1.

The last phase of book keeping is a) Extraction of the Trial Balance b) preparation of financial statements
c) issuing annual reports d) preparation of source document e) Interpretations of accounts

2. Who reports on the “true and fair view” of the financial statements? a) Government agencies b) Owners of
the entity c) The entity’s accountant d) The Auditor e) Financial Director

3. What is the use fullness of the Annual Reports and Accounts? a) To boost entity’s profit b) For periodic
review of entity’s performance c) For daily operations of the entity by management d) To be able to
minimize tax payable by the entity e) Personnel Management

4. One of the following is NOT an example of business entity a) Sole trader b) Partnership c) Limited liability
Company d) Club or Association e) Religious Association

5. One of the following is NOT an importance of accounting and book keeping. a) Book keeping provides
permanent records for all financial transactions b) The records are used by the Inland Revenue for tax
assessment. c) The records can be used to determine the promoters of the organization d) The assets and
liabilities of a business are shown e) Fraud discovery

6. Which of the following is recorded in the statement of profit or loss? (a) Revenue (b) Bad debt (c) Return
inward (d) Return outward (e) Depreciation reserve

7. Which of the following is an indirect user of financial accounting? (a) Tax Authority (b) Management (c)
Employee (d) Lenders (e) Trade Union

8. A procedure for accumulating cost is called______ (a) Performance Management (b) Cost Accounting (c)
Financial Management (d) Taxation (e) Financial Accounting

9. A new branch of accounting which deals with non-governmental accounting is called__ (a) Fiduciary
Accounting (b) Sustainability Accounting (c) Environmental Accounting (d) Fund Accounting (e) Project
Accounting

10. A financial statement that is capable of making a difference in the decision made by the users is said to be
_____ (a) faithfully represented (b) relevance (c) comparable (d) verifiable (e) complete

11. The maximum number of partners in a professional firm such a solicitor an accountant is A. Five B.
Unlimited C. Between Ten and Twenty D. Between Twenty and Thirty E. Fifty

12. In the absence of a partnership deed A. Partners’ remuneration is 5% of profit B. No remuneration will be
paid to a partner C. Remuneration will be paid equally to all the partners D. Remuneration will be paid net
of tax E. Partners’ remuneration is 10% of profit.

13. The minimum authorized capital of a public limited liability company is A. N10,000 B. N25,000 C.
N500,000 48 D. N1,000,000 E N50, 000

14. The body charged with the responsibility of incorporation of limited liability companies in Nigeria is A.
The Central Bank of Nigeria B. The Federal Ministry of Finance C. The Ministry of Foreign Affairs D.
Corporate Affairs Commission E. Security and Exchange Commission

15. The underlisted are forms of Loan Notes EXCEPT A. Secured B. Bearer C. Preference D. Redeemable E.
Naked

16. One of the following is NOT a form of business entity. A. Sole Proprietorship B. Partnership C. Limited
Liability Companies D. Private Companies E. Quasi-Companies

17. ONE of the following is not among the Partnership Act 1890 provision when there is no agreement in a
partnership business: A. All profits and losses are to be shared equally between the partners B. No interest
is allowed on capital and current accounts. C. No remuneration will be paid to a partner. D. Any advance or
loan made by a partner in excess of his agreed share 49 of capital will attract interest at 5%perannum. E.
 Profit should be retained in the books.

18. Which of the following are the effects of matching concept?

i. Determination of periodic profits
ii. Unexpired costs are deferred
iii. Cost of goods sold maybe different from purchases
(a) I, II, and III (b) I and III (c) II and III (d) I and II (d) None of the above

19. The accrual concept requires a business to treat as income those which are due and receivable and to treat
as expenses those which are in arrears respectively.

20. The implication of the entity concept to a sole trader is that the (a) Business can sue and be sued separately
(b) Liability of the owner is limited (c) Owner cannot own private assets (d) Private use of business assets
reduces owner’s capital. (e) Owner can issue shares to the public

21. An accounting concept, which justifies the charging to an expense to cost of small waste basket even
though it has many useful lives is called ____ concept (a) Material (b) Prudence (c) Going Concern (d) Fair
Value (e) Entity

22. Which of the following accounting concept mainly supports depreciation of non-current assets? (a) Entity
Concept (b) Fair Value Concept (c) Materiality (d) Matching/Accrual (e) Money Measurement

23. The accounting concept with presumes that an entity continues to operate into a foreseeable future is called
_____ concept. (a) Fair Value (b) Money Measurement (c) Going Concern (d) Entity (e) Objectivity

24. Which of the following method is used to value inventory in the financial statement? (a) Reducing
balancing method (b) Straight line method (c) Output method (d) Weighted average method (e) Sinking
fund method

25. An accounting concept which prescribes that financial statements should not be prepared to influence users
of the statement is called ____ concept (a) Fair value (b) Fairness (c) Historical cost (d) Entity (e)
Materiality

26. A financial statement which is prepared to meet the expectations of users not opportune to demand for the
reports in a particular order of their needs is called _____ (a) General purpose financial statements (b)
Audited financial statements (c) Management report (d) Cash flow report (e) Financial statements

27. Which of the following is an example of local extent laws used in the preparation of financial statements?
(a) International Financial Reporting Standards (IFRS) (b) International Accounting Standards (IAS) (c)
International Accounting Standard Board (IASB) law (d) Stock Exchange Act (e) IASB Interpretative law

28. Which of the following statements about a journal are correct? I. The double entry for a transaction is
completed in a journal. II. Journal issued to record withdrawal of cash to the office III. A set-off between
customers and suppliers is resolved through journal entries IV. Journal records adjusting events. A. I, III
and IV B. I, II and III C. II and IV D. III and IV E. II, III and IV
29. Which of the following journal entries may be accepted as being correct according to their narration?

30. The invoiced price of a commodity is N50, 000 with a trade discount of 10%. C. Eghan issued the invoice
to Wiki Promo. How much is recorded in the books of original entry of Wiki Promo and in what book is it
recorded?
(A) N50,000 and purchases daybook (B) N45,000 and purchases daybook (C) N50,000andsalesdaybook
(D) N45,000andsalesdaybook (E) N50,000and sales journal

31. Which of the following roles does a debit note serve? (A) A document issued by the seller informing the
buyer that his account has been credited for over charge on the invoice. (B) A document issued by the seller
informing the buyer that his invoice was undercharged. (C) A document that generates a credit note from
the seller to the buyer (D) A document by which goods are issued from store to production. (E) A document
by which goods already issued are returned to store

32. (I) Order and Goods Received Note (GRN)?

(II) The GRN confirms that goods are supplied according to the specification in the purchase order.
(III) The purchase order is issued after goods have been received stating that the goods are in order.
(IV) The amount on the purchase order is compared with the amount on the GRN before payment is made
to the buyer.
(V) There is no relationship between GRN and Purchase order.
(VI) Goods Received Note is issued before arrival of the goods
a. I and III b. I, II and III c. II and IV d. IV and V e. I, II and IV

33. The sales returns day book is used to record ______ A. Credit notes issues to customers B Money received
from account receivable C Names and contact details of account receivables D Debit notes issued to
suppliers E Money received from account payable

34. Which of the following is not a subsidiary book? A. Sales day book B. Cash Day book C. Returns inward
day book D. Cash book E. Purchases return day book.

