All practice questions

The following details relate to the bar operations of Apex Recreation Club for the year ended 31 December 2025:

- Bar inventory (1 January 2025): ₦12,500
- Bar inventory (31 December 2025): ₦16,200
- Payments to bar suppliers (creditors): ₦64,000
- Amount owing to bar suppliers (1 January 2025): ₦8,400
- Amount owing to bar suppliers (31 December 2025): ₦11,100
- Bar sales (takings): ₦120,000
- Bar steward salary paid: ₦15,000 (₦2,500 was accrued on 31 December 2025)
- Bar license fee paid: ₦4,000 (₦1,000 was prepaid for 2026)

What is the net profit from the bar trading account to be transferred to the Income and Expenditure Account?

Kofi consigned $500$ units of solar lanterns costing $\text{₦}12,000$ per unit to Aminu. Kofi paid freight of $\text{₦}300,000$ and loading charges of $\text{₦}100,000$. Aminu paid clearing charges of $\text{₦}200,000$, warehouse rent of $\text{₦}150,000$, and sales commission of $\text{₦}100,000$. At the end of the trading period, Aminu reported that $400$ units were sold. What is the value of the unsold consignment stock?

Under the financial regulations governing public sector accounting in Nigeria, government revenues are categorized and credited to specific statutory funds based on their intended purpose. Which of the following receipts is credited directly to the Capital Development Fund rather than the Consolidated Revenue Fund?

Match each electronic commerce and data interchange component on the left with its correct primary functional role in digital accounting systems on the right.

Apex Professionals Guild provided the following details regarding its subscription accounts for the financial year ended 31 December 2025:

- Subscriptions in arrears on 1 January 2025: $\text{N}12,000$
- Subscriptions received in advance on 1 January 2025: $\text{N}8,000$
- Total subscription cash received during 2025: $\text{N}165,000$
- Subscriptions in arrears on 31 December 2025: $\text{N}15,000$
- Subscriptions received in advance on 31 December 2025: $\text{N}10,000$

What amount should be credited to the Income and Expenditure Account as subscription income for the year ended 31 December 2025?

A firm acquired new office computers on credit for business operations rather than for resale. In which book of prime entry should this transaction be recorded?

Crestview Manufacturing Ltd has an issued share capital of $800,000$ ordinary shares of $\text{₦}0.50$ each. The board of directors resolves to make a bonus issue of $1$ new ordinary share for every $4$ ordinary shares held. What is the total nominal value (in $\text{₦}$) of the bonus shares issued?

Match each computerized internal control mechanism with its corresponding control objective in an accounting system.

On 31st December 2025, Folake Enterprises extracted a trial balance showing Trade Receivables of $\text{��}145,000$ and an existing Provision for Doubtful Debts of $\text{₦}4,800$. During the year-end audit, it was discovered that a bad debt recovery of $\text{₦}2,500$ was erroneously credited to the Trade Receivables account. Additionally, further bad debts of $\text{₦}5,000$ are to be written off. A specific provision of $\text{₦}4,000$ is required for a customer in liquidation, while a general provision of $5\%$ is to be maintained on the remaining trade receivables. Calculate the net amount in Naira ($\text{₦}$) to be charged as Provision for Doubtful Debts in the Income Statement for the year ended 31st December 2025.

The following extract was taken from the trial balance and records of Kalu Traders as at 31st December 2025:

- Trade Debtors: ₦520,000
- Existing Provision for Doubtful Debts (as at 1st January 2025): ₦22,000

Additional adjustments required at year-end:
- Write off an additional bad debt of ₦20,000.
- Create a provision for doubtful debts equal to 5% of net trade debtors.

Match each accounting adjustment item on the left with its correct monetary value or accounting outcome on the right.

Calabar Head Office operates a dependent branch in Uyo, supplying all goods at cost price. For the financial year ended 31 December 2025, the branch recorded the following transactions:

- Opening inventory: ₦15,000
- Goods sent to branch: ₦180,000
- Goods returned to head office: ₦10,000
- Total sales: ₦210,000
- Operating expenses paid by head office: ₦25,000
- Closing inventory: ₦20,000

What is the net profit earned by the Uyo branch for the year?

At 31st December 2025, the ledger of Oluwaseun & Co. showed Trade Debtors of $₦180,000$ and an existing Provision for Doubtful Debts of $₦4,000$. An additional bad debt of $₦10,000$ is to be written off, and the provision for doubtful debts is to be adjusted to $5\%$ of the remaining trade debtors. What is the net amount of Trade Debtors (in $₦$) to be presented in the Balance Sheet as at 31st December 2025?

Bisi Traders has Trade Debtors of $\text{₦}40,000$ and a Provision for Doubtful Debts of $\text{₦}2,000$. If the business decides to create a $5\%$ Provision for Discount on Debtors, what is the amount of the provision for discount on debtors?

Match each key manufacturing account component on the left with its corresponding accounting formula or descriptive definition on the right.

Kambai Manufacturing Enterprise provided the following cost data for the year ended 31st December 2025:

Finished goods are transferred from the manufacturing department to the trading department at market value, calculated using a mark-up of $25\%$ on the cost of production. What is the amount of manufacturing profit to be transferred to the Profit and Loss Account for the year?

At the beginning of the financial year, a business had net assets worth ₦50,000. During the year, the proprietor introduced additional capital of ₦10,000 and withdrew ₦5,000 for personal use. If the net assets at the end of the year stood at ₦70,000, what is the net profit for the year?

The following financial information was extracted from the records of Eko Industrial Manufacturing Company for the year ended 31 December 2025:

What is the total Cost of Production for the year?

A trading business needs an affordable computerized system to perform standard accounting operations such as invoicing, payroll, and financial reporting. The business requires immediate deployment and wants to avoid high initial software development fees. Which type of accounting software is most appropriate for this business?

Match each accounting transaction event relating to the forfeiture and re-issue of shares on the left with its correct double-entry ledger treatment on the right.

Nkem Enterprises consigned $800$ cases of merchandise to Babatunde. Babatunde sold $500$ cases for cash at ₦$2,000$ per case and $300$ cases on credit at ₦$2,200$ per case. The contract specified three types of commission: an ordinary commission of $5\%$ on total sales, a del-credere commission of $2.5\%$ on credit sales, and an overriding commission of $10\%$ on total sales value achieved in excess of the benchmark price of ₦$1,800$ per case. During the period, a credit customer defaulted, incurring a bad debt of ₦$50,000$. What is the total commission earned by Babatunde?