All practice questions

To curb severe inflationary pressure and mop up excess liquidity from the commercial banking sector strictly through quantitative monetary policy instruments, which set of measures must the Central Bank adopt?

Match each Sale of Goods Act concept or remedy on the left with its corresponding legal definition or application on the right.

Chief Folari consigned $500$ cases of goods to Danjuma at $\text{₦}2,000$ per case and paid $\text{₦}50,000$ for freight and insurance. Danjuma sold $400$ cases for $\text{₦}1,120,000$ and incurred $\text{₦}50,000$ in total handling and selling expenses. Danjuma is entitled to a $5\%$ ordinary commission and a $2.5\%$ del-credere commission on total sales. Prior to settlement, Danjuma sent an advance of $\text{₦}300,000$ by bank draft. If credit customers defaulted resulting in bad debts of $\text{₦}15,000$, what is the net amount remittable by Danjuma to Chief Folari in final settlement of his account?

Tourism serves as a key auxiliary to trade by providing services that facilitate economic growth and international commerce. Match each tourism activity on the left with its corresponding economic or commercial impact on the right. Which pairs correctly match each activity with its commercial effect?

Musa and Audu are partners sharing profits and losses in the ratio $3:2$. For the year ended 31 December 2025, the net profit before adjusting for interest on Musa's loan was $₦500,000$. The partnership agreement provides for the following:
- Interest on Musa's loan: $₦20,000$
- Interest on capital: Musa $��30,000$, Audu $₦20,000$
- Salary to Audu: $₦70,000$ per annum
- Interest on drawings: Musa $₦10,000$, Audu $₦10,000$

What is the net divisible profit available for distribution among the partners?

The trial balance of standard trading enterprise extracts as at 31st December 2025 showed Trade Debtors of $\text{₦}120,000$, Provision for Doubtful Debts of $\text{₦}6,000$, and Provision for Discount on Debtors of $\text{₦}1,800$.

Additional adjustments at year-end state:
1. Further bad debts of $\text{₦}5,000$ are to be written off.
2. Provision for doubtful debts is to be adjusted to $5\%$ of trade debtors.
3. Provision for discount on debtors is to be created at $2\%$ of net debtors.

What is the net amount to be charged to the Profit and Loss Account for provision for discount on debtors for the year ended 31st December 2025?

When forfeited shares are re-issued at a price that leaves a net profit after covering all defaulted calls, to which of the following accounts is this profit transferred?

Folake and Uche are partners sharing profits and losses in the ratio of $5:3$. Their capital balances prior to adjustments are $\text{₦}250,000$ and $\text{₦}150,000$ respectively. They agree to admit Chinedu into the partnership for a $\frac{1}{5}$ share of future profits. On admission, equipment is revalued upward by $\text{₦}32,000$ and a provision for doubtful debts of $\text{₦}8,000$ is created. Goodwill is valued at $\text{₦}80,000$, raised in the old profit-sharing ratio, and immediately written off in the new profit-sharing ratio. What is the closing capital account balance of Folake after all adjustments?

A petty cashier was allocated an imprest float of ₦15,000 at the beginning of the month. During the month, payments were made for office stationery of ₦3,500, transport fares of ₦2,200, and cleaning supplies of ₦1,800. What amount of cash is required to reimburse the petty cashier at the end of the month to restore the float to its initial balance?

A business anticipates a potential loss of $₦120,000$ from an ongoing legal dispute and immediately creates a provision for it in the financial statements. However, it refrains from recognizing an expected gain of $₦80,000$ from another pending claim until the outcome is officially finalized. Which accounting convention governs this financial treatment?

Audu consigned $400$ cartons of goods costing $\text{₦}5,000$ per carton to Emeka. Audu paid carriage of $\text{₦}80,000$ and transit insurance of $\text{₦}40,000$. Emeka received the consignment and paid landing charges of $\text{₦}60,000$, godown rent of $\text{₦}30,000$, and selling expenses of $\text{₦}50,000$. At the end of the accounting period, Emeka reported that $300$ cartons had been sold. What is the total valuation of the unsold consignment stock in Naira?

Match each non-profit organization financial item with its appropriate accounting treatment in relation to the Income and Expenditure Account.

In a computerized accounting system, system software is directly responsible for processing domain-specific business transactions such as posting ledger entries and compiling financial statements, whereas application software manages low-level hardware resource allocations and memory operations.

A firm purchased motor vehicles costing $₦2,000,000$. As of 1 January 2024, the accumulated provision for depreciation on the vehicles was $₦400,000$. The business provides for depreciation at $20\%$ per annum using the reducing balance method. What is the correct double entry to record the annual depreciation expense for the year ended 31 December 2024?

A merchant's three-column cash book recorded the following transactions with a customer:
- Sold goods listed at $₦120,000$ subject to a $15\%$ trade discount.
- The customer settled half of the net invoice value by cheque within the prompt settlement period, receiving a $5\%$ cash discount.
- The remaining balance was settled later in cash, receiving a $2.5\%$ cash discount for early payment.

What is the total amount, in naira, recorded in the discount allowed column of the cash book for these transactions?

Match each bank reconciliation item on the left to its correct accounting treatment on the right when preparing an Adjusted Cash Book.

Match each public sector transaction on the left with its correct expenditure classification on the right.

Bello Plc has an authorized share capital of 800,000 ordinary shares of ₦1 each, out of which 400,000 ordinary shares are fully issued and paid up. If the directors propose a final dividend of 12% on the paid-up capital, what is the total amount payable as dividends to the ordinary shareholders?

An auctioneer advertises a public sale of commercial machinery and invites bids from attendees at the auction site. A prospective buyer makes the highest bid, but before the hammer falls, the auctioneer withdraws the item from sale. Which of the following statements correctly describes the legal status of the auctioneer's initial call for bids?

On 1st January 2021, Akins Commercial Enterprises purchased plant machinery for ₦4,000,000. Depreciation is charged at a rate of 20% per annum using the reducing balance method. What is the net book value of the machinery to be reported in the Statement of Financial Position as at 31st December 2023?