Tüm alıştırma soruları

Soru 1161Soru →

Apex Nigeria PLC was registered with an authorized capital of $2,000,000$ ordinary shares of $\text{₦}0.50$ each. The company issued $1,200,000$ of these shares to the public. To date, the directors have called up $\text{₦}0.40$ per share on all issued shares. Shareholders have paid all amounts due except for calls in arrears totaling $\text{₦}24,000$ . What is the value of the company's paid-up share capital in Naira ( $\text{₦}$ )?

Cevabı ve açıklamayı göster

Cevap: 456000

Cevap

The paid-up share capital of the company is

\text{₦}456,000

.

Paid-up capital is derived by taking the total called-up share capital (

1,200,000 \text{ shares} \times \text{₦}0.40 = \text{₦}480,000

) and subtracting the calls in arrears (

\text{₦}24,000

), resulting in

\text{₦}456,000

.

Adım Adım Çözüm

1

Determine total called-up share capital

Called-up Capital =

1,200,000 \text{ shares} \times \text{₦}0.40 = \text{₦}480,000

Called-up capital represents the portion of issued share capital for which shareholders have been asked to pay.

2

Deduct calls in arrears to find paid-up share capital

Paid-up Capital = \text{₦}480,000 - \text{₦}24,000 = \text{₦}456,000$

Paid-up capital is the actual amount of money received from shareholders against the called-up capital.

Anahtar Kavram

Classification of Share Capital: Relationship between Called-up Capital, Calls in Arrears, and Paid-up Capital

Soru 1162Soru →

Efe and Danjuma are partners in a business operating a fixed capital account system. On 1st January 2025, Efe's current account had a credit balance of $\text{₦}150,000$ . During the year ended 31st December 2025, Efe was entitled to a partner salary of $\text{₦}200,000$ , interest on capital of $\text{₦}60,000$ , and a share of profit of $\text{₦}340,000$ . Efe's drawings for the year amounted to $\text{₦}180,000$ , and interest charged on drawings was $\text{₦}10,000$ . What is the closing balance of Efe's current account as at 31st December 2025 in Naira?

Cevabı ve açıklamayı göster

Cevap: 560000

Cevap

The closing balance of Efe's current account as at 31st December 2025 is ₦560,000.

Under the fixed capital account system, partner capital remains fixed while operational adjustments are made through the current account. Adding opening balance (₦150,000), salary (₦200,000), interest on capital (₦60,000), and profit share (₦340,000) gives total credits of ₦750,000. Deducting drawings (₦180,000) and interest on drawings (₦10,000) gives a net closing credit balance of ₦560,000.

Adım Adım Çözüm

1

Calculate the total credit entries to Efe's current account by adding the opening credit balance, salary, interest on capital, and share of profit.

Total Credits = ₦150,000 + ₦200,000 + ₦60,000 + ₦340,000 = ₦750,000

Under the fixed capital account method, all partner entitlements and profit allocations are credited to their current account.

2

Calculate the total debit entries to Efe's current account by adding drawings and interest on drawings.

Total Debits = ₦180,000 + ₦10,000 = ₦190,000

Drawings and interest charged on drawings reduce the partner's claim against the partnership and are debited to the current account.

3

Deduct total debits from total credits to determine the net closing current account balance.

Closing Balance = ₦750,000 - ₦190,000 = ₦560,000

Subtracting debit items from total credit allocations leaves a net credit balance of ₦560,000.

Anahtar Kavram

Computation of partner current account balance under the fixed capital account system.

Soru 1163Soru →

On 1st April 2025, Taraba, Keffi, and Zaria formed a partnership business without executing a formal partnership deed, contributing capital of $₦5,000,000$ , $₦3,000,000$ , and $₦2,000,000$ respectively. On 1st July 2025, Taraba advanced a loan of $₦1,200,000$ to the firm. For the 9-month financial period ended 31st December 2025, Zaria managed daily operations claiming a total salary of $₦900,000$ , while Keffi withdrew $₦400,000$ for personal use. The draft net profit before accounting for any partner claims or loan interest was $₦4,830,000$ . Under the provisions of the Partnership Act 1890, what is the amount in Naira ( $₦$ ) creditable to Taraba as his share of profit for the period?

Cevabı ve açıklamayı göster

Cevap: 1600000

Cevap

The amount creditable to Taraba as his share of profit for the period is ₦1,600,000.

Under the statutory default rules of the Partnership Act 1890, when no partnership deed exists: (1) No salary is payable to any partner, so Zaria's ₦900,000 claim is ignored. (2) Interest on a partner's loan is allowed at 5% per annum and treated as a charge against profit. For 6 months (1st July to 31st December 2025), loan interest is ₦1,200,000 × 5% × (6/12) = ₦30,000. (3) The net profit available for distribution becomes ₦4,830,000 - ₦30,000 = ₦4,800,000. (4) Profits are shared equally among the three partners, giving Taraba a share of ₦4,800,000 ÷ 3 = ₦1,600,000.

Adım Adım Çözüm

1

Identify applicable statutory provisions under the Partnership Act 1890

Disallow Zaria's salary claim of ₦900,000, disallow interest on capital and drawings, allow 5% p.a. interest on Taraba's loan advance, and share remaining profit equally among all three partners.

In the absence of a written partnership agreement, statutory provisions of the Partnership Act 1890 govern partner entitlements.

2

Calculate time-apportioned interest on Taraba's loan advance

₦1,200,000 × 0.05 × (6 / 12) = ₦30,000

Taraba provided the loan on 1st July 2025, so interest runs for 6 months until 31st December 2025. Loan interest is a charge against profit.

3

Calculate net distributable profit

₦4,830,000 - ₦30,000 = ₦4,800,000

Interest on a partner loan must be debited to the Profit and Loss Account before arriving at the net profit available for appropriation.

