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Soru 11981Soru →

Under a standard consignment arrangement, dispatching goods from the consignor to the consignee transfers physical possession of the merchandise to the consignee, while legal ownership and title to the unsold goods remain with the consignor.

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Cevap: True

Cevap

The statement is True. In a consignment transaction, the consignor (principal) retains legal title to all unsold goods, transferring only physical possession to the consignee (agent).
The correct evaluation is True because a consignment is fundamentally a principal-agent agreement. The consignor retains ownership of the merchandise, while the consignee merely acts as an intermediary receiving physical custody to effect sales.

Adım Adım Çözüm

1
Analyze the nature of the principal-agent relationship in consignment transactions.
The consignor is the principal and owner of the goods, whereas the consignee acts as an agent receiving goods for sale on commission.
Establishing the legal relationship identifies who retains legal title.
2
Distinguish between physical possession and legal ownership during dispatch.
Physical possession passes to the consignee upon delivery, but legal title remains with the consignor until a sale occurs.
Consignment is a bailment of goods, not an outright purchase or sale.
3
Evaluate the statement against accounting principles of consignment.
The statement accurately reflects that legal title stays with the consignor while possession transfers to the consignee.
Unsold goods are included in the consignor's closing inventory for accounting purposes.

Anahtar Kavram

Principal-Agent Relationship and Ownership Retention in Consignment
Soru 11982Soru →

Sahara Energy Works Plc extracted the following trial balance figures and notes for the financial year ended 31 December 2025:

- Gross profit: ₦2,450,000
- Administrative and distribution expenses paid: ₦680,000
- 10% Debentures (issued 1 January 2025): ₦1,000,000
- Debenture interest paid: ₦40,000
- Trade debtors: ₦600,000
- Existing provision for doubtful debts: ₦25,000

Additional Information at 31 December 2025:
1. Administrative expenses paid include ₦30,000 for prepaid insurance.
2. Audit fees of ₦50,000 remain accrued and unpaid.
3. The provision for doubtful debts is to be adjusted to 5%5\% of trade debtors.
4. Corporate income tax rate is estimated at 30%30\% on profit before tax.

What is the Net Profit after Tax for Sahara Energy Works Plc for the year ended 31 December 2025?

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Cevap: 1151500

Cevap

The Net Profit after Tax for Sahara Energy Works Plc is ���1,151,500.
To calculate the Net Profit after Tax, first compute adjusted operating expenses: base expenses of ₦680,000 minus prepaid insurance of ₦30,000 plus accrued audit fees of ₦50,000 plus the increase in doubtful debts provision of ₦5,000 (₦30,000 required minus ₦25,000 existing), yielding ₦705,000. Subtracting this from Gross Profit (₦2,450,000) gives Operating Profit of ₦1,745,000. Next, deduct the total annual debenture interest expense of ₦100,000 (10% of ₦1,000,000) to arrive at Profit before Tax of ₦1,645,000. Finally, deduct corporate tax of 30% (₦493,500) from ₦1,645,000 to obtain Net Profit after Tax equal to ₦1,151,500.

Adım Adım Çözüm

1
Calculate the total operating expenses incorporating adjustments for prepayments, accruals, and doubtful debt provisions.
Total operating expenses = ₦680,000 - ₦30,000 + ₦50,000 + (5% of ₦600,000 - ₦25,000) = ₦705,000.
Prepaid expenses are deducted from cash paid, accrued expenses are added, and the increase in provision for doubtful debts (₦30,000 - ₦25,000 = ₦5,000) is charged as an operating expense.
2
Deduct operating expenses from gross profit to find operating profit (profit before interest and tax).
Operating profit = ₦2,450,000 - ₦705,000 = ₦1,745,000.
Gross profit less total operating expenses yields the operating profit for the reporting period.
3
Determine full finance cost (debenture interest) and profit before taxation.
Debenture interest expense = 10% of ₦1,000,000 = ₦100,000. Profit before tax = ₦1,745,000 - ₦100,000 = ₦1,645,000.
The Statement of Profit or Loss must charge the full nominal debenture interest expense incurred for the year (10%×₦1,000,000=₦100,00010\% \times ₦1,000,000 = ₦100,000), regardless of the amount actually paid (₦40,000).
4
Calculate taxation and determine Net Profit after Tax.
Taxation = 30% of ₦1,645,000 = ₦493,500. Net profit after tax = ₦1,645,000 - ₦493,500 = ₦1,151,500.
Tax rate applies to profit before tax. Deducting taxation from profit before tax yields the final net profit after tax.

