Tüm alıştırma soruları

Soru 1201Soru →

On 1 July 2026, a business had a cash balance of $\text{₦}45,000$ and a bank overdraft of $\text{₦}18,000$ . During July, the following transactions occurred:
- July 4: Purchased goods with a list price of $\text{₦}120,000$ subject to a $10\%$ trade discount and a $5\%$ cash discount, paying by cheque immediately.
- July 12: Received a cheque of $\text{₦}95,000$ from a debtor in full settlement of a $\text{₦}100,000$ debt.
- July 18: Deposited $\text{₦}15,000$ cash into the bank account.
- July 25: A customer's cheque of $\text{₦}25,000$ previously deposited was returned dishonoured, and the bank charged a bank fee of $\text{₦}1,000$ directly to the account.
- July 28: Withdrew $\text{₦}10,000$ from the bank account for personal use.

Calculate the amount of the bank overdraft (in $\text{₦}$ ) at the end of July 2026.

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Cevap: 46600

Cevap

The bank overdraft balance at the end of July 2026 is ₦46,600.

To find the ending overdraft, sum all credit entries in the bank column (Opening Overdraft ₦18,000 + Cheque Payment ₦102,600 + Dishonoured Cheque ₦25,000 + Bank Fee ₦1,000 + Drawings ₦10,000 = ₦156,600) and subtract total debit entries (Cheque Received ₦95,000 + Cash Deposit ₦15,000 = ₦110,000). The resulting net credit balance is an overdraft of ₦46,600.

Adım Adım Çözüm

1

Calculate the net payment by cheque for the purchase on July 4

Invoice Price = ₦120,000 × (1 - 0.10) = ₦108,000. Net Cheque Paid = ₦108,000 × (1 - 0.05) = ₦102,600.

Trade discount is deducted first to arrive at the invoice price; cash discount is calculated on the net invoice price.

2

Identify all debit entries (increases) to the bank account

Total Debits = Cheque received (July 12) ₦95,000 + Cash deposited (July 18) ₦15,000 = ₦110,000.

Cheques received and cash paid into bank increase the bank balance.

3

Identify all credit entries (decreases/payments) to the bank account

Total Credits = Opening Overdraft ₦18,000 + Cheque Paid ₦102,600 + Dishonoured Cheque ₦25,000 + Bank Fee ₦1,000 + Drawings ₦10,000 = ₦156,600.

An opening overdraft starts on the credit side. Dishonoured cheques, bank fees, and drawings by cheque decrease the bank balance.

4

Compute the closing bank overdraft balance

Ending Bank Overdraft = ₦156,600 - ₦110,000 = ₦46,600.

Because total credit entries exceed total debit entries, the balance remains a bank overdraft.

Anahtar Kavram

Three-Column Cash Book Bank Account Balancing with Discounts and Adjustments

Soru 1202Soru →

Kano Manufacturing Enterprise operates two departments: Processing and Assembly. The Processing Department transfers semi-finished goods to the Assembly Department at cost plus a mark-up of $40\%$ . At the end of the financial year, the Assembly Department held closing inventory valued at $\text{N}84,000$ , of which $75\%$ represents goods transferred from the Processing Department. Calculate the required provision for unrealized profit on the closing inventory of the Assembly Department.

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Cevap: 18000

Cevap

The required provision for unrealized profit on the closing inventory of the Assembly Department is 18,000 NGN.

The provision for unrealized profit is calculated by isolating the transferred goods in closing inventory (75% of N84,000 = N63,000) and applying the profit margin rate derived from the 40% mark-up on cost: Margin = 40 / 140 = 2/7. Multiplying N63,000 by 2/7 yields N18,000.

Adım Adım Çözüm

1

Calculate the value of transferred stock contained within the Assembly Department's closing inventory.

Transferred Stock = 75% of N84,000 = N63,000.

Only the portion of closing stock acquired via inter-departmental transfer contains unrealized departmental profit.

2

Convert the transfer mark-up rate to a profit margin rate based on the transfer price.

Profit Margin = 40 / (100 + 40) = 40/140 = 2/7.

The inventory valuation is given at transfer price (selling price), so the mark-up on cost must be converted to a margin on transfer price.

3

Multiply the transferred stock value by the profit margin rate to compute the provision for unrealized profit.

Provision for Unrealized Profit = (2 / 7) * N63,000 = N18,000.

This represents the profit loaded onto the transferred goods that remains unrealized because the goods have not yet been sold to external customers.

Anahtar Kavram

Provision for Unrealized Profit on Inter-departmental Stock Transfers

Soru 1203Soru →

A sample of gas enclosed in a vessel has a density of $0.90\text{ kg/m}^3$ and exerts a pressure of $3.0 \times 10^5\text{ N/m}^2$ on the walls of the vessel. Based on the kinetic theory of gases, what is the root-mean-square (r.m.s.) speed of the gas molecules in $\text{m/s}$ ?

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Cevap: 1000

Cevap

The root-mean-square speed of the gas molecules is

1000\text{ m/s}

.