4

Compute Taraba's share of net profit

₦4,800,000 / 3 = ₦1,600,000

Under statutory provisions, profits and losses are shared equally regardless of initial capital contributions.

Anahtar Kavram

Statutory default provisions of the Partnership Act 1890 regarding loan interest and equal profit allocation

Tahmini Süre:2m 30s

Soru 1164Soru →

The following transactions and balances were extracted from the accounting records of Folake Enterprises for the financial year ended 31st December 2025:

Transaction / Balance Item	Amount (₦)
Opening balance (1st Jan 2025): Debit	45,000
Opening balance (1st Jan 2025): Credit	1,200
Total sales (including cash sales of ₦65,000)	280,000
Cash received from credit customers	178,000
Cheques received from credit customers	24,000
Discount allowed	4,500
Returns inwards	6,800
Bad debts written off	3,200
Dishonoured cheques from customers	2,500
Cash refunds to credit customers for overpayment	1,800
Contra entry set-off with Purchases Ledger	5,400
Provision for doubtful debts	2,000
Discount received	1,500
Closing balance (31st Dec 2025): Credit	800

What is the debit balance carried down of the Sales Ledger Control Account at 31st December 2025?

Cevabı ve açıklamayı göster

Cevap: 42000

Cevap

The debit balance carried down of the Sales Ledger Control Account at 31st December 2025 is ₦42,000.

To calculate the closing debit balance carried down, first compute credit sales by deducting cash sales (₦65,000) from total sales (₦280,000), giving ₦215,000. Next, assemble the debit side entries: Opening debit balance (₦45,000), Credit sales (₦215,000), Dishonoured cheques (₦2,500), Cash refunds (₦1,800), and the Closing credit balance c/d (₦800), which total ₦265,100. Then assemble the credit side entries: Opening credit balance (₦1,200), Cash received (₦178,000), Cheques received (₦24,000), Discount allowed (₦4,500), Returns inwards (₦6,800), Bad debts written off (₦3,200), and Contra set-off (₦5,400), totaling ₦223,100. Subtracting ₦223,100 from ₦265,100 yields the correct closing debit balance of ₦42,000. Note that provision for doubtful debts (₦2,000) and discount received (₦1,500) are non-control account items and must be completely ignored.

Adım Adım Çözüm

1

Isolate credit sales from total sales

Credit Sales = ₦280,000 - ₦65,000 = ₦215,000

Only credit sales increase trade debtors and are entered in the Sales Ledger Control Account. Cash sales are entered in the cash book.

2

Filter out non-relevant transactions

Ignore Provision for Doubtful Debts (₦2,000) and Discount Received (₦1,500)

Provision for doubtful debts is not posted to control accounts, and discount received affects creditors in the Purchases Ledger Control Account.

3

Sum all debit side items including closing credit balance

Total Debit Side = ₦45,000 + ₦215,000 + ₦2,500 + ₦1,800 + ₦800 = ₦265,100

Opening debit balance, credit sales, dishonoured cheques, cash refunds to customers, and closing credit balance increase the debit total.

4

Sum all credit side items prior to balancing

Total Credit Side = ₦1,200 + ₦178,000 + ₦24,000 + ₦4,500 + ₦6,800 + ₦3,200 + ₦5,400 = ₦223,100

Opening credit balance, cash/cheques received, discounts allowed, returns inwards, bad debts, and set-offs reduce customer indebtedness.

5

Calculate the closing debit balance carried down

Debit Balance c/d = ₦265,100 - ₦223,100 = ₦42,000

The difference between total debit entries and total credit entries gives the closing debit balance.

Anahtar Kavram

Reconstruction of Sales Ledger Control Account with extraneous items

Tahmini Süre:2m 0s

Soru 1165Soru →

Graceful Fashions operates two departments: Clothing and Footwear. For the year ended 31 December 2025, the total rent expense incurred by the business was $\text{N} 120,000$ . Rent expense is apportioned between departments based on floor area occupied. If the Clothing Department occupies $600\text{ m}^2$ and the Footwear Department occupies $400\text{ m}^2$ , what is the amount of rent (in Naira) apportioned to the Clothing Department?

Cevabı ve açıklamayı göster

Cevap: 72000

Cevap

The amount of rent apportioned to the Clothing Department is 72,000 Naira.

Total floor area is

600\text{ m}^2 + 400\text{ m}^2 = 1,000\text{ m}^2

. The Clothing Department occupies

\frac{600}{1,000} = 60\%

of the space. Apportioned rent for Clothing is

60\% \times \text{N} 120,000 = \text{N} 72,000

.

Adım Adım Çözüm

1

Calculate total floor area occupied by both departments.

Total floor area = 1,000 square meters.

The total area forms the denominator for the apportionment ratio.

2

Calculate the proportion of total floor area used by the Clothing Department.

Proportion = 600 / 1,000 = 3/5 or 0.60.

Rent is allocated according to the ratio of space occupied.

3

Multiply total rent by the Clothing Department's proportion.

Apportioned Rent = 0.60 x 120,000 = 72,000 Naira.

This calculates the specific rent expense attributable to the Clothing Department.

Anahtar Kavram

Apportionment of departmental expenses using floor area as a basis.

Soru 1166Soru →

Zuma Enterprises recorded the following transactions during the month of April 2026:

Date	Transaction Details
April 3	Purchased 50 units of merchandise on credit from Boma Ltd at ₦8,000 per unit, subject to a 15% trade discount.
April 8	Bought an office delivery van on credit from Motor Care Ltd for ₦2,500,000.
April 14	Purchased 30 units of merchandise for cash from Zenith Stores at ₦7,500 per unit.
April 18	Returned 10 defective units of merchandise purchased on April 3 to Boma Ltd.
April 22	Purchased 40 units of merchandise on credit from Koko & Sons at ₦12,000 per unit, subject to a 10% trade discount and 5% cash discount terms.
April 27	Received 5 units of returned merchandise from a credit customer valued at ₦50,000.

