All practice questions

Arrange the following stages of public sector financial control and audit procedures in their correct statutory sequence, from initial budget authorization to final legislative oversight.

A meteorological station situated in a tropical latitude at $15^\circ\text{N}$ at an elevation of $2{}200\text{ meters}$ records a mean annual temperature of $14^\circ\text{C}$, with its warmest month averaging $17^\circ\text{C}$ and its coldest month averaging $11^\circ\text{C}$. Precipitation is heavily concentrated during the high-sun summer season under the influence of the Intertropical Convergence Zone (ITCZ), whereas the low-sun winter season is markedly dry. Under the Köppen climate classification system, how is this highland climate designated, and which primary climatic control accounts for its thermal departure from surrounding lowlands?

The financial records of Ogunlade Manufacturing Enterprise show the following details for the year ended 31 December 2025:

- Prime Cost: $\text{₦}145,000$
- Factory Overheads: $\text{₦}52,000$
- Work-in-Progress (1 January 2025): $\text{₦}18,500$
- Work-in-Progress (31 December 2025): $\text{₦}14,200$

What is the total cost of production to be transferred to the Trading Account?

A sole trader keeping incomplete records provides the following financial details for the year ended 31 December 2025:

- Cash received from debtors: ₦45,000
- Opening debtors balance: ₦8,000
- Closing debtors balance: ₦12,000
- Discount allowed: ₦1,500
- Returns inwards: ₦2,500
- Bad debts written off: ₦1,000
- Cash sales for the year: ₦15,000

What is the total sales figure (in ₦) to be credited to the Trading Account for the year?

Tayo, Segun, and Femi are partners in a firm sharing profits and losses in the ratio $5:3:2$ respectively. Femi decides to retire from the partnership. On the date of his retirement, a revaluation of the partnership assets resulted in a net profit of $\text{₦}25,000$. What is Femi's share of the revaluation profit?

The Ministry of Housing and Urban Development of a state government recorded the following financial transactions during a fiscal year:

- Payment of civil servants' salaries and allowances: $₦14,500,000$
- Purchase of office stationery and consumables: $₦2,300,000$
- Servicing and routine repairs of operational vehicles: $₦1,800,000$
- Construction of a new low-cost residential estate: $₦68,000,000$
- Procurement of heavy-duty excavators for site preparation: $₦35,000,000$

What is the total recurrent expenditure of the ministry for the fiscal year?

A head office supplies goods to its dependent branch at an invoice price loaded with a mark-up of 20% on cost. At the end of the trading period, the branch holds closing inventory valued at ₦30,000 at invoice price. What is the amount of stock reserve required to remove the unrealized profit from the closing inventory?

On 1 May 2026, Emeka set up a sole proprietorship business by bringing in the following financial items into the enterprise: Premises valued at $\text{₦}2,500,000$, Delivery Van at $\text{₦}1,200,000$, Inventory at $\text{₦}450,000$, Trade Debtors at $\text{₦}380,000$, Trade Creditors at $\text{₦}520,000$, and a Bank Overdraft of $\text{₦}150,000$. He also introduced his private motor car valued at $\text{₦}600,000$ to be used permanently by the firm, alongside securing a long-term loan of $\text{₦}400,000$ from his brother specifically for business funding. What is the correct amount of opening Capital to be credited in Emeka's General Journal?

Match each transaction occurring during the dissolution of a partnership to its correct accounting entry in the ledger.

A manufacturing enterprise transfers finished goods to its retail department at a price that includes a mark-up of $25\%$ on manufacturing cost. At the end of the trading period on 31 December 2025, the opening inventory of finished goods at transfer price was $\text{₦}18,000$ (with an existing provision for unrealized profit of $\text{₦}3,600$), while the closing inventory of finished goods at transfer price was $\text{₦}25,000$. What is the amount to be charged to the Profit and Loss Account as an adjustment for unrealized profit?

Kemi, a retail trader who keeps incomplete accounting records, recorded total sales of $\text{₦}75,000$ for the trading period. She fixes her selling prices using a mark-up of $25\%$ on cost. What is the Cost of Goods Sold in Naira?

Lekki Heights Maritime Plc extracted the following financial details for the year ended 31 December 2025:

• Gross Profit: ₦1,450,000
• Rent and Rates paid: ₦180,000 (includes ₦30,000 paid in advance for 2026)
• Salaries and Wages paid: ₦420,000
• Outstanding Salaries and Wages at year-end: ₦40,000
• 10% Debentures of ₦500,000 (interest unpaid for the entire year)
• Estimated Corporate Income Tax: ₦120,000

What is the net profit after tax to be reported in the company's Statement of Profit or Loss for the year ended 31 December 2025?

Match each accounting event or transaction on the left with its corresponding recording treatment or book of prime entry on the right.

Segun, Tari, and Danladi are partners sharing profits and losses in the ratio $5:3:2$ respectively. Danladi dies on March 31, 2025. At the date of his death, Danladi's capital account balance was $\text{₦}120,000$ (credit) and his current account balance was $\text{��}15,000$ (credit). The firm's goodwill was valued at $\text{₦}100,000$, and the revaluation of assets yielded a net profit of $\text{₦}30,000$. Danladi's share of profit up to the date of death was calculated as $\text{₦}12,000$, and his drawings during the period were $\text{₦}8,000$. What is the total net amount due to Danladi's estate?

Apex Commercial Enterprises operates several regional sales outlets. One of its outlets, Branch K, keeps its own full set of accounting books under double-entry rules, makes local stock purchases, and extracts its own trial balance at the end of each accounting year. Which of the following accounting features unreservedly applies to Branch K as an independent branch rather than a dependent branch?

Fill in the missing terms in the following statement regarding public sector accounting records.

Victor and Raymond are partners in a business sharing profits and losses in the ratio of $3:2$. They admit Kenneth as a new partner, and the new profit-sharing ratio among Victor, Raymond, and Kenneth is agreed at $5:3:2$. Kenneth pays $\text{₦}24,000$ in cash as premium for goodwill. What amount of the goodwill premium (in Naira) should be credited to Victor's capital account?

As at 31st December 2025, the bank statement of Oluwaseun Trading Company showed an overdraft balance of $\text{NGN } 32,400$. An investigation of the financial records revealed the following information:

1. Direct credit transfer by a customer of $\text{NGN } 14,800$ was credited by the bank but not recorded in the cash book.
2. Bank charges of $\text{NGN } 3,200$ and a standing order payment for insurance of $\text{NGN } 5,500$ were reflected only on the bank statement.
3. A cheque of $\text{NGN } 8,900$ received from a customer and deposited was dishonoured by the bank, with no entry yet made in the cash book.
4. A cheque of $\text{NGN } 7,800$ paid to a trade creditor was mistakenly entered in the cash book as $\text{NGN } 8,700$.
5. Unpresented cheques totaled $\text{NGN } 21,500$, while uncredited lodgements amounted to $\text{NGN } 16,300$.

What was the original unadjusted balance per the cash book prior to these discoveries?

Sunset Recreational Centre operates a bar for its members. During the year ended 31 December 2025, the centre recorded opening bar inventory of ₦8,000, purchases of bar drinks amounting to ₦45,000, and closing bar inventory of ₦12,000. What is the cost of goods sold for the bar operations in Naira (₦)?

Complete the sentence below by providing the correct accounting title used upon the death of a partner.