All practice questions

Question 12101Question →

A head office invoices goods to its dependent branch at a selling price loaded with a mark-up of $33\frac{1}{3}\%$ on cost. At the end of the financial year, the head office records show goods dispatched to the branch at an invoice price of $\text{₦}180,000$ , but the branch recorded receiving goods valued at $\text{₦}165,000$ . The branch's physical inventory count at the close of the period showed stock on hand valued at $\text{₦}36,000$ at invoice price. What is the total stock reserve (unrealized profit) required for the combined closing stock, including goods in transit, at the financial year-end?

Show answer & explanation

Answer: 12750

Answer

The total stock reserve required for the total closing stock, including goods in transit, is ₦12,750.

To find the total unrealized profit (stock reserve), we must first identify all stock owned at year-end at invoice price. Goods sent (₦180,000) less goods received (₦165,000) leaves ₦15,000 in transit. Adding this to the physical inventory (₦36,000) gives a total closing stock of ₦51,000 at invoice price. Converting the mark-up of 33 1/3% (1/3 on cost) yields a margin of 25% (1/4 on invoice price). Taking 25% of ₦51,000 gives ₦12,750.

Step-by-Step Solution

1

Calculate the value of goods in transit at invoice price

₦15,000

Goods dispatched by Head Office (₦180,000) minus goods received by Branch (₦165,000) gives the unrecorded stock still in transit.

2

Calculate total closing stock held by the branch at invoice price

₦51,000

Total closing stock includes physical stock on hand at the branch (₦36,000) plus goods in transit (₦15,000).

3

Convert the loading rate from mark-up on cost to margin on selling (invoice) price

25% (or 1/4)

A mark-up of 33 1/3% (1/3) on cost is equivalent to a profit margin of (1/3) / (1 + 1/3) = 1/4 (25%) on invoice price.

4

Compute the total stock reserve (unrealized profit)

₦12,750

Stock Reserve = Total Closing Stock at Invoice Price × Profit Margin = ₦51,000 × 25% = ₦12,750.

Key Concept

Accounting for Goods in Transit and Stock Reserve on Closing Inventory at Invoice Price

Estimated Time:2m 0s

Question 12102Question →

A trader maintaining single-entry accounting records provided the following financial details for the year ended 31 December 2025:

- Opening inventory: $₦18,000$
- Closing inventory: $₦24,000$
- Cash paid to creditors: $₦145,000$
- Opening trade creditors: $₦22,000$
- Closing trade creditors: $₦28,000$
- Discount received: $₦5,000$

What is the Cost of Goods Sold for the business for the year?

Show answer & explanation

Answer: 150000

Answer

The Cost of Goods Sold for the year is

₦150,000

.

To determine the Cost of Goods Sold, first reconstruct the Creditors Control Account to calculate total purchases: Purchases = Cash Paid (

₦145,000

) + Discount Received (

₦5,000

) + Closing Creditors (

₦28,000

) - Opening Creditors (

₦22,000

) =

₦156,000

. Then apply the Trading Account formula: Cost of Goods Sold = Opening Inventory (

₦18,000

) + Purchases (

₦156,000

) - Closing Inventory (

₦24,000

) =

₦150,000

.

Step-by-Step Solution

1

Calculate total purchases by reconstructing the Purchases Ledger Control Account.

Total Purchases =

₦145,000 + ₦5,000 + ₦28,000 - ₦22,000 = ₦156,000

.

Credit purchases increase the trade creditors liability, whereas cash payments, discounts received, and closing balances offset or define the total liability balance.

2

Calculate the Cost of Goods Sold using the standard Trading Account formula.

Cost of Goods Sold =

₦18,000 + ₦156,000 - ₦24,000 = ₦150,000

.

Cost of Goods Sold measures the direct cost of inventory available and sold during the trading period.

Key Concept

Conversion of incomplete records to final accounts using control accounts and trading account equations

Question 12103Question →

A sole trader began the financial year with an opening capital of $₦800,000$ and introduced additional capital of $₦150,000$ during the year. The proprietor withdrew goods costing $₦60,000$ (which had a retail selling price of $₦75,000$ ) for domestic consumption. If the closing capital at the end of the year was recorded as $₦1,020,000$ and no cash drawings were made, what was the net profit for the year?

₦145,000

₦130,000

₦10,000

₦70,000

Show answer & explanation

Answer: $₦130,000$

Answer

The net profit for the year is

₦130,000

.