Anahtar Kavram

Preparation of Company Statement of Profit or Loss with Multi-Step Adjustments (Accruals, Prepayments, Debenture Interest, and Taxation)
Soru 11983Soru →

Consider the financial data extracted from the books of Kalu Enterprises at the end of the accounting period. Fill in the blanks with the correct numerical values.

Aşağıdaki boşlukları doldurun

Kalu Enterprises has Trade Debtors of ₦150,000\text{₦}150,000. The firm decides to write off bad debts of ₦10,000\text{₦}10,000 and create a 5%5\% Provision for Doubtful Debts. Thereafter, a 2%2\% Provision for Discount on Debtors is to be created.

The net debtors amount on which the provision for discount is calculated is ₦\text{₦}, and the amount of Provision for Discount on Debtors is ₦\text{₦}.
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Cevap

The net debtors amount subject to discount provision is ₦133,000, and the Provision for Discount on Debtors is ₦2,660.
To calculate the provision for discount on debtors correctly, bad debts written off (₦10,000) are subtracted from gross debtors (₦150,000) to get ₦140,000. Next, the 5% provision for doubtful debts (₦7,000) is deducted to determine the net good debtors of ₦133,000. Finally, 2% of ₦133,000 gives ₦2,660 as the provision for discount on debtors.

Adım Adım Çözüm

1
Deduct bad debts written off from gross trade debtors
₦150,000−₦10,000=₦140,000\text{₦}150,000 - \text{₦}10,000 = \text{₦}140,000
Bad debts are irrecoverable and must be removed before calculating any provisions.
2
Calculate and deduct the provision for doubtful debts
Provision for doubtful debts = 5%×₦140,000=₦7,0005\% \times \text{₦}140,000 = \text{₦}7,000. Debtors remaining = ₦140,000−₦7,000=₦133,000\text{₦}140,000 - \text{₦}7,000 = \text{₦}133,000.
Discount is only allowed to customers who are expected to pay, so doubtful debts must be excluded first.
3
Calculate the provision for discount on debtors
Provision for discount on debtors = 2%×₦133,000=₦2,6602\% \times \text{₦}133,000 = \text{₦}2,660.
Apply the discount provision percentage to the net good debtors balance.

Anahtar Kavram

Calculation order for Provision for Discount on Debtors
Soru 11984Soru →

Match each inventory valuation rule or accounting treatment in the final accounts of a sole trader with its corresponding description, concept, or financial statement placement.

Soldaki öğeye tıklayın, sonra eşleşen sağdaki öğeye tıklayın

Öğeler

Valuation of inventory at the lower of cost and net realizable value
Deduction from cost of goods available for sale in the Trading Account
Inclusion of closing inventory under Current Assets in the Balance Sheet
Calculation of Net Realizable Value (NRV)

Eşleşmeler

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Cevap

1. Valuation at lower of cost and NRV matches Application of the prudence concept; 2. Deduction from cost of goods available for sale matches Adjustment required to calculate Cost of Goods Sold; 3. Inclusion under Current Assets matches Presentation of unsold stock as a short-term resource; 4. Calculation of NRV matches Estimated selling price minus completion and selling expenses.
Each inventory rule directly aligns with financial accounting principles: lower of cost or NRV embodies prudence; deducting closing stock isolates cost of goods sold; Balance Sheet inclusion reflects working capital assets; and NRV represents expected net proceeds after completion and selling costs.

Adım Adım Çözüm

1
Identify the accounting convention governing inventory valuation
IAS 2 / GAAP mandates inventory be valued at the lower of cost and net realizable value based on prudence.
Prevents overstating profits and current assets.
2
Determine the impact of closing inventory on the Trading Account
Closing stock is deducted from Opening Stock + Purchases (less returns).
Separates the cost of unsold stock from goods sold to determine gross profit accurately.
3
Determine the Balance Sheet presentation
Closing stock is listed as a Current Asset.
It is a short-term asset available to generate future income in the next operating cycle.
4
Define the formula for Net Realizable Value
NRV = Estimated Selling Price - (Estimated Completion Costs + Selling Expenses).
Reflects the actual net amount expected to be recovered from the sale of inventory.