What is the total amount recorded in the Purchases Journal for April 2026 to be transferred to the Purchases Account in the General Ledger?

Cevabı ve açıklamayı göster

Cevap: 772000

Cevap

The total amount recorded in the Purchases Journal for April 2026 is ₦772,000.

The Purchases Journal strictly records credit purchases of goods intended for resale, net of trade discounts. Cash purchases are entered in the Cash Book, non-current asset purchases are recorded in the General Journal, and purchases returns are recorded in the Purchases Returns Journal. Cash discounts are ignored when making entries in the Purchases Journal. Adding the net credit purchases of ₦340,000 (April 3) and ₦432,000 (April 22) yields a total Purchases Journal transfer of ₦772,000 to the debit of the Purchases Account.

Adım Adım Çözüm

1

Calculate net invoice amount for April 3 credit purchase

₦340,000

Gross amount = 50 × ₦8,000 = ₦400,000. Less 15% trade discount (₦60,000) gives ₦340,000.

2

Filter out non-purchases journal items

Delivery van (capital expenditure), cash purchases, returns outwards, and customer returns are excluded

The Purchases Journal strictly records credit purchases of merchandise meant for resale only.

3

Calculate net invoice amount for April 22 credit purchase

₦432,000

Gross amount = 40 × ₦12,000 = ₦480,000. Less 10% trade discount (₦48,000) gives ₦432,000. Cash discounts are not recorded in the Purchases Journal.

4

Sum valid Purchases Journal entries

₦772,000

Total Purchases Journal balance = ₦340,000 + ₦432,000 = ₦772,000.

Anahtar Kavram

Scope and Entry Rules of the Purchases Journal

Soru 1167Soru →

Apex Enterprises operates three departments: Department A, Department B, and Department C. During the year ended 31st December 2025, total insurance premium paid was $₦520,000$ , which includes an unexpired insurance (prepayment) of $₦70,000$ .

It was ascertained that of the net insurance cost:
- $60\%$ relates to factory building insurance, which is apportioned on the basis of floor space area.
- $40\%$ relates to plant and machinery insurance, which is apportioned on the basis of book value of machinery.

The departmental details are provided below:
- Floor Space (sq. meters): Dept A = $1,500$ ; Dept B = $2,000$ ; Dept C = $1,500$
- **Book Value of Machinery ( $₦$ )**: Dept A = $₦1,200,000$ ; Dept B = $₦800,000$ ; Dept C = $₦2,000,000$

What is the total amount of insurance expense to be apportioned to Department B?

Cevabı ve açıklamayı göster

Cevap: 144000

Cevap

The total insurance expense apportioned to Department B is

₦144,000

.

To compute the total insurance cost for Department B, the net insurance expense (

₦450,000

) after deducting the

₦70,000

prepayment is divided into building insurance (

₦270,000

) and machinery insurance (

₦180,000

). Department B occupies

\frac{2,000}{5,000}

(

40\%

) of total floor space, incurring

₦108,000

for building insurance, and holds

\frac{800,000}{4,000,000}

(

20\%

) of total machinery value, incurring

₦36,000

for machinery insurance. Adding both components gives

₦144,000

.

Adım Adım Çözüm

1

Adjust total insurance paid for prepayment to get the net expense for the current period.

Net Insurance Expense =

₦520,000 - ₦70,000 = ₦450,000

.

Only the expense relating to the current financial year should be apportioned among departments.

2

Divide net insurance expense into building insurance and machinery insurance.

Building Insurance =

60\% \times ₦450,000 = ₦270,000

; Machinery Insurance =

40\% \times ₦450,000 = ₦180,000

.

Each type of insurance has a different equitable basis of apportionment.

3

Determine Department B's portion of building insurance using floor space ratio.

Total floor space =

1,500 + 2,000 + 1,500 = 5,000

sq. meters. Department B share =

\frac{2,000}{5,000} \times ₦270,000 = ₦108,000

.

Building rent and insurance expenses are equitably apportioned based on floor space occupied.

4

Determine Department B's portion of machinery insurance using book value of machinery ratio.

Total machinery value =

₦1,200,000 + ₦800,000 + ₦2,000,000 = ₦4,000,000

. Department B share =

\frac{800,000}{4,000,000} \times ₦180,000 = ₦36,000

.

Machinery insurance is apportioned based on the capital values/book values of the machinery in each department.

5

Sum Department B's shares from both building and machinery insurance.

Total Department B Insurance =

₦108,000 + ₦36,000 = ₦144,000

.

The total expense charged to Department B is the sum of all individual apportioned overhead costs.

Anahtar Kavram

Dual-basis apportionment of departmental expenses with accrual/prepayment adjustments

Soru 1168Soru →

An accounting extract from the books of Kemi Enterprises as at 31 December 2025 reveals the following balance sheet items:

- Fixtures and Fittings: $\text{₦}450,000$
- Motor Vehicles: $\text{₦}800,000$
- Trade Debtors: $\text{₦}160,000$
- Closing Stock: $\text{₦}190,000$
- Prepaid Rent: $\text{₦}25,000$
- Bank Overdraft: $\text{₦}85,000$
- Trade Creditors: $\text{₦}110,000$
- Accrued Electricity: $\text{₦}20,000$
- 5-Year Mortgage Loan: $\text{₦}350,000$

Calculate the Capital Employed of Kemi Enterprises.

Cevabı ve açıklamayı göster

Cevap: 1410000

Cevap

The Capital Employed of Kemi Enterprises is ₦1,410,000.

Capital Employed is the total net investment used to generate earnings. It equals Total Assets (₦1,625,000) minus Current Liabilities (₦215,000), which results in ₦1,410,000. Alternatively, it can be computed as Non-current Assets (₦1,250,000) plus Working Capital (₦160,000) = ₦1,410,000.

