Tüm alıştırma soruları

Soru 1261Soru →

On 31st December 2025, Folake Enterprises extracted a trial balance showing Trade Receivables of $\text{��}145,000$ and an existing Provision for Doubtful Debts of $\text{₦}4,800$ . During the year-end audit, it was discovered that a bad debt recovery of $\text{₦}2,500$ was erroneously credited to the Trade Receivables account. Additionally, further bad debts of $\text{₦}5,000$ are to be written off. A specific provision of $\text{₦}4,000$ is required for a customer in liquidation, while a general provision of $5\%$ is to be maintained on the remaining trade receivables. Calculate the net amount in Naira ( $\text{₦}$ ) to be charged as Provision for Doubtful Debts in the Income Statement for the year ended 31st December 2025.

Cevabı ve açıklamayı göster

Cevap: 6125

Cevap

The net amount to be charged as Provision for Doubtful Debts in the Income Statement for the year ended 31st December 2025 is

\text{₦}6,125

.

The net amount charged to the Income Statement is

\text{₦}6,125

. Trade receivables are first corrected for the misposted bad debt recovery (

\text{₦}145,000 + \text{₦}2,500 = \text{₦}147,500

), then reduced by additional bad debts (

\text{₦}147,500 - \text{₦}5,000 = \text{₦}142,500

). Deducting the specific provision of

\text{₦}4,000

leaves

\text{₦}138,500

, yielding a

5\%

general provision of

\text{₦}6,925

. The total required provision of

\text{₦}10,925

(

\text{₦}4,000 + \text{₦}6,925

) minus the opening provision of

\text{₦}4,800

gives a net charge of

\text{₦}6,125

.

Adım Adım Çözüm

1

Adjust trade receivables balance to correct the ledger entry error.

Corrected Trade Receivables =

\text{₦}147,500

(i.e.,

\text{₦}145,000 + \text{₦}2,500

).

Crediting the bad debt recovery directly to trade receivables was an error that incorrectly reduced the receivables balance; adding it back restores the true gross receivables balance before adjustments.

2

Deduct additional bad debts written off at year-end.

Adjusted Trade Receivables =

\text{₦}142,500

(i.e.,

\text{₦}147,500 - \text{₦}5,000

).

Irrecoverable debts must be completely written off from gross receivables before estimating provisions.

3

Calculate the total new provision for doubtful debts (specific + general).

Total New Provision Required =

\text{₦}10,925

(Specific:

\text{₦}4,000

; General:

5\% \times \text{₦}138,500 = \text{₦}6,925

).

The specific provision of

\text{₦}4,000

is isolated first, leaving

\text{₦}138,500

(

\text{₦}142,500 - \text{₦}4,000

) on which the general rate of

5\%

is calculated.

4

Determine the net adjustment amount to be charged to the Income Statement.

Income Statement Charge =

\text{₦}6,125

(i.e.,

\text{₦}10,925 - \text{₦}4,800

).

The Income Statement only reflects the increase in provision required from the existing balance of

\text{₦}4,800

to the new target balance of

\text{₦}10,925

.

Anahtar Kavram

Auditing adjustments to trade receivables and multi-tier calculation of specific and general provisions for doubtful debts

Tahmini Süre:3m 0s

Soru 1262Soru →

At 31st December 2025, the ledger of Oluwaseun & Co. showed Trade Debtors of $₦180,000$ and an existing Provision for Doubtful Debts of $₦4,000$ . An additional bad debt of $₦10,000$ is to be written off, and the provision for doubtful debts is to be adjusted to $5\%$ of the remaining trade debtors. What is the net amount of Trade Debtors (in $₦$ ) to be presented in the Balance Sheet as at 31st December 2025?

Cevabı ve açıklamayı göster

Cevap: 161500

Cevap

The net amount of Trade Debtors to be reported in the Balance Sheet is ₦161,500.

To find the net trade debtors figure for the Balance Sheet, first write off the additional bad debt of ₦10,000 from gross debtors of ₦180,000 to get adjusted debtors of ₦170,000. Next, compute the 5% provision on ₦170,000, which equals ₦8,500. Finally, subtract ₦8,500 from ₦170,000 to obtain ₦161,500.

Adım Adım Çözüm

1

Deduct the additional bad debt written off from the initial trade debtors balance.

Adjusted Trade Debtors = ₦180,000 - ₦10,000 = ₦170,000.

Bad debts discovered at year-end must reduce gross trade debtors before calculating the percentage provision.

2

Calculate the new provision for doubtful debts based on the adjusted trade debtors.

Required Provision = 5% × ₦170,000 = ₦8,500.

The provision percentage applies only to collectible trade debtors after all bad debts have been deducted.

3

Subtract the required provision for doubtful debts from the adjusted trade debtors.

Net Trade Debtors = ₦170,000 - ₦8,500 = ₦161,500.

The Balance Sheet reports trade debtors net of the ending provision balance for doubtful debts.

Anahtar Kavram

Calculation of Net Trade Debtors in the Balance Sheet after write-offs and provision adjustments

Soru 1263Soru →

Oasis Beverages Plc issued $5,000$ units of $12\%$ debentures of $\text{₦}100$ each at a discount of $6\%$ , redeemable at a premium of $4\%$ . What is the total loss on issue of debentures (in naira) to be recognized in the books of the company?

Cevabı ve açıklamayı göster

Cevap: 50000

Cevap

The total loss on issue of debentures to be recognized is ₦50,000.

