Tüm alıştırma soruları

Soru 1241Soru →

Zaria Enterprises operates two departments: Hardware and Softlines. For the year ended 31 December 2025, total administrative salaries of ₦120,000 are to be apportioned based on floor space occupied. Hardware occupies $800\text{ m}^2$ and Softlines occupies $400\text{ m}^2$ . If the Softlines department recorded a gross profit of ₦250,000 and direct departmental expenses of ₦45,000, what is the net profit of the Softlines department in Naira?

Cevabı ve açıklamayı göster

Cevap: 165000

Cevap

The net profit of the Softlines department is ₦165,000.

The Softlines department occupies 400 sq. metres out of a total 1,200 sq. metres, representing 1/3 of the total floor space. Apportioning the ₦120,000 administrative salaries gives ₦40,000. Adding the direct expenses of ₦45,000 results in total Softlines expenses of ₦85,000. Deducting this from the gross profit of ₦250,000 yields a net profit of ₦165,000.

Adım Adım Çözüm

1

Calculate the ratio for apportioning administrative salaries based on floor space.

The floor space ratio for Softlines is 400 out of 1,200 square metres, which simplifies to 1/3.

Administrative overheads shared across departments are apportioned using floor area occupied as the basis.

2

Compute the apportioned administrative salaries allocated to the Softlines department.

₦40,000.

1/3 multiplied by total administrative salaries of ₦120,000 equals ₦40,000.

3

Calculate the total expenses attributed to the Softlines department.

₦85,000.

Add direct expenses of ₦45,000 to the apportioned administrative salaries of ₦40,000.

4

Deduct total departmental expenses from departmental gross profit.

₦165,000.

Net profit is equal to gross profit minus total departmental expenses (₦250,000 - ₦85,000 = ₦165,000).

Anahtar Kavram

Apportionment of overhead expenses based on floor area and computation of departmental net profit

Soru 1242Soru →

Sterling Heights Plc has an issued share capital of $2,000,000$ ordinary shares of $\text{₦}0.50$ each. The company makes a rights issue of $1$ new share for every $4$ ordinary shares held at an issue price of $\text{₦}0.75$ per share. If all rights are fully subscribed and paid for, what is the total cash proceeds raised from the rights issue in Naira?

Cevabı ve açıklamayı göster

Cevap: 375000

Cevap

The total cash proceeds raised from the rights issue is ₦375,000.

To determine cash proceeds from a rights issue, first compute the number of new shares created by dividing the total issued shares by the ratio factor (2,000,000 / 4 = 500,000 shares). Then, multiply this quantity by the offer price of ₦0.75 per share to get ₦375,000.

Adım Adım Çözüm

1

Calculate the total number of rights shares issued

500,000 shares

The rights issue gives shareholders 1 new share for every 4 existing shares held (2,000,000 ÷ 4 = 500,000 shares).

2

Calculate total cash proceeds from the issue

₦375,000

Multiply the number of newly issued rights shares by the issue price per share (500,000 shares × ₦0.75 = ₦375,000).

Anahtar Kavram

Calculation of cash proceeds from a rights issue

Tahmini Süre:1m 30s

Soru 1243Soru →

Kano Logistics Plc issued $\text{₦}100,000$ , $8\%$ debentures at par on 1st January 2025. What is the total annual debenture interest payable by the company for the year ended 31st December 2025?

Cevabı ve açıklamayı göster

Cevap: 8000

Cevap

The total annual debenture interest payable for the year is ₦8,000.

Debenture interest is calculated by multiplying the nominal value of the debentures by the stated annual coupon interest rate (

\text{₦}100,000 \times 8\% = \text{₦}8,000

). Since the debentures were outstanding for the entire financial year, full year's interest of

\text{₦}8,000

is payable.

Adım Adım Çözüm

1

Determine the face (nominal) value of debentures and interest percentage rate.

Nominal value =

\text{₦}100,000

; Interest rate =

8\%

per annum.

Debenture interest is calculated on the nominal value of debentures issued.

2

Compute the full annual interest payable.

Interest =

\text{₦}100,000 \times 0.08 = \text{₦}8,000

.

The debentures were held for the entire 12-month period from 1st January 2025 to 31st December 2025.

Anahtar Kavram

Calculation of debenture interest based on nominal value and coupon rate

Soru 1244Soru →

Kano Industrial Processing Ltd provides the following figures extracted from its books for the financial year ended 31 December 2025:

- Raw materials inventory (1 January 2025): $₦45,000$
- Purchases of raw materials: $₦220,000$
- Carriage inwards on raw materials: $₦12,000$
- Returns outwards of raw materials: $₦8,000$
- Raw materials inventory (31 December 2025): $₦35,000$
- Direct wages paid: $₦150,000$ (with $₦10,000$ accrued at year-end)
- Direct factory expenses: $₦25,000$
- Factory power and lighting paid: $₦40,000$ (includes $₦4,000$ prepaid for 2026)
- Factory supervisor's salary: $₦65,000$
- Depreciation of factory plant and machinery: $₦30,000$
- Work-in-progress inventory (1 January 2025): $₦28,000$
- Work-in-progress inventory (31 December 2025): $₦34,000$

What is the total Cost of Production transferred to the Trading Account for the year ended 31 December 2025?

