Monday, 18 February 2019



1. Which Principles of Account Question Paper Type is given to you?
A. Type A
B. Type B
C. Type C
D. Type D

2.  The major function of accounting bodies in Nigeria is to
A. provide proper financial management of businesses
B. provide good remuneration to the members
C. promote the ethics of the profession
D. show the dynamic nature of the profession.

3. Ledger account is mainly classified into____.
A. nominal, real and personal accounts
B. fixed and current accounts
C. management, financial and public sector accounting
D. bank and cash accounts.

4. If salary account is debited instead of stationery account. the error committed is that of____.
A. commission
B. omission
C. principle
D. compensation.

5.  If stationery bought for ₦200 has been entered as ₦2000. To correct this error
A. debit stationery with ₦2,200
B. credit stationery with ₦1800
C. debit stationery with ₦1800
D. credit stationery with ₦2200.

6. The account which refers to the tangible assets of a company that is of permanent nature is the  .
A. personal account
B. real account
C. nominal account
D. cash account.

7. The major feature of an invoice is that, it____.
A. passes information through the sales day book
B. has cash and bank column
C. specifies the particulars of goods bought
D. indicates only the cash sales.

8. The source documents include.
A. cash book
B. petty cash book 
C. general ledger 
D. credit notes.

Use the information below to answer questions 9 and
              Three Column Cash Book (Extract)

9. If Fatima was granted a discount of 2%, what will be the discount allowed?
A. ₦ 20
B. ₦ 40
C. ₦60
D. ₦4

10. Calculate the cash balance after the discount.
A. ₦2 760
B. ₦ 4 300
C. ₦ 6 200
D. ₦2 400.

11. A major cause of the discrepancy between bank statement and the cash book that overstates the bank statement balance is the____.
A. commission paid 
B. interest received 
C. direct payment
D. direct withdrawal.

12. The bank charges levied on a current account holder is the charges on___.
A. transaction
B. turnover
C. transfer
D. cash received.

13. The cause of discrepancies between the bank statement and the cash book that overstates the cash book is the___.
A. dividend received
B. uncredited expenses
C. uncredited cheques
D. interest on lodgement.

Use the information below to answer questions 14 and 15.

14. Find the gross profit.
A.₦ 7 800
B. ₦7 900
C. ₦ 9 700
D. ₦ 5 700

15. The cost of goods available for sale is    .
A. ₦ 4 600
B. ₦ 5 000
C. ₦ 6 400
D. ₦ 4 400.

Use the information below to answer questions 16 and 17.
Sundry debtor                          20,000
Provision for bad debts                  ₦500
Provision for bad debt at 4% of sundry debtors.

16. Determine the provision for bad debts to profit and loss account.
A. ₦ 500
B. ₦ 820
C. ₦ 1300 
D. ₦ 300

17. Calculate the provision to be taken to the balance sheet.
A. ₦ 780
B. ₦ 44,800
C. ₦ 1200
D. ₦ 200

18. Benefits enjoyed for which payments have not been made are    .
A. accruals
B. prepayments 
C. acquisitions 
D. provisions.

19. If an organization maintains a periodic stock system, the stock quantities are     .
A. updated at the end of the accounting year
B. not considered in the updating process
C. updated continuously
D. updated at the beginning of the accounting year.

20. If a company values its stocks in the period of rising prices using LIFO method, there is a tendency for it to
A. have a higher cost of goods sold
B. have a higher gross profit
C. pay higher income tax
D. have a higher value for closing stock.

Use the information below to answer questions 21 and 22

21. What is the balance c/d?
A.₦333 000
B. ₦234 000
C. ₦343 000
D. ₦243 000

22. Calculate the value of credit sales.
A. ₦558 000
B. ₦484 000
C. ₦448 000
D. ₦584 000

Use the information below to answer questions 23 and 24

23. What is the value of purchases for the year 2008?
A. ₦6 000
B. ₦9 900
C. ₦14 100
D. ₦5 700

24. Determine the total expenses to be charged to profit and loss account.
A. ₦2 350
B. ₦1 600
C. ₦800
D. ₦3 150

Use the information below to answer questions 25 and 26.

25. Find the opening capital.
A. ₦39 700
B. ₦35 900
C. ₦35 740
D. ₦43 660

26. Determine the net profit
A. ₦15 000
B. ₦3 960
C. ₦1 040
D. ₦8 960

27. The gross loss on manufacturing is always transferred to the___. 
A. credit side of balance sheet
B. debit side of profit and loss account
C. credit side of profit and loss account 
D. debit side of balance sheet.

28. The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the ___.
A. debit side of manufacturing and profit and loss account
B. debit side of profit and loss account only. 
C. credit side of profit and loss account only
D. debit side of manufacturing and balance sheet.