When debentures are issued at a discount and redeemable at a premium, the overall loss on issue consists of both the issue discount (₦30,000) and the redemption premium (₦20,000). Adding these two components together gives a total loss of ₦50,000.

Adım Adım Çözüm

1

Calculate the nominal (face) value of the debentures issued

Nominal Value =

5,000 \times \text{₦}100 = \text{₦}500,000

The nominal value represents the aggregate principal amount of the debentures.

2

Calculate the discount allowed on issue

Discount on Issue =

6\% \times \text{₦}500,000 = \text{₦}30,000

Issuing debentures at a

6\%

discount means receiving

\text{₦}30,000

less than nominal value.

3

Calculate the premium payable on redemption

Premium on Redemption =

4\% \times \text{₦}500,000 = \text{₦}20,000

Redeeming at a

4\%

premium requires paying

\text{₦}20,000

above nominal value at maturity.

4

Calculate the total loss on issue of debentures

Total Loss = Discount on Issue + Premium on Redemption =

\text{₦}30,000 + \text{₦}20,000 = \text{₦}50,000

Both the discount granted at issue and the obligation to pay a premium on redemption constitute total capital losses arising from the debenture issue.

Anahtar Kavram

Accounting for loss on issue of debentures issued at a discount and redeemable at a premium.

Tahmini Süre:1m 30s

Soru 1264Soru →

At the end of the financial year, Kalu Traders has Trade Debtors of $\text{₦}75,000$ and an existing Provision for Doubtful Debts of $\text{₦}1,500$ . If bad debts of $\text{₦}5,000$ are written off and the provision for doubtful debts is to be adjusted to $5\%$ of the remaining debtors, what amount (in $\text{₦}$ ) will be charged to the Profit and Loss Account for provision for doubtful debts?

Cevabı ve açıklamayı göster

Cevap: 2000

Cevap

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

\text{₦}2,000

.

The net trade debtors figure after writing off bad debts is

\text{₦}70,000

(

\text{₦}75,000 - \text{₦}5,000

). The new provision required is

5\%

of

\text{₦}70,000 = \text{₦}3,500

. Subtracting the existing provision balance of

\text{₦}1,500

gives an increase of

\text{₦}2,000

, which is debited as an expense in the Profit and Loss Account.

Adım Adım Çözüm

1

Deduct bad debts written off from total trade debtors

Net Trade Debtors =

\text{₦}75,000 - \text{₦}5,000 = \text{₦}70,000

Provision for doubtful debts is calculated on net trade debtors after deducting bad debts written off.

2

Calculate the new required provision for doubtful debts

New Provision =

5\% \times \text{₦}70,000 = \text{₦}3,500

The required percentage is applied to the remaining trade debtors figure.

3

Calculate the adjustment amount for the Profit and Loss Account

Profit and Loss Charge =

\text{₦}3,500 - \text{₦}1,500 = \text{₦}2,000

Only the net increase in provision is charged as an expense to the Profit and Loss Account.

Anahtar Kavram

Adjustment of Provision for Doubtful Debts

Soru 1265Soru →

On 1st January, Chief Chukwuma commenced business by incorporating the following assets and liabilities into his accounting records via the General Journal: Premises worth $\text{₦}1,800,000$ , Motor Vehicles valued at $\text{₦}750,000$ , Trading Stock of $\text{₦}320,000$ , Trade Debtors of $\text{₦}140,000$ , Prepaid Rent of $\text{₦}30,000$ , Trade Creditors of $\text{₦}210,000$ , Bank Overdraft of $\text{₦}85,000$ , Accrued Electricity Bill of $\text{₦}15,000$ , and a 10% Bank Loan of $\text{₦}400,000$ . What is the exact amount of Capital to be credited in the opening journal entry?

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Cevap: 2330000

Cevap

The amount of Capital to be credited in the opening journal entry is

\text{₦}2,330,000

.

The correct calculation evaluates total assets as

\text{₦}3,040,000

(including Prepaid Rent as an asset) and total liabilities as

\text{₦}710,000

(including Bank Overdraft and Accrued Electricity as liabilities). Subtracting total liabilities from total assets yields a capital balance of

\text{₦}2,330,000

, which balances the debit and credit sides of the opening journal entry.

Adım Adım Çözüm

1

Classify and total all assets to be debited in the opening journal entry

Premises (

\text{₦}1,800,000

) + Motor Vehicles (

\text{₦}750,000

) + Stock (

\text{₦}320,000

) + Debtors (

\text{₦}140,000

) + Prepaid Rent (

\text{₦}30,000

) =

\text{₦}3,040,000

Assets represent economic resources owned or prepaid expenses brought forward, which carry debit balances.

2

Classify and total all liabilities to be credited in the opening journal entry

Trade Creditors (

\text{₦}210,000

) + Bank Overdraft (

\text{₦}85,000

) + Accrued Electricity (

\text{₦}15,000

) + 10% Bank Loan (

\text{₦}400,000

) =

\text{₦}710,000

Liabilities represent obligations owed to outside parties including bank overdrafts and accrued expenses, which carry credit balances.

3

Apply the basic accounting equation to determine opening capital

Capital = Total Assets - Total Liabilities =

\text{₦}3,040,000 - \text{₦}710,000 = \text{₦}2,330,000

In an opening journal entry, the excess of debited assets over credited liabilities represents the owner's capital account balance.

