Accounts - Principles of Accounts JAMB, WAEC, NECO AND NABTEB Official Past Questions

a. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:

D 6 on Application
D 3 on Allotment
D 1 on the First and Final call

450,000 applicants were received with application monies. The directors decided to:

(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment

All the calls were made and monies received accordingly.

You are required to prepare the following Ledger Accounts:

Share Application Account

b. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:

D 6 on Application
D 3 on Allotment
D 1 on the First and Final call

450,000 applicants were received with application monies. The directors decided to:

(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment

All the calls were made and monies received accordingly.

You are required to prepare the following Ledger Accounts:
Allotment Account

c. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:

D 6 on Application
D 3 on Allotment
D 1 on the First and Final call

450,000 applicants were received with application monies. The directors decided to:

(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment

All the calls were made and monies received accordingly.

You are required to prepare the following Ledger Accounts:
First and Final call Account

d. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:

D 6 on Application
D 3 on Allotment
D 1 on the First and Final call

450,000 applicants were received with application monies. The directors decided to:

(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment

All the calls were made and monies received accordingly.

You are required to prepare the following Ledger Accounts:
Bank Account

e. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:

D 6 on Application
D 3 on Allotment
D 1 on the First and Final call

450,000 applicants were received with application monies. The directors decided to:

(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment

All the calls were made and monies received accordingly.

You are required to prepare the following Ledger Accounts:
Ordinary Share Capital Account

Easyway Limited produced disposable products for the health sector.

Information available for the year ended 31st December 2021 is as follows:
 

Additional information
Apportion rent, electricity and depreciation of vehicles to factory and office in the ratio 3:2 respectively.

You are required to prepare Manufacturing, Trading, Profit and Loss Account for the year ended 31st December 2021.

a. The following were extracted from the books of Edum Republic for the year ended 31/12/2021:
 

Additional information:
(i) The country is structured into six(6) Regions/States A, B, C, D, E, F

(ii) The population of each of the Regions/States are:
A: 400,000 B: 350,000 C: 250,000
D: 100,000 E: 300,000 F: 200,000

(iii) Revenue is shared 30% to the Federal/Central government, 10% to education trust fund 60% to be shared by the Regions/States on the basis of population.

You are required to compute:

The total revenue for the country for the year 2021

b. The following were extracted from the books of Edum Republic for the year ended 31/12/2021:
 

Additional information:
(i) The country is structured into six(6) Regions/States A, B, C, D, E, F

(ii) The population of each of the Regions/States are:
A: 400,000 B: 350,000 C: 250,000
D: 100,000 E: 300,000 F: 200,000

(iii) Revenue is shared 30% to the Federal/Central government, 10% to education trust fund 60% to be shared by the Regions/States on the basis of population.

You are required to compute:
Revenue for the Federal/Central government for the year 2021

c. The following were extracted from the books of Edum Republic for the year ended 31/12/2021:
 

Additional information:
(i) The country is structured into six(6) Regions/States A, B, C, D, E, F

(ii) The population of each of the Regions/States are:
A: 400,000 B: 350,000 C: 250,000
D: 100,000 E: 300,000 F: 200,000

(iii) Revenue is shared 30% to the Federal/Central government, 10% to education trust fund 60% to be shared by the Regions/States on the basis of population.

You are required to compute:
Revenue for the Regions/State collectively and individually for the year 2021.

a. The following is the trial balance of Abete Trading Company as at 31st December 2020:
 

Additional information
(i) Stock in hand on 31st December 2020 was Le 4,000
(ii) Investigation revealed the following errors which necessitated the opening of suspense account:
– Drawings of Le 1,000 was posted to salaries and wages account
– Furniture bought at Le 1,560 was wrongly debited to fixed asset as Le 300
– Purchases day book was undercast by Le 2,000
– Discount allowed of Le 200 to a customer had not been posted to the customer’s account
(iii) Depreciation of fixed assets is 10% per annum.

You are required to:

Correct the errors through journal entries (no narration is required).

b. The following is the trial balance of Abete Trading Compnay as at 31st December 2020:
 

Additional information
(i) Stock in hand on 31st December 2020 was Le 4,000
(ii) Investigation revealed the following errors which necessitated the opening of suspense account:
– Drawings of Le 1,000 was posted to salaries and wages account
– Furniture bought at Le 1,560 was wrongly debited to fixed asset as Le 300
– Purchases day book was undercast by Le 2,000
– Discount allowed of Le 200 to a customer had not been posted to the customer’s account
(iii) Depreciation of fixed assets is 10% per annum.

You are required to:
Prepare Trading, Profit and Loss Account for the year ended 31st December, 2020

a. Explain accounting ratio giving one example of liquidity ratio

b. State three users of accounting ratios

c. Outline three limitations to the use of accounting ratios

List five users of accounting information and state their respective interest in the accounting information

a. Identify the errors in the following transactions and state if they would affect the agreement of the trial balance totals

– Purchase of consumable posted to purchases account

b. An invoice amount incorrectly posted to purchases day book

c. Returns outwards posted to the personal account only

d. The totals sales ₦120,000 was recorded as ₦102,000

e. Payment of cheque to Ige entered on the receipt side of the cash book and credited to Ige’s account

a. What are incomplete records?

b. Outline three limitations of keeping incomplete records

c. State three reasons a business keeps incomplete records

A crane hired by a building construction company would be classified as

The two column cash book records

Which of the following rules is applicable in the absence of a partnership agreement? Interest is payable

Use the following information to answer the question

Taurus Ltd was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH⊄ 0.60 per share. To date, the company has made calls of GH⊄ 0.40 per share. All calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder.
The authorized number of shares is

Use the following information to answer the question

Taurus Ltd was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH⊄ 0.60 per share. To date, the company has made calls of GH⊄ 0.40 per share. All calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder.

The paid up share capital is

Discount allowed is shown in financial statements as

Use the following information to answer the question

Sammy acquired plant an machinery costing ₦120,000 with an estimated useful life of 4 years and residual value of ₦2,000. The sum of the year digits method is used.
The value of the asset at the end of the first year is

Use the following information to answer the question

Sammy acquired plant an machinery costing ₦120,000 with an estimated useful life of 4 years and residual value of ₦2,000. The sum of the year digits method is used.

The depreciation to be charged for the third year will be

Which of the following items are apportioned on the basis of purchases in preparing departmental accounts?

If sales is D 12,000 and the gross profit mark -up percentage is 25%. What is the cost of sales?

Carriage inwards on raw materials is recorded in the

Which of the following items is found in the profit and loss account of a company?

The error that affects the agreement of a trial balance totals is