By applying the kinetic theory formula

P = \frac{1}{3} \rho v_{\text{rms}}^2

, rearranging gives

v_{\text{rms}} = \sqrt{\frac{3P}{\rho}}

. Substituting

P = 3.0 \times 10^5\text{ N/m}^2

and

\rho = 0.90\text{ kg/m}^3

results in

v_{\text{rms}} = \sqrt{\frac{9.0 \times 10^5}{0.90}} = \sqrt{1.0 \times 10^6} = 1000\text{ m/s}

.

Adım Adım Çözüm

1

Identify the kinetic theory equation relating gas pressure, density, and microscopic molecular speed.

P = \frac{1}{3} \rho v_{\text{rms}}^2

According to the kinetic theory of gases, the macroscopic pressure exerted by gas molecules colliding with container walls is proportional to the gas density and the square of their r.m.s. speed.

2

Make

v_{\text{rms}}

the subject of the formula.

v_{\text{rms}} = \sqrt{\frac{3P}{\rho}}

Multiplying both sides by

3

and dividing by density

\rho

isolates

v_{\text{rms}}^2

, taking the square root yields

v_{\text{rms}}

.

3

Substitute the given numerical values into the equation.

v_{\text{rms}} = \sqrt{\frac{3 \times 3.0 \times 10^5}{0.90}} = \sqrt{1,000,000} = 1000\text{ m/s}

Performing the division yields

1.0 \times 10^6\text{ m}^2/\text{s}^2

, whose square root gives the speed in

\text{m/s}

.

Anahtar Kavram

Kinetic Theory Pressure Equation relating macroscopic pressure and density to microscopic root-mean-square velocity (

P = \frac{1}{3}\rho v_{\text{rms}}^2

).

Soru 1204Soru →

Kano Retail Outlets acquired office furniture costing $₦1,500,000$ on 1 January 2024. Depreciation is charged at $10\%$ per annum using the straight-line method. What is the accumulated balance in the Provision for Depreciation on Furniture Account as of 31 December 2025?

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Cevap: 300000

Cevap

The accumulated balance in the Provision for Depreciation Account as of 31 December 2025 is

₦300,000

.

The annual depreciation expense under the straight-line method is

10\% \times ₦1,500,000 = ₦150,000

. Since the asset was held for two complete accounting years (from 1 January 2024 to 31 December 2025), the total accumulated provision credited to the Provision for Depreciation Account is

₦150,000 \times 2 = ₦300,000

.

Adım Adım Çözüm

1

Calculate the annual depreciation expense for one year using the straight-line method

Annual Depreciation =

10\% \times ₦1,500,000 = ₦150,000

Under the straight-line method, depreciation is computed as a fixed percentage of the historical cost of the asset.

2

Multiply the annual depreciation expense by the number of accounting periods (2 years: 2024 and 2025)

Accumulated Provision for Depreciation =

₦150,000 \times 2 = ₦300,000

The Provision for Depreciation Account accumulates total depreciation charged on the asset up to the balance sheet date.

Anahtar Kavram

Accounting Treatment of Provision for Depreciation

Tahmini Süre:45s

Soru 1205Soru →

Kano Electronics Enterprise operates two departments: Department A and Department B. For the accounting year ended 31 December 2025, the total sales turnover for the business was ₦500,000, of which Department A generated ₦300,000 and Department B generated ₦200,000. Total advertising expenses of ₦50,000 were incurred and are to be apportioned between the two departments on the basis of sales turnover. What is the amount of advertising expense apportioned to Department A?

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Cevap: 30000

Cevap

The amount of advertising expense apportioned to Department A is ₦30,000.

Advertising expenses are apportioned to departments based on their share of total turnover. Department A contributes ₦300,000 out of a total ₦500,000 sales (60%). Therefore, 60% of the ₦50,000 advertising expense equals ₦30,000.

Adım Adım Çözüm

1

Determine the proportion of sales generated by Department A relative to total business turnover.

Department A ratio = ₦300,000 / ₦500,000 = 0.60 (or 60%).

Advertising expenses are apportioned according to sales turnover.

2

Calculate Department A's share of the total advertising expense.

Apportioned expense = ₦50,000 × 0.60 = ₦30,000.

Applying the turnover proportion to the total expense yields the departmental charge.

Anahtar Kavram

Apportionment of general operating expenses based on turnover in departmental profit and loss accounts.

Tahmini Süre:45s

Soru 1206Soru →

Tunde and Zainab established a commercial partnership on 1st January 2025 without executing a formal partnership deed. Tunde contributed $₦8,000,000$ and Zainab contributed $₦4,000,000$ as capital. On 1st July 2025, Zainab advanced an additional loan of $₦2,000,000$ to the firm. For the financial year ended 31st December 2025, the profit before accounting for loan interest was $₦3,850,000$ . Under the provisions of the Partnership Act 1890, what is Zainab's share of the residual profit in Naira ( $₦$ )?

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Cevap: 1900000

Cevap

Zainab's share of the residual profit is

₦1,900,000

.

Under the statutory default rules of the Partnership Act 1890, a partner who advances a loan to the firm is entitled to 5% interest per annum. For 6 months (1st July to 31st December), interest equals ₦2,000,000 × 5% × 6/12 = ₦50,000. Since loan interest is a charge against profit, the net distributable profit becomes ₦3,850,000 − ₦50,000 = ₦3,800,000. In the absence of a written deed, profits are shared equally regardless of capital contributions. Thus, Zainab's share is ₦3,800,000 ÷ 2 = ₦1,900,000.