Anahtar Kavram

Opening Journal Entry and Capital Determination

Soru 1266Soru →

Highland Social Club operates a bar to generate additional revenue for its social activities. For the financial year ended 31 December 2025, the following information was extracted from its records:

- Bar inventory on 1 January 2025: ₦45,000
- Bar inventory on 31 December 2025: ₦58,000
- Total cash paid to bar suppliers: ₦320,000
- Bar creditors on 1 January 2025: ₦28,000
- Bar creditors on 31 December 2025: ₦34,000
- Bar wages paid: ₦65,000
- Accrued bar wages as at 31 December 2025: ₦12,000
- Bar takings (sales): ₦540,000

Calculate the net profit from bar operations to be transferred to the Income and Expenditure Account for the year ended 31 December 2025.

Cevabı ve açıklamayı göster

Cevap: 150000

Cevap

The net profit from bar operations to be transferred to the Income and Expenditure Account is ₦150,000.

To find the net profit transferred to the Income and Expenditure account, first compute credit purchases as ₦320,000 + ₦34,000 - ₦28,000 = ₦326,000. Next, calculate the Cost of Bar Goods Sold as ₦45,000 + ₦326,000 - ₦58,000 = ₦313,000. Deducting COGS from total bar takings of ₦540,000 gives a bar gross profit of ₦227,000. Finally, deduct total bar wages of ₦77,000 (₦65,000 paid + ₦12,000 accrued) to obtain the net profit of ₦150,000.

Adım Adım Çözüm

1

Calculate total bar purchases for the year

Total Purchases = ₦320,000 + ₦34,000 - ₦28,000 = ₦326,000

Adjusting cash payments to suppliers for opening creditors (subtracted) and closing creditors (added) yields the total credit purchases for the period.

2

Calculate Cost of Bar Goods Sold (COGS)

COGS = ₦45,000 + ₦326,000 - ₦58,000 = ₦313,000

Cost of goods sold represents the opening stock plus total purchases minus closing stock.

3

Calculate Bar Gross Profit

Bar Gross Profit = ₦540,000 - ₦313,000 = ₦227,000

Gross profit is determined by deducting the cost of goods sold from total bar takings.

4

Deduct total bar wages to find Net Bar Profit

Total Bar Wages = ₦65,000 + ₦12,000 = ₦77,000. Net Bar Profit = ₦227,000 - ₦77,000 = ₦150,000

Bar expenses, including paid and accrued bar wages, are deducted from bar gross profit to arrive at the net profit transferred to the Income and Expenditure Account.

Anahtar Kavram

Bar Trading Account Net Profit Determination

Soru 1267Soru →

Crestline Ventures Plc has an issued share capital of $800,000$ ordinary shares of $\text{₦}0.50$ nominal value each. The company's reserves stand at: Share Premium $\text{₦}85,000$ , General Reserve $\text{₦}120,000$ , and Retained Earnings $\text{₦}95,000$ . The board of directors resolves to make a bonus issue of $1$ new ordinary share for every $4$ ordinary shares held, fully capitalizing the Share Premium account first and using the General Reserve for any remaining balance. What is the remaining balance in the General Reserve account after the capitalization for the bonus issue?

Cevabı ve açıklamayı göster

Cevap: 105000

Cevap

The remaining balance in the General Reserve account after the capitalization for the bonus issue is

\text{₦}105,000

.

The bonus issue requires

200,000

new shares (

\frac{1}{4} \times 800,000

), which amounts to a total nominal value of

\text{₦}100,000

(

200,000 \times \text{₦}0.50

). Utilizing the entire Share Premium balance of

\text{₦}85,000

leaves

\text{₦}15,000

to be funded from the General Reserve. Subtracting

\text{₦}15,000

from the original General Reserve of

\text{₦}120,000

leaves a remaining balance of

\text{₦}105,000

.

Adım Adım Çözüm

1

Calculate the total number of bonus shares issued

200,000 ordinary shares

The bonus issue ratio is

1

new share for every

4

existing shares:

\frac{800,000}{4} = 200,000

shares.

2

Calculate the total nominal value of the bonus shares

₦100,000

Each share has a nominal value of

\text{��}0.50

, so

200,000 \times \text{₦}0.50 = \text{₦}100,000

.

3

Determine the amount required from the General Reserve after utilizing Share Premium

₦15,000

The Share Premium account of

\text{₦}85,000

is fully utilized first, leaving

\text{₦}100,000 - \text{₦}85,000 = \text{₦}15,000

to be taken from the General Reserve.

4

Calculate the final remaining balance in the General Reserve

₦105,000

Subtracting the

\text{₦}15,000

capitalized from the initial

\text{₦}120,000

General Reserve yields

\text{₦}120,000 - \text{₦}15,000 = \text{₦}105,000

.

Anahtar Kavram

Capitalization of Reserves for Bonus Issue

Tahmini Süre:1m 30s

Soru 1268Soru →

A coastal lagoon covers a rectangular section measuring $12\text{ cm}$ by $15\text{ cm}$ on Map A, which is drawn to a scale of $1 : 20,000$ . If Map A is reduced to create Map B with a scale of $1 : 60,000$ , what is the area of the lagoon on Map B in square centimeters?

Cevabı ve açıklamayı göster

Cevap: 20

Cevap

The area of the lagoon on Map B is

20\text{ cm}^2

.

