ACCOUNTING EXAM QUESTIONS FOR

SS1 THIRD TERM

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THIRD TERM SS1 ACCOUNT EXAMINATION

QUESTIONS – EDUDELIGHT.COM
THIRD TERM EXAMINATION

Examination malpractices may lead to a repeat of the subject or suspensions

don’t be involved.

SUBJECT FINANCIAL ACCOUNTING CLASS: S. S. S 1 DURATION 3

HRS

OBJECTIVE

1.Which of the following is an impersonal nominal account?

a. Salaries account b. machinery account c. debtors account d. Creditors

account

2. Profits are recognized when goods are sold. What concept is this?

a. Realization b. Matching c. Periodicity d. Going concern

3. A fixed amount set aside for petty expenses is? a. Imprest b. float c.
receipt d. fund

4. The source document sent by the seller to the buyer when goods are
returned is?

a. credit note b. purchases invoice c. petty cash book d. voucher

5. Carriage inward expenses of a business is treated in a. trading
account b. balance sheet c. appropriation account d. profit and loss
account

6. Which of the following is not a liability?

a. accrued wages b. creditors c. prepayments d. rent in arrears

7. Discount allowed is charged to

a. Trading account b. balance sheet c. current d. profit and loss account

Use the following information to answer questions 8 and 9

Opening stock 40000

Purchases 130000

Closing stock 32000

Sales 180000

8. What was the cost of goods sold?

a. #170000 b. 138000 c. 130000 d. 122000

9.What was the gross profit?

a. #58000 b. #540000 c. #42000 d. 10000

10. A ledger is a _____________

a. principal book of account b. book of original entry c. record of credit

transaction d. summary of entries
11.One of the following is not found in the trial balance a. opening stock
b. closing stock c. capital d. rent paid

12.In the preparation of bank reconciliation statement uncredited cheques are

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JSS2 THIRD TERM FOR SS2 SECOND

TERM

a. added to the balance as per b. deducted from the balance as per bank
statement c. added to the balance as per cash book d. ignored totally

Use the following to answer to answer questions 13 and 14

Balance as per cash book 18000

Dishonoured cheques 1200

Bank 300

Unpresented cheques 2400

13. The adjusted cash book balance is

a. #18900 b. #18000 c. #17700 d. #16500

14.The balance as per bank bank statement is

a. #21300 b. #18900 c. #16500 d. #14100

Use the following information to answer question 15 and 16

 #

Purchases 2000

Opening stock 900

Closing stock 300

Sales 3850

15. Gross profit is

a. #1850 b. 1250 c. #950 d. #650

16. The cost of goods available for sale is

a. #3850 b. #2900 c. #2300 d. #2000

17. Which of the following doesn’t appear in the bank statement?

a. Dividend received b. Bank charges c. Uncredited cheque d.

dishonoured cheque

18. An example of fictitious asset is

a. goodwill b. overdraft c. profit d. stock

19. Tolu purchased a machine for #6000 on credit.The effect is to debit

________ and credit the account of the supplier

a. cash b. creditor c. debtor d. machinery

20.Nominal ledger contains the following accounts EXCEPT

a. cash b. discount allowed c. rates and rents

d. sales
21. Which of the following is not a cause of depreciation? a. appreciation b.
evaporation c. obsolescence d. tear

22. Which of the following is not a subsidiary book? a. sales day book
b. purchases day book c. general journal d. trial balance

23. Which of the following is an example of subsidiary book? a. cash

book b. bank statement c. control account d. trial balance

24.The accounting equation is

a. Assets =Capital + Income b. Assets=Capital +expenses-liuabilities c.