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Cevap: 544000

Cevap

The total Cost of Production transferred to the Trading Account is ₦544,000.

The Cost of Production is calculated by aggregating Prime Cost (

₦419,000

) and Total Factory Overheads (

₦131,000

), yielding a gross production cost of

₦550,000

. Adjusting for Work-in-Progress by adding Opening WIP (

₦28,000

) and subtracting Closing WIP (

₦34,000

) results in a final Cost of Production of

₦544,000

.

Adım Adım Çözüm

1

Calculate Cost of Raw Materials Consumed

₦234,000

Cost of Raw Materials Consumed is calculated as Opening Stock (

₦45,000

) + Purchases (

₦220,000

) + Carriage Inwards (

₦12,000

) - Returns Outwards (

₦8,000

) - Closing Stock (

₦35,000

).

2

Calculate Direct Costs and Prime Cost

₦419,000

Direct Wages are adjusted for year-end accrual (

₦150,000 + ₦10,000 = ₦160,000

). Prime Cost = Raw Materials Consumed (

₦234,000

) + Direct Wages (

₦160,000

) + Direct Expenses (

₦25,000

).

3

Calculate Factory Overheads

₦131,000

Factory Power is adjusted for prepayment (

₦40,000 - ₦4,000 = ₦36,000

). Total Factory Overheads = Factory Power (

₦36,000

) + Supervisor's Salary (

₦65,000

) + Factory Plant Depreciation (

₦30,000

).

4

Calculate Net Cost of Production including Work-in-Progress adjustments

₦544,000

Cost of Production = Prime Cost (

₦419,000

) + Factory Overheads (

₦131,000

) + Opening WIP (

₦28,000

) - Closing WIP (

₦34,000

) = ₦544,000.

Anahtar Kavram

Preparation of Manufacturing Account and Cost of Production

Tahmini Süre:3m 0s

Soru 1245Soru →

Tunde consigned 500 packages of merchandise to Emeka to sell on commission. The commission terms agreed upon in the consignment contract are as follows:
- Ordinary Commission: $5\%$ on total gross sales.
- Del-Credere Commission: $2.5\%$ on credit sales.
- Overriding Commission: $10\%$ on any excess selling price realized above the benchmark price of $\text{₦}1,800$ per package.

During the trading period, Emeka reported the following sales transactions:
- $200$ packages sold for cash at $\text{₦}2,000$ per package.
- $150$ packages sold on credit at $\text{₦}2,200$ per package.
- $50$ packages sold for cash at $\text{₦}1,800$ per package.

What is the total commission earned by Emeka in Naira ( $\text{₦}$ )?

Cevabı ve açıklamayı göster

Cevap: 59250

Cevap

The total commission earned by Emeka is

\text{₦}59,250

.

The correct total commission is

\text{₦}59,250

. Ordinary commission (

5\%

of total sales of

\text{₦}820,000

) equals

\text{₦}41,000

. Del-credere commission (

2.5\%

of credit sales of

\text{₦}330,000

) equals

\text{₦}8,250

. Overriding commission (

10\%

of the

\text{₦}100,000

total price excess over

\text{₦}1,800

per package) equals

\text{₦}10,000

. Adding these three amounts yields

\text{₦}41,000 + \text{₦}8,250 + \text{₦}10,000 = \text{₦}59,250

.

Adım Adım Çözüm

1

Calculate the total gross sales and break them down into cash sales and credit sales.

Cash Sales:

(200 \times \text{₦}2,000) + (50 \times \text{₦}1,800) = \text{₦}400,000 + \text{₦}90,000 = \text{₦}490,000

.
Credit Sales:

150 \times \text{₦}2,200 = \text{₦}330,000

.
Total Gross Sales:

\text{₦}490,000 + \text{₦}330,000 = \text{₦}820,000

.

Different types of commission apply to different bases (total sales, credit sales, or excess realized).

2

Compute the Ordinary Commission.

Ordinary Commission =

5\% \times \text{₦}820,000 = \text{₦}41,000

.

Ordinary commission is calculated on the total gross sales unless specified otherwise.

3

Compute the Del-Credere Commission.

Del-Credere Commission =

2.5\% \times \text{₦}330,000 = \text{₦}8,250

.

The contract explicitly states that del-credere commission is calculated at

2.5\%

on credit sales.

4

Compute the Overriding Commission.

Excess price on 200 cash packages:

200 \times (\text{₦}2,000 - \text{₦}1,800) = \text{₦}40,000

.
Excess price on 150 credit packages:

150 \times (\text{₦}2,200 - \text{₦}1,800) = \text{₦}60,000

.
Excess price on 50 cash packages sold at

\text{₦}1,800

:

50 \times (\text{₦}1,800 - \text{₦}1,800) = \text{₦}0

.
Total Excess Realized =

\text{₦}40,000 + \text{₦}60,000 = \text{₦}100,000

.
Overriding Commission =

10\% \times \text{₦}100,000 = \text{₦}10,000

.

Overriding commission is awarded on the premium price achieved above the benchmark per package.

5

Sum up all three commissions to determine total earnings.

Total Commission =

\text{₦}41,000 + \text{₦}8,250 + \text{₦}10,000 = \text{₦}59,250

.

The consignee is entitled to the aggregate of ordinary, del-credere, and overriding commissions as per the agreement.