Reducing the scale from

1 : 20,000

to

1 : 60,000

reduces all linear dimensions to

\frac{1}{3}

of their original length. Consequently, the area changes by

\left(\frac{1}{3}\right)^2 = \frac{1}{9}

. Taking the original map area of

180\text{ cm}^2

(

12\text{ cm} \times 15\text{ cm}

) and multiplying by

\frac{1}{9}

gives

20\text{ cm}^2

.

Adım Adım Çözüm

1

Calculate the surface area of the lagoon on the original map (Map A)

Area on Map A =

12\text{ cm} \times 15\text{ cm} = 180\text{ cm}^2

Determining the initial area on paper establishes the base value before scale reduction.

2

Determine the linear scale reduction ratio

Linear scale factor =

\frac{\text{Original Scale Denominator}}{\text{New Scale Denominator}} = \frac{20,000}{60,000} = \frac{1}{3}

Increasing the scale denominator from 20,000 to 60,000 means linear distances shrink to one-third of their original length.

3

Compute the area scale conversion factor

Area scale factor =

\left(\frac{1}{3}\right)^2 = \frac{1}{9}

Map area varies as the square of the linear scale ratio.

4

Calculate the final reduced area on Map B

New area on Map B =

180\text{ cm}^2 \times \frac{1}{9} = 20\text{ cm}^2

Multiplying the original map area by the area scale factor gives the resulting map area.

Anahtar Kavram

When a map scale is reduced, linear dimensions change by the factor

k = \frac{\text{Old Denominator}}{\text{New Denominator}}

, while the map area changes by the factor

k^2

.

Soru 1269Soru →

Chidi, Ngozi, and Ibrahim are partners sharing profits and losses in the ratio $2:2:1$ respectively. Upon Chidi's retirement, the firm's assets and liabilities are revalued, resulting in a net revaluation profit of $\text{₦}15,000$ . What amount in Naira ( $\text{₦}$ ) will be credited to Chidi's capital account as his share of the revaluation profit?

Cevabı ve açıklamayı göster

Cevap: 6000

Cevap

The amount credited to Chidi's capital account as his share of the revaluation profit is ₦6,000.

Upon a partner's retirement, any gain on the revaluation of assets and liabilities is credited to all existing partners in their old profit-sharing ratio (

2:2:1

). Chidi's share is calculated as

\frac{2}{5} \times \text{₦}15,000 = \text{₦}6,000

.

Adım Adım Çözüm

1

Calculate total shares in the profit-sharing ratio

2 + 2 + 1 = 5 total shares

To determine the proportion of profits and losses assigned to each partner.

2

Calculate Chidi's share of the revaluation profit

(2 / 5) * ₦15,000 = ₦6,000

The retiring partner is entitled to their share of revaluation profit calculated using the old profit-sharing ratio prior to retirement.

Anahtar Kavram

Distribution of Revaluation Profit on Partner Retirement

Soru 1270Soru →

A sole trader paid $\text{N}640,000$ for advertising during the year ended 31 December 2025. On 1 January 2025, advertising paid in advance was $\text{N}50,000$ . At the end of the financial year on 31 December 2025, accrued advertising amounted to $\text{N}75,000$ , while prepaid advertising was $\text{N}30,000$ . What is the total advertising expense to be charged to the Profit and Loss Account for the year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 735000

Cevap

The total advertising expense to be charged to the Profit and Loss Account for the year ended 31 December 2025 is

\text{N}735,000

.

According to the accrual concept of accounting, revenue and expenses are recognized in the period to which they relate, not necessarily when cash is received or paid. The formula to calculate the expense charged to the Profit and Loss Account is: Cash Paid + Opening Prepayments - Opening Accruals + Closing Accruals - Closing Prepayments. Substituting the given values gives

640,000 + 50,000 + 75,000 - 30,000 = \text{N}735,000

.

Adım Adım Çözüm

1

Record total cash paid during the financial period

Cash paid =

\text{N}640,000

This is the base cash disbursement for advertising in 2025.

2

Add opening prepayment from 1 January 2025

Adjusted subtotal =

640,000 + 50,000 = \text{N}690,000

Prepayments made in the previous year belong to the current year's expense under the accrual principle.

3

Add closing accrual on 31 December 2025

Adjusted subtotal =

690,000 + 75,000 = \text{N}765,000

Accrued expenses incurred during the current financial year must be recognized regardless of whether payment has occurred.

4

Subtract closing prepayment on 31 December 2025

Final Profit and Loss Charge =

765,000 - 30,000 = \text{N}735,000

Prepayments made in the current year cover the subsequent financial period and must be excluded from the current year's Profit and Loss Account.

Anahtar Kavram

Adjustments for opening/closing accruals and prepayments to determine the accurate period expense under accrual accounting.

Soru 1271Soru →

Suleiman Merchants consigned $500$ crates of goods to Danjuma Traders to sell on their behalf. The agreed commission structure was: an ordinary commission of $5\%$ on total sales, an overriding commission of $15\%$ on any excess sales proceeds realized above the target price of ₦ $4,000$ per crate, and a del-credere commission of $2.5\%$ on credit sales. During the consignment period, Danjuma Traders sold $300$ crates for cash at ₦ $4,500$ per crate and $150$ crates on credit at ₦ $4,800$ per crate. A credit customer subsequently defaulted, creating a bad debt of ₦ $96,000$ . What is the total commission in Naira (₦) earned by Danjuma Traders?

