department of accounting and finance
college of social and management sciences
western delta university
first semester examination 2023/2024 session
acc201 - financial accounting I time: 2hrs
Attempt all questions on section A and five (5) questions only from section B
Section A
- _______ is a resource controlled by the entity as a result of past event and from which future economic benefit is expected to flow to the entity. (a) asset (b) goodwill (c) tangible (d) intangible
- The statutory framework companies the statutes enacted by _______ (a) C.A.M.A 1990 (b) Government (c) CBN Act 1991
- An accounting standard is a statement issued by the _______ standard — setting. (a) acceptable (b) appropriate (c) transformed (d) accounting
- Every economic unit, regardless of its legal form of existence, is treated as a separate _______ (a) going concern (b) entity (c) matching (d) realization
- A ledger that has a control account is sometimes referred to as a (a) self balancing ledger (b) purchase ledger (c) sale ledger (d) corporate ledger
- Expense are recorded when they are paid and income are recorded when they are _______ (a) mantain (b) received (c) surplus (d) deficit
- The book keeping process after trial balance adjustment in the preparation of the financial statement is called _______? (a) cash account (b) trading account (c) final account (d) loss account
- Accumulated fund will replace _______, surplus will replace net profit. (a) trading (b) capital (c) balance (d) net loss
- These accounting terminology can be expressed in equation form as follows: OC + AC + NP - D = ? (a) CC (b) BC (c) C (d) BB
- _______ should be disregarded, the entry for cash sale is to debit the cash book and credit the sale account. (a) cash sale (b) cash book (c) debit book (d) credit book
Section B: Answer FIVE (5) Questions Only
Question 1
The following are extracted from READWELL Enterprises as at 31st July, 2019:
REQUIRED: You are required to prepare the ledger accounts (excluding bank account) to record these transactions in the book Ogheneoke up to 31st August 2019 and the statement of profit or less (extract) for the two months ended 31th August 2019 and statement of financial position (extract) at the same date. (10 marks)1/7/2019 Bought goods from Oduware N25,000. 2/7/2019 Sent cheque for N12,000 to Oduware and accepted a bill drawn on him payable on 1/8/2019 for N10,000. 8/7/2019 Sold goods to Oni for N12,000 9/7/2019 Draw two bills on Oni for N10,000 and N2,000 payable on 8/8/2019 and 8/9/2019 respectively. 14/7/2019 Bought goods from Efosa for N7,000 and paid N4,000 on account. 23/7/2019 Sold goods to Okunade for N5,000 and received cheque for N2,000 and a bill for the balance payable on 22/7/2019. 26/7/2019 Endorsed's bill to Oduware in settlement of the balance due to the latter. 4/8/2019 Oduware agreed that the bill of N10,000 be withdrawn after which Ogheneoke paid cheque for N6,000 and accepted another bill payable on 3/9/2019. 11/8/2019 Oni's bill for N10,000 was returned dishonored. 20/8/2019 Agreed with Oni that is should return goods invoiced to him N5,000 against a credit 2 to of N4,000. 22/8/2019 Okunade's bill was duly honoured. Question 2
Ochuko, a sole trader, keeps his book so that a sales ledger control account and a purchases ledger control account are shown in his general ledger and balanced at the end of each month. From the following details, show how these two control accounts will appear in the general ledger for the month of December 2018.At Dec. 2018
N
DR balances in the sales ledger
15,000
DR balances in the purchases ledger
415
CR balances in the sales ledger
300
CR balances in the purchases ledger
12,000
REQUIRED: Prepare Sales Ledger Control Account and Prepare Purchases Ledger Control Account. (10 marks)For the month of Dec. 2018
N
Total credits purchases
17,500
Total credit sales
20,000
Sales returns and allowances
360
Purchases returns and allowances
200
Cash received from trade receivables
7,500
Cheques received from trade receivables
15,000
Discount received from payables
120
Payment made to trade payables
16,400
Bad debts written off
500
Provision for doubtful debts
200
Bill of exchange accepted by trade receivables of Ochuko
4300
Bills of exchange accepted by Ochuko
6600
Sales ledger credits balances transferred to purchase ledger
80
Cash purchases
3000
Dishonoured bills payable
130
Dishonoured bills receivable
150
CR balances in the sales ledger
195
DR balances in the purchases ledger
180
Question 3
- Explain 10 users of Financial Statement in the corporate world.(5 marks)
- HIGHLIGHT FIVE (5) errors that does not affect the trial balance in the account.(5 marks)
Question 4
Write short notes on the following accounting concept:- Trial balancing
- Bill of Exchange
- Total Account
- Incomplete record
- Non-profit organization
Question 5
Enumerate ten International Financial Reporting Standards. (10 marks)Question 6
Mr. Efe commenced business on 1st January 2022 by transferring N720,000 from his private current account into a bank account which he has opened for the business. His transactions for the month of January 2022 were as follows:You are required to use the above information to write up the 3-column cash book. (10 marks)N
January 1 Bought goods on credit from Yakubu
120,000
January 2 Withdraw cash from the bank for office use
18,000
January 3 Sold goods on credit to Dauda
150,000
January 4 Bought goods on credit from Bashiru
180,000
January 6 Sold goods to Okechukwu on credit
220,000
January 7 Paid rent by cash
2,500
January 9 Withdrew cash from office till for personal use
3,000
January 10 Bought goods from Bemigho on credit
100,000
January 11 Goods returned by Dauda
17,000
January 12 Sold goods on credit to Anthony
140,000
January 14 Cash purchases from Ekpulu paid by cheque
40,000
January 15 Goods returned to Yakubu
8,200
January 15 Cost of goods taken for private use
5,000
January 16 Goods returned by Okechukwu
20,000
January 17 Sold goods (normal selling price N20,000) to Akintolu giving trade discount of 10%
January 18 Received cheque of N95,000 FROM Okechukwu after he had deducted cash discount of 15%
January 20 Purchased second-hand car from Mazamaza Motors by cheque
100,000
January 21 Paid cheque to Yakubu in full settlement of his account
110,000
January 22 Cash sales to Tribo received by cash
25,000
January 25 Goods returned to Bemigho
5,000
January 26 Purchased goods worth 70,000 on credit from Aminu at a trade discount of 10%
5,000
January 27 Paid cash of N18,000 to Bemigho after deducting discount of 10%
January 29 Received cash from Daudain full settlement of his account
130,000
January 29 Cheque received from Anthony
50,000
January 30 Deposited cash into bank account
80,000
January 30 Paid salaries by cash
5,000
January 31 Withdrew cash from bank to pay his son's school fees
3,000
January Paid Bashiru by cheque
80,000