35. Which of the following willing crease the value of the account?
I. Debit an asset account
II. Debit a liability account
III. Debit an expense account
 IV Debit an income account
(A) I and II (B) I and III (C) II and III (D) II and IV (E) I and II & IV

36. When A photo copy machine is purchased on credit for N500,000, state the account to be debited and
credited

37. An entry on the right-hand side of a ledger account is (A) Credit entry (B) Debit entry (C) Contra entry (D)
Balance c/d (E) Balance b/d

Use the following information to answer questions 38 and 39

38. What does the entry on the debit side of Motor vehicle account represent? (A) Olu Ventures purchased
N75,000motor vehicle in cash (B) A motor vehicle of N75,000 is purchased from Olu Ventures (C) Motor
vehicle is sold to Olu Ventures forN75,000 (D) Olu Ventures sold a motor vehicle for N75,000 (E) Olu
Venture brought down N 75,000in motor vehicle account

39. What does the balance c/d in Olu Ventures account stand for? (A) Trade Payables (B) Trade Receivable (C)
Accounts payable for motor car (D) Accounts receivable for motor car amount transferred to statement of
profit or loss’

40. An error in which the position of figures is inter-changed is called_______ (A) Errors of Principles (B)
Transposition Error (C) Error of Commission (D) Error of Omission (E) Error of Complete Reversal

41. An error which reverses errors in another book of account is known as _____ (A) Error of Omission (B)
Error of Principles (C) Compensating Error (D) Transposition Error (E) Error of Commission

42. Which of the following errors affect agreement of a trial balance? (A) Arithmetic error (B) Error of
Commission (C) Error of Principles (D) Error of Original Entry (E) Compensating Error

43. Which of the following errors do NOT affect agreement of a trial balance? (A) Single entry posting (B)
Error of Commission (C) Error of Principle (D) Error of Complete Reversal (E) Compensating Errors (10)
A trial balance is the balance extracted from _____ ledger (A) Real (B) Nominal (C) Impersonal (D)
General (E) Personal

44. The loss in value of non-current in tangible assets as a result of passage of time is referred to as? a.
Depletion b. Deterioration c. Wasting d. Amortisation e. Obsolescence

45. Depreciation of an asset with fixed period of legal life is often referred to as? a. Obsolescence b.
Amortisation c. Diminishing balance method d. Depletion e. Deterioration
46. Which of the following assets will not be shown on the statement of financial position of a business entity?
a. In tangible asset such as management services b. Intangible asset such as goodwill c. Tangible asset such
as machinery d. Tangible asset such as buildings e. Intangible asset such as research and development

47. Which of the following is an example of revenue expenditure? a. Expenditure on non-current assets bought
by the firm b. Expenditure on the repairs of buildings c. Formation expenses before a company commenced
business d. Tax paid to the Internal Revenue Service e. Repairs to vehicle with hooked engine

48. Every asset should have at least a. Tangible and in tangible equalities b. Monetary cost and future benefit c.
An adequate monetary value d. An in adequate monetary value e. Durable equalities

Use the information below to answer Questions 49 and 50

A motor van was purchased by a bookshop on 1 July 2020 for Le10, 000,000 and sold on 30June 2022 for
Le8, 200,000. The firm’s accounting year end son December 31, each year. Motor vans are depreciated at
10% per annum on cost. Full year depreciation is charged in the year of purchase but none in the year of
sale. The asset is not expected to have any residual value on date of sale.

49. What is the profit or loss on disposal of the motor van?

a. Le100,000(loss) b. Le200, 000(loss) c. Le200, 000(profit) d. Le1, 200,000(loss) e. Le1, 200,000(profit)

50. What is the accumulated depreciation on the motor van as at June 30, 2021?
a. Le500,000 b. Le1,000,000 c. Le1,500,000 d. Le2,000,000 e. Le3,000,000

51. Which of the following would result from an increase in the allowance for doubtful debts? a. A decrease in
gross profit b. An increase in gross profit c. A decrease in net profit d. An increase in net profit e. An
increase in asset

Use the following details to answer Question 52

Trade receivables control account balance ¢500,000.00

Allowance for doubtful debts ¢50,000.00
Allowance for discount allowed on receivables 5%

52. The receivables figure to be shown under current assets in the Statement of Financial position is a.
¢425,000.00 b. ¢427,500.00 c. ¢447,500.00 d. ¢450,000.00 e. ¢475,000.00

53. During year 2016, Victor paid rent amounting to ¢500,000. He owed¢50,000 at the beginning of the year
and by 31 December 2016, he had paid rent in advance of ¢100,000. His rent charge for 2016 was?
a. ¢350,000 b. ¢450,000 c. ¢500,000 d. ¢550,000 e. ¢650,000

54. At the end of the first year of trading, a trader’s receivables amounted to ¢5,000. This excludes ¢180 debts
found to be irrecoverable. At the same date, it was estimated that ¢70 of the ¢5,000 would still turn out to
be irrecoverable debts. Determine the net realizable value of receivables at the end of the first year of
trading.
a. ¢4,750 b. ¢4,820 c. ¢4,930 d. ¢5,000 e. ¢45,030

55. A trader had trade receivables of ¢50,000 at the end of his accounting period. Trade receivables at the
beginning of the period was ¢60,000. His policy is to make allowance for doubtful debts at the rate of 5%.
State the change in value of the allowance for doubtful debts at the end of the current accounting period.
a. ¢500 decrease in allowance b. ¢500 increase in allowance c. ¢2,500 decrease in allowance d. ¢2,500
increase in allowance e. ¢3,000 decrease in allowance

56. When a debt thought to be irrecoverable and written off is subsequently recovered, which additional entry
is required to complete the two entries given below?
i. Debit Personal Account/Credit Irrecoverable Debts Recovered Account
ii. Debit Cash/Bank Account/Credit Personal Account
a) Debit Income statement/Credit irrecoverable debts recovered account b) Debit Statement of Profit or
Loss/Credit Cash/Bank account c) Debit irrecoverable debts recovered account/Credit Statement of Profit
 or Loss account d) Debit irrecoverable debts recovered account/Credit personal account e) Debit cash/credit
Statement of Profit or Loss

57. From the following information, calculate the cash paid by trade receivables during the year. Receivables at
the beginning of the year ¢350,000 Receivables at close of the year ¢500,000, Credit sales for the year
¢510,000. a. ¢340,000 b. ¢360,000 c. ¢380,000 d. ¢520,000 e. ¢660,000

58. The fact that allowances are made against doubtful debts upholds the concept of a. Consistency b. Prudence
c. Materiality d. Business entity e. Realisation

59. Which accounting concept does not agree with making allowance for discount receivable?
a. Prudence b. Business entity c. Accruals d. Consistency e. Materiality