Cevabı ve açıklamayı göster

Cevap: 162000

Cevap

The total commission earned by Danjuma Traders is ₦162,000.

Total commission earned by Danjuma Traders comprises Ordinary Commission (

5\%

of ₦

2,070,000 =

₦

103,500

), Overriding Commission (

15\%

of excess ₦

270,000 =

₦

40,500

), and Del-Credere Commission (

2.5\%

of credit sales ₦

720,000 =

₦

18,000

). Adding these together gives ₦

103,500 + 40,500 + 18,000 = \text{₦}162,000

. Note that bad debt affects the net profit of the consignee but does not reduce the contractually earned commission amount.

Adım Adım Çözüm

1

Calculate Cash Sales, Credit Sales, and Total Sales

Cash Sales =

300 \times \text{₦}4,500 = \text{₦}1,350,000

Credit Sales =

150 \times \text{₦}4,800 = \text{₦}720,000

Total Sales = \text{₦}1,350,000 + \text{₦}720,000 = \text{₦}2,070,000$

Sales revenues are required to compute the percentage commissions.

2

Determine target price value and excess sales proceeds

Total units sold =

300 + 150 = 450

crates
Target sales value =

450 \times \text{₦}4,000 = \text{₦}1,800,000

Excess sales proceeds = \text{₦}2,070,000 - \text{₦}1,800,000 = \text{₦}270,000$

Overriding commission applies specifically to the extra price realized beyond the ₦4,000 per crate target price.

3

Compute Ordinary Commission

Ordinary Commission =

5\% \times \text{₦}2,070,000 = \text{₦}103,500

Ordinary commission is earned on total sales.

4

Compute Overriding Commission

Overriding Commission =

15\% \times \text{₦}270,000 = \text{₦}40,500

Overriding commission is earned on the surplus sales proceeds realized above the target price.

5

Compute Del-Credere Commission

Del-Credere Commission =

2.5\% \times \text{₦}720,000 = \text{₦}18,000

Del-credere commission is calculated on credit sales to compensate the consignee for bearing the risk of bad debts.

6

Calculate Total Commission

Total Commission = \text{₦}103,500 + \text{₦}40,500 + \text{₦}18,000 = \text{₦}162,000$

Adding the three commission components yields the total commission earned by the consignee.

Anahtar Kavram

Computation of Ordinary, Overriding, and Del-Credere Commissions in Consignment Accounts

Soru 1272Soru →

The following information relates to the bar operations of Harmony Social Club for the year ended 31 December 2025:

Item	Amount (₦)
Bar inventory (1 January 2025)	25,000
Bar inventory (31 December 2025)	30,000
Cash paid to bar creditors	140,000
Bar creditors (1 January 2025)	18,000
Bar creditors (31 December 2025)	24,000
Returns outward to bar suppliers	5,000
Bar takings (sales)	220,000
Bar steward's salary paid	12,000
Bar license fee paid	8,000
Depreciation of bar equipment	4,000

Additional information:
1. Bar steward's salary owing at 31 December 2025 was ₦3,000.
2. Bar license fee paid includes ₦2,000 prepaid for the 2026 financial year.

Calculate the net profit from bar trading operations (in ₦) to be transferred to the Income and Expenditure Account for the year ended 31 December 2025.

Cevabı ve açıklamayı göster

Cevap: 59000

Cevap

The net profit from bar trading operations to be transferred to the Income and Expenditure Account is ₦59,000.

The net bar profit of ₦59,000 is calculated by deriving net purchases (₦141,000), computing the cost of goods sold (₦136,000), determining the gross profit (₦84,000), and deducting adjusted operating expenses (₦25,000).

Adım Adım Çözüm

1

Calculate total purchases from bar creditors

Total Purchases = ₦146,000

Purchases are calculated by taking cash paid to creditors plus closing creditors minus opening creditors:

140,000 + 24,000 - 18,000 = 146,000

.

2

Calculate net purchases by deducting returns outward

Net Purchases = ₦141,000

Returns outward are deducted from total purchases:

146,000 - 5,000 = 141,000

.

3

Calculate Cost of Bar Goods Sold

Cost of Goods Sold = ₦136,000

Cost of goods sold combines opening inventory, net purchases, and closing inventory:

25,000 + 141,000 - 30,000 = 136,000

.

4

Determine Bar Gross Profit

Bar Gross Profit = ₦84,000

Gross profit is calculated by subtracting Cost of Goods Sold from Bar Takings:

220,000 - 136,000 = 84,000

.

5

Adjust and sum all bar operating expenses

Total Bar Expenses = ₦25,000

Expenses include accrued steward's salary (

12,000 + 3,000 = 15,000

), prepaid license fee (

8,000 - 2,000 = 6,000

), and depreciation (

4,000

):

15,000 + 6,000 + 4,000 = 25,000

.

6

Subtract total expenses from bar gross profit

Net Bar Profit = ₦59,000

Net profit transferred to Income and Expenditure account is Gross Profit minus Total Bar Expenses:

84,000 - 25,000 = 59,000

.

Anahtar Kavram

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

Soru 1273Soru →

A sole trader keeping incomplete records provides the following financial details for the year ended 31 December 2025:

- Cash received from debtors: ₦45,000
- Opening debtors balance: ₦8,000
- Closing debtors balance: ₦12,000
- Discount allowed: ₦1,500
- Returns inwards: ₦2,500
- Bad debts written off: ₦1,000
- Cash sales for the year: ₦15,000

What is the total sales figure (in ₦) to be credited to the Trading Account for the year?