Anahtar Kavram

Computation of Ordinary, Del-Credere, and Overriding Commissions

Soru 1246Soru →

During the financial year ended 31 December 2025, Maritime Workers Social Club received $\text{N}150,000$ in cash as subscriptions from its members. At 1 January 2025, subscriptions owing by members amounted to $\text{N}12,000$ , while subscriptions paid in advance were $\text{N}8,000$ . At 31 December 2025, subscriptions owing by members were $\text{N}15,000$ , and subscriptions paid in advance amounted to $\text{N}10,000$ . What amount should be credited to the Income and Expenditure Account as subscription income for the year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 151000

Cevap

The subscription income to be credited to the Income and Expenditure Account for the year ended 31 December 2025 is

\text{N}151,000

.

Under accrual accounting for non-profit entities, subscription income for the year is computed by starting with cash received (

\text{N}150,000

), adding closing arrears (

\text{N}15,000

) and opening advance (

\text{N}8,000

), and subtracting opening arrears (

\text{N}12,000

) and closing advance (

\text{N}10,000

), giving

\text{N}151,000

.

Adım Adım Çözüm

1

Identify total cash received for subscriptions

Cash received =

\text{N}150,000

This is the initial cash flow entry from the Receipts and Payments Account.

2

Adjust for subscriptions in arrears at the beginning and end of the financial year

Add ending arrears (

\text{N}15,000

) and subtract opening arrears (

\text{N}12,000

)

Ending arrears relate to the current period and must be accrued. Opening arrears relate to the previous period and must be removed from current receipts.

3

Adjust for subscriptions in advance at the beginning and end of the financial year

Add opening advance (

\text{N}8,000

) and subtract ending advance (

\text{N}10,000

)

Opening advance was received in the past for the current period, so it is added. Ending advance is received now for the future period, so it is deducted.

4

Compute final subscription income figure

\text{N}150,000 + \text{N}15,000 - \text{N}12,000 + \text{N}8,000 - \text{N}10,000 = \text{N}151,000

Applying accrual accounting rules yields the true earned subscription income for the accounting year.

Anahtar Kavram

Accrual principle applied to subscription income in non-profit organization accounts

Soru 1247Soru →

Alhaji Bello operates a boutique in Kano and maintains single-entry accounting records. For the financial year ended 31st December 2025, the following details were extracted from his records:

- Opening inventory: $₦38,000$
- Purchases: $₦280,000$
- Carriage inwards: $₦14,000$
- Returns outwards: $₦12,000$
- Goods withdrawn for personal use (at cost): $₦8,000$
- Closing inventory physically counted: $₦42,000$

If Alhaji Bello sells all goods at a uniform mark-up of $25\%$ on cost, what is his total sales revenue (in $₦$ ) for the year?

Cevabı ve açıklamayı göster

Cevap: 337500

Cevap

The total sales revenue for the year ended 31st December 2025 is

₦337,500

.

To compute total sales revenue, first determine the Cost of Goods Sold (COGS). Opening Inventory (

₦38,000

) plus Net Purchases (

₦280,000 + ₦14,000 - ₦12,000 - ₦8,000 = ₦274,000

) minus Closing Inventory (

₦42,000

) gives a COGS of

₦270,000

. Applying the

25\%

mark-up on cost gives a Gross Profit of

₦67,500

(

0.25 \times ₦270,000

). Adding Gross Profit to COGS gives total sales revenue of

₦337,500

.

Adım Adım Çözüm

1

Calculate the net cost of purchases available for resale

Net Purchases =

₦274,000

Carriage inwards is added to purchases as a direct cost of bringing inventory to the business, while returns outwards and owner drawings at cost must be deducted.

2

Determine the Cost of Goods Sold (COGS)

COGS =

₦270,000

Cost of Goods Sold is calculated by adding opening inventory to net purchases and deducting closing inventory.

3

Apply the

25\%

mark-up rate to COGS to derive Total Sales Revenue

Total Sales Revenue =

₦337,500

Mark-up represents gross profit expressed as a percentage of cost of sales (

25\%

of

₦270,000 = ₦67,500

). Adding gross profit to cost of sales yields total sales revenue.

Anahtar Kavram

Application of Mark-up to Cost of Goods Sold to determine Total Sales Revenue

Soru 1248Soru →

Premier Logistics Plc had an issued share capital of $2,000,000$ ordinary shares of $\text{₦}1.00$ each, a Share Premium account balance of $\text{₦}350,000$ , and a General Reserve balance of $\text{₦}450,000$ . The company first made a bonus issue of 1 new share for every 4 ordinary shares held, utilizing the Share Premium account to the maximum extent permissible before drawing from the General Reserve. Immediately following the bonus issue, the company declared a rights issue of 1 share for every 5 shares held at an issue price of $\text{₦}1.40$ per share. If all rights shares were fully subscribed and paid for, what is the final balance in the Share Premium account (in $\text{₦}$ )?

Cevabı ve açıklamayı göster

Cevap: 200000

Cevap

The final balance in the Share Premium account after completing both the bonus issue and rights issue is ₦200,000.