The correct answer is

₦130,000

. The business entity concept requires that goods withdrawn by the owner for personal use be credited to the Purchases account at cost price (

₦60,000

) and debited to Drawings. Applying the capital accounting equation:

\text{Closing Capital} = \text{Opening Capital} + \text{Additional Capital} + \text{Net Profit} - \text{Drawings}

, we get

₦1,020,000 = ₦800,000 + ₦150,000 + \text{Net Profit} - ₦60,000

, which simplifies to

\text{Net Profit} = ₦130,000

.

Step-by-Step Solution

1

Determine the total drawings amount and correct valuation

Drawings =

₦60,000

(cost price)

According to accounting principles, goods taken by the proprietor for personal use must be valued at cost price, not selling price, because the business cannot make a profit from the owner.

2

Set up the statement of affairs capital equation

Closing Capital = Opening Capital + Additional Capital + Net Profit - Drawings

This fundamental accounting equation relates opening and closing owner's equity.

3

Substitute the known figures into the equation

₦1,020,000 = ₦800,000 + ₦150,000 + \text{Net Profit} - ₦60,000

Plugging in the values given in the problem.

4

Solve for Net Profit

Net Profit =

₦1,020,000 - ₦890,000 = ₦130,000

Simplifying the equation gives

₦1,020,000 = ₦890,000 + \text{Net Profit}

.

Key Concept

Accounting treatment of goods withdrawn at cost price and the capital equation

Estimated Time:1m 30s

Question 12104Question →

A sole trader extracted a trial balance showing a draft net profit of $₦640,000$ for the year ended 31 December 2025. Upon auditing the financial records, the following errors and unrecorded transactions were discovered:

1. A personal building valued at $₦500,000$ introduced into the business by the proprietor as capital was incorrectly credited to the Sales Account as cash sales.
2. Goods costing $₦60,000$ (with a normal selling price of $₦80,000$ ) taken by the proprietor for personal consumption were incorrectly recorded as credit sales to the proprietor at selling price.
3. Cash drawings of $₦75,000$ made by the owner during the year were correctly debited to the Drawings Account.

Calculate the true net profit of the business in Naira ( $₦$ ) for the year ended 31 December 2025.

Show answer & explanation

Answer: 120000

Answer

The true net profit of the business for the year ended 31 December 2025 is

₦120,000

.

To determine the true net profit, we adjust the draft net profit for accounting errors affecting revenue and expenses. First, the capital introduced (

₦500,000

) was wrongly included in sales revenue, so profit was overstated by

₦500,000

. Second, goods withdrawn (

₦60,000

cost) were wrongly recorded as sales at selling price (

₦80,000

). Reversing the incorrect sales credit reduces profit by

₦80,000

, while crediting Purchases at cost reduces cost of goods sold, increasing profit by

₦60,000

(a net deduction of

₦20,000

). Cash drawings do not impact profit. Subtracting

₦500,000

and

₦20,000

from

₦640,000

yields a true net profit of

₦120,000

.

Step-by-Step Solution

1

Correct the misclassification of capital introduced

Draft profit reduced by

₦500,000

Crediting the personal building brought into the business to Sales overstated trading revenue and net profit by

₦500,000

. Capital introduced must be credited to Capital Account, not Sales Account.

2

Correct the misclassification of goods withdrawn for personal use

Net decrease in profit of

₦20,000

Goods withdrawn for personal use must be debited to Drawings and credited to Purchases at cost price (

₦60,000

). Because they were wrongly recorded as credit sales at selling price (

₦80,000

), Sales was overstated by

₦80,000

(reducing profit by

₦80,000

) and Purchases was overstated by

₦60,000

(increasing profit by

₦60,000

when corrected).

3

Evaluate the treatment of cash drawings

No adjustment to Profit and Loss Account

Cash drawings of

₦75,000

were correctly recorded in the Drawings account and directly reduce owner's capital on the Statement of Financial Position.

4

Calculate the true net profit

₦120,000

True Net Profit = Draft Net Profit (

₦640,000

) - Building Sales Error (

₦500,000

) - Incorrect Sales Recording (

₦80,000

) + Purchases Cost Adjustment (

₦60,000

) =

₦120,000

.

Key Concept

Accounting treatment of owner's capital, drawings, and correction of profit errors

Question 12105Question →

Port Harcourt Head Office operates a dependent branch in Owerri, supplying all goods at cost price. For the financial year ended 31 December 2025, the branch records showed the following transactions:

- Branch Stock (1 January 2025): ₦12,000
- Goods sent to Branch from Head Office: ₦60,000
- Goods returned by Branch to Head Office: ₦3,000
- Cash Sales: ₦45,000
- Credit Sales: ₦38,000
- Cash received from Debtors: ₦32,000
- Branch Stock (31 December 2025): ₦15,000

What is the gross profit realized by the Owerri Branch for the year?