Anahtar Kavram

Valuation and Treatment of Inventory in Final Accounts
Soru 11985Soru →

Under the legal framework governing Nigerian public sector accounting, the Auditor-General for the Federation is restricted from directly conducting the annual audit of government-owned statutory corporations, and instead provides a list of qualified external auditors for their appointment.

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Cevap: True

Cevap

True. The Auditor-General for the Federation is legally restricted from performing direct annual audits of statutory corporations, supplying instead an approved list of qualified external auditors and monitoring guidelines.
The statement is true because the constitutional framework limits the Auditor-General to providing a vetted list of external auditors and oversight guidelines for statutory corporations rather than conducting direct audits.

Adım Adım Çözüm

1
Analyze the statutory responsibilities of the Auditor-General for the Federation regarding government ministries versus statutory corporations.
The Auditor-General conducts direct audits for ministries and departments, but not for statutory parastatals.
Constitutional rules specify distinct oversight mechanisms for commercial and statutory public bodies.
2
Evaluate the mechanism used to audit public corporations under Nigerian financial regulations.
Statutory corporations select external auditors from an approved list issued by the Auditor-General.
This maintains external professional auditing for parastatals while ensuring the Auditor-General retains supervisory standards.

Anahtar Kavram

Audit Mandate and Limitations of the Auditor-General
Soru 11986Soru →

An accounting officer using a computerized financial accounting software posted fictitious payment transactions by overwriting past records without leaving a record of the change. Which internal control mechanism should management implement to ensure that every system transaction leaves a permanent, chronological record of user actions?

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Cevap: Implementation of an automated audit trail log

Cevap

The implementation of an automated audit trail log
An automated audit trail provides a continuous, secure record of all transactions processed in a computerized accounting system. It records details such as user ID, date, time, and specific modifications made, ensuring accountability and auditability.

Adım Adım Çözüm

1
Analyze the control failure described in the scenario
Identified that transaction details were modified without tracking or recording historic activity.
Understanding the exact breakdown in data integrity points to the missing control requirement.
2
Evaluate internal control mechanisms in computerized accounting
An audit trail automatically logs every user command, edit, and deletion with timestamps.
An audit trail preserves transaction history and deters unauthorized modifications.

Anahtar Kavram

Audit Trail in Computerized Accounting
Tahmini Süre:1m 0s
Soru 11987Soru →

The Cash Book of Biobaku Traders showed an unadjusted overdraft balance of NGN 18,100\text{NGN } 18,100 on 31st May 2026. On comparing the Cash Book with the Bank Statement, the following discrepancies were identified:

- Bank charges of NGN 1,500\text{NGN } 1,500 and a standing order payment of NGN 3,200\text{NGN } 3,200 were recorded only in the Bank Statement.
- A cheque for NGN 4,000\text{NGN } 4,000 deposited into the bank was returned unpaid (dishonoured).
- Unpresented cheques totaled NGN 8,600\text{NGN } 8,600.
- Uncredited lodgements totaled NGN 11,400\text{NGN } 11,400.

What is the balance as per the Bank Statement on 31st May 2026?

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Cevap: Overdraft of NGN 29,600\text{NGN } 29,600

Cevap

Overdraft of NGN 29,600\text{NGN } 29,600
The correct answer is derived by first adjusting the cash book for items not previously entered (bank charges, standing order, dishonoured cheque), increasing the overdraft from NGN 18,100\text{NGN } 18,100 to NGN 26,800\text{NGN } 26,800. Reconciling to the bank statement balance, unpresented cheques of NGN 8,600\text{NGN } 8,600 are added and uncredited lodgements of NGN 11,400\text{NGN } 11,400 are subtracted, giving a final bank statement overdraft of NGN 29,600\text{NGN } 29,600.