Adım Adım Çözüm

1

Calculate statutory interest on partner loan

Interest on loan =

₦50,000

Under the Partnership Act 1890, in the absence of an agreement, a partner advancing a loan beyond their capital is entitled to 5% interest per annum. For 6 months:

₦2,000,000 \times 0.05 \times \frac{6}{12} = ₦50,000

.

2

Deduct loan interest to find net distributable profit

Distributable profit =

₦3,800,000

Interest on a partner's loan is a charge against profit (debited to Profit and Loss Account), not an appropriation of profit. Subtracting

₦50,000

from

₦3,850,000

leaves

₦3,800,000

.

3

Distribute residual profit equally between partners

Zainab's share of profit =

₦1,900,000

In the absence of a partnership deed, profits must be shared equally among partners regardless of differences in capital contribution ratios. Dividing

₦3,800,000

by 2 equals

₦1,900,000

.

Anahtar Kavram

Statutory default provisions under the Partnership Act 1890 regarding 5% per annum interest on partner loan as a charge against profit and equal profit sharing.

Tahmini Süre:1m 30s

Soru 1207Soru →

Zenith Ventures Plc forfeited $800$ ordinary shares of $₦1.00$ nominal value each, called up to $₦0.80$ per share, due to non-payment of the first call of $₦0.30$ per share. Prior to forfeiture, the shareholder had paid $₦0.50$ per share. All $800$ forfeited shares were subsequently re-issued to a new investor as fully paid up for $��0.60$ per share. What is the net amount, in Naira ( $₦$ ), to be credited to the Capital Reserve Account?

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Cevap: 80

Cevap

The net amount to be credited to the Capital Reserve Account is

₦80

.

The profit resulting from share forfeiture and re-issue is the excess of the amount forfeited (

₦400

) over the discount granted on re-issue (

₦320

). The resulting capital profit of

₦80

is transferred to Capital Reserve.

Adım Adım Çözüm

1

Determine total amount forfeited from defaulting shareholder

800 \text{ shares} \times ₦0.50 = ₦400

The Forfeited Shares account is credited with the actual amount paid by the shareholder prior to default.

2

Determine the discount allowed on re-issue of shares

(₦1.00 - ₦0.60) \times 800 = ₦0.40 \times 800 = ₦320

When shares are re-issued as fully paid for

₦0.60

, the

₦0.40

deficit per share is absorbed by the Forfeited Shares Account.

3

Calculate the surplus balance transferred to Capital Reserve Account

₦400 - ₦320 = ₦80

Any remaining balance in the Forfeited Shares Account after re-issue represents a capital gain and must be transferred to Capital Reserve.

Anahtar Kavram

Profit on re-issue of forfeited shares transferred to Capital Reserve

Tahmini Süre:1m 30s

Soru 1208Soru →

Kemi and Emeka are partners in a firm sharing profits and losses in the ratio of $3:2$ . The profits of the firm for the past four years were $\text{N}180,000$ , $\text{N}220,000$ , $\text{N}240,000$ , and $\text{N}200,000$ respectively. The capital employed in the firm is $\text{N}1,200,000$ , and the normal rate of return expected on capital employed in this industry is $12\%$ . Goodwill is valued at $3$ years' purchase of the super profit. Fola is admitted as a new partner for a $\frac{1}{6}$ share in profits, with the new profit-sharing ratio agreed as $3:2:1$ . If goodwill is adjusted through the capital accounts without opening a goodwill account, what is the net credit amount (in Naira) to Emeka's capital account for goodwill?

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Cevap: 13200

Cevap

The net credit amount to Emeka's capital account for goodwill is 13,200 Naira.

To find the net credit to Emeka's capital account, first compute average profit (N210,000) and normal profit (12% of N1,200,000 = N144,000). The super profit is N66,000, giving a total goodwill of N198,000 (3 × N66,000). Crediting Emeka in the old ratio (2/5) gives N79,200, and debiting Emeka in the new ratio (2/6) gives N66,000. The net adjustment is a credit of N13,200.

Adım Adım Çözüm

1

Calculate the average profit of the firm

N210,000

Average profit is computed by dividing the sum of profits over 4 years (N840,000) by 4.

2

Calculate the normal profit

N144,000

Normal profit is calculated as the normal rate of return (12%) multiplied by capital employed (N1,200,000).

3

Calculate super profit

N66,000

Super profit is the excess of average profit over normal profit (N210,000 - N144,000).

4

Calculate total valuation of goodwill

N198,000

Goodwill is 3 years' purchase of super profit (3 × N66,000).

5

Determine Emeka's credit share in old profit-sharing ratio

N79,200

Goodwill is credited to old partners in old ratio 3:2 (2/5 of N198,000).

6

Determine Emeka's debit share in new profit-sharing ratio

N66,000

Goodwill written off is debited to all partners in new ratio 3:2:1 (2/6 of N198,000).

7

Calculate net credit adjustment to Emeka's capital account

N13,200

Subtract debit entry from credit entry (N79,200 - N66,000 = N13,200).