The bonus issue requires ₦500,000 of reserves (500,000 shares at ₦1.00 nominal value). Capitalizing the full ₦350,000 Share Premium balance leaves ₦0 in Share Premium. The subsequent rights issue of 1 for 5 on the post-bonus base of 2,500,000 shares yields 500,000 rights shares. Each rights share generates a premium of ₦0.40 (₦1.40 - ₦1.00), giving a total premium of ₦200,000. Adding this to the zero balance results in a final Share Premium balance of ₦200,000.

Adım Adım Çözüm

1

Calculate the number and total nominal value of bonus shares issued.

500,000 bonus shares with a total nominal value of ₦500,000.

Bonus shares are issued based on existing share capital of 2,000,000 shares at a 1 for 4 ratio.

2

Account for the capitalization of reserves to fund the bonus issue.

The Share Premium account is reduced from ₦350,000 to ₦0, and General Reserve is reduced by ₦150,000.

Non-distributable reserves like Share Premium must be utilized first before distributable reserves.

3

Determine total ordinary shares outstanding before the rights issue.

2,500,000 ordinary shares.

Original 2,000,000 shares plus the newly issued 500,000 bonus shares.

4

Calculate the number of rights shares and the premium generated per share.

500,000 rights shares generating a total premium of ₦200,000.

The 1 for 5 rights issue is based on post-bonus shares (2,500,000) at a premium of ₦0.40 per share (₦1.40 - ₦1.00).

5

Compute the final balance of the Share Premium account.

₦200,000.

Adding the ₦200,000 premium from the rights issue to the ₦0 post-bonus Share Premium balance.

Anahtar Kavram

Accounting for Bonus and Rights Issues and Reserve Capitalization Order

Tahmini Süre:3m 0s

Soru 1249Soru →

Bello Traders operates a business with incomplete records. The following details were extracted from the business records for the year ended 31 December 2025:

Item	Amount (₦)
Debtors balance at 1 January 2025	45,000
Debtors balance at 31 December 2025	62,000
Cash received from trade debtors	215,000
Discount allowed to trade debtors	4,500
Returns inwards	6,000
Bad debts written off	3,500
Cheques received from debtors dishonoured	5,000
Cash sales for the year	88,000

Calculate the total sales for the year ended 31 December 2025.

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Cevap: 329000

Cevap

The total sales for the year ended 31 December 2025 is ₦329,000.

The total sales of ₦329,000 is determined by adding derived credit sales (₦241,000) obtained from the Total Debtors Control Account to cash sales (₦88,000).

Adım Adım Çözüm

1

Derive Credit Sales using the Total Debtors Control Account.

Credit side total equals ₦291,000. Subtracting the known debit side items (₦45,000 opening debtors + ₦5,000 dishonoured cheques = ₦50,000) yields Credit Sales of ₦241,000.

Dishonoured cheques must be debited back to the debtors control account, while cash received, discounts allowed, returns inwards, bad debts, and closing balance are credited.

2

Calculate Total Sales by combining derived Credit Sales with Cash Sales.

Total Sales = ₦241,000 + ₦88,000 = ₦329,000.

Total sales comprises both credit sales derived from the control account and cash sales made during the trading period.

Anahtar Kavram

Derivation of credit sales from total debtors control account and addition of cash sales to determine total turnover.

Soru 1250Soru →

Danladi Manufacturing Plc forfeited $2,500$ ordinary shares of $₦1.00$ nominal value each due to non-payment of the final call of $₦0.30$ per share. All of the forfeited shares were subsequently reissued to a new subscriber as fully paid at $₦0.80$ per share. What is the net amount (in $₦$ ) transferred to the Capital Reserve account?

Cevabı ve açıklamayı göster

Cevap: 1250

Cevap

The net amount transferred to the Capital Reserve account is ₦1,250.

The total amount received on the

2,500

forfeited shares was

2,500 \times ₦0.70 = ₦1,750

. When the shares are reissued at

₦0.80

per share, the company grants a discount of

₦0.20

per share (

2,500 \times ₦0.20 = ₦500

). The net surplus remaining in the Forfeited Shares account (

₦1,750 - ₦500 = ₦1,250

) is credited to the Capital Reserve account.

Adım Adım Çözüm

1

Determine the amount paid up per share prior to forfeiture

₦0.70 per share (₦1.00 called-up nominal value minus ₦0.30 unpaid call)

Only cash actually received from the defaulting shareholder is credited to the Forfeited Shares account.

2

Calculate the total credit balance in the Forfeited Shares account

2,500 shares × ₦0.70 = ₦1,750

This represents the total cash forfeited on the 2,500 shares.

3

Compute the discount allowed upon share reissue

2,500 shares × (₦1.00 - ₦0.80) = ₦500

The maximum discount allowed on reissue cannot exceed the amount previously forfeited per share.

4

Calculate the surplus balance transferred to Capital Reserve

₦1,750 - ₦500 = ₦1,250

The net profit realized on share forfeiture and reissue is a capital gain and must be transferred from the Forfeited Shares account to the Capital Reserve account.

Anahtar Kavram

Calculation of net capital gain on share reissue transferred to Capital Reserve

Soru 1251Soru →

Nova Crest Logistics Plc issued $90,000$ ordinary shares of $\text{₦}3.00$ nominal value each at a discount of $5\%$ . Assuming all shares were fully subscribed and paid for, what is the total net cash amount, in $\text{₦}$ , received by the company from this share issue?