Adım Adım Çözüm

1
Calculate the Adjusted Cash Book Balance
Adjusted Cash Book Overdraft = NGN 26,800\text{NGN } 26,800
Bank charges, standing orders, and dishonoured cheques must be debited/deducted from cash book balance (which increases an overdraft). Initial Overdraft (−NGN 18,100-\text{NGN } 18,100) −- Bank charges (NGN 1,500\text{NGN } 1,500) −- Standing order (NGN 3,200\text{NGN } 3,200) −- Dishonoured cheque (NGN 4,000\text{NGN } 4,000) = −NGN 26,800-\text{NGN } 26,800.
2
Prepare the Bank Reconciliation Statement starting from Adjusted Cash Book Overdraft
Bank Statement Balance = Overdraft of NGN 29,600\text{NGN } 29,600
To reconcile from Cash Book Overdraft (−NGN 26,800-\text{NGN } 26,800) to Bank Statement Balance: Add Unpresented Cheques (+NGN 8,600+\text{NGN } 8,600) and Deduct Uncredited Lodgements (−NGN 11,400-\text{NGN } 11,400). Total = −NGN 26,800+NGN 8,600−NGN 11,400=−NGN 29,600-\text{NGN } 26,800 + \text{NGN } 8,600 - \text{NGN } 11,400 = -\text{NGN } 29,600.

Anahtar Kavram

Two-step Bank Reconciliation with Overdraft Balances
Soru 11988Soru →

Metallic mineral deposits, such as bauxite in West Africa, differ fundamentally from biological resources, such as timber. Why are metallic minerals classified as non-renewable natural resources?

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Cevap: Their natural replenishment occurs over geological timescales far exceeding human consumption rates

Cevap

Metallic minerals are classified as non-renewable because their rate of natural formation requires geological timescales of millions of years, which means they cannot be regenerated within human timeframes.
Non-renewable natural resources, including metallic minerals like bauxite and iron ore, exist in finite quantities because their rate of natural formation spans millions of years (geological timescales). As a result, exploitation depletes the fixed reserve faster than nature can recreate it.

Adım Adım Çözüm

1
Define the criterion for natural resource classification (renewable vs. non-renewable)
Classification depends on the rate of natural regeneration relative to human consumption rates.
Renewable resources regenerate naturally on human timescales, whereas non-renewable resources form over geological epochs.
2
Analyze the formation process of metallic mineral deposits like bauxite
Bauxite forms through deep weathering of rocks over millions of years.
Because formation takes millions of years, the total available stock is fixed on human timescales.
3
Evaluate the correct statement explaining non-renewability
The statement highlighting natural replenishment over geological timescales accurately explains the non-renewable status.
Once extracted and consumed, natural geological processes cannot replace metallic minerals quickly enough to sustain ongoing use.

Anahtar Kavram

Criteria for Resource Classification: Geological Timescales of Formation
Soru 11989Soru →

An electronics retailing firm upgraded to an automated inventory and billing accounting system. During an annual audit, the internal auditor discovered that several posted sales records were deleted directly from the system database without leaving any transaction history or log of user actions. Which internal control deficiency directly allowed this unrecorded deletion of financial data to occur?

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Cevap: Absence of an immutable audit trail and user access privilege restrictions on the database

Cevap

Absence of an immutable audit trail and user access privilege restrictions on the database
An audit trail in a computerized accounting system records all transaction processing history, updates, and deletions along with timestamps and user identification. Combined with access controls restricting direct database manipulation, these controls ensure data integrity and accountability.

Adım Adım Çözüm

1
Analyze the control breakdown described in the accounting scenario
Posted sales transactions were erased from the database with no record of who executed the action or when it happened.
Identifying the specific failure helps determine which internal control component was missing.
2
Evaluate internal control mechanisms in computerized accounting environments
An audit trail maintains an automatic chronological record of system events, while access controls restrict raw database access to authorized database administrators.
Without an audit trail and proper access restrictions, direct database alterations leave no trace and bypass traditional accounting logs.

Anahtar Kavram

Audit Trail and Access Control in Computerized Accounting
Soru 11990Soru →

As at 31 December 2025, Adeola Trading Enterprise had Trade Debtors of ₦450,000₦450,000 and an existing Provision for Doubtful Debts of ₦15,000₦15,000. At year-end, an additional bad debt of ₦20,000₦20,000 is to be written off, and the provision for doubtful debts is to be adjusted to 5%5\% of the remaining trade debtors. What is the net amount of trade debtors to be presented under Current Assets in the Statement of Financial Position as at 31 December 2025?

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Cevap: 408500

Cevap

The net amount of trade debtors to be presented under Current Assets in the Statement of Financial Position is ₦408,500.
To determine the net trade debtors for the Statement of Financial Position, first subtract the additional bad debts of ₦20,000 from gross debtors of ₦450,000, leaving ₦430,000. Next, calculate the closing provision of 5% on ₦430,000, which equals ₦21,500. Subtracting the ₦21,500 provision from ₦430,000 gives ₦408,500 as the net trade debtors figure.