Adım Adım Çözüm

1

Classify and total Non-current Assets

Total Non-current Assets = ₦450,000 (Fixtures) + ₦800,000 (Motor Vehicles) = ₦1,250,000

Non-current assets are long-term resources owned for business operations lasting more than one accounting period.

2

Classify and total Current Assets

Total Current Assets = ₦160,000 (Debtors) + ₦190,000 (Stock) + ₦25,000 (Prepaid Rent) = ₦375,000

Current assets are cash or short-term assets expected to be converted into cash within one year.

3

Classify and total Current Liabilities

Total Current Liabilities = ₦85,000 (Bank Overdraft) + ₦110,000 (Creditors) + ₦20,000 (Accrued Electricity) = ₦215,000

Current liabilities are short-term obligations payable within one year.

4

Compute Net Current Assets (Working Capital)

Working Capital = ��375,000 - ₦215,000 = ₦160,000

Working capital measures short-term operating liquidity.

5

Compute Capital Employed

Capital Employed = Non-current Assets + Working Capital = ₦1,250,000 + ₦160,000 = ₦1,410,000

Capital Employed represents the total long-term capital invested in running the business entity.

Anahtar Kavram

Capital Employed is calculated as Total Assets minus Current Liabilities, or Non-current Assets plus Net Current Assets (Working Capital). Long-term liabilities are part of total capital employed, not deducted from non-current assets.

Tahmini Süre:2m 0s

Soru 1169Soru →

Apex Retailers operates two departments: Department P and Department Q. For the financial year ended 31 December 2025, the following balances were extracted from the books:

Item	Department P (₦)	Department Q (₦)
Sales	400,000	600,000
Opening Stock	50,000	70,000
Purchases	250,000	350,000
Closing Stock	40,000	60,000

Additional financial information:
1. Department P transferred goods costing $₦30,000$ to Department Q at a transfer price incorporating a $20\%$ mark-up on cost.
2. Shared Administrative Salaries of $₦120,000$ are to be apportioned based on staff headcount (Department P has 6 staff members, Department Q has 4 staff members).
3. Total Rent and Rates paid was $₦50,000$ , which includes $₦10,000$ prepaid for the subsequent year. Rent is apportioned based on floor space occupied (Department P: $1,200\text{ sq ft}$ ; Department Q: $800\text{ sq ft}$ ).
4. Total Discount Allowed of $₦20,000$ is to be apportioned on the basis of sales turnover.

What is the net profit of Department Q for the year ended 31 December 2025 in Naira ( $₦$ )?

Cevabı ve açıklamayı göster

Cevap: 128000

Cevap

The net profit of Department Q for the year ended 31 December 2025 is ₦128,000.

The net profit of ₦128,000 is correctly determined by calculating Department Q's gross profit after accounting for the inter-departmental transfer in at transfer price (₦36,000), subtracting proper closing stock, and deducting all appropriately apportioned operating expenses after adjusting rent for prepaid amounts.

Adım Adım Çözüm

1

Calculate Inter-Departmental Transfer Value

Transfer Price =

₦36,000

Department P transferred goods costing

₦30,000

to Department Q at cost plus a

20\%

mark-up:

30,000 + (20\% \times 30,000) = 36,000

. Department Q records this as a transfer in to its trading account.

2

Determine Department Q Gross Profit

Gross Profit =

₦204,000

Cost of Goods Sold (COGS) for Department Q = Opening Stock (

₦70,000

) + Purchases (

₦350,000

) + Transfer In (

₦36,000

) - Closing Stock (

₦60,000

) =

₦396,000

. Gross Profit = Sales (

₦600,000

) - COGS (

₦396,000

) =

₦204,000

.

3

Calculate Apportioned Expenses for Department Q

Total Department Q Expenses =

₦76,000

Salaries apportioned by headcount (

6:4

):

₦120,000 \times \frac{4}{10} = ₦48,000

. Net Rent Expense after subtracting

₦10,000

prepayment (

₦50,000 - ₦10,000 = ₦40,000

) apportioned by floor area (

1,200:800

):

₦40,000 \times \frac{800}{2,000} = ₦16,000

. Discount Allowed apportioned by sales ratio (

400,000:600,000

):

₦20,000 \times \frac{600,000}{1,000,000} = ₦12,000

. Total expenses =

48,000 + 16,000 + 12,000 = ₦76,000

.

4

Compute Net Profit of Department Q

Net Profit =

₦128,000

Net Profit = Gross Profit (

₦204,000

) - Total Expenses (

₦76,000

) =

₦128,000

.

Anahtar Kavram

Preparation of Departmental Trading, Profit and Loss Accounts with inter-departmental transfers and multi-basis expense apportionment

Tahmini Süre:3m 0s

Soru 1170Soru →

A business paid $\text{₦}144,000$ by bank transfer on 1 April 2025 for an annual insurance policy covering the period from 1 April 2025 to 31 March 2026. At 1 January 2025, the insurance account had an opening prepaid balance of $\text{₦}24,000$ for the period from 1 January 2025 to 31 March 2025. What amount (in $\text{₦}$ ) should be debited to the Profit and Loss Account as insurance expense for the financial year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 132000

Cevap

The insurance expense to be debited to the Profit and Loss Account for the year ended 31 December 2025 is ₦132,000.

Under the accrual concept, the Profit and Loss Account must reflect only expenses relating to the current accounting period (12 months from 1 January to 31 December 2025). The expense consists of 3 months from the opening prepayment (₦24,000) plus 9 months of the current year's policy payment (9/12 × ₦144,000 = ₦108,000), giving a total expense of ₦132,000.

Adım Adım Çözüm

1

Identify cash paid and opening prepayment

Cash paid during the year = ₦144,000; Opening prepayment at 1 January 2025 = ₦24,000.