��23,000

₦26,000

₦29,000

₦41,000

Show answer & explanation

Answer: ₦29,000

Answer

₦29,000

The gross profit of ₦29,000 is calculated by deducting cost of goods sold (₦54,000) from total branch sales (₦83,000). Total sales comprise cash sales (₦45,000) plus total credit sales (₦38,000). Cost of goods sold is opening stock (₦12,000) plus net goods sent (₦60,000 - ₦3,000 = ₦57,000) minus closing stock (₦15,000).

Step-by-Step Solution

1

Calculate Total Sales

Total Sales = ₦45,000 (Cash Sales) + ₦38,000 (Credit Sales) = ₦83,000

Branch turnover includes both cash sales and total credit sales made during the period.

2

Calculate Net Goods Sent to Branch

Net Goods Sent = ₦60,000 - ₦3,000 = ₦57,000

Goods returned to Head Office must be deducted from the total goods dispatched.

3

Calculate Cost of Goods Sold (COGS)

COGS = ₦12,000 (Opening Stock) + ₦57,000 (Net Goods Sent) - ₦15,000 (Closing Stock) = ₦54,000

Cost of sales is determined by adding net goods received to opening stock and deducting closing stock.

4

Determine Gross Profit

Gross Profit = ₦83,000 (Total Sales) - ₦54,000 (COGS) = ₦29,000

Gross profit is the excess of total branch revenue over the cost of goods sold.

Key Concept

Calculation of Dependent Branch Gross Profit at Cost Price

Estimated Time:1m 30s

Question 12106Question →

Kano Enterprises transfers goods to its Kaduna dependent branch at an invoice price calculated as cost plus $25\%$ . At the beginning of the financial year, the branch held inventory with an invoice value of $\text{₦}40,000$ . At the close of the year, branch inventory at invoice price was $\text{₦}55,000$ . What is the amount of the net increase in the provision for unrealized profit (stock reserve) to be credited to the stock reserve account at year-end?

Show answer & explanation

Answer: 3000

Answer

The net increase in the provision for unrealized profit (stock reserve) is ₦3,000.

Unrealized profit contained in inventory invoiced at cost plus 25% is calculated using a profit margin of 20% (1/5) on invoice price. The opening stock reserve is 20% of ₦40,000 = ₦8,000, and the closing stock reserve is 20% of ₦55,000 = ₦11,000. Deducting the opening reserve balance from the closing reserve balance gives a net increase of ₦3,000.

Step-by-Step Solution

1

Calculate the profit margin fraction on invoice price

Margin = 25% / (100% + 25%) = 1/5 or 20%

Since mark-up is calculated on cost, the unrealized profit component within the invoice price is 20% of the invoice value.

2

Compute the opening and closing stock reserves

Opening Stock Reserve = 20% of ₦40,000 = ₦8,000; Closing Stock Reserve = 20% of ₦55,000 = ₦11,000

Stock reserve represents the unrealized profit loading embedded in branch stock valued at invoice price.

3

Determine the net adjustment required in the stock reserve account

Net Increase = ₦11,000 - ₦8,000 = ₦3,000

The net charge to the general profit and loss account is the difference between closing and opening stock reserve balances.

Key Concept

Calculation of Net Increase in Branch Stock Reserve at Invoice Price

Question 12107Question →

Tari, a provisions merchant in Port Harcourt, keeps incomplete accounting records. For the financial year ended 31st December 2025, his records showed an opening stock of $\text{₦}18,000$ and total purchases of $\text{₦}142,000$ . Total sales revenue for the year was $\text{₦}180,000$ , and goods were priced at a mark-up of $20\%$ on cost. What is the estimated value of Tari's closing stock at the end of the year in Naira?

Show answer & explanation

Answer: 10000

Answer

The estimated value of the closing stock at the end of the year is ₦10,000.

To calculate the closing stock from incomplete records, first convert mark-up to find Cost of Goods Sold (COGS). Dividing total sales revenue (₦180,000) by 1.20 gives a COGS of ₦150,000. Adding opening stock (₦18,000) to purchases (₦142,000) yields total goods available for sale of ₦160,000. Subtracting COGS (₦150,000) from total goods available (₦160,000) results in an estimated closing stock of ₦10,000.

Step-by-Step Solution

1

Calculate the Cost of Goods Sold (COGS) using the mark-up rate

COGS = ₦180,000 ÷ (1 + 0.20) = ₦150,000

Since mark-up is 20% on cost, Selling Price is equal to 120% of cost.

2

Determine the Total Goods Available for Sale

Goods Available for Sale = ₦18,000 + ₦142,000 = ₦160,000

Total goods available for sale during the year is the sum of opening stock and net purchases.