60. A customer owing ¢200,000 was allowed to pay ¢180,000 in full settlement of his indebtedness. This
results in a
a) Decrease in liability, increase in asset and increase in capital b) Decrease in asset, decrease in capital and
decrease in liability Receivables/Cash/Capital c) Decrease Receivables, increase cash and decrease capital’
d) Decrease in capital, decrease in asset and increase in liability e) Increase in capital, decrease in asset and
decrease in liability

61. When provision for doubtful trade receivable in the trial balance is no longer required, the accounting entry
is:
a. Debit P or L & Credit Trade Receivable Account b. Debit Trade Receivable & Credit P or L c. Debit
Provision for doubtful Trade Receivable Account & Credit P or L d. Credit P or L & Debit Provision for
doubtful Trade Receivable Account e. Debit Bad Debt Account and Credit P or L

62. Annual rent payable is ¢500,000. Rent prepaid at 1 January, 2016 was ¢80,000 and rent accrued at
31December 2016 was ¢60,000. How much was paid in respect of rent in 2016? a. ¢360,000 b. ¢420,000 c.
¢480,000 d. ¢500,000 e. ¢520,000

63. Which of the following will NOT be recorded in the sales ledger control account?
I Amount received from receivables
II Bills payable discounted
III Cash sales
IV Discounts allowed
A I and II B. I and III C. II and III D. II and IV E. II, III and IV

64. Control accounts are also called

I Total accounts Self balancing ledger
II Three column cash book
IV General Journal A. I and II. B II and III C. I and III D. III and IV E. I, III, and IV

65. What is the effect of purchases set-off on control account?

A. It will reduce amount receivable from trade receivables B. It will increase the amount receivable from
trade receivable C. It will require issue of credit note to the trade payables. D. It will require the supply of
goods to the tune of the set-off in full settlement. E. It will require issue of debit note to trade receivable.

66. What is the source of information for dishonoured cheques recorded in total account?
A. Bank statement credit side B. Cash book credits ide C. Cash book debit side D. Debit note E. Credit note

67. Which of the following is not a feature of a control account?

A. It is maintained by the Chief Finance Officer (CFO) B. It is used to check arithmetic accuracy of the
ledger to which it relates C. It contains the total of entries in individual accounts D. The ledger to which it
relates is known as self-balancing ledgers E. Entries therein appear on the same side as they do in the
individual account.

68. Which of the following would not be posted to the credit side of Payables control account? A. Total credit
purchases B. Transfer of credit balances from receivables ledgers C. Transfer of debit balances to
 receivables ledgers D. Set-off (Contra) E. Interest charged by the suppliers.

69. Which of the following reconciliation items will affect the cashbook balance?
i. Bank error over stating the bank balance
ii. Cash book error, overstating the bank balance
iii. Income received through the bank
iv. Imprest cheques
a. I and II b. II and III c. II and IV d. I and III e. III and IV

70. A cheque, which was credited into an entity’s cashbook but not debited by the bank is known as-------
cheque
a. stale b. order c. bearer d. unpresented e. uncredited

71. Which of the following kind of cheques describe customer’s cheque not honoured in the bank?
(a) Stale cheque (b) Crossed cheque (c) Dishonoured cheque (d) Order cheque (e) Bearer cheque

72. Which of the following cheques cannot be endorsed from one person to another? (a) Bearer cheque (b)
Order cheque (c) Crossed cheque (d) Stale cheque (e) Dishonoured cheque

73. A cheque that has been recorded as a debit entry in the original cash book but not yet recorded as a credit
entry in the bank statement is known as:
(a) Crossed cheque (b) Dishonoured cheque (c) Crossed cheque (d) Unpresented cheque (e) Uncredited
cheque

74. Given the following balance ¢ Bank Statement (100,000) Unpresented Cheque 150,000 Uncredited Cheque
40,000 Calculate the balance in the cashbook
(a) ¢290,000 (b) (¢290,000) (c) (¢210,000) (d) ¢190,000 (e) ¢90,000

75. Which of the following is not useful to prepare bank a bank reconciliation statement? (a) Cash Register (b)
Used Cheque Stubs (c) Bank Statements (d) Cashbook (e) Errors in the bank Statements

76. Which of the following has a debit entry in the adjusted cashbook? (a) Standing Order (b) Dishonoured
Cheque (c) E-Dividend (d) Bank Charges (e) Direct payment of electricity

77. An overdrawn balance in the cashbook is ------ (a) an expense in the Statement of Profit or Loss (b) a
noncurrent asset in the Statement of Financial Position (c) a current asset in the Statement of Financial
Position (d) a current liability in the Statement of Financial Position (e) a noncurrent liability in the
Statement of Financial Position

78. A bank reconciliation statement is a statement------------- (a) sent by the bank when bank account is
overdrawn (b) sent by the bank when an entity makes an error (c) drawn by the bank to verify an entity’s
cashbook and bank statement balances (d) drawn by the bank to reconcile unpresented and uncredited
cheques (e) drawn up by an entity to verify cashbook and bank statement balances.

79. Which document contains details of gross earnings made and the amount of net-earnings payable to a
specific employee in a particular pay period?
a. Payroll b. Wages sheet c. Pay slip d. Payment voucher e. Salary control register

80. Which of the following payroll deductions is influenced by statutory legislation?

a. Union dues b. Income tax c. Co-operative contribution d. Salary advance e. Loan refund

81. Which of the following is not a function of a payroll voucher?

a. It gives evidence that an employee has collected his salary b. It shows the date of payment of wages and
salaries c. It is used to collect salary on behalf of an employee d. It shows the total deductions from the
gross salary. e. It shows net salary payable

Use the information below to answer Questions 82 and 83

Victor AkakpoworkswithacompanywhichoperatesRowanBonusschemetorewarditsworkers. His rate per
 hour is fixed at ¢250 with a standard time of 12 hours to perform a job. Actual time spent by him to
complete the job is 9hours.

82. What is the bonus paid to Victor Akakpo?

a. ¢364 b. ¢452

83. What is Victor Akakpo’s gross pay?

a. ¢ 2,052 b. ¢ 2,161 c. ¢ 2,700 d. ¢ 2,813 e. ¢ 41,260

Use the information below to answer Questions 84 to 86

The pay slip of Musah Busanga for the month of August2016 revealed the following:
Basic Salary ¢100,000
Income Tax 15% of basic salary
Social Security Contribution:
Employer: 12½% of basic salary
Employee: 5% of basic salary Professional allowance: ¢25,000permonth

84. What was the amount of total deductions from Musah Busanga’s basic pay?
a. ¢5,000 b. ¢14,250 c. ¢20,000 d. ¢23,000 e. ¢23,750

85. The total amount of social security contributions to the credit of Musah Busanga for August,2016 was
a. ¢5,000 b. ¢12,500 c. ¢17,500 d. ¢19,250 e. ¢20,000

86. What was the net salary paid to Musah Busanga for August 2016?
a.¢82,000 b.¢89,500 c.¢102,000 d.¢105,000 e.¢477,000

87. In a pay roll system, which of the following is NOT a statutory deduction?
a. PAYE Tax b. Union Dues c. Industrial Training Fund (ITF) d. Staff contributory Pension fund e. Nigeria
Social Insurance Trust Fund (NSITF)