29. The prime cost is the total of the ___.
A. production cost + selling expenses.
B. direct material + direct labour + direct expenses
C. direct materials + work overhead expenses.
D. administrative expenses + selling + distribution expenses.

30. In the not-for-profit-making organization, the excess of income over expenditure is ___.
A. deducted from the capital
B. added to the accumulated fund
C. added to the capital
D. deducted from the accumulated fund.

31. The equivalent of a club's receipts and payment account is the ___.
A. trading account
B. revenue account
C. cash account
D. suspense account.

32. The summary of receipt and payments account represents ___.
A. cash at hand
B. journal proper 
C. general journal 
D. ledger accounts

Use the information below to answer questions 33 and 34..

33. How much rent is apportioned to department K?
A. 4 1 200
B. ₦1 800
C. ₦2 000
D. ₦750

34. How much selling and distribution expenses is apportioned to department M?
A. ₦ 800
B. ₦ 600
C. ₦ 400
D. ₦ 1 800

35. The Akachala Limited has four departments W, X, Y and Z. The profits or loss of the departments were ₦20 000 loss, X ₦25 000 profit, V ₦30 000 loss and Z 1 800 profit. How much is the net profit or loss of the company?
A. ₦7 000 loss
B. ₦5 000 loss
C. ₦ 5 000 profit
D. ₦7 000 profit

36. If goods were returned to branch by the customers. the correct posting for this transaction is to debit ___.
A. branch debtor's account and credit head office account
B. head office account and credit branch stock account 
C. branch stock account and credit branch debtors' account
D. branch cash account and credit branch stock account.

37. The branch expenses paid by the head office is recorded in the books by debiting branch ___.
A. bad debt account and crediting branch debtors' account
B. expenses account and crediting bank account
C. profit and loss account and crediting branch stock account
D. discount allowed account and crediting branch debtors' account.

38. Goods returned to branch by branch customers is recorded in the head office books by debiting ___.  
A. bank account and crediting branch stock account
B. goods sent to branch account and crediting branch debtors' account
C. branch stock account and crediting branch debtors' account
D. branch debtors' account and crediting cash account.

39. Which of the following is mostly used in treating partners' current earnings?
A. Savings account
B. Current account
C. Capital account
D. Share capital account

40. The salary of a partner is usually debited to the ___.
A. sundry debtors' account
B. appropriation account 
C. profit and loss account 
D. sundry current account.

41. The rules which govern the internal management of a firm and its financial affairs in a partnership business is a ___.
A. memorandum
B. bye-law
C. deed
D. financial regulation.

42. The interest on partners' loan is ___.
A. debited in current account
B. credited in profit and loss account 
C. debited in profit and loss account 
D. credited in current account.

43. The capital contributed by the partners is treated in the ___.
A. current account 
B. capital account 
C. trading account 
D. balance sheet

44. Given:
6,000,000 10% preference shares of ₦0.50 each
6,000,000 ordinary shares of ₦1 each
Capital reserves ₦2,700,000
Long-term liabilities ₦4,000,000
Find the value of authorized share capital. 
A. 13 000 000
B. 12 000 000
C. 9 000 000
D.15 700 000

45. The Directors' salaries paid are items of  ___.
A. current liabilities
B. profit and loss account
C. trading account
D. current assets.

46. Sundry debtors in the balance sheet of Onoja
Bakery and Sons totalled ₦800 000. 
A provision of 2% was made for discount and 
5% provision for bad and doubtful debts.
Find the amount for sundry debtors after provision. 
A. ₦760 000
B. ₦744 800
C. ₦744 000
D. ₦784 000

47. An ordinary share of ₦80 was issued at ₦96. The share was issued at ___.
A. premium
B. par
C. discount
D. loss.

48. The financial plan of the government for a year is contained in the ___ .
A. budget
B. cash analysis book
C. vote book
D. gazette.

49. An increase in government expenditure within a year is taken care of by means of  ___.
A. financial regulations
B. virement
C. warrant
D. supplementary estimate.

50. As evidence of payments to a government ministry, the revenue collectors will issue ___.
A. treasury receipt
B. receipts voucher card
C. treasury card
D. stores receipt voucher.


1.  C
2.  C
3.  A
4.  A
5.  B
6.  B
7.  C
8.  B
9.  B
10. A
11. C
12. B
13. C
14. B
15. D
16. D
17. B
18. A
19. A
20.  B
21.  D
22.  C
23.  D
25.  A
26.  D
27.  B
28.  B
29.  B
30.  B
31.  C
32.  A
33.  A
34.  A
35.  A
36.  C
37.  B
38.  B
39.  B
40.  B
41.  C
42.  C
43.  B
44.  C
45.  B
46.  C
47.  A
48.  A
49.  D
50.  A