Assets=capital+income-expenses d. Assets = Capital + liabilities

25. Purchase invoice is first entered in the

a. purchases account b. cash book c. sales journal d. purchases journal

26. In preparing a profit and loss account, a decrease in the provision for
doubtful debts account is treated as

a. current liability b. expenses c. income d. current assets

27. Which of the following is not a method of depreciating fixed assets

a. revaluation b. straight line c. diminishing balance d. obsolescence

28.Bank reconciliation statement is prepared to reconcile the difference

between

a. bank statement and credit transfer b. cash book and bank transfer c.
bank statement and bank transfer d. cash book and bank statement

29.The balance sheet is prepared to reveal

a. the result of the operation for the period ended under review b. the
financial position of the business c. the arithmetical accuracy of the ledger
accounts d. the accruals and prepayments
30. The excess of cost of goods sold over net sales is

a. Gross profit b. gross loss c. net profit d. net loss

31. Investors in a business are mainly interested in the firms a. liquidity b.

debt

c. management d. Profitability

32. Which of the following items is found on the debit side in a trial balance?

a. provision for doubtful debts b. discount allowed c. discount received d.

returns outward

33. The claim of a proprietor of a business entity on its assets is

a. liabilities b. capital c. drawings d. funds

34. Entries in the purchases journal are transferred to the

a. receivable ledger b. payable ledger c. general ledger d. private ledger

35. A reduction in price to encourage prompt payment is

a. trade discount b. quantity discount c. cash discount d. seasonal

discount

36. Which of the following activities will increase profit?

a. depreciation charges b. reduction in provision for doubtful debts c.

undervalued

closing stock d. return inwards

37. Cost of goods sold is calculated as

a. opening stock + purchases – closing

b. opening stock + sales – closing c. opening

stock + purchases + closing stock

d. opening stock +sales +closing stock

38.The concept which states that revenue is recognized when goods are sold
is

a. accrual concept b. going concern concept c. business entity concept d.

periodicity concept

39. A fall in the value of a fixed asset due to technological changes is

described as

a. superfluity b. wear and tear c. obsolescence

d. depletion

40. The amount set aside out of profit to strengthen the financial position of
the

business is a. provision b. reserve c. depreciation d. surplus

41. An amount from a customer,kofi has been credited to another

customer,kofigos

account. This is an error of

a. principle b. commission c. original entry d. complete reversal

42. Current assets less current liabilities is

a. working capital b. capital employed c. fluctuating capital d. fixed

capital

43. External users of accounting information include

 a. employee b. management c. bankers d. directors

44. Every asset should have

a. a non monetary value b. tangible and intangible qualities c. monetary

cost and

future benefit d. an inadequate monetary value

Use the following information to answer question 45 and 46

Sales 120,000

Purchases 100,000

Opening stock 10,000

Closing stock 20,000

45. The cost of goods sold is

a. 120,000 b. 110,000 c. 90,000 d. 30,000

46. The gross profit or loss is

a. 30,000 b. 20,000 c. 10,000 d. 15,000

47. The documents that shows the evidence of payment is called

a. debit note b. invoice c. receipt d. voucher

48. Return inwards is also called

a. purchases return b. sales return c. goods on sale or return d. goods in transit

49. Return outward is also called

a. sales return b. purchase return c. goods return d. goods bought

50. The decrease in the value of assets is called

a. goodwill b. depreciation c. asset d. revaluation

THIRD TERM SS1 ACCOUNT EXAMINATION QUESTIONS – EDUDELIGHT.COM

THEORY

PART ONE. ANSWER ANY TWO QUESTION

1. a What is accounting?

(b) List and explain any five types of depreciation

(c)Define bad debts

2.(a) What is trial balance?

(b) Differentiate between discounts allowed and discounts received

(c) State the reasons for granting discounts

3.(a) State any five subsidiary books

(b) Differentiate between accruals and pre-payments

(c) What is balance sheet?

4. a state five users of accounting information

b explain three accounting concept and convention

c. explain the types of discount

PART 2: Answer question 4 and any other two(2) question.