3

Deduce the Closing Stock figure

Closing Stock = ₦160,000 - ₦150,000 = ₦10,000

Closing stock is estimated by subtracting Cost of Goods Sold from total goods available for sale.

Key Concept

Application of mark-up on cost to determine Cost of Goods Sold and estimate missing closing stock in incomplete records.

Question 12108Question →

The following financial information was extracted from the books of Zaria Foods Plc for the year ended 31st December 2025:

Financial Item	Amount (₦)
Authorized Share Capital (1,000,000 Ordinary shares of ₦1.00 each)	1,000,000
Issued and Paid-up Ordinary Share Capital (600,000 shares of ₦1.00 each)	600,000
10% Preference Share Capital (200,000 shares of ₦1.00 each)	200,000
Retained Profit brought forward (1st January 2025)	45,000
Net Profit for the year ended 31st December 2025	250,000

The directors resolved to transfer ₦30,000 to the General Reserve, pay the preference dividend in full, and declare a 12% dividend on ordinary shares.

What is the retained profit carried forward to the next financial year?

₦173,000

₦125,000

₦128,000

₦193,000

Show answer & explanation

Answer: ₦173,000

Answer

The retained profit carried forward to the next financial year is ₦173,000.

The total profit available for appropriation is ₦295,000 (current net profit of ₦250,000 plus retained profit brought forward of ₦45,000). Total appropriations comprise the preference dividend of ₦20,000 (10% of ₦200,000), ordinary share dividend of ₦72,000 (12% of ₦600,000 paid-up capital), and general reserve transfer of ₦30,000, totaling ₦122,000. Subtracting ₦122,000 from ₦295,000 leaves a retained profit carried forward of ₦173,000.

Step-by-Step Solution

1

Calculate the total profit available for appropriation

Total Available Profit = ₦250,000 (Net Profit) + ₦45,000 (Retained Profit b/f) = ₦295,000

Retained earnings from previous periods are combined with current year net profits to determine total distributable profit.

2

Calculate the 10% Preference Share Dividend

Preference Dividend = 10% × ₦200,000 = ₦20,000

Preference shareholders are entitled to a fixed dividend rate based on paid-up preference share capital.

3

Calculate the Ordinary Share Dividend on paid-up ordinary capital

Ordinary Dividend = 12% × ₦600,000 = ₦72,000

Dividends are declared and paid exclusively on issued and paid-up capital, never on authorized capital.

4

Sum total appropriations and compute retained profit carried forward

Total Appropriations = ₦20,000 + ₦72,000 + ₦30,000 = ₦122,000
Retained Profit c/f = ₦295,000 - ₦122,000 = ₦173,000

Deducting total appropriations (reserve transfers plus dividends) from available profit gives the balance remaining in retained earnings.

Key Concept

Profit and Loss Appropriation Account and Dividend Distribution

Question 12109Question →

A rectangular agricultural zone measures $6\text{ cm}$ by $4\text{ cm}$ on a topographical map drawn to a Representative Fraction (R.F.) scale of $1 : 100,000$ . If the map is enlarged so that the area of the agricultural zone on the new map becomes $96\text{ cm}^2$ , what is the Representative Fraction (R.F.) scale of the enlarged map?

1 : 50,000

1 : 25,000

1 : 200,000

1 : 400,000

Show answer & explanation

Answer: $1 : 50,000$

Answer

The Representative Fraction (R.F.) scale of the enlarged map is

1 : 50,000

.

The correct answer of

1 : 50,000

is derived by recognizing that the original map area of

24\text{ cm}^2

increases to

96\text{ cm}^2

, representing a four-fold areal enlargement. Because linear dimensions change as the square root of the areal change, the linear scale factor is

\sqrt{4} = 2

. Enlarging a map by a factor of 2 doubles linear dimensions on paper, making the scale larger by reducing the scale denominator from 100,000 to 50,000.

Step-by-Step Solution

1

Calculate the area of the agricultural zone on the original map.

Original Area

= 6\text{ cm} \times 4\text{ cm} = 24\text{ cm}^2

.

Knowing the original map area allows us to determine the area enlargement ratio.

2

Determine the area scale change ratio.

Area Ratio

= \frac{\text{New Area}}{\text{Original Area}} = \frac{96\text{ cm}^2}{24\text{ cm}^2} = 4

.

The area of the zone has been enlarged 4 times.

3

Calculate the linear scale enlargement factor.

Linear Factor

= \sqrt{\text{Area Ratio}} = \sqrt{4} = 2

.

Linear scale changes as the square root of areal scale changes.

4

Calculate the scale denominator for the enlarged map.

New Scale Denominator

= \frac{\text{Original Scale Denominator}}{\text{Linear Factor}} = \frac{100,000}{2} = 50,000

.

