Second Term Examination Financial Accounting SS 1

 

CRN INTERNATIONAL SCHOOL 

FINANCIAL ACCOUNTING 

SECOND TERM EXAMINATION 

SENIOR SECONDARY SCHOOL – SS 1

 

 

SECTION A

Answer all questions.

1. The bank column in the cash book shows a credit balance of N180.

This means _________________

(a) a total payment of N180.

(b) a gross receipt of N180.

(c) a left over of N180 in the bank.

(d) an overdraft of N180.

 

2. When goods are sold for cash, the credit entry goes to the _________________.

(a) trader’s a/c

(b) cash a/c

(c) customer’s a/c

(d) sales a/c

 

3. Which of the following may have been recorded in the cash book and fail to appear in the bank statement?

(a) Bank charges & commission

(b) Cheques issued, presented and cashed

(c) bank lodgments

(d) opening bank over draft

 

4. The sales account is written up from _________________.

(a) cash sales to customers only

(b) credit sales to customers only

(c) credit sales less cash sales

(d) both credit and cash sales

 

5. A cheque for N400 drawn in favour of Jeje was posted to the credit of his account. The entry necessary to correct the error is _________________.

(a) debit suspense account N800, credit Jeje’s account N800

(b) debit bank account N400, credit Jeje’s account N400

(c) debit suspense account N400, credit Jeje’s account N400

(d) debit Jeje’s account N800, credit suspense account N800

 

 

6. When a buyer returns damaged goods to the seller, the buyer receives a _________________.

(a) proforma invoice

(b) credit note

(c) debit note

(d) goods return note

 

 

7. Which of the following accounts belong to the private ledger?

(a) Drawings a/c

(b) Premises a/c

(c) Bank a/c

(d) Rent & rates a/c

 

8. Which of the following accounts belong to the personal ledger?

(a) Purchases a/c

(b) Capital a/c

(c) Machinery a/c

(d) Depreciation a/c

 

9. Which of the following is a classified form which contains a permanent record of all transactions?

(a) sales day book

(b) cash book

(c) ledger

(d) journal

 

10. _________________ is granted when a customer is allowed to draw cheques over and above his credit balance in the book.

(a) Credit

(b) Over receipt

(c) Over payment

(d) Overdraft

 

11. _________________ records small disbursements or expenses.

 

12. _________________ is an example of source document.

(a) Cashbook

(b) Trading a/c

(c) Ledger

(d) Receipts

 

 

13. There are _________________ number of columns on each side of a two-column cash book.

(a) 4

(b) 5

(c) 6

(d) 7

 

14. Trial balance is a _________________ showing list of balances.

(a) summary

(b) account

(c) statement

(d) journal

 

15. One of these is a debit item of trial balance.

(a) sales

(b) bank overdraft

(c) discount received

(d) stock

 

16. One of these is a credit form of trial balance.

(a) telephone

(b) furniture

(c) bank

(d) sales

 

17. In trial balance, _________________ all expenses.

 

18. In trial balance, _________________ all liabilities.

 

19. When transactions are entered in a wrong class of account, this is _________________ error.

 

20. When a wrong amount is entered on the debit and credit sides, _________________ error is committed.

 

 

 

SECTION B

Answer four (4) questions

1. The following errors were discovered from the books of Babajide:

a. Returns inwards from Daniel N800 was entered in David’s account.

b. Cash payment for rent N700 was omiited from the books.

c. The sales account was overcast by N120 and the purchases account was also overcast by N120.

d. A machine was purchased for N8000 and debited to the purchases account.

e. A receipt of cash from Odetola N600 has been entered on the credit side of Odetola’s account.

You are required to journalise the error above.

 

2. The bank statement for Gabriel for the month of March, 2009 is

You are required to:

a. write the cash book up to date.

b. Draw up a bank reconciliation statement as on 31st March, 2009.

 

3. From the following items, extract the trial balance;

 

4. Enter the following in a three-column cash book. Balance off the cash book at the end of the month.

 

5a. What are the advantages of petty cash book?

5b. List two errors that the trial balance reveal and three errors that will not affect the trail balance.

 

 

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