Cevabı ve açıklamayı göster

Cevap: 256500

Cevap

The total net cash amount received by the company from the share issue is ₦256,500.

The issue price per share is determined by subtracting the 5% discount (₦0.15) from the nominal value of ₦3.00, yielding ₦2.85 per share. Multiplying ₦2.85 by 90,000 shares gives the total net cash proceeds of ₦256,500 received into the bank account.

Adım Adım Çözüm

1

Calculate the discount per share

₦0.15 per share

Discount is 5% of the nominal value (5% of ₦3.00 = ₦0.15).

2

Calculate the issue price per share

₦2.85 per share

When shares are issued at a discount, issue price = nominal value minus discount (₦3.00 - ₦0.15 = ₦2.85).

3

Calculate the total net cash received

₦256,500

Total cash received equals the number of shares issued multiplied by the issue price per share (90,000 × ₦2.85 = ₦256,500).

Anahtar Kavram

Issue of Shares at a Discount

Soru 1252Soru →

Alhaji Bello consigned $1,000$ packages of goods to Chidi with instructions to sell them at a minimum benchmark price of ₦ $1,500$ per package. Chidi sold $400$ packages for cash at ₦ $1,800$ each and $600$ packages on credit at ₦ $2,000$ each. The consignment agreement stipulates an ordinary commission of $5\%$ on total sales, a del-credere commission of $2.5\%$ on credit sales, and an overriding commission of $10\%$ on any surplus sales value realized above the minimum benchmark price. What is the total commission payable to Chidi in Naira?

Cevabı ve açıklamayı göster

Cevap: 168000

Cevap

The total commission payable to Chidi is ₦168,000.

Total sales generated are

₦1,920,000

(

₦720,000

cash +

₦1,200,000

credit). Ordinary commission at

5\%

equals

₦96,000

. Del-credere commission at

2.5\%

on credit sales of

₦1,200,000

equals

₦30,000

. Overriding commission at

10\%

on the surplus of

₦420,000

over the benchmark price of

₦1,500,000

equals

₦42,000

. Combining these three amounts yields a total commission of

₦168,000

.

Adım Adım Çözüm

1

Calculate cash sales, credit sales, and total sales revenue

Cash Sales =

400 \times ₦1,800 = ₦720,000

; Credit Sales =

600 \times ₦2,000 = ₦1,200,000

; Total Sales =

₦1,920,000

Determining gross revenue is necessary to compute ordinary and overriding commissions.

2

Calculate Ordinary Commission

5\% \times ₦1,920,000 = ₦96,000

Ordinary commission is earned on overall gross sales value.

3

Calculate Del-Credere Commission

2.5\% \times ₦1,200,000 = ₦30,000

Del-credere commission is calculated specifically on credit sales.

4

Calculate Overriding Commission

Benchmark Minimum Value =

1,000 \times ₦1,500 = ₦1,500,000

; Surplus Realized =

₦1,920,000 - ₦1,500,000 = ₦420,000

; Overriding Commission =

10\% \times ₦420,000 = ₦42,000

Overriding commission rewards the agent for securing a selling price higher than the minimum threshold specified by the consignor.

5

Sum up all commission elements

₦96,000 + ₦30,000 + ₦42,000 = ₦168,000

The total payout to the consignee is the sum of ordinary, del-credere, and overriding commissions.

Anahtar Kavram

Consignee's Commission: Ordinary, Del-Credere, and Overriding Commission Computation

Soru 1253Soru →

At 31st December 2024, the books of Folake Trading Enterprise showed Trade Receivables of $\text{₦}120,000$ and an existing Provision for Doubtful Debts of $\text{₦}4,500$ . An additional bad debt of $\text{₦}8,000$ was discovered and is to be written off before creating a $5\%$ provision for doubtful debts on the remaining receivables. What amount (in Naira) should be charged to the Profit and Loss Account as the provision for doubtful debts for the year?

Cevabı ve açıklamayı göster

Cevap: 1100

Cevap

The amount to be charged to the Profit and Loss Account as an expense for provision for doubtful debts is

\text{₦}1,100

.

The trade receivables remaining after writing off the additional bad debt of

\text{₦}8,000

is

\text{₦}112,000

. Calculating

5\%

on

\text{₦}112,000

gives a required provision of

\text{₦}5,600

. Since the existing provision brought forward is

\text{₦}4,500

, the net adjustment required is an increase of

\text{₦}5,600 - \text{₦}4,500 = \text{₦}1,100

, which is debited to the Profit and Loss Account.

Adım Adım Çözüm

1

Calculate net trade receivables after writing off additional bad debts

\text{₦}120,000 - \text{₦}8,000 = \text{₦}112,000

New bad debts must be deducted from total trade receivables before calculating the new provision percentage.

2

Compute the required closing provision for doubtful debts

5\% \times \text{₦}112,000 = \text{₦}5,600

The provision percentage applies to net trade receivables.

3

Determine the increase in provision to be charged as expense

\text{₦}5,600 - \text{₦}4,500 = \text{₦}1,100

Only the difference between the new provision required and the existing provision is charged to the Profit and Loss Account.

