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

Discount allowed on goods invoiced at N100,000 was calculated at the rate of 20% instead of 10%. The error is corrected by debiting 

A credit purchase of N200 from P. Osae was posted to the account of P. Osei. This is an error of 

A suspense account is used in the 

If a petty cashier has a cash float of Le 39,000 and Le 37,500 is spent, he will be reimbursed with 

Which of the following items will not be entered in the adjusted cash book? 

A document sent by a bank to its current account customers detailing their transactions over a given period is

The claim on the assets of a business by outsiders is  

Customers use the financial position of a company to

Dauda, a retailer, does not keep proper books of account. The following were balances in his books on January 2013.

Premises     70,000
Equipment     8,200
Vehicles         5,100
Inventory       9,500
Accounts receivable  150
Bank    1400

The summary of his bank statement for the twelve months period from 1st January 2013 to 31st December 2013 is as follows:
Money paid to the bank: 96,500
Shop takings                    1,400
Received from debtors     8,000
Payments made by cheque 
Inventory purchased        70,500
Delivery Van                      6,200
Maintenance of vehicle      1,020
Electricity and water           940
Store boys’ wages             5,260
Miscellaneous expenses     962

Additional information;

i. Dauda paid all shop takings for the year into the bank apart from monthly drawings of D500 and miscellaneous expenses of D408.

ii. He was owing, D7, 600 to supplies for inventory bought.

iii. The accounts receivable is to be treated as bad debts.

iv. Inventory was valued at D13,620

v. Depreciation for the year was calculated as D720 for equipment and D1,000 for vehicles.

You are required to prepare:
(a) Statement of Affairs as at 01/01/13

(b) Income Statement for the year ended 31st December 2013

Idayah Limited is a manufacturing company. The following balances were extracted from its records on 31st December 2014.

Stock on 01/01/2014                Le
Raw materials——————-56,000
Work-in-progress—————60,000
Finished goods—————–80,000
Purchases of raw materials-150,000
Carriage of raw materials——7500
Manufacturing wages paid—16,500
Factory wages accrued——–4,000
Direct factory expenses——11,000
Fuel for factory expenses—15,400
Depreciation of factory equipment—12,000
Sales of finished goods——500,000
Carriage expenses————-7,600
General office goods———-3,800
Office Salaries——————19,200
Stock: 31/12/2014
Raw materials—————–40,000
Work-in-progress ————-64,000
Finished goods—————-72,000

You are required to prepare manufacturing, Trading, and Profit and Account for the year ended 31st December 2014

The trial balance of Deba Duwa Enterprise failed to agree. The difference was entered in the suspense account. The following errors were later detected:

i. A sum of $1000 received from Salako has been posted to his account;

ii. The sales day books was undercast by $560

iii. Return outwards books was overcast by $140

iv. Discount received, $410 from Damilola had been correctly entered in the cash book but not posted to Damilola’s account

v. Goods worth $750 returned to a supplier was recorded in his personal account as $750

vi. Discount allowed was overcast by $310

vii Discount received column in the cash book has been overcast by $400.

You are required to prepare:

(a) Journal entries to correct the errors

(b) Suspense Account.

(a) List the four main groups of accounting ratios

(b) Identify accounting ratio which relates to each of the following statements
i. a return of N10 net profit for every N100 invested
ii. goods are held on average for a period of one month before they are sold
iii. trade debtors on the average take a period of 33 days to settle their debts.
iv. trade creditors on the average are paid within 44 days for credit purchases
v. gross profit of N40 is made on every N100 of net sales
vi. current assets are three times that of current liabilities
vii. liquid assets are three times that of current liabilities.
viii. for every N100 net turnover, N17 is made after deducting operational expenses.
ix. profit covers interest payment9 times

(a) Explain the following terms used in not-for-profit making organizations.

i. Accumulated fund
ii. Subscription in arrears
iii. Receipts and Payment Accounts
iv. Income and Expenditure Accounts
v. Entrance fees

(b) Distinguish between shares and debentures

(a) What is a Bank Reconciliation Statement?

(b) State three reasons for preparing a bank reconciliation statement

(c) Explain the following terms:
i. unpresented cheques
ii. standing order
iii.credit transfer

(a) What is a source document?

(b) List six types of source documents.

(c) state three uses of subsidiary books

(a) Explain some of the terms used in the accounts for not-for-profit making organizations

(b) Distinguish between shares and debentures.

(a) Accounting ratios

(b) Eplain the following
i. Accounting ratios
ii. Current ratio
iii. Rate of stock turnover
iv. Return on capital employed
v. Average collection period
vi. Gross profit percentage

(c) List out the importance of accounting ratios

(a) What is a suspense Account

(b) Differentiate between the following;
(i)  Provisions and Reserves
(ii) Expenses and Revenue
(iii) Capital reserves and Revenue reserves

(a) Explain the following terms;
i. Trade discount
ii. Cash discount
iii. Bad debts
iv. provision for doubtful debts
v. Bad debts recovered

(b) Mention the errors that do not affect the agreement of the trial balance