Opening prepayment represents an expense incurred in the current accounting year that was paid for in advance in the prior year.

2

Calculate the closing prepayment at 31 December 2025

Closing prepayment = 3/12 × ₦144,000 = ₦36,000.

The policy payment of ₦144,000 covers 12 months (1 April 2025 to 31 March 2026), leaving 3 months (January to March 2026) prepaid at year-end.

3

Compute the insurance expense for the Profit and Loss Account

Insurance Expense = ₦144,000 + ₦24,000 - ₦36,000 = ₦132,000.

Applying the accrual principle matches the exact 12-month expense incurred (3 months from opening prepayment + 9 months from current payment) to the 2025 financial period.

Anahtar Kavram

Accrual concept treatment of opening and closing prepayments for expense accounts

Soru 1171Soru →

The following cost items were extracted from the accounting records of Calabar Craftworks for the financial year ended 31 December 2025:

Cost Item	Amount (₦)
Direct materials consumed	$180,000$
Direct wages	$120,000$
Royalties on production	$15,000$
Factory power and lighting	$40,000$

What is the Prime Cost of the firm for the year?

Cevabı ve açıklamayı göster

Cevap: 315000

Cevap

The Prime Cost of Calabar Craftworks for the year is ₦315,000.

Prime Cost consists strictly of direct costs: direct materials consumed (₦180,000), direct wages (₦120,000), and direct expenses such as royalties (₦15,000). Adding these three components together gives ₦315,000. Factory power and lighting is an indirect expense and is therefore excluded.

Adım Adım Çözüm

1

Identify direct manufacturing costs

Direct materials consumed = ₦180,000, Direct wages = ₦120,000, Royalties on production = ₦15,000

Direct costs comprise direct raw materials, direct labour, and direct production expenses.

2

Exclude indirect costs

Factory power and lighting (₦40,000) is classified as factory overheads

Indirect factory expenses are excluded from the calculation of Prime Cost.

3

Calculate Prime Cost

Prime Cost = ₦180,000 + ₦120,000 + ₦15,000 = ₦315,000

Prime cost is the aggregate of all direct costs.

Anahtar Kavram

Prime Cost is the sum of all direct costs incurred in manufacturing, consisting of direct materials consumed, direct wages/labour, and direct expenses (such as royalties). Indirect factory costs are excluded.

Soru 1172Soru →

A bespoke furniture manufacturing firm in Lagos provided the following extract from its financial records for the year ended 31st December 2025:

Accounting Item	Amount ( $₦$ )
Opening stock of raw timber	60,000
Purchases of raw timber	450,000
Carriage inwards on raw timber	30,000
Direct wages paid to craftsmen	280,000
Royalty on furniture designs	40,000
Salary of factory supervisor	120,000
Factory rent and rates	90,000
Closing stock of raw timber	50,000

Based on the information above, calculate the Prime Cost of production for the year in Naira.

Cevabı ve açıklamayı göster

Cevap: 810000

Cevap

The Prime Cost of production for the year is

₦810,000

.

The correct answer of

₦810,000

is obtained by adding the Cost of Raw Materials Consumed (

₦490,000

), Direct Labour (

₦280,000

), and Direct Expenses (

₦40,000

). Indirect factory costs such as supervisor salary (

₦120,000

) and factory rent (

₦90,000

) are excluded because Prime Cost consists exclusively of direct costs.

Adım Adım Çözüm

1

Calculate Cost of Raw Materials Consumed

₦490,000

Cost of Raw Materials Consumed is determined by adding carriage inwards to purchases of raw timber and opening stock, then deducting closing stock of raw timber:

₦60,000 + ₦450,000 + ₦30,000 - ₦50,000 = ₦490,000

.

2

Identify Direct Labour and Direct Expenses

Direct Labour =

₦280,000

; Direct Expenses =

₦40,000

Direct wages paid to craftsmen directly contribute to product creation (Direct Labour), and royalties paid on production designs represent direct expenses directly traceable to units produced.

3

Calculate Prime Cost

₦810,000

Prime Cost is the sum total of all direct costs:

\text{Prime Cost} = \text{Direct Materials Consumed} + \text{Direct Labour} + \text{Direct Expenses} = ₦490,000 + ₦280,000 + ₦40,000 = ₦810,000

.

Anahtar Kavram

Components and Computation of Prime Cost in Manufacturing Accounts

Tahmini Süre:1m 30s

Soru 1173Soru →

The following financial details were extracted from the accounting records of Ibadan Furniture Craft Enterprise for the accounting year ended 31 December 2025:

Accounting Item	Amount (₦)
Inventory of raw materials (1 January 2025)	$120,000$
Inventory of raw materials (31 December 2025)	$95,000$
Purchases of raw materials	$480,000$
Carriage inwards on raw materials	$25,000$
Direct wages paid to factory workers	$310,000$
Royalties paid on production volume	$45,000$
Factory supervisor's salary	$150,000$
Depreciation of factory machinery	$60,000$
Factory power and lighting	$85,000$

What is the Prime Cost of production for the period in Naira (₦)?

Cevabı ve açıklamayı göster

Cevap: 885000

Cevap

The Prime Cost of production for Ibadan Furniture Craft Enterprise for the period ended 31 December 2025 is ₦885,000.

Prime Cost comprises all direct costs involved in production: Direct Raw Materials Consumed + Direct Labor (Wages) + Direct Expenses (Royalties). Calculating raw materials consumed yields ₦120,000 + ₦480,000 + ₦25,000 - ₦95,000 = ₦530,000. Adding direct wages of ₦310,000 and direct expenses (royalties) of ₦45,000 gives ₦885,000. Indirect expenses like supervisor salary, factory power, and machinery depreciation are excluded as they represent factory overheads.

