Second Term Examination Financial Accounting SS 2 – Exam Questions

CRN INTERNATIONAL SCHOOL 

FINANCIAL ACCOUNTING 

SECOND TERM EXAMINATION 

SENIOR SECONDARY SCHOOL – SS 2 

SECTIONA

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

(d) work-in-progress

 

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 __________________.

(a) N204

(b) N120

(c) N84

(d) N36

 

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 __________________.

(a) interest

(b) premium

(c) manufacturing

(d) manufactured overhead

 

Use the following information to answer questions 17 to 19.

N

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

Section B

Answer four (4) questions only.

 

QUESTIONS 1

The following is an extract from the trial balance of Nestle Plc as at 31st December, 1992.

Additional information:

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.

 

QUESTION 2

a. Explain the following terms and give an example of each.

(i) Raw material and component

(ii) Direct labour

(iii) Direct expenses

 

b. Give four examples of factory overheads.

 

QUESTION 3

The following balances have been extracted from the books of Ade Enterprises for the year ended 31st March,1999.

Additional information:

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.

 

QUESTION 4

a. Define departmental accounts.

 

b. State three advantages of departmental accounts.

 

c. 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.

 

QUESTIONS 5

a.

Stock at the beginning            N20 000

Stock at close                           N25 000

Sales                                         N110 000

Uniform mark – up of 25% is applied.

Required:

(i) calculate margin.

(ii) calculate purchases.

(iii) calculate cost of goods sold.

(iv) calculate Gross profit.

(v) calculate rate of stock turnover.

 

b. 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