88. The sum of money paid by employer to protect and motivate employees to be more efficient and productive
is known as --------- a. Bonus b. Allowance c. Incentive d. Wages e. 13th Month salaries

89. Which of the following are factory overheads?

I. Factory rent
II. Carriage on purchases
III. Factory workers’ basic wages
IV. Basic raw materials
V. Plant repairs
a. I, III and V b. III, IV and V c. I and V only d. IV and V e. I, II and V

Use the data below to answer Questions 90 and 91

Tractor Ltd has the following information at 31/12/2022 ¢
Cost of raw materials 4,500,000
Manufacturing overheads 2,300,000
Productive wages 2,600,000
Workinprogress1/12/2022 800,000
Workinprogress31/12/2022 300,000
Payment of royalties 800,000
Closing inventories of finished goods 450,000
manufactured goods transferred to Sales Dept at cost-plus 25%

90. Prime cost is

a. N2, 675,500 b. N6, 650,000 c. N7, 600,000 d. N7, 900,000 e. N9, 750,000

91. The manufacturing profit isa. N1,862,500 b. N2, 000,000 c. N2, 050,000 d. N2, 562,500 e. N2, 675,000
92. A statement of financial position is usually prepared with
a. Assets and liabilities at the end of the period b. Assets and liabilities at the beginning of the period c.
Liabilities and sales at the end of the period d. Assets and equities at the beginning of the period e.
Inventories and payables at the end of the period

Use the information below to answer Questions 93 to 95 ¢

Returns inwards 40,000
Sales 820,000
Opening inventories 200,000
Purchases 740,000
Gross profit 200,000

93. The closing inventories figure is

a. N160,000 b. N320,000 c. N360,000 d. N400,000 e. N580,000

94. The cost of goods sold is

a. N580,000 b. N620,000 c. N640,000 d. N660,000 e. N740,000

95. The mark-up of the business is

a. 24.39% b. 25.64% c. 32.26% d. 34.48% e. 36.32%

96. Which of the following is recorded on the credit side of trade receivable control account?
a) Return Outward b) Return Inward c) Discount Received d) Cash Paid to suppliers e) Provision for
doubtful debt

Use the data below to answer Questions 97 to 100

97. What was the capital of the business as at31December2020?

a) ¢850,000 b) ¢860,000 c) ¢865,000 d) ¢920,000 e) ¢1,002,000

98. Whatwasthecapitalofthebusinessasat31December2021?
a) ¢850,000 b) ¢860,000 c) ¢865,000 d) ¢1,002,000 e) ¢1,076,000

99. What was the value of the net profit or loss for the year ended 31 December, 2021? a) ¢140,000(loss) b)
¢152,000(loss) c) ¢152,000(profit) d) ¢240,000(loss) e) ¢260,000(loss)

100. What was the depreciation charge for 2021? a) ¢4,000 b) ¢14,000 c) ¢16,000 d) ¢38,000 e) ¢74,000

101. A “statement of affairs” is similar to a/an

a) Trading Account b) Income and Expenditure account c) Statement of financial position d) Trial Balance
e) Statement of Income

102. A Statement of Affairs may include only a) Accrued expenses, assets, liabilities and outstanding revenues
b) Expenses, assets, accrued revenues and liabilities c) Assets, liabilities and expenses d) Expenses, profits,
assets and liabilities e) Assets, liabilities and income

103. Koki started business on 1 January 2016 with ¢200,000. At the end of the year, his to talas sets valued
¢500,000. He did not owe anybody. Throughout the year, Koki took ¢70,000 out of the business to maintain
his family. In June 2016, he won lotto of ¢150,000 and added the prize to the business capital. Calculate
 Koki’s profit for 2016.
a) ¢220,000 b) ¢290,000 c) ¢300,000 d) ¢370,000 e) ¢400,000

104. If cost price is ¢240,000 and selling priceis¢300,000, then a) Mark-upis20% b) Marginis33⅓% c)
Marginis20% d) Mark-upis33⅓% e) Marginis25%

105. What is the cost of goods sold, given the sales figure as ¢800,000 with a mark-up of 25%? a. ¢126,000 b.
¢160,000 c. ¢504,000 d. ¢600,000 e. ¢640,000

Use the data below to answer Questions 106 to 109

106. Bar operation’s surplus for the year was

a. ¢32,000 b. ¢5,000 c. ¢6,000 d. ¢9,000 e. ¢36,000

107. The accumulated fund at the beginning of the year was?

a. ¢32,500 b. ¢41,500 c. ¢42,000 d. ¢42,500 e. ¢335,000

108. The net value of the club’s non-current assets as at December 31,2021 was?
a. ¢24,000 b. ¢33,000 c. ¢36,000 d. ¢54,000 e. ¢60,000

109. The cash balance at the end of the year was?

a. ¢16,000 b. ¢16,200 c. ¢16,700 d. ¢17,200 e. ¢18,200

110. In the final accounts of not-for -profit entity, capital expenditures are recorded in
a. Income and Expenditure account b. Subscription account c. Statement of financial position d. Statement
of Profit or Loss e. Receipts and payments account

111. Revenue receipts of a not-for-profit making entity are recorded in a. Statement of financial position b.
Income and Expenditure Account c. Statement of Affairs d. Bar Purchases Account e. Profit and loss
Account

112. Which of the following statements is NOT true about the accounts of clubs and societies?
a. A deficit on income and expenditure account reduces accumulated fund. b. Income and expenditure
account does not contain capital receipts and expenditure. c. The excess of total assets over total liabilities
represents accumulated fund d. The closing balance of receipt and payments account is transferred to
income and expenditure account. e. A surplus on Income and Expenditure Account increases accumulated
fund

113. Which of the following is NOT an electronic source documents

(a) Electronic Invoice (b) Electronic Receipts (c) Electronic Transfer Evidence (d) Electronic Debit Note
(e) Electronic Credit Note

114. The following are input devices in a computerised system EXCEPT

(a) Camera (b) Magnetic Character Ink Reader (c) Scanner (d) USB Cord (e) Mouse
115. In a computerised system, which of the following is NOT an output device?
(a) Flash Drive (b) Compact Disc (c) Cloud (d) Hard Disc (e) Gamepad

116. The following are application packages EXCEPT.

(a) Re-writable (b) SAGE (c) Bank master (d) Oracle (e) Page maker

117. In Microsoft Excel Package, the intersection of row and column is known as
(a) Workbook (b) Worksheet (c) Cell (d) Menu Bar (e) Title Bar

118. In a computerised payroll system, an example of deduction is -------

(a) Personal income tax (b) Housing allowance (c) Housing loans (d) Social security (e) National Health
Insurance Scheme

119. Which of the following is NOT an accounting software

(a) SAGE (b) Tally (c) Microsoft Excel (d) Quick Book (e) Formatted Excel

120. In Microsoft Excel Package, the reference number of a column is

(a) 1 -65,536 (b) 1 -256 (c) 1 – 16,777,216 (d) Cell 1- Cell 2256 (e) A- XFD

121. Which of the following is NOT a feature of Computerised Accounting System

(a) It generates print out (b) Data Entry through Input Devices (c) It facilitates error detection (d) It does
not requires accounting knowledge (e) The Output is accurate.

