All practice questions

Ade and Ngozi are partners in an engineering firm sharing profits and losses in the ratio of $3:2$. Their capital account balances prior to the admission of a new partner, Emeka, are $\text{₦}120,000$ and $\text{₦}80,000$ respectively. Upon Emeka's admission, the partnership assets are revalued, yielding a net revaluation profit of $\text{₦}30,000$. What is the adjusted capital balance of Ade in Naira after crediting his share of the revaluation profit?

Zainab Traders dispatched $1,200$ crates of industrial lubricants costing $\text{₦}8,000$ per crate on consignment to Aliyu & Sons. Zainab Traders paid $\text{₦}480,000$ for freight and $\text{₦}120,000$ for transit insurance. Aliyu & Sons paid $\text{₦}240,000$ for clearing charges, $\text{₦}180,000$ for godown rent, and $\text{₦}300,000$ for sales commission. If $900$ crates were sold by the end of the accounting period, what is the total value of the unsold consignment stock in Naira ($\text{₦}$)?

A firm operates an imprest system with a fixed petty cash float of $\text{₦}50,000$. At the end of August 2026, disbursements recorded in the petty cash book were: Travelling expenses $\text{₦}14,500$, Office stationery $\text{₦}9,200$, Postage stamps $\text{₦}4,800$, and Refreshments $\text{₦}6,500$. How much cash must be reimbursed to the petty cashier to restore the imprest float at the beginning of September 2026?

Oceanic Commerce Plc earned a gross profit of ₦1,200,000 for the financial year ended 31 December 2025. During the year, the company incurred total administrative and distribution expenses of ₦450,000 and paid ₦50,000 as interest on debentures. Calculate the net profit before taxation for the year in Naira (₦).

Determine whether the following statement regarding professional accounting ethics is True or False: Under the ICAN and IFAC Code of Ethics for Professional Accountants, the fundamental principle of confidentiality is absolute, strictly prohibiting an accountant from disclosing confidential client or employer financial information to external bodies under any circumstances unless explicit prior consent is granted.

Before reconciliation, the Sales Ledger Control Account of Okafor Enterprises showed a debit balance of $\text{₦}195,000$. A detailed investigation revealed the following errors:

1. The total of the sales journal was understated by $\text{₦}15,000$.
2. A dishonoured cheque of $\text{₦}8,000$ received from a customer had been mistakenly credited to the Sales Ledger Control Account.

What is the correct balance of the Sales Ledger Control Account after adjusting for these errors?

A business evaluated its unsold inventory at the end of the accounting period. The cost price of the inventory was $\text{N}85,000$, while its net realizable value was determined to be $\text{N}78,000$. Following the prudence convention, what amount should be credited to the Trading Account as closing stock?

In demographic analysis, which of the following mathematical expressions correctly defines the dependency ratio of a population?

Olu & Sons consigned $1,000$ litres of industrial chemical costing $\text{₦}1,000$ per litre to an agent in Ibadan. Olu & Sons paid $\text{₦}120,000$ for freight and insurance. During transit, $100$ litres were completely destroyed in an accident. Upon arrival, the agent paid $\text{₦}45,000$ for clearing and unloading. Due to natural evaporation, $90$ litres were lost during storage. If the agent subsequently sold $600$ litres, what is the valuation of the unsold consignment stock?

Emeka Enterprises consigned $400$ cases of goods costing $\text{₦}10,000$ per case to Zainab Stores and paid $\text{₦}200,000$ for freight and transit insurance. Zainab Stores paid landing charges of $\text{₦}100,000$ and sales promotion expenses of $\text{₦}50,000$. Zainab Stores sold $300$ cases at $\text{₦}15,000$ per case, earning an ordinary commission of $5\%$ and a del-credere commission of $2.5\%$ on gross sales. Credit customers defaulted on payments totaling $\text{₦}60,000$. What is the net amount remitted by Zainab Stores to Emeka Enterprises in full settlement?

On 31st October 2026, the Cash Book of Chidiebere Enterprises showed an unadjusted debit balance of $\text{NGN } 54,200$. Upon comparing the Cash Book with the bank statement, the following items were identified: a direct credit from a customer of $\text{NGN } 11,500$, bank charges of $\text{NGN } 2,800$, a standing order payment for insurance of $\text{NGN } 6,400$, and a customer's dishonoured cheque of $\text{NGN } 4,500$ (none of which were previously recorded in the Cash Book). Furthermore, unpresented cheques amounted to $\text{NGN } 18,300$ and uncredited lodgements totaled $\text{NGN } 14,100$. What is the balance as per the bank statement on 31st October 2026 in NGN?

Halima and Segun are partners in a retail enterprise sharing profits and losses in the ratio of $3:2$. They admit Tunde into the partnership with a $\frac{1}{5}$ share of future profits. Tunde pays $\text{₦}50,000$ as capital contribution and $\text{₦}20,000$ as premium for goodwill. What amount of the goodwill premium should be credited to Segun's capital account?

At 31st December 2025, the trial balance of Danjuma Trading Enterprise showed Trade Receivables of $\text{₦}160,000$ and an existing Provision for Doubtful Debts of $\text{₦}6,400$.

Additional information:
1. Additional bad debts of $\text{₦}10,000$ are to be written off.
2. A specific debt of $\text{₦}4,000$ is identified as doubtful and requires a 100% provision.
3. A general provision for doubtful debts is to be set at $5\%$ of the remaining trade receivables.

What is the net amount (in $\text{₦}$) to be charged to the Income Statement (Profit and Loss Account) for provision for doubtful debts for the year ended 31st December 2025?

Kano Textiles Plc presents the following financial extracts at the end of its trading period:

The directors proposed a $6\%$ dividend on ordinary shares and resolved to transfer $₦40,000$ to the general reserve. What is the retained profit carried forward to the Statement of Financial Position?

A company's accounting department experienced a system compromise when an infected external flash drive was physically connected to a local database workstation. Which of the following internal control measures is most effective in preventing this specific type of security threat?

Match each inventory accounting component or valuation principle on the left with its correct financial statement treatment or definition on the right.

Match each fundamental ethical principle in accounting on the left with its correct description on the right.

The ledger of Tunde & Co. shows a Trade Debtors balance of $\text{₦}120,000$ at the end of the accounting period. Additional information reveals that bad debts of $\text{₦}5,000$ are to be written off, a Provision for Doubtful Debts is to be maintained at $5\%$ on net debtors, and a Provision for Discount on Debtors is to be created at $2\%$. What is the amount of the new Provision for Discount on Debtors to be created?

In an automated payroll processing system of a manufacturing entity, internal control mechanisms are installed to preserve data integrity, limit system exposure, and track operations. Match each computerized control technique on the left with its correct control classification on the right.

A trader paid for office rent by issuing a bank cheque. Which of the following double-entry postings correctly records this transaction in the ledger?