4. The following Trial balance was extracted from the books of Mr.
Ebinpejo on 31st December 1997

Dr # Cr #

Capital 27,000

Sales 44,952

Purchases 155,663

Returns 546 1,272

Opening stock 3,438

Drawings 2,100

Salaries 1,884

Manufacturing wages 11,568

Leasehold factory 8,057

Rent, Rates and insurance 2,082

Carriage inwards 693

Carriage outwards 972

Office expenses 2,856

Plant and Machineries 7,200

Provision for bad debts 972

Discounts received 354

Debtors and Creditors 12,691 5,094

Cash at bank 663

Cash in hand 3,720

Salesman commission 3,261

Office furniture 1,050

 Bad debts 1,200

79,644 79,644

Additional information:

a. Depreciation is to be provided on cost as follows: Leasehold premises

20%;Plant and machinery 25%;Office furniture 10%

b. The provision for bad debts is to be made up to #1,500

c. The value of the stock as at 31st December was #1,678

d. Unexpired insurance premium amounting to #250 is to be carried forward to

next year.

You are required to prepare:

a. Trading, Profit and loss accounting for the year.

b. Balance sheet as at that date.

5. Yusuf maintains a business bank account with Access Bank plc. The Bank
statement received for the month of March 1999 showed a balance of #14265
to his credit while according to his cash book, he should be having #13380
subsequent investigation revealed the following.

a. Two cheques AOOIII for #3400 and X222419 for #6000 deposited to the
bank on 28th March 1999 were not credited by the until 2nd April 1999

b. A cheque for #3000 received from a customer in full settlement of a debt of

#3300 had been entered in the cash book at full value of debt

c. A cheque for #6500 issued to Jango ltd had not been presented for
payment.
d. Dividend of #650 from PZ ltd had been paid direct to bank

e. The bank deducted total of #125 as it charges.

f. The bank had credited a cheque of #3560 of V.Amaka in error ton T.Emeka
account

You are required to prepare

a. Adjusted cash book

b. Bank reconciliation statement for the Month of March 1999

6. A motor cost #51,200. It will be kept for 5 years and then sold at an
estimated figure of #12,150. Show the calculations of the figures for
depreciation for each year using:

a. Straight line method.

b. Reducing balance method – 25% rate of depreciation.

7. The following balances were extracted from the books of omoyajowo

enterprises on

31st December 2001

Freehold property 200,000

Capital. 180,000

Trade debtors 28,000

Furniture and fittings 20,000

Rent. 950

Electricity. 600
Provision for bad debts. 200

Office equipment. 12,050

Stock. 7,000

General expenses 2,000

Rate. 600

Cash in hand. 130

Bank charges 300

Purchases 148,000

Sales. 162,000

Carriage inwards 300

Discount received 600

Sundry expenses. 800

Salaries. 1700

Discount. allowed. 450

Trade creditors 76,000

Required : extract a trial balance

8. Write up a three column cash book from the following details, balance off
at the end

of the month

1998
Jan 1 Started business with #5,000 in the bank

2 Received a cash loan of #600 from soji

3 Bought motor car paying by cheque #70

4 Paid wages with cheque #270

7 Paid rent in cash #70

8 Cash withdrawn from the bank #300

9. Bought goods for cash #170

12 cash drawings #150

15. we settle the following accounts by cheque less 5% discount :sayo

#300,ajayi 280

biodun #600

17 cash purchases #180

19 the following paid us their account with cheque less 5% discount olu #250
Ismaila

