CLASS: SS 1 |
TERM: THIRD |
SUBJECT: ACCOUNT |
Answer all questions |
1. Discounts received is (a) credited to the trading account (b) debited to the profit & loss account (c) credited to the profit & loss account (d) credited to the appropriation account |
2. The purpose of the trading account is to ascertain (a) carriage outwards (b) gross profit (c) distribution expenses (d) net profit |
3. Yinka bought goods worth #800:00 and sold at a margin of 20% on selling price. How much did she sell the goods? (a) #1000 (b) #960 (c) #933 (d) #820 |
4. A trial balance is the (a) narration of all transactions and accounts (b) debit balances of the accounts (c) list of all balances extracted from the ledger (d) list of all credit balances in the ledger |
5. The objective of accounting information is to enable users (a) prepare the financial statements (b) value stock (c) make decisions (d) prepare budgets |
6. Trade discounts are given for (a) bulk purchases (b) prompt payment (c) quick delivery (d) cash payment |
7. Which of the following is not a source document? (a) journal proper (b) sales invoice (c) debit note (d) credits note |
8. Which of the following is a book of original entry? (a) ledger (b) balance sheet (c) bank statement (d) sales journal |
9. Which of the following is not an item in the profit & loss account? |
10. The two fundamental books of accounts are (a) returns inwards and outwards (b) journal and ledger (c) discounts allowed and received (d) debit note and credit note |
11. Goods returned by the buyer is recorded in the seller’s book as (a) carriage inwards (b) carriage outwards (c) returns outward (d) returns inwards |
12. Which of the following is not a subsidiary book? (a) sales day book (b) purchase day book (c) general journal trial balance |
13. Which of the following is an example of a subsidiary book? (a) cash book (b) bank statement (c) control accounts (d) trial balance |
14. A petty cashier operates with an imprest of $1000 per week. At the end of the week he had disbursed #920. How much is needed to restore the imprest? (a) $1920 (b) $1000 (c) $920 (d) $80 |
15. John received a cheque from Dawda, a debtor, in payment for goods purchased by Dawda on credit. The transaction will be recorded in John’s (a) cash book and sales ledger (b) nominal ledger and sales ledger (c) cash book and purchases ledger (d) nominal ledger and purchases ledger |
16. The business entity concept (a) separate the owner’s transactions from business transaction (b) records transactions outside the business (c) does not separate the owner’s transaction from the business (d) involves other business transaction |
17. The going concern concept assumes that (a) every transaction is re[presented 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 |
18. Financial accounting information is for (a) internal use only (b) external use only (c) A & B (d) business use only |
19. The sum of money given to a petty cashier out of which small payments are made is a / an (a) bonus (b) loan (c) advance (d) float |
20. Which of the following is not real account? (a) buildings account (b) motor vehicle account (c) patents account (d) furniture account |
21. 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 |
22. 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 |
23. Which of the following does not belong to the group (a) plant and machinery (b) land and building (c) freehold premises (d) stock |
24. Final account is an account of a sole trader (a) Yes (b) No (c) May be (d) None of the |
above |
25. ________is the reasons why we prepare profit & loss account (a) net profit / loss (b) |
gross profit / loss (c) overhead profit (d) A & B |
26. Trial balance prepared to (a) detect fraud (b) ascertain losses (C) ascertain profits (d) |
test arithmetical accuracy of entries made in the ledger |
27. _______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 |
28. Goodwill, patents and trade mark and classified under (a) fixed assets (b) current |
assets (c) intangible assets (d) wasting assets |
29. 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 |
30. 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 party receives and another pert gives value (d) A & C |
SECTION B |
Answer three questions here |
1 a.What is a ledger? 4marks |
b. List and explain three classification of ledger account (WAEC 2007) 6marks |
2. What is petty cash book? 3marks |
b. What do you understand by the word cash book? 3marks |
c. In tabular form, differentiate between two column cash book and three column cash book (4marks) |
3. Explain how the following items are treated in the profits & loss account and balance sheet |
i. Depreciation on fixed assets |
ii. Provision for doubtful debts (2marks) WAEC May / June 2011 |
b. State any three errors that will affect the agreement of trial balance |
4. Write short note on the following |
i. Gross profit (2marks) |
ii. Net profit (2marks) |
iii. Current assets (2marks) |
iv. Fixed assets (2marks) |
v. Working capital (2marks) |
5. List any five errors that can not agreem (4marks) |
b. Explain the following terms |
i. Trading account (2marks) |
ii. a Profit & loss account (2marks) |
iii. Balance sheet (2marks) |
Ojuolape Nig. ltd maintains a petty cash with heading to the analysis columns of office expenses, telephone and postages, traveling, carriage, motor expenses, stationary and ledger. The expenses for the week are as follows: |
2004 # |
July 1 cash from cashier 600 |
2 paid office expenses 33 |
3 paid carriage 66 |
3 bought stamps 9 |
5 paid Dayo account 60 |
7 bought writing materials 99 |
7 paid cleaners 45 |
8 paid postage 15 |
12 paid motor expenses 60 |
13 paid travelling expenses 12 |
14 paid for cleaning 15 |
16 bought 30 |
17 petrol 21 |
19 Jolade: settlement of account 39 |
21 telephone 9 |
24 carriage 15 |
petrol 27 |
28 stationary 30 |
Enter the following transaction into the necessary books of original entry and transfer to ledger accounts. |
Feb. 1 Bought goods on credit from the following people; Ajayi #2660; Nike #3,500; Seyi |
#742 |
2 Sold goods on credit to: Ruth #3570, Kayode #1722, Jule #2492 |
4 Credit purchases from; Bimbo #1400, Mary #1260, Tayo #2870, Tope #462 |
12 Credit sales to; Jolayemi #2149; Tolu #1750, Folake #1295 |
14 Returns outwards to; Nike #210, Seyi #112 |
18 Returns inwards from: Kayode #126, Jide #154 |
22 Credit sales to; Kayode #1316; Ojo #2170, Lara #2940 |
26 Credit purchases from; Folake #3850, Enitan #6300 |
27 Return inwards from; Kayode #189, Ruth #210 |
28 Returns outwards to; Mary #91, Tope #77 |
5. Write up the two column cash book from the following: |
1997 |
Nov. 1 Balance brought forward cash #1050, Bank #21,640 |
2 Cash sales #6050 |
3 Took #500 out of the cash till and paid it into the bank |
4 Received cheque from Ola #2170 |
5 Paid cash #600 for stamps |
6 Received rates refund by cheque #720 |
8 Bought goods for cash #900 |
10 Withdraw #2500 from the bank for business use |
12 Paid wages in cash #230 |
14 Paid motor expenses by cheque #570 |
17 Paid insurance by cheque #740 |
19 Cash drawings #300 |
20 Cash sales #20 |
22 Cash purchases #30 |
23 Received loan from Olatunji #8000 |
25 Banked cash #80 |
27 Sold goods for cash #2000 |
29 Paid wages by cheque #16 |
30 Paid for rates by cheque #180 |
31 Cash sales #1200 |
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