Enlarging a map increases its detail and linear dimensions, which reduces the scale denominator proportionally.

Key Concept

Map Enlargement and Linear vs Areal Scale Relationship

Question 12110Question →

Emeka, a building materials dealer, took items costing ₦120,000 from his business inventory for personal construction at his private residence. The retail selling price of these goods was ₦160,000. Which of the following journal entries correctly records this transaction?

Debit Drawings account ₦120,000; Credit Purchases account ₦120,000

Debit Drawings account ₦160,000; Credit Sales account ₦160,000

Debit Drawings account ₦120,000; Credit Sales account ₦120,000

Debit Purchases account ₦120,000; Credit Capital account ₦120,000

Show answer & explanation

Answer: Debit Drawings account ₦120,000; Credit Purchases account ₦120,000

Answer

Debit Drawings account ₦120,000; Credit Purchases account ₦120,000

When an owner withdraws goods for personal use, the transaction must be recorded at cost price (₦120,000). The double entry is to debit Drawings (to reflect owner's withdrawal) and credit Purchases (to reduce total cost of goods purchased for resale).

Step-by-Step Solution

1

Determine the correct valuation basis for inventory withdrawn by the owner.

Goods taken for personal consumption must be recorded at COST PRICE (₦120,000), not at selling price.

The business entity concept dictates that a proprietor cannot make a profit out of withdrawing goods from their own business.

2

Identify the ledger account to debit for personal withdrawals.

Debit Drawings account with ₦120,000.

Drawings represent assets taken out of the business by the owner, reducing equity.

3

Identify the ledger account to credit to adjust inventory available for sale.

Credit Purchases account with ₦120,000.

The goods were originally recorded in Purchases when bought; crediting Purchases removes the cost of goods no longer available for resale.

Key Concept

Accounting adjustment for goods withdrawn by owner for personal use

Estimated Time:1m 0s

Question 12111Question →

During a financial year, Zenith Manufacturing Company recorded a total cost of production of $\text{N}480,000$ . The company transfers finished goods to the trading account at market value, which reflects a mark-up of $25\%$ on the cost of production. What is the amount of manufacturing profit in Naira to be credited to the Profit and Loss Account for the year?

Show answer & explanation

Answer: 120000

Answer

The manufacturing profit credited to the Profit and Loss Account is N120,000.

Manufacturing profit is calculated by applying the profit mark-up percentage to the cost of production: 25% of N480,000 = N120,000.

Step-by-Step Solution

1

Identify the total cost of production

Cost of production = N480,000

This serves as the baseline cost before applying the manufacturing profit mark-up.

2

Apply the 25% mark-up rate to calculate manufacturing profit

Manufacturing Profit = 25% × N480,000 = N120,000

Finished goods are transferred at market value, and the mark-up added to the cost of production represents the manufacturing profit.

Key Concept

Manufacturing profit is the mark-up added to the cost of production when transferring finished goods to the trading account at market value.

Question 12112Question →

In electronic business accounting, the primary purpose of attaching a digital signature to an Electronic Data Interchange (EDI) financial document is to compress the file size for faster transmission across Value-Added Networks (VANs).

True

False

Show answer & explanation

Answer: False

Answer

False. The main accounting and control function of a digital signature in EDI is to verify authenticity, ensure message integrity, and enforce non-repudiation, not file compression.

The statement incorrectly attributes data compression to digital signatures. In EDI and electronic business accounting, digital signatures serve critical internal control functions: verifying sender identity (authentication), preventing unauthorized data tampering during transfer (integrity), and legally binding the sender to the transaction (non-repudiation).

Step-by-Step Solution

1

Define the primary purpose of digital signatures in e-business accounting.

Digital signatures use cryptographic keys to authenticate the sender's identity, verify that the transaction contents were not altered during transmission, and ensure legal non-repudiation.

Security and internal control mechanisms are vital when executing paperless financial transactions over electronic networks.

2

Distinguish between security mechanisms and transmission efficiency tools.

Data compression tools reduce transmission payload size, whereas digital signatures add cryptographic hashes and certificates for security.

Confusing technical network optimization with accounting audit controls represents a misunderstanding of e-business security infrastructure.

Key Concept

Digital Signatures and Security Controls in EDI

Question 12113Question →

The ledger of Emeka & Sons Enterprise as at 31st December 2025 showed a Trade Debtors balance of $\text{₦}250,000$ . Additional information indicates that an additional bad debt of $\text{₦}10,000$ is to be written off, a $5\%$ Provision for Doubtful Debts is to be created on the remaining debtors, and a $2\%$ Provision for Discount on Debtors is to be maintained. What is the net amount of Trade Debtors to be presented in the Statement of Financial Position?