Adım Adım Çözüm

1

Calculate the Cost of Raw Materials Consumed

₦530,000

Cost of Raw Materials Consumed = Opening Stock of Raw Materials (₦120,000) + Purchases of Raw Materials (₦480,000) + Carriage Inwards on Raw Materials (₦25,000) - Closing Stock of Raw Materials (₦95,000).

2

Sum all direct cost components to calculate Prime Cost

₦885,000

Prime Cost is the sum of Cost of Raw Materials Consumed (₦530,000), Direct Wages (₦310,000), and Direct Expenses such as Royalties (₦45,000).

Anahtar Kavram

Prime Cost consists strictly of direct material costs consumed, direct wages/labor, and direct production expenses.

Soru 1174Soru →

Tunde and Segun entered into a joint venture to trade in electrical appliances, maintaining a separate set of books. They opened a Joint Bank Account, contributing $��2,000,000$ and $₦1,000,000$ respectively. Purchases amounting to $₦1,500,000$ and venture expenses of $₦250,000$ were paid directly from the Joint Bank Account. Tunde supplied goods from his personal business valued at $₦450,000$ , while Segun paid $₦100,000$ for transport from his private funds. Total sales proceeds of $₦3,800,000$ were deposited into the Joint Bank Account. Profits and losses are shared between Tunde and Segun in the ratio $3:2$ . What is the final amount payable to Segun from the Joint Bank Account upon full settlement?

Cevabı ve açıklamayı göster

Cevap: 1700000

Cevap

The final amount payable to Segun from the Joint Bank Account upon full settlement is 1,700,000 Naira.

The total venture profit is ₦1,500,000 (₦3,800,000 sales less ₦2,300,000 total costs). Segun's 2/5 share of profit equals ₦600,000. Adding this profit share to his capital contribution (₦1,000,000) and personal expenses paid (₦100,000) yields a final settlement balance of ₦1,700,000 due to Segun.

Adım Adım Çözüm

1

Determine the net profit of the joint venture by preparing the Joint Venture Account

Total debits = ₦2,300,000; Total credits (sales) = ₦3,800,000; Net Profit = ₦1,500,000

Net profit is the excess of total revenue credited to the venture over total costs debited.

2

Calculate Segun's agreed share of the net profit based on the profit-sharing ratio of 3:2

Segun's share = 2/5 * ₦1,500,000 = ₦600,000

The profit-sharing ratio assigns 3 parts out of 5 to Tunde and 2 parts out of 5 to Segun.

3

Credit Segun's Personal Account with his capital contribution, personal expenses incurred, and profit share

Segun's ledger balance = ₦1,000,000 + ₦100,000 + ₦600,000 = ₦1,700,000

Under the separate set of books method, each co-venturer is credited in their personal account for capital contributed, personal expenses incurred on behalf of the venture, and their profit share to determine final settlement.

Anahtar Kavram

Calculation of final co-venturer cash settlement using the Separate Set of Books method in Joint Venture accounting

Soru 1175Soru →

Apex Apparel Enterprises incurred the following expenses during the financial year ended 31st December 2025:

Account Details	Amount (₦)
Opening inventory of raw materials	45,000
Purchases of raw materials	230,000
Carriage inwards on raw materials	12,000
Closing inventory of raw materials	38,000
Direct factory labour wages	115,000
Royalty paid on apparel designs	18,000
Factory supervisor's salary	40,000
Factory rent and rates	25,000
Depreciation of factory machinery	15,000

What is the Prime Cost of production for Apex Apparel Enterprises?

Cevabı ve açıklamayı göster

Cevap: 382000

Cevap

The Prime Cost of production for Apex Apparel Enterprises is ₦382,000.

Prime Cost is the sum of all direct costs incurred in production: Direct Materials Consumed (₦45,000 + ₦230,000 + ₦12,000 - ₦38,000 = ₦249,000), Direct Labour (₦115,000), and Direct Expenses (₦18,000 for royalties). Totaling these yields ₦382,000. Factory overheads such as supervisor salary (₦40,000), factory rent (₦25,000), and machinery depreciation (₦15,000) are indirect manufacturing costs and are excluded from Prime Cost.

Adım Adım Çözüm

1

Calculate the cost of raw materials consumed during the period.

₦249,000

Cost of Raw Materials Consumed = Opening Inventory (₦45,000) + Purchases (₦230,000) + Carriage Inwards (₦12,000) - Closing Inventory (₦38,000) = ₦249,000.

2

Identify all direct production costs (Direct Labour and Direct Expenses).

Direct Labour = ₦115,000; Direct Expenses (Royalty) = ₦18,000

Direct costs are expenses directly traceable to the production of goods. Royalties on designs are direct expenses, while factory wages for production workers represent direct labour.

3

Sum Raw Materials Consumed, Direct Labour, and Direct Expenses to arrive at Prime Cost.

₦382,000

Prime Cost = Raw Materials Consumed (₦249,000) + Direct Labour (₦115,000) + Direct Expenses (₦18,000) = ₦382,000. Indirect factory costs (supervisor salary, factory rent, and machinery depreciation) are overheads and excluded.

Anahtar Kavram

Prime Cost consists of the sum of direct materials consumed, direct labour, and direct expenses (such as royalties). Indirect factory overheads must be excluded.

Soru 1176Soru →

Emeka Global Ventures operates a dual ledger system and maintains control accounts for its business transactions. For the month of May 2026, the following balances and transactions were extracted from the accounting records:

- Opening credit balance on Purchases Ledger Control Account: $\text{N}245,000$
- Opening debit balance on Purchases Ledger Control Account: $\text{N}3,500$
- Credit purchases for the month: $\text{N}480,000$
- Cash paid to trade creditors: $\text{N}390,000$
- Cheques paid to trade creditors: $\text{N}115,000$
- Returns outwards: $\text{N}18,500$
- Cash discounts received from suppliers: $\text{N}12,000$
- Interest charged by suppliers on overdue accounts: $\text{N}4,200$
- Set-off (contra entry) between sales ledger and purchases ledger: $\text{N}28,000$
- Closing debit balance on Purchases Ledger Control Account at 31st May 2026: $\text{N}2,000$

What is the closing credit balance of the Purchases Ledger Control Account at 31st May 2026 in Naira?