Anahtar Kavram

Valuation of goodwill using super profit method and net adjustment of goodwill through capital accounts upon admission of a partner.

Tahmini Süre:2m 30s

Soru 1209Soru →

A sole trader extracted a trial balance on 31st December 2025 showing a total payment of $\text{N}320,000$ under the account heading 'Rent and Rates'.

Additional audit records reveal the following details:
1. The 'Rent and Rates' figure includes $\text{N}60,000$ paid specifically for rates.
2. On 1st January 2025, rent accrued brought forward was $\text{N}25,000$ , and rent prepaid brought forward was $\text{N}40,000$ .
3. On 31st December 2025, rent prepaid carried forward for the next financial year was $\text{N}35,000$ , while rent accrued for 2025 was $\text{N}30,000$ .

What is the net amount to be charged to the Profit and Loss Account for Rent Expense (excluding rates) for the year ended 31st December 2025?

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Cevap: 270000

Cevap

The net amount to be charged to the Profit and Loss Account for Rent Expense for the year ended 31st December 2025 is 270,000 Naira.

Applying accrual concepts requires matching expenses to the period they are incurred regardless of cash timing. Rent paid in cash was 260,000 Naira (320,000 total less 60,000 rates). Subtracting opening accrued rent (25,000 Naira) and closing prepaid rent (35,000 Naira), while adding opening prepaid rent (40,000 Naira) and closing accrued rent (30,000 Naira), yields 270,000 Naira.

Adım Adım Çözüm

1

Deduct rates paid from the total payment to isolate rent paid during the year

Rent paid during the year = 260,000 Naira

Rates are a separate expense category and must be excluded when determining rent expense.

2

Adjust for opening balances by subtracting opening accrued rent and adding opening prepaid rent

Adjusted rent after opening balances = 260,000 - 25,000 + 40,000 = 275,000 Naira

Opening accrued rent represents cash paid in 2025 for the prior period and must be subtracted, whereas opening prepaid rent represents cash paid previously for the current period and must be added.

3

Adjust for closing balances by subtracting closing prepaid rent and adding closing accrued rent

Final Rent Expense charged to Profit and Loss Account = 275,000 - 35,000 + 30,000 = 270,000 Naira

Closing prepaid rent covers the next financial year and must be removed, whereas closing accrued rent covers services consumed in 2025 that remain unpaid and must be added.

Anahtar Kavram

Adjusting cash paid for expenses using opening and closing accruals and prepayments under accrual accounting principles

Soru 1210Soru →

On 1st January 2026, Bamidele Enterprises recorded a credit balance of $\text{N}215,000$ in its Purchases Ledger Control Account. During the year ended 31st December 2026, credit purchases amounted to $\text{N}480,000$ , payments to trade creditors by bank were $\text{N}410,000$ , returns outwards totaled $\text{N}25,000$ , and discount received was $\text{N}18,000$ . Additionally, a contra entry of $\text{N}32,000$ was agreed to set off accounts between the sales ledger and purchases ledger. What is the closing credit balance of the Purchases Ledger Control Account as at 31st December 2026?

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Cevap: 210000

Cevap

The closing credit balance of the Purchases Ledger Control Account as at 31st December 2026 is N210,000.

In the Purchases Ledger Control Account, the opening credit balance (N215,000) and credit purchases (N480,000) total N695,000 on the credit side. Deducting the debit entries—bank payments (N410,000), returns outwards (N25,000), discount received (N18,000), and the contra set-off entry (N32,000)—gives a total deduction of N485,000, leaving a net closing credit balance of N210,000.

Adım Adım Çözüm

1

Sum all credit entries in the Purchases Ledger Control Account.

Total Credit Side = N215,000 (Opening Balance) + N480,000 (Credit Purchases) = N695,000.

Opening credit balance and credit purchases increase the liability to creditors on the credit side of the Purchases Ledger Control Account.

2

Sum all debit entries including payments, returns, discounts received, and contra set-offs.

Total Debit Side = N410,000 (Bank Payments) + N25,000 (Returns Outwards) + N18,000 (Discount Received) + N32,000 (Contra Entry) = N485,000.

Payments, returns, discount received, and contra entries reduce the total liability owed to suppliers and are debited to the control account.

3

Deduct total debit entries from total credit entries to calculate the ending balance.

Closing Balance = N695,000 - N485,000 = N210,000.

The balance remaining on the credit side represents the net closing liability to trade creditors at the end of the accounting period.

Anahtar Kavram

Accounting treatment of contra entries and set-offs in the Purchases Ledger Control Account

Soru 1211Soru →

Kalu Traders completed the following transactions during May 2026:
- May 4: Purchased $100$ bags of sugar at $\text{N}2,000$ per bag on credit from Dangote Foods Ltd, subject to a $10\%$ trade discount.
- May 12: Purchased office furniture on credit from Woodworks Ltd for $\text{N}50,000$ .
- May 18: Bought $50$ bags of rice at $\text{N}3,000$ per bag for cash.
- May 25: Bought $40$ cartons of milk at $\text{N}5,000$ per carton on credit from Peak Ltd, subject to a $5\%$ trade discount.

What is the total amount in Naira ( $\text{N}$ ) to be recorded in the Purchases Journal for May 2026?