122. One of the following is a disadvantage of Application Packages.

(a) They make implementation of an application to be quicker and cheaper. (b) They provide standard
approach to common applications. (c) They save programming efforts (d) There is substantial reduction in
systems efforts (e) There may be inclusion of features that are not particularly relevant in the packages.

SAQ
1. The two main financial statements drawn up by a sole trader are.................. and........................
2. Which form of accounting provide information needed for the day to day running of a business?
3. The body responsible for developing International Financial Reporting Standards is
the............................
4. Financial Accounting is majorly concerned with reporting on ______
5. An accountant primarily relies on the work of _____ to prepare and analyze financial
information.
6. The first theory of double entry was found in the account of _______
7. The book titled the Summa De Arithmetical Geometry and Proportion was published in the
year______
8. Financial Accounting was developed in which country?
9. An acronym GAAP means.
10. State two (2) main processes involved in double entries.
11. Identify two sources of capital available to a public limited company.
12. A company that has no share capital is described as…………….
13. Undistributed profits accumulated over the years by a limited liability company are referred to
as……………
14. The major advantage of limited liability company over partnership is……….
15. The major disadvantage of public enterprise is……………
16. State which accounting concept justifies the depreciation of non-current assets.
17. Mensa and Co., a sole trader, discovered that the business liability is in excess of the assets, he
thus included his private assets in the Statement of financial position. Which concept is violated?
18. State the meaning of IFRS
19. An accounting concepts, which assumed that an entity will continue to operate in perpetuity is
called _____
20. An accounting concept which recognizes a common denominator to measure assets and liabilities
is called _____
21. An accounting concept, which requires that an accountant should not recognized income until the
income has been earned and adequate allowances made for all known losses is known as ____
22. A financial account is said to be ____ where a particular method is used regularly to treat
transaction in accounting.
23. An accounting concept, which discloses item significant value is called _____
24. A kind of accounting concept, which recognizes income when it is earned and not when it is
received in cash in known as _______
25. The price that would be received from two knowledgeable parties as an arm’s length transaction
to sell an item of property, plant and equipment at a measurement date is called_____
26. What is the main source document for recording cash paid in to the bank?
27. The total in a sales daybook is transferred to account.
28. The duplicate copy of credit note will serve as the source document to recording the book.
29. State the importance of narration in a journal.
30. What is the source document for cash sales?
31. Information stored in a computer-based accounting system which can be arranged in to any
desired format is called.......................
32. The relationship between the ledger and the Trial Balance is that a debit balance in the ledger will
be on the................side of the Trial Balance and a credit balance on the side.
33. How does the Trial Balance complement the usefulness of the double entry principle?
34. State any four types of errors that do not affect the Trial Balance
35. While the Trial Balance proves the equality of the debit and credit entries in the ledger it does not
guarantee absence of......................
36. It is common to divide the ledger for a large organization into four separate ledgers known as the
private, .........................and....................................
37. A non-current asset, which was bought on January 2022 was debited into purchases account and
credited into cash account. What is the name of the error corrected by the book keeper?
38. A list of balances from various books of account is called _____
39. A trial balance re-prepared after all errors have been located and corrected is called _____
40. An error in within the same class of account but affecting different person is called _____
41. A company has business premises worth Le80, 000,000. An additional amount of Le20, 000 was
used to provide metal gate for the building. The cost of the gate should be treated
as________________________________

The following information relates to Questions 42 and 43

• Motor vehicles at cost (1/1/2022) Le50,000,000
• Accumulated depreciation (1/1/2022) Le18,000,000
• Depreciation is at the rate of 20% per annum using reducing balance method

42. What would be the depreciation charge for 2022?

43. What would be the carrying amount of the motor vehicles as at December, 312022?
44. The value of a non-current asset is recorded in a ____________________
45. The provision made for the loss in value of non-current assets that is of a was ting nature is
referred to as_________________________
46. State the journal entries for allowances for bad and doubtful receivable that is no longer required
in the trial balance.
47. An entity, which prepares account to December every year paid ¢150,000 as insurance for the
period ended 31 March 2022. Calculate the amount of insurance prepared for the year ended 31
December, 2021.
48. State the journal entries for decrease in allowances for doubtful receivables.
49. An entity’s allowance for doubtful receivable rose from ¢105,000 to ¢200,000. Raise the
appropriate journal to record the transactions.
50. Which accounting concept allows for delay in payment for an expense, which has been supplied
and used in the accounting period?
51. Prepaid expense is a _____ in the statement of financial position.
52. An expense, which is outstanding during the year is a ____ in the statement of financial position.
53. An allowance to a credit customer to encourage prompt payment of cash is called____
54. A form of discount deducted from selling price of a product is called_____
55. State the journal entries to record discount received from a supplier.
56. The account in the general ledger that shows the total amount owed to the business and agrees
with the totals of the relevant subsidiary ledger account is termed the
..........................................................account.
57. How often are postings made to the general ledger?
58. A supplementary record used to provide detailed breakdown of control account balances in the
general ledgers known as.....................
59. List four items that are normally posted to the credit side of the purchases Ledger control account
60. Dishonoured cheques credited to payables ledger control account represents
61. An acronym EFTPOS means------
62. State any two (2) parties to a cheque
63. In the modern clearing system, state meaning of NIBSS
64. The person to whom a cheque is written is called------
65. The person to whom a cheque is payable over the counter is known as----
66. In the banking system, the tenure of a stale cheque is------
67. A cheque with two transverse lines drawn over the face of the cheque is known as---
68. A cheque in which a debit entry was recorded in the cashbook without a corresponding credit
entry by the bank is called-----
69. State the full meaning of ATM in electronic banking system
70. A specific instruction to the bank to pay a custom sum of money over a period of time is called---
---
71. Give the following Information:
Standard Time 500 hours
Actual Time 450 hours
Wage Rate ¢20
Using Halsey Premium Plan, Calculate the total earnings
72. A document, which shows employees’ names, salaries, allowances, statutory and non-statutory
deductions is called---
73. A method of remuneration where employees are paid as a product of number of actual hours work
daily and fixed wage rate is known as------
74. A kind of remuneration based on employees’ output or service rendered from time to time is
called-------
75. In an entity, a payment mechanism put in place to reward an employee for outstanding and
unexpected performance is referred to as--------
76. Mr. Kojo John in May 2022 for 700 actual hours, the standard time is 800 hours and standard rate
is ¢30 per hour. Using Rowan Scheme, compute the gross earnings of Mr. Kojo John in May,
2022.
77. Give TWO (2) examples of emolument used in computing contributory pension funds.
78. A document issued by the pay roll department after the payment of monthly salaries and wages is
known as--------
79. State the current rate of contributory pension fund of employees.
80. Business entities are required by law to send returns on their statutory deductions on their payroll
including the amount of income tax deducted at source to ..............................................
81. What is the effect of a decrease in allowance for bad debts on the final account...
82. In preparing a Statement of Profit or Loss, interest on overdue receivables balance is treated as
83. When preparing financial statement for a trading entity, rent prepaid is shown in statement of
financial position as……………
84. Unearned commission received in a trading entity is shown statement of financial position
as……………
85. A statement that shows the state of affairs of a business entity at a point in time is referred to as a
………………………….
86. A profit percentage expresses on cost is called-------
87. In a payable control account, discount received is recorded as a ------- entry
88. An entity has sales value of ¢15,000,000 and profit mark-up is 33 ⅓ %, what is gross profit?
89. Kumasi Venture has cost of goods sold of ¢11,250,000 and profit margin of ¼, what is gross
profit?
90. Using the same information in question 89, what is sales value?
91. On 1 January, 2021, Ashanti receivable was ¢150,000 and this was ¢40,000 on 31 December,
2021. During the year, cash received from customer was ¢220,000 and return inward ¢30,000.
What is credit sales?
92. On 31 December, 2021 capital was ¢900,000, and as at 1 January, 2021, capital ¢500,000, during
the year, additional capital introduced into the business was ¢45,000 and the proprietor withdrew
goods worth ¢20,000 for private use. What is profit?

