Third Term Examination Financial Accounting Senior Secondary Schools (SS 2) Exam Questions
FINANCIAL ACCOUNTING THIRD TERM EXAMINATION SENIOR SECONDARY SCHOOLS (SS 2) EXAM QUESTIONS
SECTION A – OBJECTIVES
INSTRUCTION – CHOOSE THE CORRECT ANSWER FROM THE OPTIONS A – D.
1. When a share is issued at it exact nominal value, it is referred to as _____.
(A) at premium
(B) at discount
(C) at par
(D) At nominal
2. When the when the credit side value of dissolution account is deducted from the credit side value, the answer is _____.
(A) goodwill
(B) profit
(C) losses
(D) net profit
3. If Okon and Atim are to share losses in the ratio 3:2 respectively for the sum of ₦5 000, what will be Okon’s share?
(A) ₦5 000
(B) ₦3 000
(C) ₦2 000
(D) ₦15 000
4. One of the following is not a reason for dissolving a partnership business _____.
(A) insolvency of a partner
(B) if a partner dies
(C) if the partners are not up to 20
(D) bankruptcy of partner
5. If a share with the nominal value of ₦2 is issued at ₦3, it means it is issued at _____.
(A) premium
(B) discount
(C) par
(D) none of the above
6. Where are losses on realization shared in dissolution of partnership business?
(A) Debit side of cash book
(B) Credit side of realization account
(C) Debit side of realization account
(D) The credit side of cash book
7. _____ refers to the type of shares that has no fixed amount of benefit.
(A) Ordinary shares
(B) preference shares
(C) Consumer shares
(D) Producer shares
8. Another name for fund is _____.
(A) goods
(B) money
(C) furniture
(D) property
9. One of the following is not an expense _____.
(A) rate
(B) rent
(C) electricity
(D) debtors
10. One of the following is not an account _____.
(A) trial balance
(B) cash book
(C) ledger
(D) balance sheet
11. One of the following items is not a fixed assets of a business.
(A) loan
(B) fixture
(C) premises
(D) plant and machinery
12. The sharing of profit and losses in the dissolution of partnership is in which of the following accounts.
(A) Balance sheet account
(B) Cash book account
(C) Dissolution account
(D) Ledger account
13. The market that grants short term loan to investors is called _____.
(A) short term market
(B) money market
(C) capital market
(D) business
14. One of the following does not fall on the debit side of the trading account of a business.
(A) Opening stock
(B) Purchases
(C) Sales
(D) Carriage inwards
15. One of the following is not an income _____.
(A) discount received
(B) discount allowed
(C) commission received
(D) Bank deposit interest
16. The type of shareholder that has a fixed rate of benefit is called _____.
(A) preference
(B) deferred
(C) ordinary
(D) special
17. The benefits accrued to a shareholder is called _____.
(A) interest
(B) dividend
(C) food
(D) capital
18. Those who buy shares from companies are called _____.
(A) shareholders
(B) debenture holders
(C) money holders
(D) cashiers
19. When total assets of a business is deducted from the total liability, we obtain _____.
(A) the net asset
(B) liability
(C) net profit
(D) total loss
20. The name given to the person who sells a business is called _____.
(A) debenture
(B) shareholder
(C) vendor
(D) businessman
21. What is the name given the situation where two or more companies join their operations together?
(A) Collaboration
(B) Combination
(C) Amelioration
(D) Amalgamation
22. One of the following is not among the current assets of a business?
(A) Debtors
(B) Land and building
(C) Cash
(D) Bill receivable
23. One of the following is not an asset.
(A) Overdraft
(B) Cash
(C) Bank
(D) Debtors
24. The goodwill of a business is obtained by _____.
(A) adding net asset to the total liability
(B) subtracting total liability from the total assets
(C) adding net assets to the purchases consideration
(D) subtracting net asset from the purchases consideration
25. When shares are issued above the nominal value it is called _____.
(A) premium
(B) discount
(C) par
(D) over
26. When the issue price is less than the nominal value of shares, then the shares of the company are said to be issued at _____.
(A) a discount
(B) a capital
(C) a premium
(D) a deduction
27. In the formation of companies, which of the document is not needed _____.
(A) memorandum of association
(B) certificate of graduation
(C) certificate of trading
(D) Article of purchases
28. One of the following is not among the content of memorandum of association.
(A) address of the business
(B) the name of the business
(C) the authorized capital
(D) The equipment’s of the business
29. _____ is the document that contains the rules and regulation of a business that states how a company intends to relate with the public.
(A) Article of association
(B) Memorandum of association
(C) Certificate of trading
(D) Memorandum of trading
30. _____ refers to the market where long term loan is granted to investors.
(A) Capital market
(B) Money market
(C) Investment marketing
(D) Primary market
SECTION B – THEORY
INSTRUCTION – ATTEMPT ONLY THREE (3) QUESTION IN THIS SECTION. QUESTION ONE IS COMPULSORY.
QUESTION 1
Ajaguna Nig Ltd issued 3 000 ordinary shares with a nominal value of N2 at par each for subscription. Application together with the total amount is received. The shares are allotted to the applicants.
You are required to:
I. Show the journal entry
II. The ledger entries
QUESTIONS 2
A. Define dissolution of partnership.
B. Ronke and Yetunde are in partnership sharing profit and losses 3 : 2 respectively.
BALANCE SHEET
The balance sheet as at 31st December, 2000 when it was dissolved.
Liabilities | ₦ | Assets | ₦ |
---|---|---|---|
Capital - Ronke | 5 500 | Furniture and Fittings | 1 050 |
Yetunde | 3 500 | Plant and Machinery | 650 |
Creditors | 1 650 | Equipments | 1 000 |
--- | Debtors | 900 | |
--- | Banks | 7 050 | |
Total | 10 650 | Total | 10 650 |
The following assets were realized:
Furniture and fittings – ₦1 500
Plant and machinery – ₦700
Equipment – ₦1 900
Debtors – ₦850
Dissolution expenses – ₦250
The creditors were settled with – ₦1 500
You are required to prepare –
A. The realization account
B. The bank account
C. The capital account
QUESTION 3 – Illustrate the procedure involved in the formation of limited liability companies.
QUESTION 4
The information below is extracted from Jagonus Nigerian Limited:
Sales – ₦60,000
Opening stock – ₦18 750
Purchases – ₦37 500
Closing stock – ₦11 250
Gross profit – ₦15 000
Expenses – ₦7 500
Net profit – ₦7 500
You are expected to calculate the following ratios –
A. Gross profit percentage
B. Net profit percentage
C. Expenses as a percentage of sale
D. Rate of stock turnover
E. Cost of goods sold