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Cevap: 370000

Cevap

The total amount to be recorded in the Purchases Journal for May 2026 is ₦370,000.

The Purchases Journal records only credit purchases of goods intended for resale. Calculating net amounts after trade discounts gives ₦180,000 for May 4 and ₦190,000 for May 25, resulting in a total of ₦370,000. Capital expenditure (furniture) and cash purchases (rice) are excluded.

Adım Adım Çözüm

1

Calculate net credit purchase of sugar on May 4

Gross amount = 100 × ₦2,000 = ₦200,000. Less 10% trade discount (₦20,000) = ₦180,000.

Credit purchases of inventory intended for resale are entered in the Purchases Journal after deducting trade discounts.

2

Evaluate May 12 transaction

₦0 included in Purchases Journal.

Purchasing office furniture is a capital expenditure (fixed asset) and must be entered in the General Journal (Journal Proper).

3

Evaluate May 18 transaction

₦0 included in Purchases Journal.

Cash purchases of goods are entered in the Cash Book, not the Purchases Journal.

4

Calculate net credit purchase of milk on May 25

Gross amount = 40 × ₦5,000 = ₦200,000. Less 5% trade discount (₦10,000) = ₦190,000.

Trade discount is deducted on the invoice before recording in the book of prime entry.

5

Sum total credit purchases of goods

Total = ₦180,000 + ₦190,000 = ₦370,000.

The total of the Purchases Journal reflects total net credit purchases of inventory for the period.

Anahtar Kavram

Purchases Journal Scope and Trade Discount Calculation

Soru 1212Soru →

Prior to reconciliation, the Purchases Ledger Control Account of Bisi Stores showed a credit balance of $\text{₦}210,000$ . An audit revealed that a purchases journal total of $\text{₦}15,000$ was completely omitted from posting to the Purchases Ledger Control Account. What is the corrected balance of the Purchases Ledger Control Account in Naira?

Cevabı ve açıklamayı göster

Cevap: 225000

Cevap

The corrected balance of the Purchases Ledger Control Account is

\text{₦}225,000

.

Purchases on credit increase total trade payables (creditors). Omitting a purchases journal total from the Purchases Ledger Control Account understates the credit balance. Adding the omitted

\text{₦}15,000

to the initial credit balance of

\text{₦}210,000

yields the corrected balance of

\text{₦}225,000

.

Adım Adım Çözüm

1

Identify the unadjusted credit balance

Unadjusted balance =

\text{₦}210,000

This represents the initial balance of the control account prior to adjustments.

2

Apply the correction for the omitted purchases journal total

Corrected credit balance =

\text{₦}210,000 + \text{₦}15,000 = \text{₦}225,000

Credit purchases increase the liability owed to trade creditors; omitting the total requires adding (crediting) it to the control account balance.

Anahtar Kavram

Correcting omissions in the Purchases Ledger Control Account

Soru 1213Soru →

Tunde & Sons Trading maintains a two-column cash book. On 1 July 2026, the firm had a cash balance of ₦68,500 and a bank overdraft of ₦14,200. During the month of July 2026, the following transactions occurred:

- July 5: Paid a creditor ₦28,500 by cheque in settlement of a debt after deducting a 5% cash discount.
- July 12: Made cash sales of ₦45,000, out of which ₦30,000 was immediately lodged into the bank.
- July 18: Withdrew ₦12,000 from the bank for office cash use.
- July 25: Received a cheque of ₦48,000 from a debtor in full settlement of a ₦50,000 debt.
- July 28: Paid office rent of ₦8,500 in cash.

What is the closing bank balance of Tunde & Sons Trading as at 31 July 2026 in Naira (₦)?

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Cevap: 23300

Cevap

The closing bank balance of Tunde & Sons Trading as at 31 July 2026 is ₦23,300 (debit balance).

The closing bank balance is determined by starting with the credit overdraft balance of ₦14,200, adding bank credits for cheque payments (₦28,500) and bank cash withdrawal (₦12,000) to get total bank credits of ₦54,700. Comparing this to total bank debits of ₦78,000 (₦30,000 lodged + ₦48,000 debtor cheque) yields a net closing debit balance of ₦23,300.

Adım Adım Çözüm

1

Identify the opening bank balance and its debit/credit orientation

Opening Bank Balance = -₦14,200 (Credit / Overdraft)

A bank overdraft is a short-term liability and is recorded on the credit side of the bank column in the cash book.

2

Calculate total debit entries (bank receipts)

Total Bank Receipts = ₦30,000 (July 12 cash lodged) + ₦48,000 (July 25 cheque received) = ₦78,000

Money paid into the bank account increases the asset balance and must be debited in the bank column.

3

Calculate total credit entries (bank payments and opening overdraft)

Total Bank Payments = ₦14,200 (opening overdraft) + ₦28,500 (July 5 cheque payment) + ₦12,000 (July 18 cash withdrawal) = ₦54,700

Payments made by cheque and cash withdrawals from the bank decrease the bank account balance and are credited.

4

Balance the bank column to obtain the closing balance

Closing Bank Balance = ₦78,000 (Debits) - ₦54,700 (Credits) = ₦23,300

Total debit entries exceed total credit entries by ₦23,300, resulting in a positive debit balance at the end of the month.