Adım Adım Çözüm

1
Deduct additional bad debts from gross trade debtors
Adjusted Debtors = ₦450,000 - ₦20,000 = ₦430,000
Bad debts identified at year-end must be written off from trade debtors before computing the provision for doubtful debts.
2
Calculate the required closing provision for doubtful debts
Closing Provision = 5% of ₦430,000 = ₦21,500
The percentage provision for doubtful debts applies strictly to net trade debtors after writing off bad debts.
3
Calculate net trade debtors for Statement of Financial Position presentation
Net Trade Debtors = ₦430,000 - ₦21,500 = ₦408,500
Trade debtors are shown in the balance sheet net of the closing provision for doubtful debts.

Anahtar Kavram

Calculation of Net Trade Debtors for Balance Sheet presentation after adjustments for bad debts and provision for doubtful debts.
Soru 11991Soru →

In the books of Apex Trading Enterprise, the Branch Current Account in the Head Office ledger shows a debit balance of ₦145,000\text{₦}145,000, while the Head Office Current Account in the Branch ledger shows a credit balance of ₦110,000\text{₦}110,000 at year-end. Upon reconciliation, it was discovered that a cash remittance of ₦20,000\text{₦}20,000 sent by the branch had not yet been received by the head office, and goods worth ₦15,000\text{₦}15,000 dispatched by the head office were still in transit to the branch. What is the reconciled balance of the inter-company current account?

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Cevap: ₦125,000

Cevap

The reconciled balance of the inter-company current account is ₦125,000.
To reconcile independent branch and head office accounts, in-transit items must be recorded in the books of the party that has not yet entered them. Cash in transit (₦20,000) was sent by the branch, so it is already recorded in the branch books; Head Office must credit the Branch Current Account, reducing the debit balance from ₦145,000 to ₦125,000. Similarly, goods in transit (₦15,000) sent by Head Office are already recorded in Head Office books; the branch must credit the Head Office Current Account, increasing the credit balance from ₦110,000 to ₦125,000.

Adım Adım Çözüm

1
Identify the unadjusted balances in both ledgers
Head Office ledger (Branch Current A/c) = ₦145,000 (Debit); Branch ledger (Head Office Current A/c) = ₦110,000 (Credit).
The two accounts represent reciprocal records of the same relationship and should be equal after adjusting for in-transit items.
2
Adjust the Head Office ledger for cash in transit
Reconciled Balance = ₦145,000 - ₦20,000 = ₦125,000 (Debit).
The branch has already debited Head Office and credited cash, but Head Office has not yet credited the Branch Current Account for the cash received.
3
Adjust the Branch ledger for goods in transit to verify consistency
Reconciled Balance = ₦110,000 + ₦15,000 = ₦125,000 (Credit).
The Head Office has already credited the Branch Current Account and debited Goods Sent to Branch, but the branch has not yet credited the Head Office Current Account for the goods received.

Anahtar Kavram

Independent Branch Head Office Reconciliation
Tahmini Süre:2m 0s
Soru 11992Soru →

A topographical map displays a statement scale of 2 cm2\text{ cm} to 1 km1\text{ km}. Which of the following represents this scale as a Representative Fraction (R.F.)?

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Cevap: 1:50,0001 : 50,000

Cevap

The Representative Fraction (R.F.) of the map is 1:50,0001 : 50,000.
The correct Representative Fraction is 1:50,0001 : 50,000. Converting 1 km1\text{ km} into centimeters yields 100,000 cm100,000\text{ cm}. Expressing the scale as a ratio gives 2 cm:100,000 cm2\text{ cm} : 100,000\text{ cm}, which simplifies to 1:50,0001 : 50,000 when both terms are divided by 22.

Adım Adım Çözüm

1
Convert the ground distance from kilometers to centimeters so both sides of the scale ratio share identical units.
1 km=100,000 cm1\text{ km} = 100,000\text{ cm}.
Representative Fraction requires unitless comparison, so both map distance and ground distance must be in the same measurement units.
2
Express the relationship as a ratio of map distance to ground distance.
Scale=2 cm:100,000 cm\text{Scale} = 2\text{ cm} : 100,000\text{ cm}.
A Representative Fraction is written in the form 1:n1 : n, where 11 represents map distance and nn represents ground distance.
3
Divide both terms of the ratio by the map distance value (22) to reduce the numerator/antecedent to 11.
22:100,0002=1:50,000\frac{2}{2} : \frac{100,000}{2} = 1 : 50,000.
Simplifying the antecedent to unity gives the final standard Representative Fraction format.