Anahtar Kavram

Adjustment of Provision for Doubtful Debts with Additional Bad Debts

Soru 1254Soru →

Enugu Head Office operates a dependent branch in Aba, supplying all goods at cost price. For the year ended 31 December 2025, the following details were extracted from the books:

Transaction	Amount (₦)
Stock at branch (1 January 2025)	15,000
Goods sent to branch	120,000
Goods returned to head office	5,000
Cash sales	85,000
Credit sales	40,000
Branch operating expenses	12,000
Stock at branch (31 December 2025)	18,000

What is the net profit earned by the Aba branch for the year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 1000

Cevap

The net profit earned by the Aba branch for the year ended 31 December 2025 is ₦1,000.

Total revenue is ₦125,000 (cash sales ₦85,000 + credit sales ₦40,000). Cost of goods sold is ₦112,000 (opening stock ₦15,000 + net goods sent ₦115,000 - closing stock ₦18,000). Gross profit is ₦13,000 (₦125,000 - ₦112,000). Subtracting branch expenses of ₦12,000 gives a net profit of ₦1,000.

Adım Adım Çözüm

1

Calculate Total Turnover (Sales) generated by the branch

Total Sales = ₦85,000 + ₦40,000 = ₦125,000

Branch sales comprise both cash sales remitted and credit sales made during the accounting year.

2

Calculate Net Goods Sent to Branch

Net Goods Sent = ₦120,000 - ₦5,000 = ₦115,000

Goods returned by the branch to Head Office reduce the total cost of inventory supplied to the branch.

3

Determine Cost of Goods Sold (COGS)

COGS = Opening Stock (₦15,000) + Net Goods Sent (₦115,000) - Closing Stock (₦18,000) = ₦112,000

COGS is calculated by adding net purchases/deliveries to opening stock and deducting closing stock.

4

Compute Gross Profit and Net Profit

Gross Profit = ₦125,000 - ₦112,000 = ₦13,000; Net Profit = ₦13,000 - ₦12,000 = ₦1,000

Deducting cost of sales from turnover yields gross profit, and subtracting branch expenses yields net profit.

Anahtar Kavram

Branch Trading and Profit Calculation at Cost Price

Soru 1255Soru →

The trial balance of Kalu Enterprises as at 31st December 2025 showed Trade Debtors of $₦520,000$ and an existing Provision for Doubtful Debts of $₦22,000$ .

The following additional information is provided at year-end:
1. An additional debt of $₦40,000$ is confirmed irrecoverable and must be written off.
2. A dishonoured cheque of $₦20,000$ from a debtor was recorded in the cash book but not yet posted to the debtors ledger.
3. A amount of $₦5,000$ was received in cash during the year for a debt written off in 2024, but no entry has been made in the books.
4. Provision for doubtful debts is to be adjusted to $5\%$ of net trade debtors.

Calculate the net amount to be charged to the Profit and Loss Account for bad and doubtful debts for the year ended 31st December 2025 (in ₦).

Cevabı ve açıklamayı göster

Cevap: 38000

Cevap

The net amount to be charged to the Profit and Loss Account for bad and doubtful debts is ₦38,000.

To find the net charge to the Profit and Loss Account, first update Trade Debtors by adding the dishonoured cheque (

₦520,000 + ₦20,000 = ₦540,000

) and deducting the additional bad debt (

₦540,000 - ₦40,000 = ₦500,000

). The required provision is

5\% \times ₦500,000 = ₦25,000

. Comparing this with the existing provision of

₦22,000

gives an increase of

₦3,000

. The net charge to Profit and Loss is the sum of additional bad debt (

₦40,000

) plus provision increase (

₦3,000

) minus bad debt recovered (

₦5,000

), yielding

₦38,000

.

Adım Adım Çözüm

1

Calculate the updated trade debtors balance prior to bad debt write-off

Gross Debtors =

₦520,000 + ₦20,000 = ₦540,000

A dishonoured cheque increases the amount owed by trade debtors and must be added back to the trial balance figure.

2

Deduct additional bad debts to find net debtors subject to provision

Adjusted Trade Debtors =

₦540,000 - ₦40,000 = ₦500,000

Additional bad debts must be written off from gross debtors before computing the new provision.

3

Compute the required new provision for doubtful debts balance

New Provision =

5\% \times ₦500,000 = ₦25,000

The provision rate applies to the collectible debtors balance after all bad debt adjustments.

4

Determine the net change in the provision for doubtful debts account

Increase in Provision =

₦25,000 - ₦22,000 = ₦3,000

Since the required provision (

₦25,000

) exceeds the existing provision (

₦22,000

), an increase of

₦3,000

is debited to the Profit and Loss Account.

5

Combine all bad debts items to calculate the net charge to Profit and Loss Account

Net P&L Charge =

₦40,000 \text{ (Bad Debt)} + ₦3,000 \text{ (Provision Increase)} - ₦5,000 \text{ (Bad Debt Recovered)} = ₦38,000

Bad debts written off and provision increases represent expenses (debits), while bad debts recovered represent revenue/credit adjustments.

Anahtar Kavram

Adjustments for bad debts, dishonoured cheques, bad debts recovered, and provision for doubtful debts in final accounts

Soru 1256Soru →

On 1 January 2024, Aba Commercial Ventures had a Machinery account balance at cost of $₦8,000,000$ and a Provision for Depreciation on Machinery credit balance of $₦1,200,000$ . Depreciation is charged annually at $15\%$ using the reducing balance method. What is the total balance of the Provision for Depreciation on Machinery account to be carried forward as at 31 December 2024?

