1. (a)
Enumerate ten source documents .
(b) List
five types of subsidiary books
(c) Write short note on:
i.
Real Accounts ii.
Nominal Accounts iii.
Personal accounts
2. (a) Define depreciation in accordance with IAS 4
and state six methods of depreciation you
know.
(b) State
five causes for depreciation.
(c) The following information has been given to you
about Ayegbaogbon Nigeria
Limited`s factory plant and machinery.
Cost N5 million
Scrap
value N250,000
Useful
life 5
years
You are
required to calculate the annual depreciation charges for each year using:
(i)
Straight-line Method (ii) Reducing Balance
Method
3. (a) Explain the uses of accounting information to
the following stakeholders:
i.
Management
ii.
Employees
iii.
Investors
iv. Creditors
v. Government
(b)
“Book-Keeping is to Accounting, what ICT is to computing?” Discuss.
4. (a) Define Bank Reconciliation Statement.
(b) What
are the causes of bank reconciliation statement?
(c) On 31st
December 2017, Brits cash book showed a debit balance of N29,520.
His bank statement showed a credit balance of
N25,260.
The
reasons for the difference were follow:
i.
A
cheque of N1,960 was received and entered in the cash book but was not recorded
in the bank statement.
ii.
Unpresented
cheques totalled N3,740.
iii.
The
payment side of the cash book had been undercasted by N2,000.
iv.
Standing
order for N1,260 appearing in the bank statement was yet to be posted in the
cash book.
v.
A
bill of exchange of N1,340 had matured and the bank had paid on Brits` behalf
but it had not been recorded in the cash book.
vi.
A
withdrawal of N1,440 by breath, another customer of the bank had been charged
in error to Brits account.
You are required to prepare:
i.
Adjusted
cash book
ii.
Bank
Reconciliation Statement.
5. (a) List
and explain five accounting concepts and two accounting conventions.
(b) List six qualities of a good financial
accounting information.
(c) Distinguish between accrued expenses and
prepaid expenses.
6. (a) What do you understand by the term suspense
account?
(b) List
two errors not affecting trial balance and two errors affecting trial balance.
(c) The
following errors were discovered in the books of Blessing and Co. in the month
of
January 2018.
i.
Sales
day book was understated by N5,000.
ii.
Cash
sales of N40,000 was not recorded in the books at all.
iii.
Sales
of N60,000 for motor vehicle was recorded in the sales account of the company.
iv.
A
figure of N753 was posted into the debit of Gabriel`s account as N735.
v.
Amount
of N5,000 discount allowed was posted to the credit side of discount received
account.
You
are required to use Journal entries to correct the above errors.
7. (a) List
and explain six needs for accounting.
(b) List
ten users of financial statement information.
8. (a) State five causes for depreciation with six
methods of depreciation you know.
(b) The
following information has been given to you about factory plant and machinery
of
Motirigbo
Nigeria Limited.
Cost N25 million
Scrap
value N1.25 million
Useful
life 5years
You are
required to calculate the annual depreciation charges for each year using:
(i)
Reducing Balance Method (ii) Sum of the year Digit Method
9. Efura started a photographic business under the
business name Efura Special Photos in
May, 2018. The following transactions relate to the
first month of operation.
2018:
May 1 Paid N200,000 into bank.
May 5 Withdrew cash N90,000 from bank.
May 7 Bought two brand new cameras for N30,000
cash.
May 9 Paid cash for supplies N45,000
May 11
Purchased office equipment with cheque N25,000.
May 13
Received cash for work done N56,000.
May 15 Bought
supplies with cash N10,000
May 18 Paid
cash for repair of equipment N15,000.
May 21
Withdrew cash for personal use N12,000.
May 23 Paid
telephone bills for the month N6,600 by cheque.
May 25
Delivered 100 pieces of pictures at N200 on credit to customers.
May 27
Received N76,000 cash from customers.
May 28 Bought
supplies with cash N5,000.
You are required to prepare the two-column cash book
for Efura for the month of May, 2018.
10. (a) Enumerate seven accounting concepts and three
accounting convention you know.
(b) Classify the underlisted ledger accounts into
capital and recurrent.
i.
Depreciation Account
ii.
Interest Paid Account
iii.
Goodwill Account
iv.
Discount Received
v. Office Building Account
vi.
Patent and Trade Marks Account
vii.
Purchase Account
viii.
Rent of Warehouse Account
ix.
Salaries and Wages Accounts
x. Furniture and Fittings Account
11. (a) Define a trial balance and state six types of
errors which do not affect the agreement of
trial balance.
(b) You
are required to prepare a trial balance.
The
following balances were extracted from the books of Foyegbe and sons on 31st
December, 2017.
N
Premises 150,000
Motor Vans 27,810
Capital 483,720
Advertising 3,810
Postage 4,140
Purchases 2,054,550
Electricity 2,730
Salaries 85,110
Tenement Rate 3,030
Telephone 1,020
Furniture 33,120
Sales 2,204,940
Sales Returns 1,680
Purchases Returns 11,760
Bad Debts 780
Insurance 5,760
Commissions received 52,500
Debtors 146,460
Creditors 252,150
Cash in hand 10,560
Bank 113,760
Stock 360,750
12. The following balances were extracted from the books
of Sogbae and Son on 31st August 2018.
N`000
Purchases 100,250
Capital 41,000
Returns Outwards 340
Land and Building 14,000
Loan 32,000
Stationery
1,260
Drawings 180
Insurance 940
Advertisement 420
Debtors 10,000
Carriage Outwards 220
Motor Van
2,050
Machinery 24,280
Creditors 14,000
Fixtures and Fittings
39,830
Returns Inwards 730
Discounts Allowed 160
Rent 260
Commission Receivable 1,400
General Expenses
2,260
Sales 141,000
Equipment 32,000
Discount Received 600
Salaries 1,500
Required: Prepare a trial balance as at 31st August,
2018 for Sogbae and Sons.
13. (a) What do you understand by a trial balance?
(b) The following balances were extracted from the
books of Felefele Laye and Sons on 31st December, 2018.
N
Capital 380,000
Insurance
235
Cash
311,515
Bank
81.750
Motor Van 100,000
Sales 8,150
Drawings 3,500
Purchases
6,250
Loan-Queen Aaliyat 120,000
Returns Inwards 150
Returns Outwards
300
Debtor-David
500
Creditors-Totland
1,200
Furniture and fittings 5,750
You are required to prepare a trial balance as at
December, 2018.
For more questions and enquiries call Patriot Odunaro B.J on 08038454008
Knowledge is power!
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