Use the following information to answer question 93-95

93. Calculate credit Purchases for the year

94. Compute the amount of Salaries and Wages charge to the Statement of Profit or Loss for the year
ended 31 December, 2021
95. What is the net profit or loss for the year ended 31 December, 2021?
96. With regard to a not-for-profit entity, a debit balance on the subscription account is reported on ---
---------------------------------
Details of subscriptions account of “Resource Club” are as follows: ¢
Subscription owing1/1/2022 30,000
Subscription received 2022 320,000
Subscription received in 2022 included ¢40,000 in respect of 2023 financial year.
97. What is the subscription to be transferred to Income and Expenditure account for 2022?
98. A club received the following life membership fees in each of its first two years:
Year1 ¢300,000
Year2 ¢160,000
The club’s policy is to take credit for life membership fees in equal amounts over 10 years.
Determine the amount to be transferred to income and expenditure accounting year

99. Bills payables, unearned revenue and Accrued expenses are examples of -- ----------in Account for
not-for-profit entities?
100. Capital in a not-for profit entities are referred to as ---------
101. An accounting system, which automates processes of data entry, posting into books of accounts
and production final account is called-----
102. An acronym, which identifies account heads in the General Ledger (GL) is known as
103. State the meaning of the term GIGO in computerised accounting.
104. What is the meaning of the term MICR?
105. In Microsoft Excel, workbook is also known as---------
106. In Microsoft Excel, the name of the current workbook is also called------
107. A bar, which contains information such as file, view, edit, view and save among others is called
108. State the meaning of manual accounting system.
109. A document, which contains of an employee such as actual hours, number of days present and
absent is called----
110. In a computerised payroll system, Total Gross Pay net of Statutory and Non-Statutory Deductions
is called-----

1. Define the following

a) Accounting
b) Book-keeping
c) Social and environmental accounting
d) Forensic accounting
e) Performance Management
2. Briefly trace the historical development of accounting to the present day.
3. A professional accountant performs many roles for an entity.
4. State and explain the roles of professional accountants to an entity.
5. (a) Explain the qualitative characteristics of Useful Financial Information.
(b) Explain the functions of each of:
(i) The IASB (ii) The IFRIC (iii) The FRCN
6. a) Explain any three characteristics of a business.
b) Describe two key features each of sole proprietorship, partnership and Limited Company.
7. Enumerate the advantages and disadvantages of Limited Liability Companies.
8. Enter the following transactions in the double column cash book of Joe Limited for the month of
January, 2022.
9. Journalize the following transactions.

10. (a) Identify and explain Three (3) Types of accounts

(b) Outline Four (4 uses of a ledger account

11. An entity started a trading business in Mokola on 1 December 2016 with N200,000 deposited in a
bank at Mokola Other transactions for the month of December 2016 were:

You are required to:

(a) Prepare and balance all relevant ledger accounts as at 31 December, 2016
(b) Prepare the entity’s trial balance on 31December, 2016
12. Give and explain Five (5) types of errors that do not affect balancing of atrial balance
13. Itemise and explain any SIX (6) errors that will affect balancing of atrial balance
14. Highlight any FIVE (5) errors that affect trial balance.
15. Kokou Ltd. Made the following non-current asset purchases in 2022 accounting year

The company’s policy is to depreciate motor vehicle and furniture and fittings the rates of 25%
and 20%, using the fixed installment and reducing balance methods respectively. Depreciation is
calculated on monthly basis.
Required:
a) The Motor Vehicle Account
b) Furniture and Fittings account
c) The respective Accumulated depreciation accounts
d) A statement of financial position (extract) for each of the years 2022and2023
16. Koffi is a trader dealing in the sale of second-hand clothes and prepare account to December 31,
of each year. The following transactions in assets have taken place:

Koffi maintains its non-current assets at cost and depreciates its asset at a constant rate of 20%
using the straight-line method of providing for depreciation. Assets purchased attract full year
depreciation charge in the year of acquisition, whilst any asset disposed of attracts no
depreciation charge in the year of sale.
You are required to prepare the following accounts for year 2022to2023:
a) The Office equipment account
b) The Plant and Machinery account
c) The respective accumulated Provision for depreciation accounts
d) A statement of financial position(extract) as at December 31,2022 and2023
17. On 1 January, 2016 the following balances amount go the stood in the books of Menntua
Enterprise.
Electricity and Water ¢15,000,000Cr.
Insurance¢50,000,000Dr.
During the year ended 31 December 2016, the following information relating to the above
accounts have been provided:
a. Motor insurance of ¢870,000,000was paid on1June 2016 for a one-year period.
b. Marine insurance of ¢190,000,000 covering the year ended 31March2017 was paid on 1st
April 2016. The Entity had not insured one of its buildings in respect of fire after the insurance
premium expired [Link] Building was insured for ¢60,000,000 last year and the
 insurance company does not intend to renew the premium.
c. Electricity bill amounting to ¢750,000,000 was paid on1March2016 and also electricity bill
amounting to¢250,000,000 in respect of November and December 2016 had not been paid by the
end of the accounting period. On June 1,2016 ¢15,000,000 was paid in respect of an old building
that is being used as ware house by the entity. This payment was made at a time when there was
no meter in the building. The electricity bill for the building was arrived at by charging the entity
¢13,500,000 for total consumption in 2016.

You are required to record the above transactions in the appropriate ledger accounts.
18. The following balances were extracted from the ledgers of Victorosky Ltd.

