SECOND TERM EXAMINATION
JUNIOR SECONDARY SCHOOL – JSS 3
Objectives. Answer all questions
1. Net Purchases is ___________________.
(a) purchase minus Returns Outwards
(b) Purchase plus Returns Outwards
(c) Purchase plus Returns inwards
(d) Purchase minus Returns inwards
2. Advertisement helps to ___________________.
(a) reduce sales
(b) increase sales
(c) increase stock
(d) decrease productivity
3. A customer has N500:00 in his bank account, but has been allowed to withdraw N900:00; what is the value of the overdraft granted the customer?
(d) N1 400
4. Which of the following is not an example of item on the debit side of the trial balance?
(c) discount allowed
(d) discount received
5. Bank overdraft is recorded in the ___________________.
(a) debit side of the trial balance
(b) debit side of the trading account
(c) credit side of the trial balance
(d) credit side of the trading account
6. Capital in the balance sheet is recorded _________________________.
(a) in the trading account
(b) on the liability side
(c) under the fixed assets
(d) under the current assets
7. Calculate the cost of goods sold from the following information:
Opening stock 1 200
Closing stock. 400
Purchases 3 500
Sales 5 000
(a) N4 300
(b) N4 700
(c) N5 100
(d) N6 900
8. Net sales is ______________________________________.
(a) purchases less returns outwards
(b) sales minus returns outwards
(c) sales less returns inwards
(d) sales plus returns inwards
9. Ade made a budget of N5200 and spent N4800. What is the balance left with Ade?
10. All are expenses except ___________________.
(a) carriage inwards
(b) carriage outward
(c) advertising expenses
(d) discount received
11. Trial balance is prepared to get the arithmetical accuracy of the ___________________.
(a) journal entries
(b) trading entries
(c) balance sheet entries
(d) ledger entries
12. A document written by the seller to the buyer to correct an overcharge is called ___________________ .
(a) credit note
(b) debit note
13. The trading, profit and loss account are concerned with the following except ___________________.
(a) total sales
(b) gross profit
(c) net profit
14. Which side of the cash book is payment side?
(a) central side
(b) right hand side
(c) left hand side
(d) both left and right hand side
15. Goods bought for resale are entered as ___________________.
16. A balance sheet is a statement
(a) showing the statement of account
(b) of assets and liabilities at a particular time
(c) of business liabilities
(d) of business assets
17. A list of items in order of importance or relevance is ___________________.
(c) scale of justice
(d) scale of preference
18. Goods imported for the purpose of exporting to another country is ___________________.
19. Plant and machinery are examples of ___________________ asset.
20. Final account does not include one of the following :
(a) trial balance
(b) trading account
(c) profit and loss account
(d) cash account.
Answer four (4) questions only.
1a. From the data below, calculate the total fixed asset
Capital 5 000
Cash in hand 1 400
Creditors 1 600
Furniture 2 000
Bank 1 200
machinery 3 200
1b. Use the following information below to answer the questions that follow:
Opening stock 20 000
Purchases 30 000
Closing stock 2 000
Sales 70 000
Rent 3 000
Electricity 2 000
(i) The cost of goods sold is ___________________.
(ii) Net profit is ___________________.
(iii) Total expenses is ___________________.
2. Write short notes on the following;
(i) Trading Account
(ii) Profit and loss account
(iii) Balance sheet
(iv) Trial balance
3a. State the uses of personal budget.
3b. Explain the effects of living a modest life.
3c. Differentiate between budget deficit and budget surplus; give example .
3d. Define consumption.
3e. List out four sources of finance for an individual.
4a. State two benefits of seeking redress.
4b. What are the ways of seeking redress?
4c. Explain briefly the following terms:
(ii) Prudent in spending
(iii) Scale of preference
5. You are required to prepare balance sheet as at 31st Dec, 2010 using both traditional and vertical formats from the following balances:
Capital 9 800
Net profit for the year 2 580
Drawings 1 400
Creditors 2 340
Debtors 2 670
10% loan 2 700
Plant and machinery 4 000
Stock 2 545
Premises 5 000
Cash at bank 1 540
Cash in hand 305