#160

20 received loan from ayodele by cheque #2,000

24 cash sales paid directly into bank #700

25 paid insurance by cash #100

26. drawing by cash #50

27 paid rent by cheque #200

29 bought motor van paying by cheque #234

30. cash withdrawn from the bank #400

9. Write up a two column cash book from the following

2010

April 4 started business with cash in hand #150,000 and cash at bank #50,000

5 cash sales. #60,000

6 paid for recharge cards in cash #2,000

9 purchase of goods with cheque #10,000

12 received from m. Adeleye by cheque #30,000

17 paid rent with cash #5,000

20 withdrew cash from bank #9,000

23 cash sales paid direct into the bank #25,000

25 paid general expenses with cheque. #6,000

27 receive from shagari by cheque #4,500

29 paid salary in cash #5,000

31 purchase of goods with cheque #10,000

THIRD TERM SS1 ACCOUNT EXAMINATION QUESTIONS – EDUDELIGHT.COM

FINANCIAL ACCOUNTING

(1) Which of the following is the book of original entry for all payments and
receipt whether by cash or cheque
(a) Sales day book (b) Purchase day book (c) Cash book (d) journal
book

(2) Which of the following fixed asset is not depreciable

(a) Building (b) Bulding (c) Tools (c) Land (d) Motor
van

(3) Prepayment is shown in the balance sheet as

(a) Current account (b) liability (c) Capital (d) fixed asset

(4) A trial balance is

(a) an attempt to balance the account (B The credit balance of the

account

(c) List of all balances extracted from the ledger (d) the debit balance
of the account

(5) The purpose of a trading account is to ascertain

(a) sales (b) Gross profit or loss (c) Net profit or loss (d)
appropriated profit

6 The balance sheet is a statement showing

(a) all assets and liabilities (b) All balances (c) Credit
entries

(d) Debit entries on the business

Use the following information to answer question 7 to 9

Stock 1/1/17 4, 500

sales 13, 500

Purchase 5,000

Carriage inward 500

stock 31/12/17 4,200

Return inwards 600

7. Calculate the cost of sales

8. calculate the net sales

9. Gross profit

10. discount allowed is a charge made against

(a) Trading A/c (b)Profit and loss A/C (c) Appropriation A/C (d) Current
A/C

11. Opening stock + purchase + carriage inwards is equal to

(a) Total sales (b) Cost of goods sold (c) cost of good available for sale
(d) gross profit

12. Carriage inwards are incurred on goods

(a) On display (b) sold (c) in process (d) purchase

13. Which of the following is not an asset

(a) Bad debt provision (b) Rent in arrears (c) sales (d)
accrued wages

14. Which of the following expenses the accounting equation?

(a) Capital + assets + liabilities (b) Asset – liabilities = capital (c)Liabilities
– capital = asset

(d) Asset + capital = liabilities

15. Excess of current asset over the current liabilities is called ____________

(a) Running capital (b) working capital (c) circulating capital (d)
Real capital

16. ______________ is the situation whereby a firm has no working capital

(a) overdraft (b) over trading (c0 over buying (d) over
selling

17. Total asset less current liabilities means __________

(a) Capital employed (b) Circulating capital (c) working capital (d)
current capital

18. _____________ is the indebtedness of the business to outsiders

(a) asset (b) Capital (c) Liabilities (d) Income

19. The sales day book is used to record

(a) Cash and credit sales (b) Credit sales (c) cash sales (d) sales to
middlemen

20. The systematic recording of business transaction is monetary terms is

(a) Auditing (b) Book – keeping (c) debiting (d)

crediting

21. An allowance given to a customer by a supplier for prompt payment is

(a) Trade discount (b) discount received (c) discount allowed (d)
cash discount
22. Which of the following is a n example of direct examples

(a) Royalties (b) Carriage inward (c) Carriage outward (d)

Manufacturing wages

23. When a transaction is completely left out from the books, it is an error of

(a0 Commission (b) Omission (c) Principle (d) compensation

24. Which of the following errors will affect the total f a trial balance

(a) complete reversal of entry (b) compensating error (c)

Error of original entry

(d) Error in addition

25. 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

26. The concept which deals with the exclusion of trivial item in the
accounting records is

(a) consistency (b) going concern (c) Materiality (d)

money measurement

27. The distinguishing feature between a two column and three cash book is

(a) Discount column (b) Bank column (c) Ledger column (D)
ledger folio

28. The lodgment of business cash into the business bank account is an
example of
(a) Central entry (B) Bank reconciliation (c) Self balancing (d)
Reversal entry