Cevabı ve açıklamayı göster

Cevap: 164200

Cevap

The closing credit balance of the Purchases Ledger Control Account at 31st May 2026 is

\text{N}164,200

.

A contra entry (set-off) occurs when an entity is both a customer and a supplier. Setting off accounts reduces both the amount owed by debtors and the amount owed to creditors. In the Purchases Ledger Control Account (which normally carries a credit balance), a set-off must be debited to decrease the liability. Taking total credit items (

\text{N}245,000 + \text{N}480,000 + \text{N}4,200 + \text{N}2,000 = \text{N}731,200

) and subtracting total debit items including the contra set-off (

\text{N}3,500 + \text{N}390,000 + \text{N}115,000 + \text{N}18,500 + \text{N}12,000 + \text{N}28,000 = \text{N}567,000

) gives the correct closing credit balance of

\text{N}164,200

.

Adım Adım Çözüm

1

Sum all items that increase trade payables (credit entries) plus the closing debit balance

Total Credit Side =

\text{N}245,000 + \text{N}480,000 + \text{N}4,200 + \text{N}2,000 = \text{N}731,200

Credit purchases and interest charged increase liability to suppliers, while the closing debit balance is placed on the credit side as a balancing figure.

2

Sum all items that decrease trade payables (debit entries) including opening debit balance and contra set-off

Total Known Debit Entries =

\text{N}3,500 + \text{N}390,000 + \text{N}115,000 + \text{N}18,500 + \text{N}12,000 + \text{N}28,000 = \text{N}567,000

Payments, returns, discounts, and contra entries reduce trade payables liability and must be debited to the Purchases Ledger Control Account.

3

Deduct the total known debit side entries from the total credit side to determine the closing credit balance

Closing Credit Balance =

\text{N}731,200 - \text{N}567,000 = \text{N}164,200

The difference between total credit items and total debit items represents the remaining net liability owed to suppliers.

Anahtar Kavram

Contra Entries and Set-offs in Control Accounts

Soru 1177Soru →

Chinedu operates a retail business using single-entry bookkeeping. The following details relate to his trade creditors for the year ended 31 December 2025:

Transaction Details	Amount (₦)
Creditors balance at 1 January 2025	45,000
Payments made to creditors	185,000
Discounts received	6,500
Returns outwards	4,200
Contra entry with sales ledger	3,300
Creditors balance at 31 December 2025	52,000

What is the total credit purchases for the year?

Cevabı ve açıklamayı göster

Cevap: 206000

Cevap

The total credit purchases for the year is ₦206,000.

To find the missing total credit purchases, set up a Purchases Ledger Control Account:

Debit Side (Decreases Liability + Closing Balance):
- Cash/Bank Paid to Creditors:

₦185,000

- Discount Received:

₦6,500

- Returns Outwards:

₦4,200

- Contra Entry (Set-off):

₦3,300

- Closing Balance

c/d

:

₦52,000

**Total Debits =

₦251,000

**

Credit Side (Increases Liability):
- Opening Balance

b/f

:

₦45,000

- Credit Purchases (Balancing Figure):

₦251,000 - ₦45,000 = ₦206,000

Thus, the total credit purchases for the year is

₦206,000

.

Adım Adım Çözüm

1

Sum all debit entries in the Purchases Ledger Control Account

₦185,000 (Payments) + ₦6,500 (Discount Received) + ₦4,200 (Returns Outwards) + ₦3,300 (Contra) + ₦52,000 (Closing Balance) = ₦251,000

Creditors are liabilities with a normal credit balance; items that reduce liabilities are recorded on the debit side alongside the closing balance.

2

Deduct the opening balance from total debits to find missing credit purchases

₦251,000 - ₦45,000 = ₦206,000

The total of debit entries minus the opening credit balance yields the balancing credit entry representing total credit purchases during the period.

Anahtar Kavram

Reconstructing Purchases Ledger Control Account (Creditors Control Account) to determine missing credit purchases in single-entry bookkeeping.

Soru 1178Soru →

The following financial balances were extracted from the books of Tunde Trading Store as at 31 December 2025:

- Premises: $\text{₦}2,500,000$
- Motor Vehicles (at cost): $\text{₦}1,200,000$
- Accumulated Depreciation on Motor Vehicles: $\text{₦}300,000$
- Fixtures and Fittings (Net Book Value): $\text{₦}450,000$
- Closing Inventory: $\text{₦}240,000$
- Trade Debtors: $\text{₦}380,000$
- Provision for Doubtful Debts: $\text{₦}20,000$
- Prepaid Insurance: $\text{₦}15,000$
- Accrued Rent Receivable: $\text{₦}25,000$
- Trade Creditors: $\text{₦}290,000$
- Bank Overdraft: $\text{₦}110,000$
- Accrued Electricity Expenses: $\text{₦}35,000$
- 5-Year Bank Loan: $\text{₦}800,000$

Based on the balance sheet classification rules for a sole trader, what is the value of the Working Capital (Net Current Assets) in Naira ( $\text{₦}$ )?

Cevabı ve açıklamayı göster

Cevap: 205000

Cevap

The Working Capital of Tunde Trading Store as at 31 December 2025 is ₦205,000.

Working capital is calculated as total current assets minus total current liabilities. Total current assets equal ₦640,000 (comprising net debtors ₦360,000, closing inventory ₦240,000, prepaid insurance ₦15,000, and accrued rent income ₦25,000). Total current liabilities equal ₦435,000 (comprising trade creditors ₦290,000, bank overdraft ₦110,000, and accrued electricity ₦35,000). Subtracting current liabilities from current assets yields ₦205,000.