During the year ended31March2016, the following transactions took place:

You are required to post and balance the above transactions in the appropriate ledger accounts

19. The Trial Balance of Santo Ltd.At31 December 2014 reported an amount of ¢750,000bywayof
trade receivables. At the time of preparing the Trial Balance, the accounts clerk discovered that a
customer owing ¢150,000 would not be able to settle such debts. It is the policy of Santo Ltd. to
make allowance for doubtfuldebtsof5%ofalloutstandingtrade receivables at the end of each
accounting period. During the accounting year ended 31December 2015 the company made a
total credit sale of ¢980,000 out of which an amount of ¢550,000 was collected from trade
receivables. Court in Accra declared a customer who owes the company an amount of ¢85,000
bankrupt in August [Link] recorded three cheques amounting to ¢175,000 that were
dishonoured. The company recorded ¢1,500,000 and ¢850,000 in connection with cash sales and
credit sales respectively in the year 2016. The company received ¢1,250,000 from trade
receivables and also showed ¢670,000 as the outstanding balance on the sales ledger account. A
cheque was received from the customer whose debt was written off in 2014 in full settlement of
his debt.
You are required to post and balance the following accounts:
a. Trade receivables account
b. Irrecoverable debts account
c. Allowance for doubtful debts account
20. The net profit of KumasaLtd. foryearsended3 1December2013, 2014,2015and2016were
¢450,000,000 ¢598,000,000, ¢515,000,000 and ¢798,000,000respectively. It has now been found
that the wrong method of depreciation has been used over the years for motor vehicles and Plant
and Machinery. Details on the assets are as follows:

The straight-line method of depreciation was used with an estimated useful life of ten (10) years
and four (4) years for Plant and Machinery and Motor vehicles respectively.
The directors of the company have now decided to adopt the diminishing balance method of
providing for depreciation as follows:
Plant and Machinery 15%
Motor vehicles 20%
You are required to re-compute the net profit of Kumasa Ltd. for the years ended 31December31
2013, 2014, 2015 and 2016

21. (a) Distinguish between provision for bad receivables and provision for doubtful receivables.
(b) State the accounting entries for bad receivables and doubtful receivables.

22. (a) Give Six (6) sources of Information for Control accounts
(b) Highlight four (4) Advantages of Control Accounts

23. The following information were extracted from the records of Agbato shopping complex for the
month January, 2023 ₦’000

On January 31, 2023, it was discovered that a supplier was paid thrice for N185, 000 on each
occasion. The amount paid in excess was refunded on that date to him.

You are required to prepare the receivables and payables ledger balances on February 1, 2023.
 24. (a) Give five (5) items each on the credit side of sales control account and debit side of purchases
control account
(b) Why is control accounts are described as a self-balancing ledger?

25. Name and explain the two (2) main steps involved in preparing the bank reconciliation statement

26. When a customer’s cheque that is lodged is dishonoured by the bank, what is the effect on cash
balance? Describe a dishonoured cheque

27. (a) Name and explain the account that a business normally maintains with a bank when it has
fund for investment for a relatively long period.
(b) Use the following information to answer questions below Given:
i. Balance as per cash book N 223,760
ii. Dividend received by bank on behalf of customers 1,170
iii. Bank charges 360
iv. Unpresented cheques 21,600
v. Uncredited cheques 3,300
vi. Total lodgments credited by the bank 750,000

Determine the Adjusted Cash Book Balance and the balance as per bank statement.

28. Identify and explain Six (6) approaches that an entity can employ to handle, store and secure
cash.

29. (a) Write short notes on the following:

i. Credit card
ii. Electronic Fund Transfer (EFT)
iii. Automatic Teller Machine (ATM)
iv. Stale Cheque
v. Bank’s Clearing System

(b)
 Note: The cashier made transposition errors in recording PAYE in the Cash Book
You are required to prepare Favor Ventures Adjusted Cash Book and Bank Reconciliation Statements
on 31 January, 22.

30. Mr. Victor Kakapo has been in the employment of PachecoLimitedsince1 January, 2021on a
salaryscaleof¢50,000,000perannum. He has 8% pension contributions and the employer contributes
10% annually as pension for staff. Other statutory deductions are: Staff National Health Insurance
Scheme (NHIS) 5%, Employer’s NHIS is 10% and PAYE Tax rate is the current rate of tax; or the
year 2021 his annual entitlements were as follows:
 You required to compute the Personal Income Tax, Net Pay and relevant journal entries of Mr. Victor
Kakapo for the year ended 31 December, 2021.

Hints:
He is to pay union dues of 3% of the basic salaries, monthly loan repayment is ¢180,000 and monthly
cooperative deductions, ¢150,000. Assume that the salaries and deductions are payable first week of
January, 2022.

31. Explain briefly what is meant by:

a. Time rate method of remuneration
b. Piece rate method of remuneration
c. State any three (3) advantages and two (2) disadvantages of each of the methods of remuneration
mentioned above

32. State briefly the main features of:

a. Halsey Premium incentive plan of remuneration
b. Rowan incentive plan of remuneration
c. Compare the main features of the incentive plans discussed above.

33. Highlight SIX (6) advantages of computerised and FOUR disadvantages of Manual Pay roll systems.

34. The monthly salary structures of Five (5) managers due in May 2022 are presented in the table below
a. Annual leave Allowance is 15% of basic salary each for the managers;
b. Every staff pays 2 ½ % Industrial Training Fund, Approved Pension Contribution 8%, National
Health Insurance Scheme 5%;
c. Employer pays 10% each for Approved Pension Contribution and National Health Insurance
Scheme as a support to employees;
d. Mr. Gyan and Mr. Dauda are responsible to maintain 5 Children each under the age of 18 in
public schools in Ghana;
e. All the staff maintain aged mother, fathers and other dependent relatives and spent ¢200,000
monthly each on the relative;
f. The relevant Tax Authority agreed to give the current consolidated reliefs and other reliefs such as
the approved Children and dependent relative allowances;
g. The current Personal Income Tax Rate is applicable, the union due is 2 ½ % annually of the
emolument which consist of basic salary, housing and transport allowances. Besides, the monthly
cooperative contribution of each of the five managers is ¢80,000.
Required:
a) Compute the Personal Income Tax Due and Net Pay of the five (5) Staff in May, 2022
b) Prepare the relevant journal entries to accrue for the salaries and deduction on 31 May, 2022
c) Prepare the relevant journal entries to pay the salaries and deductions on June 7, 2022

35. The following Trial Balance was extracted from the books of Nyakpoo Enterprise as at December
31, 2022.

The following matters are to be taken into account:

a) Inventories in trade as at December 31,2022was¢40,320,000
 b) Salaries and wages outstanding as at 31/12/2022 amounted to ¢24,000,000.
c) Insurance paid in advance was ¢1,400,000
d) One four the of the general expenses were for private purposes.

Required: Prepare a Statement of Profit or Loss for the year ended December 31,2022 and a
Statement of Financial Position as at that date.

