All practice questions

During the financial year ended 31 December 2025, a business paid $\text{₦}50,000$ for insurance. On 31 December 2025, it was determined that $\text{₦}10,000$ of this amount was paid in advance for the following year. What is the net amount to be charged to the Profit and Loss Account for insurance for the year ended 31 December 2025?

A map drawn at a scale of $1 : 50,000$ is enlarged to twice its original linear dimensions. Calculate the denominator of the new Representative Fraction (R.F.) scale.

Ade, Bola, and Femi are in a partnership sharing profits and losses in the ratio of $3:2:1$ respectively. Bola decides to retire from the business. On the date of his retirement, a revaluation of assets yielded a profit of $\text{₦}12,000$. What is Bola's share of the revaluation profit?

A topographical map with a Representative Fraction (RF) of $1 : 100,000$ undergoes map reduction such that its new surface area is $\frac{1}{4}$ of the original map area. If the straight-line distance between two towns measured on the reduced map is $15\text{ cm}$, what is the actual ground distance between the two towns in kilometers?

Bello & Sons Traders purchased industrial equipment for ₦5,000,000 on 1 January 2023. Depreciation is charged at a rate of 20% per annum using the reducing balance method. Which of the following represents the correct accounting journal entry to record the depreciation expense for the financial year ended 31 December 2025?

The Earth's upper continental crust is predominantly composed of rocks rich in silica and aluminium. Which structural layer of the Earth does this describe?

A business firm returned a defective delivery van previously purchased on credit from Apex Motors Ltd. How should this transaction be posted to the ledger, and what are the correct classifications of the affected accounts?

An accountant employed by a manufacturing firm is instructed by the Managing Director to deliberately overestimate the value of closing inventory in order to present a higher gross profit to secure a bank loan. If the accountant complies with this instruction, which fundamental ethical principle of professional accountants is directly violated?

Tunde consigned $600$ cases of electrical appliances costing $\text{₦}15,000$ per case to Chidi. Tunde incurred freight charges of $\text{₦}360,000$, transit insurance of $\text{₦}180,000$, and loading costs of $\text{₦}60,000$. Upon receiving the goods, Chidi paid dock dues of $\text{₦}120,000$, clearing charges of $\text{₦}180,000$, godown rent of $\text{₦}90,000$, and advertising expenses of $\text{₦}60,000$. At the end of the accounting period, Chidi had successfully sold $450$ cases.

What is the correct valuation of the unsold consignment stock to be credited to the Consignment Account?

In commercial transactions, contractual obligations can be terminated, invalidated, or remedied through distinct legal principles. Match each commercial contract scenario on the left with its corresponding legal concept on the right.

At the end of the financial year, a trader's trial balance showed Trade Receivables of $\text{₦}85,000$ and an existing Provision for Doubtful Debts of $\text{₦}2,500$. Before preparing final accounts, an additional bad debt of $\text{₦}5,000$ is to be written off, and the provision for doubtful debts is to be adjusted to $5\%$ of the remaining trade receivables. Calculate the net increase in the provision for doubtful debts (in $\text{₦}$) to be charged as an expense in the Profit and Loss Account.

A sole trader earned a gross profit of $\text{N}45,000$ and received a discount of $\text{N}2,000$. If total operating expenses paid during the year consisted of rent of $\text{N}8,000$ and salaries of $\text{N}12,000$, what is the net profit?

Kalu had a cash balance of $\text{₦}18,500$ and a bank overdraft of $\text{₦}6,200$ on June 1. During June, the following transactions took place:

- June 5: Purchased goods listed at $\text{₦}40,000$ subject to a $10\%$ trade discount and a $5\%$ cash discount, paying immediately by cheque.
- June 12: Received a cheque from Tunde for $\text{₦}24,000$ in full settlement of a debt of $\text{₦}25,000$.
- June 18: Deposited $\text{₦}8,000$ cash into the bank account.
- June 24: Tunde's cheque was returned by the bank dishonoured.

What is the closing balance of the Bank column in Kalu's three-column cash book at the end of June?

On a topographical map drawn to a scale of $1 : 40,000$, the measured length of a railway line is $17.5\text{ cm}$. If the map is enlarged so that a statement scale of $1\text{ cm to } 250\text{ m}$ applies, what is the length of the railway line on the new enlarged map, in centimeters?

Match each type of agent under commercial law with its correct definition or operational scope.

The Federal Ministry of Works recorded the following financial disbursements during a fiscal year:

What is the total Recurrent Expenditure of the ministry for the fiscal year?

Arrange the major internal layers of the Earth in order from the outermost surface to the innermost center.

Match each accounting transaction item on the left with its correct entry placement in the Purchases Ledger Control Account on the right.

Match each managerial decision or operational need on the left with its corresponding objective in departmental accounting on the right.

On 1 January 2025, the Advertising Account of Folake & Co. showed a prepaid balance of $\text{₦}18,000$ and an accrued balance of $\text{₦}12,000$. During the year ended 31 December 2025, a total cash payment of $\text{₦}145,000$ was made for advertising. At the end of the financial year on 31 December 2025, advertising accrued was $\text{₦}25,000$ and advertising prepaid was $\text{₦}22,000$. What is the total amount to be charged to the Profit and Loss Account for advertising for the year ended 31 December 2025?