Cevabı ve açıklamayı göster

Cevap: 69000

Cevap

The total sales figure to be credited to the Trading Account is ₦69,000.

To convert single entry records into final accounts, credit sales are calculated by reconstructing the Debtors Control Account. Summing all credit entries (Cash Received ₦45,000 + Discount Allowed ₦1,500 + Returns Inwards ₦2,500 + Bad Debts ₦1,000 + Closing Debtors ₦12,000) gives ₦62,000. Deducting Opening Debtors (₦8,000) results in Credit Sales of ₦54,000. Adding Cash Sales of ₦15,000 gives the Total Sales figure of ₦69,000 to be credited to the Trading Account.

Adım Adım Çözüm

1

Reconstruct the Debtors Control Account to find total credit sales for the period.

Credit Sales = ₦54,000

The sum of credit items in the Debtors Control Account (Cash Received ₦45,000 + Discount Allowed ₦1,500 + Returns Inwards ₦2,500 + Bad Debts ₦1,000 + Closing Debtors ₦12,000 = ₦62,000) minus the Opening Debtors balance (₦8,000) yields credit sales.

2

Combine cash sales and credit sales to determine total sales for the Trading Account.

Total Sales = ₦69,000

When converting incomplete records to double entry, Total Sales credited to the Trading Account consists of both cash sales and credit sales.

Anahtar Kavram

Calculation of Total Sales via Debtors Control Account in Incomplete Records

Soru 1274Soru →

Kemi, a retail trader who keeps incomplete accounting records, recorded total sales of $\text{₦}75,000$ for the trading period. She fixes her selling prices using a mark-up of $25\%$ on cost. What is the Cost of Goods Sold in Naira?

Cevabı ve açıklamayı göster

Cevap: 60000

Cevap

The Cost of Goods Sold is ₦60,000.

To find the Cost of Goods Sold from total sales revenue when mark-up on cost is given, convert the

25\%

mark-up (

1/4

) into a margin on sales of

20\%

(

1/5

). Applying the

20\%

margin to total sales of

\text{₦}75,000

gives a gross profit of

\text{₦}15,000

. Subtracting gross profit from total sales results in a Cost of Goods Sold of

\text{₦}60,000

. Alternatively, since

\text{Sales} = \text{Cost} \times (1 + \text{Mark-up}) = 1.25 \times \text{Cost}

, dividing

\text{₦}75,000

by

1.25

directly gives

\text{₦}60,000

.

Adım Adım Çözüm

1

Convert mark-up on cost to margin on sales

Margin = 20%

Mark-up is based on cost, while total sales represents selling price. Converting mark-up (

25\%

) to margin yields

\frac{0.25}{1 + 0.25} = 0.20

(

20\%

).

2

Determine Gross Profit from Sales

Gross Profit = ₦15,000

Gross Profit is calculated by multiplying the margin percentage by total sales:

20\% \times \text{₦}75,000 = \text{₦}15,000

.

3

Subtract Gross Profit from Sales to find Cost of Goods Sold

Cost of Goods Sold = ₦60,000

Cost of Goods Sold is equal to Total Sales minus Gross Profit:

\text{₦}75,000 - \text{₦}15,000 = \text{₦}60,000

.

Anahtar Kavram

Relationship between Mark-up, Margin, and Cost of Goods Sold

Soru 1275Soru →

Segun, Tari, and Danladi are partners sharing profits and losses in the ratio $5:3:2$ respectively. Danladi dies on March 31, 2025. At the date of his death, Danladi's capital account balance was $\text{₦}120,000$ (credit) and his current account balance was $\text{��}15,000$ (credit). The firm's goodwill was valued at $\text{₦}100,000$ , and the revaluation of assets yielded a net profit of $\text{₦}30,000$ . Danladi's share of profit up to the date of death was calculated as $\text{₦}12,000$ , and his drawings during the period were $\text{₦}8,000$ . What is the total net amount due to Danladi's estate?

Cevabı ve açıklamayı göster

Cevap: 165000

Cevap

The total net amount due to Danladi's estate is

\text{₦}165,000

.

The net amount payable to the deceased partner's estate is obtained by taking the capital account balance (

\text{₦}120,000

) plus current account balance (

\text{₦}15,000

), adding his share of goodwill (

20\% \text{ of } \text{₦}100,000 = \text{₦}20,000

), his share of revaluation profit (

20\% \text{ of } \text{₦}30,000 = \text{₦}6,000

), and his accrued profit to date (

\text{₦}12,000

), then subtracting his drawings (

\text{₦}8,000

), giving

\text{₦}165,000

.

Adım Adım Çözüm

1

Determine the deceased partner's share of profits

Danladi's share =

\frac{2}{5+3+2} = \frac{2}{10}

or

20\%

Profit sharing ratio is given as

5:3:2

among Segun, Tari, and Danladi.

2

Calculate Danladi's share of goodwill and revaluation profit

Goodwill share =

20\% \times \text{₦}100,000 = \text{₦}20,000

; Revaluation share =

20\% \times \text{₦}30,000 = \text{₦}6,000

The retiring/deceased partner is entitled to their proportion of accumulated goodwill and asset revaluation gains.