Anahtar Kavram

Balancing a Two-Column Cash Book with Overdraft and Contra Entries

Soru 1214Soru →

Kwara Furniture Enterprise operates two departments: Timber Department and Assembly Department. The Timber Department transfers processed wood to the Assembly Department at cost plus a $25\%$ mark-up. On 1 January 2025, the Assembly Department held opening stock valued at $\text{N}50,000$ , of which $80\%$ represented transferred wood from the Timber Department. On 31 December 2025, the Assembly Department's closing stock was valued at $\text{N}70,000$ , of which $75\%$ consisted of transferred wood. What is the net increase in the provision for unrealized profit to be debited to the General Profit and Loss Account for the year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 2500

Cevap

The net increase in the provision for unrealized profit to be debited to the General Profit and Loss Account is 2500 Naira.

The correct response of 2500 is calculated by establishing the unrealized profit included in the transferred portion of both opening and closing inventory using the

20\%

margin rate (

25\%

mark-up converted to margin). Opening provision is

\text{N}8,000

(

20\% \times 80\% \times \text{N}50,000

) and closing provision is

\text{N}10,500

(

20\% \times 75\% \times \text{N}70,000

). The net increase debited to General Profit and Loss is

\text{N}10,500 - \text{N}8,000 = \text{N}2,500

.

Adım Adım Çözüm

1

Convert mark-up rate to profit margin rate

Profit margin on transfer price is

20\%

(or

\frac{1}{5}

)

Inter-departmental transfers are recorded at transfer price, so unrealized profit must be extracted using the profit margin on transfer price, calculated as

\frac{\text{Mark-up}}{100 + \text{Mark-up}} = \frac{25}{125} = 0.20

.

2

Calculate opening provision for unrealized profit

Opening Provision =

\text{N}8,000

Transferred goods in opening stock =

80\% \times \text{N}50,000 = \text{N}40,000

. Opening provision =

20\% \times \text{N}40,000 = \text{N}8,000

.

3

Calculate closing provision for unrealized profit

Closing Provision =

\text{N}10,500

Transferred goods in closing stock =

75\% \times \text{N}70,000 = \text{N}52,500

. Closing provision =

20\% \times \text{N}52,500 = \text{N}10,500

.

4

Compute the net change in provision debited to General Profit & Loss Account

Net Increase =

\text{N}2,500

The net adjustment debited to the General P&L Account is the difference between the required closing provision and the existing opening provision:

\text{N}10,500 - \text{N}8,000 = \text{N}2,500

.

Anahtar Kavram

Provision for Unrealized Profit on Inter-departmental Transfers

Soru 1215Soru →

The following financial information was extracted from the books of Metro Philharmonic Society for the year ended 31st December 2025:

Cash Receipts and Payments Summary:
- Subscriptions received: $\text{₦}1,250,000$
- Rent paid for hall: $\text{₦}360,000$
- Printing and stationery expenses paid: $\text{₦}85,000$
- Proceeds from annual concert: $\text{₦}640,000$
- Direct expenses of annual concert: $\text{₦}290,000$
- Purchase of new musical instruments on 1st July 2025: $\text{₦}500,000$
- Life membership fees received: $\text{₦}200,000$

Additional Adjustments and Notes:
1. Subscriptions accrued on 1st January 2025 were $\text{₦}60,000$ , while subscriptions accrued on 31st December 2025 were $\text{₦}95,000$ . Subscriptions received in advance on 1st January 2025 were $\text{₦}40,000$ , and subscriptions received in advance on 31st December 2025 were $\text{₦}70,000$ .
2. Rent prepaid on 31st December 2025 was $\text{₦}40,000$ , and rent accrued on 1st January 2025 was $\text{��}30,000$ .
3. Stock of stationery on 1st January 2025 was $\text{₦}15,000$ , and on 31st December 2025 was $\text{₦}22,000$ . Creditors for stationery unpaid on 31st December 2025 amounted to $\text{₦}18,000$ .
4. According to the society's constitution, $25\%$ of life membership fees received should be recognized as income in the Income and Expenditure Account, while the balance is capitalized.
5. Musical instruments held on 1st January 2025 were valued at cost at $\text{₦}1,200,000$ . Depreciation is charged at $10\%$ per annum on cost, pro-rated for additions.

What is the net surplus to be credited to the Accumulated Fund in the Income and Expenditure Account for the year ended 31st December 2025?

Cevabı ve açıklamayı göster

Cevap: 1124000

Cevap

The net surplus for the year ended 31st December 2025 is ₦1,124,000.

To calculate the net surplus, all cash transactions must be adjusted to an accrual basis for revenue income and expenditure. Total income comprises subscription income (₦1,255,000), net concert proceeds (₦350,000), and the 25% revenue allocation of life membership fees (₦50,000), totaling ₦1,655,000. Total expenditure comprises adjusted rent (₦290,000), consumed stationery cost (₦96,000), and pro-rated depreciation on musical instruments (₦145,000), totaling ₦531,000. Subtracting total expenditure from total income gives a net surplus of ₦1,124,000.

Adım Adım Çözüm

1

Calculate Subscription Income for the period using accrual adjustments

₦1,255,000

Adjust cash subscriptions for opening/closing accrued and prepaid amounts: 1,250,000 - 60,000 + 95,000 + 40,000 - 70,000.

