11/2/24, 6:30 AM ACCOUNTING EXAM QUESTIONS FOR SS3 FIRST TERM

ACCOUNTING EXAM QUESTIONS FOR SS3

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11/2/24, 6:30 AM ACCOUNTING EXAM QUESTIONS FOR SS3 FIRST TERM

FIRST TERM
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SS3 ACCOUNTING EXAMINATION QUESTIONS FIRST TERM –

EDUDELIGHT.COM
FIRST TERM EXAMINATION

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

SUBJECT: FINANCIAL ACCOUNTING

TIME: 3HRS

CLASS: SS 3

OBJECTIVE

1. Which of the following is the effect of a reduction in provision for doubtful debt?

a. reduction in net profit b. reduction in cash balance c. reduction in gross profit d. increase in gross profit

2. The reward given to a debenture holder is called a. profit b. reserves c. premium d. interest

3. Subscription in advance is an example of a. prepayment b. accrual c. debtors d. provision

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4. Which of the following is an example of personal account?

a. stock b. fixtures c. equipment d. debtors

Use the following to answer question 5 to 10

Sales 45000

Opening stock 20000

Closing stock 30000

Expenses 15000

Fixed assets 40000

Debtors 10000

Creditors 5000

Purchases 25000

5. The cost of goods sold is a. #45000 b. #30000 c. #25000 d. #15000

6. Net profit is a. #45000 b. #30000 c. #15000 d. #20000

7. Net profit percentage is a. 100% b. 67% c. 50% d. 33%

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8. Current ratio is a. 16:1 b. 15:1 c. 8:1 d.2:1

9. Working capital is a. #60000 b. #45000 c.#40000 d. #35000

10. Gross profit percentage is a. 100% b. 67% c. 50% d. 33%

11. Working capital is measured by the excess of

a. current asset over current liabilities b. fixed asset over current asset c. current asset over fixed asset d. long term
liabilities over fixed assets

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12. Overdraft is usually shown as a. credit balance in the cash column of the cash book b. debit balance in the cash
column of the cash book c. debit balance in the loan account d. credit balance in the bank column of the cash book

Use the following information to answer question 13 to 17

Purchases: raw materials 20000

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Finished goods 15200

Stock 1/1/89 raw materials 3000

Work in progress 2500

Wages direct 22800

Indirect 7200

Factory expenses electricity 12000

Insurance 2000

Stock 31/12/89 raw materials 4000

Work in progress 4500

13. What is the cost of raw materials available? a. #23000 b. #22500 c. #20000 d. #19000

14. The cost of materials used is a. #23000 b. #21000 c. #20000 d. #19000

15. The prime cost is a. #49000 b. #45800 c. #43800 d. #41800

16. The amount of factory overhead is a. #28200 b. #23200 c.# 21200 d. #19200

17. The cost of manufactured goods is a. #67500 b. #65500 c. #63000 d. #61000

18. A suspense account is used to a. agree the trial balance b. record sales c. record purchases
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d. correct an errors

19. A sales day book is used to record a. cash sales of stock b. credit sales of stock c. cash and credit sales of stock d.
cash sales of fixed asset

20. Which of the following fixed assets is not depreciable?

a. building b. tools c. land d. motor van

Use the following information to answer questions 21 to 24

Fixed assets 12000

Current asset 5000

Current liabilities 2300

Capital 10000

Longterm liabilities 4700

21. What is the total asset? a. #17300 b. #17000 c. #15000 d.#14700

22. What is the total net asset? a. #10000 b. #14700 c. #15000 d. #17000

23. Total liabilities amount to a. #17000 b. #14700 c. #12300 d. #7000

24. The working capital is a. #10000 b. #2700 c.#7300 d. #7000

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25. Which of the following is not charged to manufacturing account?

a. raw materials b. factory wages c. distribution expenses d. direct expenses

Use the following to answer questions 26 to 29

Debtors 30000

Creditors 20000

Opening stock 15000

Closing stock 18000

Wages 3000

Salaries 10000

Purchases 30000

Sales 60000

26. The gross profit percentage is a. 67% b. 55% c. 50% d. 45%

27. The net profit percentage is a. 100% b. 67% c. 50% d. 33%

28. The working capital is a. #48000 b. # 33,000 c. # 28000 d. #10000

29. The stock turnover is a. 4.0 times b. 3.6 c. 3.3time d. 1.6 times
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30. one of the following is not a liabilities a. loan b. accruals c. debtors d. creditors

31. The successful of distributing shares to successful applicants is

a. allocation b. appointment c. allotment d. application

32. The accounting entries for cash realized from the sale of assets on dissolution of

partnership is debit

a. cash account credit partners capital account b. asset account credit cash account

c. cash account credit realisation account d. realisation account credit cash account

33. The parties who are paid last in the event of winding up are

a. preference shareholders b. debenture holders c. ordinary shareholders d. trade

creditors

Use the following information to answer question 34 and 35

Receipt and payments 31st December 2016

# #

cash at bank. 460. new equipment 200

subscription 520. cleaners wages. 540

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donations. 500. stationery. 140

sales of tickets. 490. repairs 110

entrance fees. 670

34. The surplus for the year is a. #1,970 b. #1,890 c. #1,650 d. #1,390

35. The total income received for the year is a. #2,640 b. #2,180 c. #1,890 d. #1,690

36. In incomplete records, opening capital is ascertained by preparing

a. closing capital b. control account c. statement of affairs d. statement of single entry

Use the following information to answer questions 37 to 39

Authorized share capital :

75,000 ordinary share capital 750,000

25,000 6% preference shares. 250,000

1,000,000

Issued and paid up capital :