Anahtar Kavram

Conversion of Statement Scale to Representative Fraction (R.F.)
Tahmini Süre:45s
Soru 11993Soru →

A trading enterprise operates two regional sales outlets in different locations. Outlet X receives all inventory directly from the head office, remits all daily cash receipts to the head office bank account, and relies entirely on the head office to maintain its accounting records. Outlet Y, on the other hand, maintains a complete double-entry ledger system, purchases inventory locally, and extracts its own trial balance at the end of the financial period. Which of the following accounting classifications correctly describes Outlet X and Outlet Y?

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Cevap: Outlet X is a dependent branch, while Outlet Y is an independent branch.

Cevap

Outlet X is a dependent branch, while Outlet Y is an independent branch.
A dependent branch (such as Outlet X) does not keep a complete set of accounting books; its books are kept by the head office, and it operates under strict head office oversight regarding supplies and cash. Conversely, an independent branch (such as Outlet Y) operates autonomously in terms of bookkeeping, maintaining a full double-entry ledger system, purchasing goods from local suppliers, and extracting a trial balance at period end.

Adım Adım Çözüm

1
Analyze the operational and record-keeping features of Outlet X.
Outlet X relies on the head office for inventory supply, remits all cash to head office, and does not maintain its own accounting ledgers. Therefore, it is a dependent branch.
Dependent branches do not maintain complete books of account; all major accounting functions are handled by the head office.
2
Analyze the operational and record-keeping features of Outlet Y.
Outlet Y maintains a complete set of accounting books, purchases goods locally, and extracts its own trial balance. Therefore, it is an independent branch.
Independent branches function as separate accounting entities, keeping double-entry records and balancing their own accounts.
3
Select the classification option that matches both outlets.
Outlet X is dependent and Outlet Y is independent.
This correctly aligns both outlets with their respective accounting features.

Anahtar Kavram

Distinction Between Dependent and Independent Branches
Soru 11994Soru →

According to the ICAN Code of Ethics for Professional Accountants, the fundamental principle of confidentiality requires an accountant to refrain from disclosing client or employer financial information under all circumstances, even when subpoenaed by a court of law or required by anti-money laundering legislation.

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Cevap: False

Cevap

The statement is False.
The fundamental principle of confidentiality is not absolute. Under professional accounting codes of ethics (such as ICAN and IFAC), accountants are required to disclose confidential information when there is a legal right or duty to disclose, such as under court subpoenas, statutory tax investigations, or anti-money laundering provisions.

Adım Adım Çözüm

1
Identify the ethical principle and rule in question.
The concept is the principle of Confidentiality under ICAN/IFAC codes of ethics.
Evaluating whether confidentiality is absolute or subject to statutory overrides.
2
Evaluate the exceptions to professional confidentiality.
Confidentiality does not apply when disclosure is required by law (e.g., judicial court order, statutory reporting of financial fraud/money laundering) or permitted by law for professional defense.
Legal duty supersedes professional secrecy in regulatory and judicial contexts.

Anahtar Kavram

Exceptions to the Fundamental Principle of Confidentiality in Professional Ethics
Soru 11995Soru →

A head office transfers goods to its dependent branch at an invoice price loaded at a mark-up of 25%25\% on cost. During the financial period, goods sent to the branch amounted to ₦200,000\text{₦}200,000 at invoice price, while goods returned by the branch to the head office at invoice price totaled ₦16,000\text{₦}16,000. What is the total profit load (unrealized profit element) contained in the net goods sent to the branch?

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Cevap: 36800

Cevap

The total profit load contained in the net goods sent to the branch is ₦36,800.
To find the unrealized profit loading on net goods sent, subtract returns (₦16,000) from total goods sent (₦200,000) to get net goods sent of ₦184,000 at invoice price. A 25% mark-up on cost corresponds to a 20% margin on invoice price (1/5th). Calculating 20% of ₦184,000 yields ₦36,800.