Cevabı ve açıklamayı göster

Cevap: 2220000

Cevap

The total balance of the Provision for Depreciation on Machinery account as at 31 December 2024 is

₦2,220,000

.

To determine the closing Provision for Depreciation balance on 31 December 2024 under the reducing balance method, first compute the opening net book value by subtracting opening provision from cost (

₦8,000,000 - ₦1,200,000 = ₦6,800,000

). Next, calculate the 2024 depreciation charge of

15\%

on

₦6,800,000

, which equals

₦1,020,000

. Finally, add this current charge to the opening provision of

₦1,200,000

to obtain the closing balance of

₦2,220,000

.

Adım Adım Çözüm

1

Determine the opening net book value of the machinery on 1 January 2024.

Net Book Value =

₦8,000,000 - ₦1,200,000 = ₦6,800,000

.

Under the reducing balance method, annual depreciation is calculated on the net book value (Cost minus Accumulated Depreciation) at the start of the period.

2

Calculate the current year's depreciation charge for 2024.

Depreciation for 2024 =

15\% \times ₦6,800,000 = ₦1,020,000

.

Applying the fixed rate of

15\%

to the net book value yields the annual provision expense.

3

Determine the accumulated Provision for Depreciation balance at year-end.

Closing Provision =

₦1,200,000 + ₦1,020,000 = ₦2,220,000

.

The provision for depreciation account accumulates total depreciation over time, so the current year expense is added to the opening balance.

Anahtar Kavram

Accounting Treatment of Provision for Depreciation under the Reducing Balance Method

Soru 1257Soru →

The following balances were extracted from the accounting records of Plateau Manufacturing Ltd for the financial year ended 31 December 2025:

Accounting Item	Amount (₦)
Opening inventory of raw materials	45,000
Purchases of raw materials	180,000
Carriage inwards on raw materials	12,000
Closing inventory of raw materials	35,000
Direct wages paid (₦5,000 accrued at year end)	90,000
Direct factory expenses	28,000
Factory supervisor's salary	40,000
Depreciation of factory plant	35,000
Factory power and fuel	22,000
Opening work-in-progress	18,000
Closing work-in-progress	24,000

What is the total Cost of Production for the year?

Cevabı ve açıklamayı göster

Cevap: 416000

Cevap

The Cost of Production for the year is ₦416,000.

The Cost of Production is ₦416,000. It is derived by first calculating Raw Materials Consumed (₦45,000 + ₦180,000 + ₦12,000 - ₦35,000 = ₦202,000). Adding Direct Labor inclusive of accruals (₦90,000 + ₦5,000 = ₦95,000) and Direct Expenses (₦28,000) yields a Prime Cost of ₦325,000. Adding total Factory Overheads (₦40,000 + ₦35,000 + ₦22,000 = ₦97,000) gives total factory costs of ₦422,000. Finally, adjusting for Work-in-Progress (+ ₦18,000 Opening WIP - ₦24,000 Closing WIP) gives ₦416,000.

Adım Adım Çözüm

1

Calculate Cost of Raw Materials Consumed

₦202,000

Raw materials consumed equals opening raw materials inventory (��45,000) plus purchases (₦180,000) plus carriage inwards (₦12,000) minus closing raw materials inventory (₦35,000).

2

Calculate Prime Cost

₦325,000

Prime Cost is the sum of raw materials consumed (₦202,000), total direct wages incurred including year-end accruals (₦90,000 paid + ₦5,000 accrued = ₦95,000), and direct expenses (₦28,000).

3

Calculate Total Factory Overheads

₦97,000

Factory Overheads comprise indirect manufacturing expenses: factory supervisor salary (₦40,000), plant depreciation (₦35,000), and factory power and fuel (₦22,000).

4

Adjust for Work-in-Progress to determine Cost of Production

₦416,000

Cost of Production is Prime Cost (₦325,000) plus Factory Overheads (₦97,000) plus Opening Work-in-Progress (₦18,000) minus Closing Work-in-Progress (₦24,000).

Anahtar Kavram

Calculation of Manufacturing Account components including Prime Cost, Factory Overheads, and Work-in-Progress adjustments.

Soru 1258Soru →

Calabar Head Office operates a dependent branch in Uyo, invoicing all goods at cost price. For the year ended 31 December 2025, the following records were extracted from the branch accounting books:

Transaction Details	Amount (₦)
Stock at branch (1 January 2025)	45,000
Branch debtors (1 January 2025)	28,000
Goods sent to branch	320,000
Goods returned by branch to head office	12,000
Cash received from branch debtors	215,000
Cash sales at branch	140,000
Credit sales at branch	230,000
Returns inwards from branch debtors	5,000
Bad debts written off at branch	3,000
Discount allowed to branch debtors	4,000
Branch operating expenses paid by head office	38,000
Stock at branch (31 December 2025)	58,000

Based on the information provided, what is the net profit earned by the Uyo branch for the year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 25000

Cevap

The net profit earned by the Uyo branch for the year ended 31 December 2025 is ₦25,000.

