Monday, 25 February 2019




1.  Which Question Paper Type of Principles of Accounts is given to you?
A. Type F
B. Type E
C. Type L
D. Type S

2.  One of the differences between bookkeeping and accounting is that the former __.
A. records data while the latter interprets
B. is regarded as the language of the business while the latter ascertains its strength
C. interprets data while the latter records it
D. summarises information while the latter communicates it

3. The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is ___.
A. matching
B. consistency
C. realization
D. going concern

4. A cheque of ₦5,000 paid to Suleiman had been correctly entered in the cash book but had not been entered in Suleiman's account. To correct this error, debit Suleiman's account and credit
A. cash account
B. bank account
C. suspense account
D. purchases account

5. Aduke Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the __.
A. sales day book
B. purchases day book
C. sales subsidiary book
D. cash book

6. Which of the following affects the accuracy and authenticity of the trial balance?
A. Error of omission
B. Error of commission
C. Error of transposition
D. Error of original entry

7.  A ledger is classified into ____.
A. private, sales and purchases
B. personal, general and private
C. general, private and sales
D. sales, purchases and general

8. The book of account in which information from the source documents are recorded consists of __.
A. debit and credit notes
B. ledger and subsidiary books
C. prepayments and accruals
D. profit and loss and balance sheet

9. The accounting entries to record a cheque issued by a business is to ___.
A. debit cash book and credit drawer
B. credit cash book and debit drawer
C. debit cash book and credit suspense account
D. credit cash book and debit suspense account

10. Given: If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 121/2. Assuming ₦22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company's cash book?
A. ₦25,650
B. ₦22,800
C. ₦19,950
D. ₦18,240

11. The major advantage of an imprest system is that it __.
A. ensures a proper accountability for every expenditure
B. trains the young accountants in preparation for greater responsibilities
C. relieves the chief cashier of the numerous petty cash payments
D. serves as an analysis column for every expense

12. Petty cash book records transactions on __.
A. the debit side only
B. the credit side only
C. both credit and debit sides
D. reversed entry

13. A major way by which the headquarters guard against fraud in branches on cash remittance is through the introduction of
A. imprest system only
B. direct purchase by branch
C. separate accountant for the branch
D. credit sales by only the headquarters

14.  I.  Cash sales
II. Cash purchases
III. Cash discount allowed
IV. Cash payment
V. Cash receipts

Which of the following are recorded on the debit side of the cash book?
A. I and II
B. I and III
C. I and V
D. I and IV

15. An item credited in the bank statement but yet to be recorded in the firm's cash book is
A. bank loan
B. contract payment
C. standing order
D. direct deposit

16.The formula for calculating depreciation using straight line method is __.PRINCIPLES OF ACCOUNT QUESTIONS

17. The major focus of the trading account is to show __.
A. net profit
B. gross margin
C. total purchases
D. total sales

18. If goods were bought from Tanko at a cost price of ₦9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?
A. ₦4,500
B. ₦8,550
C. ₦9,000
D. ₦9,450

19. If machine X cost ₦600,000 with anticipated life span of five years and estimated scrap value of ₦50,000, using straight line method; depreciation charged for two years will be
A. ₦700,000
B. ₦240,000
C. ₦220,000
D. ₦202,000

Use the information below to answer question 20 and 21.

Balance sheet (Extract)
20. The value of the current assets will be __.
A. ₦10,361
B. ₦10,651
C. ₦17,396
D. ₦17,848

21. Determine the current liabilities ___.
A. ₦8,553
B. ₦8,263
C. ₦7,940
D. ₦1,228

22. The excess of sales over cost of goods sold is __.
A. gross sales
B. gross profit
C. net profit
D. net sales

Use the information below to answer question 23 and 24.

2/3 Purchases 900 books at ₦1,000 each

4/3 Purchases 590 books at ₦ 950 each

15/3 Sales 300 books at ₦900 each
23. Determine the cost of goods sold using FIFO.
A. ₦285,000
B. ₦300,000
C. ₦570,000
D. ₦600,000

24. Calculate the cost of goods available for sale using LIFO.
A. ₦801,000
B. ₦1,100,500
C. ₦1,160,500
D. ₦1,175,500

25. The control account is used in facilitating__.
A. the location of errors in the various accounts
B. up to date bank transactions
C. the payment of debts and liabilities of the firm
D. assets distribution with respect to income

26. A book of account that possesses the features of both day book and ledger is __.
A. sales day book
B. cash book
C. purchases day book
D. returns day book

27. The value of the sales ledger control account is derived from the summation of __.
A. the total debtors' account
B. the total creditors' account
C. all day books
D. both the debtors’ and creditors' accounts

28. Subscription in arrears is treated in the balance sheet of a club as __.
A. current asset
B. current liability
C. fixed asset
D. intangible asset

29. Maina Merchants Trading and Profit and Loss Account (Extract)2014 PRINCIPLES OF ACCOUNT QUESTIONS

Determine the closing stock.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Use the information below to answer question 30 and 31.