Adım Adım Çözüm

1
Calculate net goods sent to the branch at invoice price
₦184,000
Returns to head office must be deducted from gross transfers to determine net goods received by the branch.
2
Convert mark-up on cost to margin on invoice price
20% (or 1/5)
Since invoice price is cost plus mark-up, a mark-up of 25% on cost translates to 20% on invoice price.
3
Calculate the profit element (loading)
₦36,800
Multiply the margin fraction (1/5) by the net invoice price (₦184,000).

Anahtar Kavram

Accounting for Dependent Branches at Selling / Invoice Price
Soru 11996Soru →

Silver Crest Social Club operates a bar for its members. The following details relate to the bar operations for the financial year ended 31 December 2025:

DetailsAmount (₦)
Cash received from bar sales450,000
Bar inventory as at 1 January 202540,000
Bar inventory as at 31 December 202555,000
Cash paid to bar suppliers260,000
Bar creditors as at 1 January 202530,000
Bar creditors as at 31 December 202545,000
Bar steward's wages paid50,000
Accrued bar steward's wages as at 31 December 202510,000

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

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Cevap: ₦130,000

Cevap

The net profit from bar operations to be transferred to the Income and Expenditure Account is ₦130,000.
The net bar profit transferred to the Income and Expenditure Account is ₦130,000. It is computed by finding total credit purchases (₦275,000), evaluating Cost of Goods Sold (₦260,000) to get Gross Profit (₦190,000), and deducting total steward wages including accrued amount (₦60,000).

Adım Adım Çözüm

1
Calculate total bar purchases for the year
Total Purchases = ₦260,000+₦45,000−₦30,000=₦275,000\text{₦}260,000 + \text{₦}45,000 - \text{₦}30,000 = \text{₦}275,000
Cash payments must be adjusted by adding closing creditors and deducting opening creditors to derive credit purchases.
2
Calculate Cost of Bar Goods Sold (COGS)
COGS = ₦40,000+₦275,000−₦55,000=₦260,000\text{₦}40,000 + \text{₦}275,000 - \text{₦}55,000 = \text{₦}260,000
Opening inventory is added to total purchases and closing inventory is deducted.
3
Calculate Bar Gross Profit
Gross Profit = ₦450,000−₦260,000=₦190,000\text{₦}450,000 - \text{₦}260,000 = \text{₦}190,000
Cost of goods sold is subtracted from total cash takings/sales.
4
Deduct total bar expenses to find Net Bar Profit
Total Wages = ₦50,000+₦10,000=₦60,000\text{₦}50,000 + \text{₦}10,000 = \text{₦}60,000; Net Profit = ₦190,000−₦60,000=₦130,000\text{₦}190,000 - \text{₦}60,000 = \text{₦}130,000
Accrued wages must be added to paid wages to determine total expense, which is then subtracted from bar gross profit.

Anahtar Kavram

Preparation of Bar Trading and Profitability Statement in Non-Profit Organizations
Tahmini Süre:2m 0s
Soru 11997Soru →

Bello consigned goods to Segun and paid him a del-credere commission in addition to his ordinary commission. If a credit customer defaults on payment to Segun, how should the resulting bad debt be recorded in Bello's ledger?

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Cevap: It is not recorded in any account in Bello's ledger.

Cevap

No entry is recorded in Bello's ledger because the consignee bears all bad debt losses when del-credere commission is paid.
When a consignor pays a del-credere commission, the consignee guarantees payment for all credit sales and personally absorbs any bad debts. Consequently, credit losses are not recognized in the consignor's books, meaning no entry is made in the consignor's ledger.

Adım Adım Çözüm

1
Identify the relationship between consignor, consignee, and del-credere commission.
The consignee (Segun) receives del-credere commission specifically to guarantee collection from credit buyers.
Del-credere commission transfers the financial risk of credit customer defaults from the consignor to the consignee.
2
Determine the accounting treatment in the consignor's (Bello's) ledger.
Since the loss is absorbed entirely by Segun out of his commission, Bello suffers no bad debt loss.
No entry for bad debts is required in either the Consignment Account or Segun's Personal Account in Bello's books.

Anahtar Kavram

Accounting treatment of bad debts when del-credere commission is paid
Tahmini Süre:45s
Soru 11998Soru →

Which of the following activities represents the primary scope of bookkeeping rather than accounting?

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Cevap: Systematically recording daily financial transactions in books of original entry

Cevap

Systematically recording daily financial transactions in books of original entry
Bookkeeping is the routine and systematic recording of financial transactions in books of prime entry and ledgers. It forms the preliminary stage upon which accounting performs analysis, interpretation, and reporting.