50,000 ordinary shares. 500,000

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20,000 6% preference shares. 200,000

700,000

Reserves:

general reserve. 100,000

share premium. 75,000

profit and loss account. 13,000

5% debentures. 100,000

creditors. 60,000

proposed dividend. 66,000

1,114,000

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37. What is the total of the share capital? a. #1,000,000 b. #875,000 c. #700,000 d. #500,000

38. Calculate the total capital reserves a. #175,000 b. #100,000 c. #75,000 d. #66,000

39. What is the total revenue reserves? a. #175,000 b. #105,000 c. #25,000 d. #13,000

40. The maximum amount which a firm is allowed to raise by way of selling shares is —– capital

a. authorized b. called – up c. issued d. paid -up

41. Debenture is classified under which of the following heading

a. current asset b. current liability c. fixed assets d.long term liability

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42. The term bad debts means debt … a.owed by a customer b. owed by a supplier

c. receipt from sales of goods d. rent from premises sublet

43. The purchase of a photocopying machine for office use for #50,000 should be debited to ——–account

a. asset b. bank c. cash d. purchases

44. The financial plan of government for a year is contained in the

a. budget b. cash book c. gazette d. vote book

45. The reward given to a shareholder is

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a. dividend b. interest c. premium d. profit

46. An example of fictitious asset is

a. cash at bank b. debtors c. goodwill d. prepayment

47. Suppliers account are found in the —–ledger

a. general b. nominal c. private d. purchases

48. Damaged goods returned by a customer is usually accompanied by

a. credit note b. debit note c. proforma invoice d.return note

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49. One of the following is not a method of depreciation

a. Straight line b. reducing balance c. Petty d. revaluation

50. The excess of current assets over current liabilities is ——- capital

a. authorized b. issued c. nominal d. working

SS3 ACCOUNTING EXAMINATION QUESTIONS FIRST TERM – EDUDELIGHT.COM

SECTION B: ANSWER ANY TWO QUESTION FROM THIS SECTION

1a. define accounting

b. what are the function of stock exchange

2. Write short note on the following

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I. Consignee II. Consignor III. delcredere commission iv.jobber v. broker

3a. What is capital market?

b. differentiate between capital market and money market

4a. What is bank reconciliation statement?

b. Explain any five causes of disagreements between cash book and bank statement

SECTION C: ANSWER QUESTION 6 AND ANY TWO QUESTION FROM THIS SECTION

5. The profit and loss account of Okere nig ltd showed a balance on appropriation of #25000 and the net profit for the
year was #97000. It was decided to deal with the balance as follows:

1. To provide for #5000 corporation tax.

2. To pay a dividend on 60,000 6% preference shares of #1 each

3. To pay a dividend of 10% on the 100000 ordinary shares.

4. To write off the existing balance of goodwill #6000

5. Transfer #8000 to general reserve

6. To carry forward the balance.

7. Debtors 10,000

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8. Creditors 15,000

9. Furniture 50,000

10. Machinery 50,000

11. Cash 50,000

12. Bank 47, 400

Prepare the profit and loss appropriation account and balance sheet

6. Prosperous industries is a small business producing and selling food beverage.

The following list of balances have been extracted from the books as at 31st December 1999

Sales 255000

Purchases of raw materials 49000

Carriage inward on raw materials 3000

Carriage outwards on finished goods 2000

Wages-factory operatives 48250

Salaries –factory supervisors 13250

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Management and clerical staff 33000

Sales and marketing staff 29000

General expenses 5875

Electricity and rent 17000

Insurance 3375

Advertising 6000

Discount received 2500

Plant and machinery 26000

Delivery van 10000

Stock at 1/1/98: raw materials 9500

Work in progress 6250

Finished goods 12000

Stock at 31/ 12/98: raw materials 8250

Work in progress 9000

Finished goods 14500

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Additional information:

a. Depreciation for the year is to be as follows:

plant and machinery at 13% per annum.

Delivery van at 25% per annum

b. At 31/12/98 insurance prepaid was #475 and general expenses owing amounted to #225

c. Apportionment of expenses is to be made as follows:

factory administration

Electricity and rent 85% 15%

Insurance and general expenses 70% 30%

You are required to prepare:

a. A manufacturing account

b. A trading,profit and loss account for the year ended 31st December 1999.

7. On March 1 1999,seye purchased a motor car from Alaba for cash price of #20,920.

he agreed to pay for it in 3 equal installment of N6000 at the rate of 10% per annum.

depreciation was allowed at 12% on cost. Deposit N6000.

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prepare :

a. motor car account b. Alaba account c. interest payable account

d. provision for depreciation account e. profit and loss account

8. Temidayo limited issued 200,000 ordinary shares of #1 each at #1.25k per share payable as

follows:

20k on application

45k on allotment (including premium)

30k on first call

30k on second call

Required show the ledger entries to record the above transaction

9. The following information was extracted from the books of Igbaotun club of eko for the year ended December 1998

Receipt

Subscription. 6900

Donations. 9600
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Interest received 240

16,740

Payment

Salaries. 2250

Scholarship. 2220

Drugs for the handicap 2070

Printing and stationery. 510

Office furniture. 3090

Investment. 4500

14,640

Additional information

a. Outstanding subscription #400

b. Accrued expenses :

Salaries. 400

Scholarship 920
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Drugs 190

Printing and stationery 340, creditors 5, 340

Prepare :

a. Income and expenditure account

b balance sheet as at that date

SS3 ACCOUNTING EXAM QUESTIONS FIRST TERM – EDUDELIGHT.COM

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