\text{₦}223,440

\text{₦}223,200

\text{₦}228,000

\text{₦}222,750

Show answer & explanation

Answer: $\text{₦}223,440$

Answer

The net Trade Debtors balance to be shown in the Statement of Financial Position is

\text{₦}223,440

.

To arrive at the net valuation of Trade Debtors in the Statement of Financial Position, bad debts written off are deducted first from gross debtors (

\text{₦}250,000 - \text{₦}10,000 = \text{₦}240,000

). Next, the provision for doubtful debts is calculated and deducted (

5\% \times \text{₦}240,000 = \text{₦}12,000

), yielding

\text{₦}228,000

. Finally, the provision for discount on debtors is calculated on this net amount (

2\% \times \text{₦}228,000 = \text{₦}4,560

) and subtracted, giving

\text{₦}223,440

.

Step-by-Step Solution

1

Deduct bad debts written off from the gross Trade Debtors balance.

Adjusted Debtors =

\text{₦}250,000 - \text{₦}10,000 = \text{₦}240,000

.

Bad debts written off represent debts confirmed as irrecoverable and must be removed first.

2

Calculate and deduct the Provision for Doubtful Debts.

Provision for Doubtful Debts =

5\% \times \text{₦}240,000 = \text{₦}12,000

.
Debtors after Doubtful Debts =

\text{₦}240,000 - \text{₦}12,000 = \text{₦}228,000

.

Provision for discount is only calculated on debtors expected to pay, which excludes doubtful debts.

3

Calculate and deduct the Provision for Discount on Debtors.

Provision for Discount on Debtors =

2\% \times \text{₦}228,000 = \text{₦}4,560

.
Net Debtors =

\text{₦}228,000 - \text{₦}4,560 = \text{₦}223,440

.

The discount provision is applied to net good debtors after provision for doubtful debts.

Key Concept

Accounting order of adjustments for Trade Debtors

Estimated Time:1m 30s

Question 12114Question →

The Sokoto Plains in northwestern Nigeria constitute a major physical region underlain predominantly by young sedimentary rocks. Which of the following best characterizes the drainage regime and valley landforms of the Rima River system traversing this region compared to rivers flowing across the adjacent crystalline Basement Complex?

The river system cuts deep, narrow V-shaped gorges through resistant metamorphic structures.

The river system features broad, shallow floodplains with pronounced seasonal flow variations over gentle sedimentary terrain.

The river system forms a radial drainage network that discharges northeastward into an inland basin.

The river system maintains a high-velocity perennial flow sustained by steep contour gradients and highland springs.

Show answer & explanation

Answer: The river system features broad, shallow floodplains with pronounced seasonal flow variations over gentle sedimentary terrain.

Answer

The river system features broad, shallow floodplains with pronounced seasonal flow variations over gentle sedimentary terrain.

The Sokoto Plains are underlain by relatively soft, flat-lying sedimentary rocks. Rivers traversing this region, notably the Rima River and its tributaries, carve broad and shallow valleys with extensive seasonally inundated floodplains (fadamas). Because of the seasonal rainfall regime of northwestern Nigeria and the low slope gradient, discharge fluctuates sharply between the wet and dry seasons.

Step-by-Step Solution

1

Analyze the rock structure of the Sokoto Plains region.

The Sokoto Plains are underlain by soft sedimentary rocks of the Sokoto Basin, contrasting with the crystalline Basement Complex of the High Plains of Hausaland.

Geological substrate determines valley shape and resistance to river erosion.

2

Evaluate the relief and slope profile of the region.

The region features low relief and gentle gradients sloping south-west toward the Niger valley.

Topography dictates flow velocity and valley width.

3

Determine the drainage pattern and river regime of the Rima River system.

Low gradient over soft strata produces broad, flat floodplains (locally called fadamas) with significant seasonal discharge fluctuations tied to savanna rainfall cycles.

Combines physical region characteristics with river hydrology to identify the correct drainage behavior.

Key Concept

Relief and Drainage Characteristics of the Sokoto Plains sedimentary basin

Estimated Time:2m 0s

Question 12115Question →

In accounting for the dissolution of a partnership firm, various transactions must be recorded in the appropriate ledger accounts. Match each dissolution transaction on the left with its correct double-entry accounting treatment on the right.

Click a left item, then click its matching right item

Show answer & explanation

Answer

1. Transfer of non-cash assets matches with debiting Realization Account and crediting Asset Accounts. 2. Realization expenses paid by a partner matches with debiting Realization Account and crediting Partner's Capital Account. 3. Settlement of partner's loan matches with debiting Partner's Loan Account and crediting Cash/Bank Account. 4. Discount received from creditors matches with debiting Creditors Account and crediting Realization Account.

