Last Updated on July 16, 2020 by Alabi M. S.
CRN INTERNATIONAL SCHOOL
SECOND TERM EXAMINATION
SENIOR SECONDARY SCHOOL – SS 2
Objectives: Answer all questions.
1. Trade discounts are given for __________________.
(a) bulk purchases
(b) prompt payment
(c) quick delivery
(d) cash payment
2. Which of the following is a trading account item?
(a) Discount allowed
(b) Discount received
(c) Carriage outwards
(d) Carriage inwards
3. The addition of prime cost and factory overheads is __________________.
(a) total factory overheads
(b) market value of goods produced
(c) cost of goods produced
4. Osa started business with N40, 000 cash; the accounting entry is __________________.
(a) cash account, credit capital a/c
(b) capital a/c, credit cash a/c
(c) purchases a/c, credit cash a/c
(d) expenses a/c, credit capital a/c
5. Which of the following errors affects the agreement of a trial balance?
(a) Wrong addition in the sales account.
(b) Crediting a purchase to A. Tambi’s account instead of F. Tambi’s account.
(c) Failure to enter sales in the books.
(d) Posting the purchase of a van to the debit side of purchases account.
6. The distinguishing feature between a two-column and three-column cash book is
(a) discount column
(b) cash column
(c) bank column
(d) ledger folio
7. A petty cashier received a float of N120 and spent N84. The imprest is __________________.
8. Which of the following is recorded on the debit side of the trial balance?
(a) Bank overdraft
(b) Returns inwards a/c
(c) Sales a/c
(d) cash a/c
9. Which of the following accounts has a credit balance?
(a) Returns inwards account
(b) Machinery account
(c) Sales account
(d) Cash account
10. In departmental accounts, administrative expenses are recorded in the __________________.
(a) trading account
(b) balance sheet
(c) profit and loss account
(d) profit and loss appropriation a/c
Use the following information to answer questions 11 and 12.
Stock of raw materials 1/1/09 N5 000
Stock of raw materials 31/12/09 N5 500
Purchase of raw materials N55 000
Carriage inwards N3 000
Direct labour N12 000
Factory overhead N17 000
11. The cost of raw materials consumed is __________________.
(a) N58 000
(b) N52 000
(c) NN5 000
(d) N64 000
12. The prime cost is __________________.
(a) N645 500
(b) N64 000
(c) N585 000
(d) N52 500
13. Which of the following is not part of prime cost of production?
(a) Depreciation of factory equipment
(b) Direct expenses
(c) direct wages
(d) Carriage on raw materials
14. A trading account is prepared to disclose the __________________.
(a) net profit for the year
(b) gross profit or loss for the year
(c) accumulated fund for the year
(d) gross profit on manufacturing
15. A sales Day book is used for recording __________________.
(a) credit sales
(b) sales return
(c) hire purchase
(d) cash sales
16. The difference between factory cost of goods produced and its market value is __________________.
(d) manufactured overhead
Use the following information to answer questions 17 to 19.
Sales 183 400
Purchases 168 000
Opening stock 20 100
Closing stock 48 900
Carriage outwards 2 400
Carriage inwards 5 000
Returns inwards 10 000
Expenses 15 000
Returns outwards 8 000
17. The gross profit is __________________.
(a) N472 200
(b) N422 200
(c) N37 200
(d) 198 800
18. The net profit is __________________.
(a) N42 200
(b) N37 200
(c) N32 700
(d) N19 800
19. The cost of goods sold is __________________.
(a) N185 100
(b) N139 200
(c) N136 200
(d) N131 200
20. Which of the following is not part of cost of production?
(a) direct material cost
(b) direct wages
(c) factory overheads
(d) administrative overheads
Answer four (4) questions only.
1. The following is an extract from the trial balance of Nestle Plc as at 31st December, 1992.
i. Closing stock as at 31st December, 1992:
Raw materials N16,250
Work in progress N17,450
Finished goods N20,000
ii. Depreciation on machinery is to be charged to the manufacturing account.
iii. Goods manufactured are to charged to the sales department at the current market value of N162,500.
You are required to prepare a manufacturing, Trading, Profit and Loss Account for the year ended 31st December, 1992.
2a. Explain the following terms and give an example of each.
(i) Raw material and component (ii) Direct labour
(iii) Direct expenses
2b. Give four examples of factory overheads.
3. The following balances have been extracted from the books of Ade Enterprises for the year ended 31st March,1999.
a. Expenses are to be apportioned as follows:
delivery expenses-proportionate to sales
salaries, insurance and rent: 6:6:3
other expenses are to be apportioned equally.
b. Discounts received are to be apportioned according to purchases.
You are required to prepare a Departmental, Trading, Profit and loss account for the year ended 31st March, 1999.
4a. Define departmental accounts.
4b. State three advantages of departmental accounts.
4c. Explain how the following are being treated in departmental account;
(i) expenses incurred on behalf of all the departments
(ii) expenses incurred for one department.
Stock at the beginning N20 000
Stock at close N25 000
Sales N110 000
Uniform mark – up of 25% is applied.
(i) calculate margin .
(ii) calculate purchases .
(iii) calculate cost of goods sold .
(iv) calculate Gross profit
(v) calculate rate of stock turnover
5b. The following information was extracted from the books of John Maxwell as at 31st December 2000.
Gross profit on sales 10%
Net profit on sales 5%
Sales N100 000.
(i) Calculate the gross profit.
(ii) Calculate the Net profit.
Best of Luck