All practice questions

Match each category of share capital on the left with its correct definition on the right.

Match each transaction or item related to the Sales Ledger Control Account on the left with its correct accounting entry side and effect on the right.

Below is a list of accounting transactions on the left and their respective posting rules in the Purchases Ledger Control Account on the right. Match each transaction item with its correct entry placement and double-entry accounting effect.

Kalu and Nkechi entered into a joint venture to trade in timber, maintaining a separate set of books. They opened a Joint Bank Account to which Kalu paid $\text{₦}500,000$ and Nkechi paid $\text{₦}300,000$. Goods were bought for $\text{₦}600,000$ and carriage expenses of $\text{₦}50,000$ were paid out of the Joint Bank Account. All goods were sold for $\text{₦}950,000$ and deposited into the Joint Bank Account. Calculate the net profit of the joint venture in naira.

During the financial year, a firm paid $\text{₦}120,000$ by cash for salaries. At the end of the year, salaries amounting to $\text{₦}15,000$ remained accrued and unpaid. What total amount should be debited to the Profit and Loss Account for salaries?

The financial records of Apex Cultural Society present the following cash and non-cash items for the year ended 31st December 2025:

What is the closing cash balance in the Receipts and Payments Account as at 31st December 2025?

Match each departmental expense listed on the left with its most appropriate basis of apportionment on the right.

A multi-departmental retail business, Crescent Outfitters, prepares departmental accounts to improve management control. Match each objective of departmental accounting on the left with its corresponding operational application on the right.

Match each strategic management decision or accounting action of a multi-segment business on the left with the corresponding primary objective of departmental accounting on the right.

A business engages in various sales transactions and returns during its operational cycle. Match each sales-related transaction or accounting procedure on the left with its appropriate accounting rule or journal treatment on the right.

Bisi Traders reported a Gross Profit of $\text{N}90,000$ and discounts received of $\text{N}5,000$ for the year ended 31st December 2025. Total operating expenses paid during the year amounted to $\text{N}30,000$, which included $\text{N}4,000$ rent prepaid for the next accounting period. What is the net profit of Bisi Traders for the year?

Unlike a consignment arrangement where the consignee acts strictly as an agent, participants in a joint venture act as co-principals who directly share both the financial risks and the net profits or losses of the specific business undertaking.

Match each financial transaction of a trade union welfare society with its corresponding entry or treatment in the Receipts and Payments Account.

The following cost details were extracted from the financial records of Kaduna Industrial Fabrics Ltd for the accounting year ended 31 December 2025:

What is the Prime Cost of production for the year?

Under a single entry bookkeeping system, although real and nominal accounts are omitted, the arithmetical accuracy of the accounting records can still be verified by preparing a Statement of Affairs at the beginning and end of the accounting period.

When preparing the statement of financial position for a sole trading business at year-end, how should an accrued expense, such as an unpaid electricity bill, be classified?

In a computerized accounting system framework, system software and hardware utility routines maintain data integrity at the physical storage layer, but cannot detect or prevent logical accounting errors such as errors of principle or transaction omission because system software operates independently of application-level accounting rules.

Under the statutory provisions of the Partnership Act 1890, where a partner advances a financial loan to the business in excess of their agreed capital and the firm incurs an operating loss for the year, the partner remains legally entitled to 5% per annum interest on the loan, which is debited to the Profit and Loss Account as a charge against profit and thereby increases the net loss apportioned equally among the partners.

Match each of the following departmental overhead expenses with its standard equitable basis of apportionment in departmental accounting:

Audu and Bisi opened a Joint Bank Account for a venture in agro-processing equipment, maintaining a separate set of books. They agreed to share profits and losses in the ratio of $3:2$. Audu and Bisi contributed $\text{₦}1,500,000$ and $\text{₦}1,000,000$ respectively into the Joint Bank Account.

Transactions executed during the venture were as follows:
- Goods purchased through Joint Bank: $\text{₦}1,800,000$
- Freight and carriage paid through Joint Bank: $\text{₦}120,000$
- Goods supplied directly by Audu from his private stock: $\text{₦}300,000$
- Selling expenses paid directly by Bisi from personal funds: $\text{₦}80,000$
- Management commission due to Audu: $5\%$ on gross sales revenue
- Total sales proceeds deposited into Joint Bank: $\text{₦}3,000,000$
- Unsold stock taken over by Bisi at an agreed value of $\text{₦}150,000$

What is the final cash amount in Naira payable to Bisi from the Joint Bank Account upon settlement?