Each transaction is matched strictly according to double-entry principles on partnership dissolution: transferring asset book values requires debiting Realization and crediting asset accounts; personal payment of realization costs by a partner requires debiting Realization and crediting the partner's capital account; discharging a partner's loan requires debiting the partner's loan account and crediting cash/bank; and receiving discount from creditors requires debiting creditors and crediting Realization.

Step-by-Step Solution

1

Identify the entry for closing non-cash assets at dissolution.

Debit Realization Account and Credit respective Asset Accounts.

All non-cash assets are transferred to the debit side of the Realization Account at carrying values to close their ledger accounts.

2

Determine the entry when a partner pays dissolution expenses from personal funds.

Debit Realization Account and Credit Partner's Capital Account.

The realization cost is a firm expense (debited to Realization) and increases the capital balance owed to the partner who settled it.

3

Determine the entry for settling a partner's loan.

Debit Partner's Loan Account and Credit Cash or Bank Account.

Partner loans are settled after external liabilities without passing through the Realization Account.

4

Identify the entry for discounts received from trade creditors.

Debit Creditors Account and Credit Realization Account.

Paying less than book value reduces trade liabilities and produces a realization gain, credited to the Realization Account.

Key Concept

Double-entry rules for partnership dissolution and realization accounts

Question 12116Question →

As at 1st January 2025, Crestwood Marine Plc had an issued share capital of 800,000 Ordinary Shares of ₦1.00 each fully paid, and a Share Premium Account balance of ₦220,000. During the year, the directors declared a 1-for-5 bonus issue of ordinary shares using the Share Premium account. Subsequently, the company wrote off preliminary expenses of ₦25,000 and share issue costs of ₦15,000 against the remaining Share Premium balance as legally permitted. Calculate the remaining balance in the Share Premium Account in Naira (₦) at the end of the year.

Show answer & explanation

Answer: 20000

Answer

The remaining balance in the Share Premium Account is ₦20,000.

The Share Premium account initially had ₦220,000. Issuing 160,000 bonus shares (800,000 ÷ 5) at ₦1.00 nominal value absorbs ₦160,000 of the reserve, reducing it to ₦60,000. Statutory regulations allow companies to write off preliminary formation expenses (₦25,000) and share issue costs (₦15,000) against Share Premium, leaving a net final balance of ₦20,000 (₦60,000 - ₦40,000).

Step-by-Step Solution

1

Calculate the total nominal value of the bonus share issue.

₦160,000

A 1-for-5 bonus issue on 800,000 shares yields 160,000 new shares at ₦1.00 nominal value each.

2

Determine the Share Premium balance after funding the bonus issue.

₦60,000

Utilizing ₦160,000 from the initial ₦220,000 Share Premium leaves an intermediate balance of ₦60,000.

3

Deduct statutory write-offs for preliminary expenses and share issue expenses.

₦20,000

Under statutory company laws, writing off preliminary formation expenses (₦25,000) and share issuance costs (₦15,000) directly against the Share Premium account is permitted, leaving ₦60,000 - ₦40,000 = ₦20,000.

Key Concept

Statutory utilization of Share Premium account for bonus issues and expense write-offs

Question 12117Question →

A administrative district in West Africa covers a total land area of $50,000\text{ km}^2$ , of which $35\%$ is classified as arable land suitable for farming. The district has a total population of $7,000,000$ inhabitants, and farmers with their immediate dependents (the agricultural population) make up $60\%$ of this total. What is the agricultural population density of this district in persons per $\text{km}^2$ of arable land?

Show answer & explanation

Answer: 240

Answer

The agricultural population density of the district is

240\text{ persons/km}^2

.

Agricultural population density measures the number of farmers per unit of arable land. First, calculate arable land area (

50,000 \times 0.35 = 17,500\text{ km}^2

). Next, find the agricultural population (

7,000,000 \times 0.60 = 4,200,000

). Dividing

4,200,000

by

17,500

yields

240\text{ persons/km}^2

.

Step-by-Step Solution

1

Determine the total arable land area in

\text{km}^2

.

Arable land area =

50,000 \times 0.35 = 17,500\text{ km}^2

.

Agricultural population density evaluates population relative specifically to cultivated or arable land, not total land surface.

2

Calculate the total agricultural population.

Agricultural population =

7,000,000 \times 0.60 = 4,200,000\text{ persons}

.

Agricultural density isolates the farming population rather than using total population.

3

Compute agricultural population density by dividing agricultural population by arable land area.

\frac{4,200,000}{17,500} = 240\text{ persons/km}^2

.