The correct net profit is computed by preparing the Branch Account in the Head Office ledger. The Branch Account is credited with cash remitted (₦355,000), closing stock (₦58,000), and closing debtors (₦31,000), totaling ₦444,000. It is debited with opening stock (₦45,000), opening debtors (₦28,000), net goods sent to branch (₦308,000), and expenses paid by head office (₦38,000), totaling ₦419,000. The surplus of credits over debits represents the net profit of ₦25,000.

Adım Adım Çözüm

1

Calculate the closing balance of Branch Debtors Account

Closing Debtors = ₦31,000

Branch Debtors Account is debited with opening debtors (₦28,000) and credit sales (₦230,000), and credited with cash received (₦215,000), returns inwards (₦5,000), bad debts (₦3,000), and discount allowed (₦4,000). Balancing the account yields ₦31,000.

2

Calculate total cash remitted from branch to Head Office

Total Cash Remitted = ₦355,000

In a dependent branch system, all cash collected (cash sales of ₦140,000 plus collections from debtors of ₦215,000) is remitted directly to the head office.

3

Calculate net cost of goods supplied to the branch

Net Goods Sent = ₦308,000

Goods sent to branch (₦320,000) minus goods returned by branch to head office (₦12,000) gives the net inventory supplied at cost.

4

Compile the Branch Account to compute branch net profit

Net Profit = ₦25,000

Credit side (Cash Remitted ₦355,000 + Closing Stock ₦58,000 + Closing Debtors ₦31,000 = ₦444,000) minus Debit side (Opening Stock ₦45,000 + Opening Debtors ₦28,000 + Net Goods Sent ₦308,000 + Operating Expenses ₦38,000 = ₦419,000) leaves a net profit balance of ₦25,000.

Anahtar Kavram

Accounting for Dependent Branches at Cost Price

Soru 1259Soru →

The following details relate to the bar operations of Apex Recreation Club for the year ended 31 December 2025:

- Bar inventory (1 January 2025): ₦12,500
- Bar inventory (31 December 2025): ₦16,200
- Payments to bar suppliers (creditors): ₦64,000
- Amount owing to bar suppliers (1 January 2025): ₦8,400
- Amount owing to bar suppliers (31 December 2025): ₦11,100
- Bar sales (takings): ₦120,000
- Bar steward salary paid: ₦15,000 (₦2,500 was accrued on 31 December 2025)
- Bar license fee paid: ₦4,000 (₦1,000 was prepaid for 2026)

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

Cevabı ve açıklamayı göster

Cevap: 36500

Cevap

The net profit transferred to the Income and Expenditure Account is ₦36,500.

The net bar profit transferred to the Income and Expenditure account is determined by first computing total credit purchases (₦64,000 + ₦11,100 - ₦8,400 = ₦66,700), then calculating the cost of goods sold (₦12,500 + ₦66,700 - ₦16,200 = ₦63,000) to find the gross profit of ₦57,000 (₦120,000 - ₦63,000). Finally, deducting total adjusted bar expenses (₦17,500 steward salary + ₦3,000 license fee = ₦20,500) leaves a net profit of ₦36,500.

Adım Adım Çözüm

1

Calculate Total Purchases of Bar Goods

Purchases = ₦66,700

Total credit purchases equal cash payments to suppliers plus closing creditors minus opening creditors (₦64,000 + ₦11,100 - ₦8,400).

2

Determine Cost of Bar Goods Sold

Cost of Goods Sold = ₦63,000

Cost of Goods Sold is calculated as Opening Inventory + Purchases - Closing Inventory (₦12,500 + ₦66,700 - ₦16,200).

3

Compute Bar Gross Profit

Gross Profit = ₦57,000

Gross profit is Total Bar Sales minus Cost of Bar Goods Sold (₦120,000 - ₦63,000).

4

Calculate Total Adjusted Bar Operating Expenses

Total Expenses = ₦20,500

Adjust steward salary for accrued wages (₦15,000 + ₦2,500 = ₦17,500) and bar license fee for prepaid amount (₦4,000 - ₦1,000 = ₦3,000).

5

Determine Bar Net Profit Transferred

Net Profit = ₦36,500

Deduct total bar operating expenses from bar gross profit (₦57,000 - ₦20,500).

Anahtar Kavram

Calculation of Net Profit from Bar Operations in Non-Profit Accounting

Soru 1260Soru →

Crestview Manufacturing Ltd has an issued share capital of $800,000$ ordinary shares of $\text{₦}0.50$ each. The board of directors resolves to make a bonus issue of $1$ new ordinary share for every $4$ ordinary shares held. What is the total nominal value (in $\text{₦}$ ) of the bonus shares issued?

Cevabı ve açıklamayı göster

Cevap: 100000

Cevap

The total nominal value of the bonus shares issued is ₦100,000.

To find the total nominal value of bonus shares issued, first calculate the quantity of bonus shares (800,000 existing shares divided by 4 = 200,000 bonus shares). Then multiply this quantity by the nominal value per share (200,000 shares × ₦0.50 = ₦100,000).

Adım Adım Çözüm

1

Determine the number of bonus shares issued.

200,000 shares

The ratio is 1 new share for every 4 existing shares, so dividing 800,000 by 4 yields 200,000 bonus shares.

2

Calculate the monetary nominal value of the bonus shares.

₦100,000

Multiplying 200,000 bonus shares by their par value of ₦0.50 each gives ₦100,000.

Anahtar Kavram

Bonus share capitalization of reserves

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