oceanic bank statement. In your opinion what do you think can lead to that disagreement? List them and explain in not less than two pages


SECTION C
Financial Accounting
Practice
Answer only one question
here
•   Adedokun and Osagie are in partnership, they share profit equally. It was decided to admit Ademuyiwa and he brought in cash #7,000 as capital. It was agreed that goodwill was worth #!5,000. The new profit sharing ratio is to be Adedokun 3 : Osagie 2: Ademuyiwa 2
The balance sheet before Ademuyiwa was introduce was
Capital                           #                                                               #
Adedokun                  20,000                                    Net
assets     
Osagie                        20,000
                                    40,000                                                                  40,000
Show the balance sheet in 1st January 1998 after goodwill has been taken into if
•         Goodwill account was opened
•         Goodwill account was not opened
•   On 30th November 2013 Charles and son’s cash book showed a debit balance of #3,500 where as the bank statement showed a balance of #2,325
            On investigation the following items were discovered to have cause the discrepancy
•         The bank had made charges of #310 which had not been entered in the cash book
•         A cheque received from #2,000 entered in the cash book been entered by the bank until December 3rd 2013
•         A standing order for subscription of #150 had been entered in the bank statement as paid but not in the cash book
•         The following cheques were drawn but not yet presented for payment in the bank
cheques for #300, #600, #250
•         A cheque for #35 previously received and paid into the bank had been returned by the bank
•         A cheque for 350 had been entered as #60
•         A cheque for #35 previously received and paid into the bank had been returned by the bank
•         A customer paid #160 directly into their account in the bank. It had not been
entered in the cash book. You are required to prepare
•         Adjusted cash book
•         Bank reconciliation statement as on 30h November 2013
•   James, Luke and John are in partnership sharing profit and losses equally. The following is the balance sheet of the business as at 31st December 1999
Capital                          #                        #                             Fixed
Assets                               #
            James             200,000                                              Premises                                320,000
            Luke               200,000                                              Furniture
&
fitting                151,000
            John                200,000          600,000                      Motor
vehicle                         70,000
Current  572,000
            James               15,000                                              Current
Assets
            Luke                 20,000                                              Stock                14,000
            John                  17,000             52,000                     Debtors            26,000
Creditor                                                53,000                     Bank               100,000          140,000
Accruals                                                 7,500        
                                                            712,
500                                                                     712,500
Additional information: It was agreed as follows
•         On 31st December 1999, Tunde was admitted into the partnership
•         Profits and losses would be shared equally
•         Tunde shall bring #145,000 as capital
•         Goodwill shall be valued at #35,000 an it is to be retained in the book
•         The following assets were revalued
                                                                               #
Premises                                                        300,000
Furniture &
fitting                                        152,000
Motor
Vehicle                                                 63,000
Plant &
machinery                                          45,000
Stock                                                                 16,000
•         A
provision of #3,500 is to made for bad debts
            You are required to prepare
•         Revaluation account
•         Current account
•         Balance sheet after admission of Tunde.

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