29. Purchase account is over cast by N200 . this is

(a) An error of omission (b) Compensating error (c) Error of

commission

(d) Error of principle

30. The income accruing to debenture holder is called ______

(a) interest (b) net profit (c) shares

31. The amount by which assets exceed specific liabilities is called______

(a) reserve (b) provision (b) bonus

32. A subsidiary record is a book _____ (a) of original (b) found in the
journal

(c) containing the ledgers

33. In which ledger is the control account prepared? (a) General

ledger (b) sales ledger (c) purchases ledger

34. A suppliers personal accounts are found in the _____ (a) purchases
ledger (b) sales account (c) sales ledger

35. A business firm incurs labour cost in installing machinery. This

should be treated as _______ (a) machinery cost (b) salaries (c) wages

36. Which of the following is an impersonal nominal account? (a)

salaries account (b) machinery account (c) creditors
account

Instruction: Use the information below to answer questions 8 and 9.

OLURIN started business on 1st January, 1998 with the following assets:
Motor Van 195,000

Buildings 300,000

Stock of Goods 35,000

In addition, she had cash of N60,000, out of which N20,000 was borrowed
from a friend.

37. The capital of the business is _____ (a) N500,000 (b)

N520,0000 (c) N480,000

38. The liabilities of the business amount to ___ (a) N20,000 (b)
N40,000 (c) N80,000

39. Which of the following is a primary source of entry into the debtors’
ledger?

(a) sales invoices (b) suppliers invoices (c) payment vouchers

ACCOUNTING EXAM QUESTIONS FOR SS1 THIRD TERM

THEORY

On the 31st march 2017, Rachael’s cash book showed a debit balance of
N2,270. on comparison, the following were found.

(a) Cheques drawn anointing to N1, 500 ha not been presented for payment

(b) A standing order N600 to a club was not taken into consideration.

(c) A dividend of N300 was paid directly into the Bank and not recorded in the
cash book.

(d) Bank charges of N50 were entered in the bank statement only.

(e) Cheque for N1,000 were entered into the cash book and paid to the Bank
but had not been cleared and thus not credited.
(f) A customer, Bolaji , paid N120 directly into the Bank without notifying the
firm.

2(a) What is trial balance

(b) state four (4) errors that cannot be disclosed by the trial balance .

3(a) Explain the term “Accounting concepts)

(b) Explain the following concept

(i) Going, concern

(ii) Matching

(iii) materiality

(iv) Money measurement

(v) consistency

4.The following are the list of balance taken from ledger of okokwo, a sole
trader as at

31st Dec 2017 N

stock at 1st January 17 5,850

Plant and machinery at cost 36,450

Accumulated depreciation 14,570

Sales 96, 400

purchases 48,800

Discount received 1,200

Discount allowed 1,330

Purchases returned 540

sales return 770

Rent and rates 2,490

Debtors 6,359

Drawing 8,470

Stock at 31st, Dec 17 6,200

Capital 24,930

Cash at Bank 2,200

You are required to prepare Trading , profit and loss account . for the year
ended 31st Dec 2017

(5) . Ojo Enterprises started business on January 207 with a capital of

N16,000. the following transactions were carried out during the month of
January

January 1 Purchased furniture by cash N2,400

January 2 Purchased stationery N200 cash

January 3 Purchased goods by cash N3,500

January 4 Purchased goods on credit from Nagogo 5,000

January 15 sold goods for cash N6,000

January 18 Sold goods for charlotte Umedo on credit 2,400

January 20 Paid advertisement expenses 200 cash

January 25 Paid Nagogo n3,500 cash being part of settlement of goods
purchased

January 28 Paid rent in cash N300

January 31st Paid salaries and wages N600 cash

ACCOUNTING EXAM QUESTIONS FOR SS1 THIRD TERM