Adım Adım Çözüm

1
Define the primary function of bookkeeping
Bookkeeping involves routine clerical procedures such as recording transactions chronologically in journals and posting them to ledgers.
It serves as the initial, mechanical foundation of financial record maintenance.
2
Compare bookkeeping with accounting functions
Accounting takes recorded data from bookkeeping to summarize, analyze, interpret, and report results to stakeholders.
This establishes that systematic recording of transactions belongs to bookkeeping.

Anahtar Kavram

Scope difference between bookkeeping and accounting
Soru 11999Soru →

The financial records of Crestwood Logistics Ltd at the end of its financial year showed Total Non-Current Assets of ₦1,200,000 and Net Current Assets of ₦350,000. If 8% Debentures stood at ₦400,000 and total reserves were ₦250,000, what is the value of the Issued Share Capital in the Statement of Financial Position?

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Cevap: ₦900,000

Cevap

The Issued Share Capital of Crestwood Logistics Ltd is ₦900,000.
In a corporate Statement of Financial Position, Total Net Assets equals Non-Current Assets plus Net Current Assets (₦1,200,000 + ₦350,000 = ₦1,550,000). Total Net Assets are financed by Shareholders' Funds (Issued Share Capital + Reserves) and Non-Current Liabilities (Debentures). Subtracting Reserves (₦250,000) and Debentures (₦400,000) from ₦1,550,000 gives an Issued Share Capital of ₦900,000.

Adım Adım Çözüm

1
Calculate Total Net Assets (Capital Employed)
Total Net Assets = Non-Current Assets + Net Current Assets = ₦1,200,000 + ₦350,000 = ₦1,550,000
Total Net Assets represents the overall net resources employed by the company.
2
Set up the Capital Employed equation
Capital Employed = Issued Share Capital + Reserves + Non-Current Liabilities (Debentures)
The Statement of Financial Position balancing equation requires total capital financing to equal total net assets.
3
Solve for Issued Share Capital
Issued Share Capital = ₦1,550,000 - ₦250,000 - ₦400,000 = ₦900,000
Deducting reserves and long-term liabilities from capital employed yields the equity share capital.

Anahtar Kavram

Accounting Equation and Structure of Company Statement of Financial Position
Soru 12000Soru →

The following financial positions were extracted from the books of Lakeside Recreation Association as at 1st January 2025:

ItemAmount (₦)
Clubhouse premises1,200,000
Equipment and furniture650,000
Cash at bank180,000
Bar inventory45,000
Subscriptions due but unpaid35,000
Subscriptions received in advance20,000
Outstanding electricity bill15,000
Bar creditors25,000

What is the Accumulated Fund of the association as at 1st January 2025 in Naira (₦)?

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Cevap: 2050000

Cevap

The Accumulated Fund of Lakeside Recreation Association as at 1st January 2025 is ₦2,050,000.
The Accumulated Fund is calculated by subtracting total liabilities from total assets at the start of the financial period. Adding the assets gives: Clubhouse premises (₦1,200,000) + Equipment and furniture (₦650,000) + Cash at bank (₦180,000) + Bar inventory (₦45,000) + Subscriptions due but unpaid (₦35,000) = ₦2,110,000. Summing the liabilities gives: Subscriptions received in advance (₦20,000) + Outstanding electricity bill (₦15,000) + Bar creditors (₦25,000) = ₦60,000. Subtracting liabilities from assets yields ₦2,110,000 - ₦60,000 = ₦2,050,000.

Adım Adım Çözüm

1
Calculate Total Assets as at 1st January 2025
���2,110,000
Total assets comprise non-current assets (premises, equipment/furniture), current assets (cash at bank, bar inventory), and accrued income (subscriptions due but unpaid).
2
Calculate Total Liabilities as at 1st January 2025
₦60,000
Total liabilities comprise prepaid income (subscriptions received in advance), accrued expenses (outstanding electricity bill), and payables (bar creditors).
3
Deduct Total Liabilities from Total Assets to determine the Accumulated Fund
₦2,050,000
The Accumulated Fund represents the opening capital surplus of a non-profit entity, calculated using the accounting equation: Accumulated Fund = Total Assets - Total Liabilities.

Anahtar Kavram

Calculation of Accumulated Fund for Non-Profit Organizations
ÖncekiSayfa 600 / 697Sonraki
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