Adım Adım Çözüm

1

Determine the net value of trade debtors by deducting the provision for doubtful debts

Net Trade Debtors = ₦380,000 - ₦20,000 = ₦360,000

Provision for doubtful debts is a contra-asset account and must be subtracted from trade debtors to reflect net realizable current assets.

2

Identify and sum all items classified as Current Assets

Total Current Assets = ₦360,000 (Net Debtors) + ₦240,000 (Closing Inventory) + ₦15,000 (Prepaid Insurance) + ₦25,000 (Accrued Rent Income) = ₦640,000

Current assets consist of cash and other assets expected to be converted into cash or consumed within one accounting year. Non-current assets (Premises, Motor Vehicles net of depreciation, Fixtures) are excluded.

3

Identify and sum all items classified as Current Liabilities

Total Current Liabilities = ₦290,000 (Trade Creditors) + ₦110,000 (Bank Overdraft) + ₦35,000 (Accrued Electricity) = ₦435,000

Current liabilities are short-term obligations payable within one accounting period. Long-term obligations such as the 5-Year Bank Loan are non-current liabilities and are excluded.

4

Calculate Working Capital (Net Current Assets)

Working Capital = Total Current Assets - Total Current Liabilities = ₦640,000 - ₦435,000 = ₦205,000

Working Capital represents the operational liquidity available to a business, defined as Current Assets minus Current Liabilities.

Anahtar Kavram

Working Capital (Net Current Assets) Calculation

Tahmini Süre:3m 0s

Soru 1179Soru →

Chidubem Trading Store reported the following financial balances at the end of its accounting year:
- Gross Sales: $\text{₦}220,000$
- Returns Inwards: $\text{₦}10,000$
- Opening Inventory: $\text{₦}25,000$
- Purchases: $\text{₦}140,000$
- Carriage Inwards: $\text{₦}8,000$
- Purchases Returns: $\text{₦}5,000$
- Closing Inventory: $\text{₦}30,000$

What is the gross profit of Chidubem Trading Store for the year in Naira ( $\text{₦}$ )?

Cevabı ve açıklamayı göster

Cevap: 72000

Cevap

The gross profit earned by Chidubem Trading Store for the accounting year is ₦72,000.

To find gross profit, calculate Net Sales (Gross Sales minus Returns Inwards) and subtract Cost of Goods Sold (Opening Inventory plus Purchases plus Carriage Inwards minus Purchases Returns minus Closing Inventory).

\text{Net Sales} = \text{₦}220,000 - \text{₦}10,000 = \text{₦}210,000

.

\text{COGS} = \text{₦}25,000 + \text{₦}140,000 + \text{₦}8,000 - \text{₦}5,000 - \text{₦}30,000 = \text{₦}138,000

. Thus,

\text{Gross Profit} = \text{₦}210,000 - \text{₦}138,000 = \text{₦}72,000

.

Adım Adım Çözüm

1

Calculate Net Sales

Net Sales = ₦210,000

Returns inwards (sales returns) must be deducted from gross sales:

\text{���}220,000 - \text{₦}10,000 = \text{₦}210,000

.

2

Calculate Net Purchases and Goods Available for Sale

Goods Available for Sale = ₦168,000

Add carriage inwards to purchases as a direct expense of bringing goods to the business, and deduct returns outwards (purchases returns):

\text{₦}25,000 + (\text{₦}140,000 + \text{₦}8,000 - \text{₦}5,000) = \text{₦}168,000

.

3

Determine Cost of Goods Sold (COGS)

COGS = ₦138,000

Deduct closing inventory from goods available for sale:

\text{₦}168,000 - \text{₦}30,000 = \text{₦}138,000

.

4

Compute Gross Profit

Gross Profit = ₦72,000

Subtract Cost of Goods Sold from Net Sales:

\text{₦}210,000 - \text{₦}138,000 = \text{₦}72,000

.

Anahtar Kavram

Trading Account and Gross Profit Calculation

Tahmini Süre:1m 30s

Soru 1180Soru →

Zeno Enterprises operates three departments: Department Alpha, Department Beta, and Department Gamma. During the financial year ended 31st December 2025, total Rent and Rates paid was $₦270,000$ , which includes a prepayment of $₦30,000$ for the following year. The floor space occupied by the departments is $500\text{ m}^2$ for Alpha, $300\text{ m}^2$ for Beta, and $400\text{ m}^2$ for Gamma. What is the amount of Rent and Rates to be apportioned to Department Beta?

Cevabı ve açıklamayı göster

Cevap: 60000

Cevap

The amount of Rent and Rates apportioned to Department Beta is

₦60,000

.

Rent and Rates are apportioned using floor space occupied as the equitable basis. The actual expense incurred for the accounting year is

₦270,000 - ₦30,000 = ₦240,000

. Department Beta occupies

300\text{ m}^2

out of a total

1,200\text{ m}^2

, so its share is

\frac{300}{1,200} \times ₦240,000 = ₦60,000

.

Adım Adım Çözüm

1

Calculate the net Rent and Rates expense for the financial year

₦240,000

Prepayments relate to the subsequent financial period and must be deducted from cash paid to arrive at the actual expense incurred for the period.

2

Calculate total floor space occupied across all departments

1,200\text{ m}^2

Rent and Rates expenses are equitably apportioned on the basis of floor area occupied.

3

Calculate Department Beta's share of the net Rent and Rates expense

₦60,000

Multiply the net rent expense by Department Beta's fraction of the total floor space:

\frac{300\text{ m}^2}{1,200\text{ m}^2} \times ₦240,000 = ₦60,000

.

Anahtar Kavram

Apportionment of Rent and Rates based on floor area after adjusting for prepaid expenses.

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