2

Determine total revenue income credited to the Income and Expenditure Account

₦1,655,000

Combine Subscription Income (1,255,000), Net Concert Profit (640,000 - 290,000 = 350,000), and 25% revenue portion of Life Membership Fees (50,000).

3

Determine total revenue expenses charged to the Income and Expenditure Account

₦531,000

Sum Rent Expense (360,000 - 40,000 - 30,000 = 290,000), Stationery Expense (15,000 + 85,000 + 18,000 - 22,000 = 96,000), and pro-rated Depreciation (120,000 + 25,000 = 145,000).

4

Subtract total expenses from total income to arrive at the net surplus

₦1,124,000

Net Surplus = Total Revenue Income (1,655,000) - Total Expenditure (531,000) = 1,124,000.

Anahtar Kavram

Accrual adjustments and capitalization rules in the Income and Expenditure Account for Non-Profit Organizations

Soru 1216Soru →

The following details were extracted from the financial records of Koko Manufacturing Enterprise for the year ended 31 December 2025:

- Opening stock of raw materials: $\text{₦}38,000$
- Purchases of raw materials: $\text{₦}215,000$
- Carriage inwards on raw materials: $\text{₦}12,000$
- Closing stock of raw materials: $\text{₦}45,000$
- Direct factory labor wages: $\text{₦}125,000$
- Factory indirect overhead expenses: $\text{₦}80,000$
- Opening Work-in-Progress (WIP): $\text{₦}34,000$
- Total Cost of Production transferred to Trading Account: $\text{₦}438,000$

What is the value of the closing Work-in-Progress (WIP) at the end of the financial year?

Cevabı ve açıklamayı göster

Cevap: 21000

Cevap

The valuation of Closing Work-in-Progress (WIP) is ₦21,000.

To find the Closing Work-in-Progress (WIP), we first calculate the cost of raw materials consumed (

\text{Opening Raw Materials} + \text{Purchases} + \text{Carriage Inwards} - \text{Closing Raw Materials} = \text{₦}38,000 + \text{₦}215,000 + \text{₦}12,000 - \text{₦}45,000 = \text{₦}220,000

). Adding direct labor wages of

\text{₦}125,000

yields a Prime Cost of

\text{₦}345,000

. Including factory indirect overhead expenses of

\text{₦}80,000

gives total factory costs of

\text{₦}425,000

. Since

\text{Cost of Production} = \text{Total Factory Cost} + \text{Opening WIP} - \text{Closing WIP}

, substituting the values gives

\text{₦}438,000 = \text{₦}425,000 + \text{₦}34,000 - \text{Closing WIP}

, resulting in a closing WIP valuation of

\text{₦}21,000

.

Adım Adım Çözüm

1

Calculate the Cost of Raw Materials Consumed

₦220,000

Raw materials consumed equals opening raw material inventory plus purchases and carriage inwards minus closing raw material inventory:

\text{₦}38,000 + \text{₦}215,000 + \text{₦}12,000 - \text{₦}45,000 = \text{₦}220,000

.

2

Determine the Prime Cost

₦345,000

Prime cost is the sum of raw materials consumed and direct factory labor wages:

\text{₦}220,000 + \text{₦}125,000 = \text{₦}345,000

.

3

Compute Total Factory Manufacturing Cost prior to Work-in-Progress adjustments

₦425,000

Adding factory indirect overhead expenses to the prime cost gives:

\text{₦}345,000 + \text{₦}80,000 = \text{₦}425,000

.

4

Reconcile Work-in-Progress (WIP) to determine Closing WIP

₦21,000

Using the accounting relationship

\text{Cost of Production} = \text{Total Factory Cost} + \text{Opening WIP} - \text{Closing WIP}

, we get

\text{₦}438,000 = \text{₦}425,000 + \text{₦}34,000 - \text{Closing WIP}

, which solves to

\text{Closing WIP} = \text{₦}459,000 - \text{₦}438,000 = \text{₦}21,000

.

Anahtar Kavram

Valuation and Adjustment for Work-in-Progress (WIP)

Tahmini Süre:2m 30s

Soru 1217Soru →

Highland Beverages Plc offered for public subscription $70,000$ ordinary shares of nominal value $\text{₦}3.00$ each at an issue price of $\text{₦}3.50$ per share. If all the shares were fully subscribed and paid for, what is the total amount, in Naira ( $\text{₦}$ ), credited to the Share Premium Account?

Cevabı ve açıklamayı göster

Cevap: 35000

Cevap

The total amount credited to the Share Premium Account is

\text{₦}35,000

.

The share premium per share is the difference between the issue price (

\text{₦}3.50

) and the nominal value (

\text{₦}3.00

), which is

\text{₦}0.50

. Multiplying this premium per share by

70,000

shares gives a total Share Premium Account balance of

\text{₦}35,000

.

Adım Adım Çözüm

1

Calculate the share premium per share

\text{₦}3.50 - \text{₦}3.00 = \text{₦}0.50

Share premium represents the excess amount paid per share over its nominal (par) value.