Agricultural density formula =

\frac{\text{Agricultural Population}}{\text{Arable Land Area}}

.

Key Concept

Distinction between arithmetic density, physiological density, and agricultural density

Question 12118Question →

According to Thomas Malthus' theory on population dynamics, human population tends to increase exponentially (geometrically) while food supply increases arithmetically. Which of the following represents a 'preventive check' to population growth within Malthusian theory?

Moral restraint and delayed marriage

Outbreaks of severe famine and epidemic diseases

Technological advancements in food production systems

Mass displacement driven by severe environmental degradation

Show answer & explanation

Answer: Moral restraint and delayed marriage

Answer

Moral restraint and delayed marriage represent a preventive check to population growth according to Malthusian theory.

Moral restraint and delayed marriage are classic examples of preventive checks in Malthusian demographic theory. They involve conscious human decisions that reduce fertility and lower the overall birth rate before resource shortages trigger catastrophic mortality spikes.

Step-by-Step Solution

1

Examine the core components of Malthusian population growth theory.

Thomas Malthus posited that unchecked population grows exponentially (

1, 2, 4, 8, 16...

) while food production increases arithmetically (

1, 2, 3, 4, 5...

), eventually leading to a resource crisis.

Establishing the imbalance between demographic growth and resource supply explains why population checks become necessary.

2

Distinguish between the two categories of population checks identified by Malthus.

Preventive checks reduce fertility through deliberate human action (lowering crude birth rate), whereas positive checks shorten life expectancy through crisis events (raising crude death rate).

Recognizing the difference between birth-reducing preventive factors and death-increasing positive factors is essential for correct classification.

3

Identify the option that constitutes a voluntary limitation of fertility.

Moral restraint and postponing marriage directly reduce birth rates voluntarily, fitting the exact definition of a Malthusian preventive check.

This is the primary voluntary mechanism proposed by Malthus to avert overpopulation before catastrophic positive checks occur.

Key Concept

Malthusian Population Theory (Preventive vs. Positive Checks)

Question 12119Question →

Town P is located at longitude $60^\circ\text{E}$ , where the local solar time is $12:00\text{ noon}$ . Town Q is located at longitude $15^\circ\text{W}$ . What is the local solar time at Town Q, expressed as the hour of the day in 24-hour time?

Show answer & explanation

Answer: 7

Answer

The local solar time at Town Q is 7:00 (represented by the number 7).

To find the local time at Town Q (

15^\circ\text{W}

) relative to Town P (

60^\circ\text{E}

at

12:00\text{ noon}

), calculate the longitudinal distance:

60^\circ + 15^\circ = 75^\circ

. Dividing by

15^\circ

per hour gives a time difference of

5\text{ hours}

. Because Town Q is west of Town P, subtract 5 hours from 12:00 to obtain 7:00 (

7

).

Step-by-Step Solution

1

Calculate the longitudinal difference between Town P and Town Q.

Total angular separation =

60^\circ\text{E} + 15^\circ\text{W} = 75^\circ

.

Locations in opposite hemispheres (East and West) require adding their longitude values to determine total angular distance.

2

Convert the angular distance into hours.

Time difference =

75^\circ \div 15^\circ/\text{hour} = 5\text{ hours}

.

Earth rotates

360^\circ

in 24 hours, which corresponds to

15^\circ

per hour.

3

Adjust time based on relative position.

Local time at Town Q =

12:00 - 5\text{ hours} = 7:00

(

7

).

Town Q lies to the west of Town P, so its local time is behind that of Town P.

Key Concept

Calculating local solar time across different longitudes in opposite hemispheres.

Question 12120Question →

When a sole proprietor withdraws goods from the business for private use, which of the following accounting entries is required to record the transaction?

Debit Drawings account and credit Purchases account

Debit Drawings account and credit Sales account

Debit Capital account and credit Sales account

Debit Purchases account and credit Drawings account

Show answer & explanation

Answer: Debit Drawings account and credit Purchases account

Answer

Debit Drawings account and credit Purchases account

When a sole proprietor withdraws goods for personal use, the cost of goods available for resale is reduced and the owner's drawings increase. The correct double entry is to debit the Drawings account and credit the Purchases account at cost price.

Step-by-Step Solution

1

Identify the account to be debited for the owner's personal withdrawal

Debit Drawings account

Under the business entity concept, personal withdrawals by the owner reduce equity and must be recorded in the Drawings account.

2

Identify the account to be credited for goods taken out of inventory

Credit Purchases account

The goods withdrawn were originally included in the Purchases account at cost price. Withdrawing them for personal use reduces the total cost of goods available for resale.

Key Concept

Double-entry accounting treatment for goods withdrawn by owner for personal use

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