Social Club Subscription (Extract)

30.  Determine the amount of subscription for the year.
A. ₦57,470
B. ₦41,070
C. ₦40,210
D. ₦35,300

31. What is the amount of subscription to be shown as liability in the balance sheet as at December 2009 ?
A. ₦14,200
B. ₦16,400
C. ₦18,900
D. ₦20,500

Use the information below to answer question 32 and 33.

Income and Expenditure (Extract)

32. What is the total income for the period?
A. ₦13,890
B. ₦13,500
C. ₦10,500
D. ₦9,500

33. What is the balance carried down?
A. ₦11,680
B. ₦11,930
C. ₦12,330
D. ₦13,430

34. Given:

Determine the value of stock as at 31st December.
A. ₦8000
B. ₦9,500
C. ₦12,500
D. ₦15,500

35. In a departmental account, where no basis of apportionment exist, apportionment is __.
A. on profit basis
B. according to employee decision
C. according to material available
D. on equal basis

36. In a departmental account, the expenses to be apportioned on the basis of turnover is __.
A. carriage inwards
B. returns outwards
C. discount received
D. carriage outwards

37. If goods are sent to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of ₦100,000?
A. ₦130,000
B. ₦125,000
C. ₦80,000
D. ₦75,000

Use the information below to answer question 30 and 31.

Hussaina Enterprises sent goods worth ₦800,000 at cost plus mark-up of 25% to its branch.

38. What is the cost price of the goods sent to the branch?
A. ₦600,000
B. ₦620,000
C. ₦640,000
D. ₦700,000

39. Determine the profit on the goods sent to the branch at profit margin of 25% mark-up.
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000

40. In the absence of a partnership deed, the act stipulates that __.
A. an amount should be fixed as salary for partners
B. interest on partners loan should be 25%
C. interest should not be allowed on partners drawings
D. profits and losses should not be shared equally

41. The profit of a branch is usually credited to the __ .
A. adjustment account
B. head office sales
C. head office goods account
D. head office current account

42. Where partnership is converted into a limited liability company, current account balances of partners are transferred to a  ___.
A. realization account
B. savings account
C. share capital account
D. capital account

43.The expenses incurred in purchasing a vehicle is a __.
A. revenue expenditure
B. capital expenditure
C. recurrent expenditure
D. concurrent expenditure

44. Payment for shares in excess of amount offered gives rise to __.
A. subscription in advance
B. revenue reserves
C. capital reserves
D. calls-in-advance

45. The details of the share capital which a company is authorized to issue is contained in the __.
A. Articles of Association
B. Companies and Allied Matters Act
C. Memorandum of Association
D. Share capital certificate

46.  ₦800,000 worth of ordinary shares of 50k were issued at ₦1 each, payable in full on application. The entry in the cash book would be to __.
A. credit ₦1,600,000
B. debit ₦1,600,000
C. credit ₦1,600,000
D. debit ₦800,000

Use the information below to answer question 47 and 48.

Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of ₦1.50k. Application and allotment were received for 900,000 shares at 25k each.

47. Determine the amount received on application and allotment.
A. ₦224,950
B. ₦225,000
C. ₦324,950
D. ₦325,000

48. The book value of issued share capital is ___.
A. ₦675,000
B. ₦975,000
C. ₦1,350,000
D. ₦1,950,000

49.  The account of government into which all monies are received and from which all expenditures are disbursed is the __  .
A. Federation account
B. Petroleum Technology Development Fund
C. Central Bank Account
D. Development fund

50.  In government accounting, the method used which records on the basis of financial entity with self-balancing books instead of entity of proprietorship is __.
A. virement
B. fund accounting
C. consolidated fund
D. financial regulation


1. D

2. A

3. C

4. B

5. D

6. C

7. B

8. B

9.  B

10. C

11. C

12. C

13. D

14. C

15. D

16. B

17. B

18. B

19. C

20. B

21. B

22. B

23. B

24. D

25. A

26.  B

27.  A

28.  B

29.  C

30.  A

31.  C

32.  A

33.  C

34.  C

35.  A

36.  D

37.  D

38.  B

39.  D

40.  D

41.  C

42.  A

43.  B

44.  C

45.  C

46.  D

47.  B

48.  D

49.  A

50.  D