2

Compute total Share Premium Account balance

70,000 \times \text{₦}0.50 = \text{₦}35,000

The total amount credited to the Share Premium Account is obtained by multiplying the premium per share by the total number of issued and fully subscribed shares.

Anahtar Kavram

Calculation of Share Premium Balance on Issue of Shares

Soru 1218Soru →

A commercial ceramics craft firm in Abeokuta extracted the following financial figures for the year ended 31st December 2025:

Account Details	Amount (₦)
Purchases of raw clay and glazes	450,000
Carriage inwards on raw clay	30,000
Wages of potters and kiln operators	320,000
Royalties paid per ceramic unit design	80,000
Salary of factory supervisor	150,000
Factory power and maintenance	200,000

What is the total Prime Cost for the year?

Cevabı ve açıklamayı göster

Cevap: 880000

Cevap

The total Prime Cost for the year is ₦880,000.

Prime Cost represents the aggregate of all direct costs incurred in manufacturing. It includes direct raw materials (purchases of

₦450,000

plus carriage inwards of

₦30,000 = ₦480,000

), direct wages (

₦320,000

), and direct expenses (

₦80,000

for royalties). Summing these direct components yields

₦480,000 + ₦320,000 + ₦80,000 = ₦880,000

. Factory supervisor salaries (

₦150,000

) and factory power/maintenance (

₦200,000

) are indirect expenses (factory overheads) and are excluded from Prime Cost.

Adım Adım Çözüm

1

Calculate Direct Materials Consumed

₦480,000

Carriage inwards on raw materials is a direct cost incurred to bring raw clay into the factory and must be added to raw material purchases.

2

Identify Direct Labour and Direct Expenses

Direct Labour = ₦320,000; Direct Expenses = ₦80,000

Wages of potters directly creating products are direct labour, and royalties on designs are direct expenses.

3

Compute Prime Cost

₦880,000

Prime Cost is the sum of all direct production costs: Direct Materials (₦480,000) + Direct Labour (₦320,000) + Direct Expenses (₦80,000).

Anahtar Kavram

Calculation of Prime Cost in Manufacturing Accounts

Tahmini Süre:1m 30s

Soru 1219Soru →

During a financial period, Zenith Crafts Manufacturing incurred a total of $\text{₦}95,000$ in manufacturing costs before work-in-progress adjustments. If the opening work-in-progress was valued at $\text{₦}14,000$ and the closing work-in-progress was valued at $\text{₦}9,000$ , what is the total cost of production in Naira ( $\text{₦}$ )?

Cevabı ve açıklamayı göster

Cevap: 100000

Cevap

The total cost of production is ₦100,000.

The cost of production is calculated by taking total manufacturing costs incurred, adding the opening work-in-progress (work started in the prior period and finished in the current period), and subtracting closing work-in-progress (work started but not yet finished by period end). Performing ₦95,000 + ₦14,000 - ₦9,000 yields ₦100,000.

Adım Adım Çözüm

1

Add opening work-in-progress to the total manufacturing costs before adjustments.

₦95,000 + ₦14,000 = ₦109,000

Opening work-in-progress represents uncompleted goods from the previous period that are finished in the current period, so their valuation must be added.

2

Deduct closing work-in-progress from the sum.

₦109,000 - ₦9,000 = ₦100,000

Closing work-in-progress represents goods still undergoing production at year-end, which must be excluded from completed production costs.

Anahtar Kavram

Valuation and Adjustment for Work-in-Progress (WIP)

Soru 1220Soru →

Tunde and Femi are partners in a firm sharing profits and losses equally. During a partnership revaluation, the value of Premises increased by $\text{₦}30,000$ , Plant and Machinery decreased by $\text{₦}8,000$ , and a Provision for Doubtful Debts of $\text{₦}3,000$ was created. What is Tunde's share of the revaluation profit in naira?

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Cevap: 9500

Cevap

Tunde's share of the revaluation profit is 9,500 naira.

The revaluation of assets and liabilities yields a total gain of

\text{₦}30,000

(from Premises) and total losses of

\text{₦}11,000

(

\text{₦}8,000

from Plant and Machinery plus

\text{₦}3,000

for Provision for Doubtful Debts). Subtracting losses from gains gives a net revaluation profit of

\text{₦}19,000

. Sharing this equally between Tunde and Femi gives Tunde a

\text{₦}9,500

share.

Adım Adım Çözüm

1

Determine total revaluation gains and losses

Total Gain =

\text{₦}30,000

; Total Loss =

\text{₦}8,000 + \text{₦}3,000 = \text{₦}11,000

.

An increase in an asset value is credited to the Revaluation Account as a gain, while decreases in assets and creation of provisions are debited as losses.

2

Calculate net profit on revaluation

Net Revaluation Profit =

\text{₦}30,000 - \text{₦}11,000 = \text{₦}19,000

.

Net revaluation profit represents the excess of total revaluation gains over total revaluation losses.

3

Calculate Tunde's share of revaluation profit

Tunde's Share =

\text{₦}19,000 \times \frac{1}{2} = \text{₦}9,500

.

The net revaluation profit must be distributed between existing partners according to their agreed profit-sharing ratio (1:1).

Anahtar Kavram

Calculation and Apportionment of Revaluation Profit in Partnership Accounts

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