36. The following Trial Balance was extracted from the books of Adetomade alerin second hand
clothes.

After adjusting for the following matters, you are required to prepare a Statement of Profit or
Loss for the year ended 30th June2022 and a Statement of Financial Position as at that date:
i. Inventories in trade at 30/06/2022 ¢237,600,000
ii. Wages and salaries outstanding at 30/06/2022 ¢9,720,000
iii. Rates and insurance paid in advance at 30/06/2022 ¢1,620,000
iv. The allowance for doubtful debts is to be increased to ¢4,860,000
v. During the accounting year ended 30/06/2022, Adetom withdrew goods valued at ¢16,200,000
for his own consumption.
vi. He instructed the accounts clerk not to record the transaction in the books.
37. Yafeu Enterprise is a dealer in special traditional medicine. He imports similar medicines from
Abroad whenever there is shortage in the local market. The Trial Balance of the entity as at
December 31,2022 is as detailed below:

The following additional information is relevant:

1. The inventories at December 31,2022were recorded at ¢950,000.
2. The Enterprise depreciates its assets on cost as
3. follows:
Assets: %
Buildings 4
Motor Vehicles 20
Office Equipment 15
Furniture & fittings 10
4. Administrative expenses include rent of ¢250,000. This represents rent for the period of July
1,2022 to May 31,2023.
5. The Enterprise is to make allowance of ¢345,000 in respect of Personal income tax for 2022
accounting year.
6. Amount owing in respect of electricity andvehiclerunningexpensesare¢55,000and ¢75,000
respectively.
7. Allowance for irrecoverable debt is ¢500,000.
Required: Prepare statement of profit or loss for year ended December 31,2022 and a statement of
financial position as at that date.
38. SUCCESS Ltd is a Manufacturing Entity. The following is an extract from its books for the year
ended December 31,2022.

You are also supplied with the following additional information:

a. Depreciation of 10% is to be charged on Plant and machinery worth ¢20,000
b. The following are inventories on hand at 31/12/2022: Inventories of Raw materials ¢16,000
Inventories of finished goods ¢15,000
c. Half of the rent and rates is chargeable to the Manufacturing Account
You are required to prepare the Statement of Manufacturing and Profit or Loss for the year ended
December 31,2022.

39. Victorosky who does not keep proper books of account has presented the following information
for the year ended31December2016:

You are required to calculate the profit or loss of Victorosky for the year ended 31
December,2016, after taking into consideration the following:
a) Victorosky makes monthly withdrawal of cash and goods valued at ¢50 and ¢15 respectively.
b) Customer with an outstanding bill to the tune of ¢5,400 was declared bankrupt by a court in
Accra.
c) Rent prepaid and electricity owing amounted to¢16,000 and ¢18,500 respectively.

40. Babaginda is a trader who does not keep proper books of account. He has however provided you
with the following information:
a. He paid ¢10,000,000 in a bank account as his initial capital on 1 October2015
b. He banked all sales after withdrawing cash for the following:
Personal use ¢350,000 per week (52weeks)
Staff salaries and wages ¢500,000 monthly
General expenses ¢11,140,000
41. Richardosky has kept the following summary of accounts: Statement of financial position as at 1
January2021
 You are required to prepare Richardosky’s Statement of financial position as at 31
December2021, together with statement of profit or loss for the year ended 31December2021
42.

You are required to determine the Profit and Prepare Statement of Financial Position as at 31st
December, 2022.
43. Importance of Control Account

44. The information below relates to the Madonna Youth Club for the accounting period ending
December 31,2021 ¢’000
Cashin hand1/1/2020 1,800
Subscription received:
2020 2,000
2021 24,000

You are required to prepare:

a) Receipts and Payments Accounts
j) Income and Expenditure Account for the year ended December 31, 2021

45. The Financial Treasurer of Ayoyo Fun Club has presented the following records: Receipts and
Payments Account for the year ended December 31, 2021

Depreciation of 20% is to be written off equipment.

You are required to prepare:
a) Bar Statement of Profit or Loss
b) Income and Expenditure Account for the year ended December31, 2021. c) Statement of
financial position as at December 31, 2021
46. The Azury Democratic Party prepared accounts for the year to December 31/2021.
a) They started the year with an amount of ¢11,416,000 in the Koromiko Commercial Bank. The
Bank statement as at December 31,2021 shows an overdraft of ¢1,845,000.
b) The members contributed a total of ¢102,505,000 for the 2021 accounting year as their annual
dues. Out of the total contribution ¢9,750,000 represents arrears of members in previous year and
¢12,150,000 in respect of dues for next year.
c) The party received the equivalent of ¢82,600,000 as donation from the members in the London
branch of the party. This amount was raised from a fund-raising rally organised by the chairman
in London incurring ¢33,819,500 as rally expenses.
d) The investment in Ghana Government Treasury bill stood at ¢712,000,000 at the beginning of
the year. The party however discounted half of the bills and used all the proceeds as follows:
Campaign van ¢43,250,000 Electricity expenses ¢4,400,000 Congress expenses ¢218,750,000
Insurance on Motor vehicles ¢8,200,000 Renting of constituency offices ¢22,582,000 Stationery
¢15,817,500
e) Total interest on the bill for the year amounted to ¢389,500 and was received during the year.
Half of this amount was spent on buying fuel for campaign activities
f) The campaign Van is to be depreciated at the rate of 20%, using the straight-line method
g) The following additional information is available:

You are required to prepare:

(a) The receipts and payments accounts
(b) The income and expenditure account for the year ended December 31,2021
(c) Statement of Financial Position as at that date

47. The Main City Club’s Bank current account for the year ended September 30, 2021 was as
follows:

In order to increase funds the club has a shop which sells energy drinks. In addition to an annual
membership subscription, members pay Le 1,000 each time they visit the club. This is referred to
 as ‘Cash taken at door’. The annual membership subscription was Le 80,000 until September 30,
2021 when it was raised to Le 90,000. There was 150 members at October 1, 2020. At that date
15 of them had not paid their subscriptions for the year ended September 30, 2021 and 12 had
already paid their subscriptions for the year ended September 30, 2021. By September 30, 2021,
all members had paid their due subscriptions, and some had paid in advance for the year ending
September 30, 2022, but the treasurer had not yet calculated how many. Other balances were as
follows:

The equipment at October 1 2020 had been depreciated Le 3,200,000 per annum for five years.
The new equipment is to be depreciated at the same annual percentage rate. The local council’s
grant was for Le 20,000,000 and the remainder of this is yet to be received. This will be treated as
revenue income in the final accounts. Interest of Le 160,000 is due on the deposit account for the
year ended September 30, 2021. At September 30, 2021, general expenses of Le 130,000 were
due and unpaid.
Required:
(a) Calculate the Accumulated fund at October 1, 2020.
(b) Prepare Main City Club Shop Trading account for the year ended September 30, 2021.
(c) Prepare Main City Club Subscriptions account for the year ended September 30, 2021.
(d) Prepare Main City Club Income and expenditure account for the year ended September 30,
2021.

48. What is Internet?

49. Many companies are designing application packages for routine application.
a) Name Five of such packages, giving examples.
b) List Two outputs of inventory sub-system of computer Application Package.
c) List Two types of data being used in a payroll sub-system.
d) List Two transaction data items in sales ledger subsystem.

50. Highlight Six (6) differences between Manual and Computerised Accounting System.

51. Outline FIVE (5) Advantages of Computerised Accounting System.

52. a. Highlight FIVE (5) advantages of Application Packages

b. Enumerate FIVE (5) disadvantages of computerised accounting system
c. List and explain SIX (6) features of computerised accounting system.