3

Consolidate all credits and debits to determine net executor account balance

Net balance =

\text{₦}120,000 + \text{₦}15,000 + \text{₦}20,000 + \text{₦}6,000 + \text{₦}12,000 - \text{₦}8,000 = \text{₦}165,000

Capital, current account credit, goodwill, revaluation profit, and profit to date increase the claim of the deceased partner's estate, while drawings decrease it.

Anahtar Kavram

Settlement of Deceased Partner's Capital Account

Soru 1276Soru →

Victor and Raymond are partners in a business sharing profits and losses in the ratio of $3:2$ . They admit Kenneth as a new partner, and the new profit-sharing ratio among Victor, Raymond, and Kenneth is agreed at $5:3:2$ . Kenneth pays $\text{₦}24,000$ in cash as premium for goodwill. What amount of the goodwill premium (in Naira) should be credited to Victor's capital account?

Cevabı ve açıklamayı göster

Cevap: 12000

Cevap

The amount of goodwill premium credited to Victor's capital account is ₦12,000.

Goodwill premium paid by a newly admitted partner is credited to existing partners in their sacrificing ratio. Victor's sacrifice is 3/5 - 5/10 = 1/10, and Raymond's sacrifice is 2/5 - 3/10 = 1/10. Since both partners sacrificed equally (1:1 ratio), Victor receives half of the ₦24,000 premium, which equals ₦12,000.

Adım Adım Çözüm

1

Calculate the old shares of existing partners with a common denominator

Victor's old share = 3/5 = 6/10; Raymond's old share = 2/5 = 4/10

Aligning denominators makes sacrifice calculation straightforward.

2

Calculate individual partner sacrifice

Victor's sacrifice = 6/10 - 5/10 = 1/10; Raymond's sacrifice = 4/10 - 3/10 = 1/10

Sacrifice is the difference between old profit share and new profit share.

3

Determine sacrificing ratio

Sacrificing ratio = 1 : 1

Goodwill brought in by an incoming partner compensates existing partners in proportion to their sacrifice.

4

Compute Victor's share of goodwill premium

Victor's share = 1/2 × ₦24,000 = ₦12,000

Victor is entitled to half of the premium paid based on the 1:1 sacrificing ratio.

Anahtar Kavram

Allocation of Goodwill Premium upon Admission of a Partner

Soru 1277Soru →

Sunset Recreational Centre operates a bar for its members. During the year ended 31 December 2025, the centre recorded opening bar inventory of ₦8,000, purchases of bar drinks amounting to ₦45,000, and closing bar inventory of ₦12,000. What is the cost of goods sold for the bar operations in Naira (₦)?

Cevabı ve açıklamayı göster

Cevap: 41000

Cevap

The cost of goods sold for the bar operations is ₦41,000.

The cost of goods sold for the bar is computed using the standard trading account formula:

\text{Cost of Goods Sold} = \text{Opening Inventory} + \text{Purchases} - \text{Closing Inventory}

. Substituting the given values:

₦8,000 + ₦45,000 - ₦12,000 = ₦41,000

.

Adım Adım Çözüm

1

Sum opening bar inventory and bar purchases to get total goods available for sale.

₦8,000 + ₦45,000 = ₦53,000

Opening inventory carried over from the prior period plus new stock purchased represents all inventory available to sell.

2

Subtract closing bar inventory from total goods available for sale.

₦53,000 - ₦12,000 = ₦41,000

Unsold inventory at the end of the financial period must be deducted to isolate the cost of items actually sold.

Anahtar Kavram

Calculation of Cost of Goods Sold in a Bar Trading Account

Soru 1278Soru →

During the financial year ended 31 December 2025, United Teachers Social Welfare Association received $\text{N}520,000$ in cash as subscription fees from its members. At the beginning of the year (1 January 2025), subscriptions accrued were $\text{N}35,000$ , while subscriptions prepaid were $\text{N}22,000$ . At the end of the year (31 December 2025), subscriptions accrued amounted to $\text{N}48,000$ and subscriptions prepaid amounted to $\text{N}18,000$ . Calculate the subscription income to be credited to the Income and Expenditure Account for the year ended 31 December 2025.

Cevabı ve açıklamayı göster

Cevap: 537000

Cevap

537000

Under accrual accounting, subscription income credited to the Income and Expenditure Account represents income earned in the current financial year regardless of cash timing. Subscription Income = Cash Received (520,000) + Opening Advance (22,000) + Closing Arrears (48,000) - Opening Arrears (35,000) - Closing Advance (18,000) = NGN 537,000.

Adım Adım Çözüm

1

Identify total subscription cash received during the year

NGN 520,000

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

2

Adjust for opening accruals and prepayments

NGN 520,000 - NGN 35,000 + NGN 22,000 = NGN 507,000

Subscriptions owing from previous period (opening arrears) are deducted, while subscriptions received in advance in previous period (opening advance) belong to current income and are added.

3

Adjust for closing accruals and prepayments

NGN 507,000 + NGN 48,000 - NGN 18,000 = NGN 537,000

Subscriptions owing for current period (closing arrears) are added, while subscriptions received in advance for next period (closing advance) are subtracted.

Anahtar Kavram

Accrual basis adjustment for non-profit subscriptions

Soru 1279Soru →

Coastal Officers' Club operates a bar to support its social activities. For the financial year ended 31 December 2025, the following details were extracted from the club's records:

Details	Amount (₦)
Bar inventory (1 January 2025)	18,500
Bar inventory (31 December 2025)	22,400
Receipts from bar sales	165,000
Payments to bar suppliers	94,000
Bar suppliers owing (1 January 2025)	11,200
Bar suppliers owing (31 December 2025)	14,800
Bar steward wages paid	16,000
Accrued bar steward wages (31 December 2025)	2,500

What is the net profit from the bar trading operations to be transferred to the Income and Expenditure Account for the year ended 31 December 2025?

Cevabı ve açıklamayı göster

Cevap: 52800

Cevap

The net profit from the bar trading operations to be transferred to the Income and Expenditure Account is ₦52,800.

To find the bar net profit transferred to the Income and Expenditure Account, total purchases are calculated by adjusting cash paid to bar suppliers for creditors:

₦94,000 + ₦14,800 - ₦11,200 = ₦97,600

. Cost of Goods Sold is calculated as

₦18,500 + ₦97,600 - ₦22,400 = ₦93,700

. Bar Gross Profit is

₦165,000 - ₦93,700 = ₦71,300

. Adjusting bar steward wages for accruals gives

₦16,000 + ₦2,500 = ₦18,500

. Deducting direct bar expenses from gross profit yields a Bar Net Profit of

₦52,800

.

Adım Adım Çözüm

1

Calculate credit purchases for the bar

Total Purchases = ₦97,600

Credit purchases are derived by adjusting cash payments to bar suppliers for opening and closing payables:

\text{Payments} (₦94,000) + \text{Closing Creditors} (₦14,800) - \text{Opening Creditors} (₦11,200) = ₦97,600

.

2

Determine the Cost of Bar Goods Sold

Cost of Goods Sold = ₦93,700

Cost of Goods Sold is calculated using the formula:

\text{Opening Bar Inventory} (₦18,500) + \text{Purchases} (₦97,600) - \text{Closing Bar Inventory} (₦22,400) = ₦93,700

.

3

Calculate the Bar Gross Profit

Bar Gross Profit = ₦71,300

Gross profit is determined by deducting Cost of Bar Goods Sold from Bar Sales:

₦165,000 - ₦93,700 = ₦71,300

.

4

Calculate total direct bar expenses

Total Bar Steward Wages = ₦18,500

Total wages attributable to the bar trading period include paid wages plus accrued wages:

₦16,000 + ₦2,500 = ₦18,500

.

5

Calculate Bar Net Profit

Bar Net Profit = ₦52,800

Bar Net Profit transferred to the Income and Expenditure Account is Bar Gross Profit minus total direct bar expenses:

₦71,300 - ₦18,500 = ₦52,800

.

Anahtar Kavram

Bar Trading Account Net Profit Determination in Non-Profit Organizations

Soru 1280Soru →

At 31st December 2025, the trial balance of Adebayo Trading Store showed Trade Receivables of $\text{₦}180,000$ and an existing Provision for Doubtful Debts credit balance of $\text{₦}11,000$ . At year end, an additional bad debt of $\text{₦}20,000$ is to be written off. A specific provision of $\text{₦}10,000$ is required for an insolvent debtor, and a general provision of $5\%$ is to be maintained on the remaining trade receivables. What is the net amount to be charged to the Profit and Loss Account as an increase in the provision for doubtful debts for the year?

Cevabı ve açıklamayı göster

Cevap: 6500

Cevap

The net amount to be charged to the Profit and Loss Account for the increase in provision for doubtful debts is

\text{₦}6,500

.

To find the correct charge to the Profit and Loss Account, first write off the additional bad debt of

\text{₦}20,000

from

\text{₦}180,000

, giving

\text{₦}160,000

. Next, set aside the specific provision of

\text{₦}10,000

, leaving

\text{₦}150,000

eligible for the general provision. Computing

5\%

of

\text{₦}150,000

gives

\text{₦}7,500

. The total provision required is

\text{₦}10,000 + \text{₦}7,500 = \text{₦}17,500

. Subtracting the existing provision balance of

\text{₦}11,000

yields an increase of

\text{₦}6,500

to be debited to the Income Statement.

Adım Adım Çözüm

1

Deduct additional bad debts written off at year end from gross trade receivables.

Adjusted Trade Receivables =

\text{₦}180,000 - \text{₦}20,000 = \text{₦}160,000

.

Bad debts written off reduce the total recoverable debts before provisions are calculated.

2

Deduct the specific provision target from adjusted trade receivables to isolate receivables for general provision.

Receivables subject to general provision =

\text{₦}160,000 - \text{₦}10,000 = \text{₦}150,000

.

Specific provisions cover identifiable bad debts, so the general percentage applies only to the remainder.

3

Calculate the total required provision for doubtful debts at year end.

General Provision =

5\% \times \text{₦}150,000 = \text{₦}7,500

. Total New Provision =

\text{₦}10,000 + \text{₦}7,500 = \text{₦}17,500

.

The total provision required combines both specific and general estimates of uncollectible debts.

4

Calculate the net change (increase) in provision to be charged to the Profit and Loss Account.

Charge to Profit and Loss Account =

\text{₦}17,500 - \text{₦}11,000 = \text{₦}6,500

.

Only the increment in provision above the existing balance represents an additional expense for the current period.

Anahtar Kavram

Calculation of Net Increase in Provision for Doubtful Debts with Specific and General Adjustments

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