Wednesday, July 14, 2021
Tuesday, July 13, 2021
TUTORIAL QUESTIONS ON (ACC 111) PRINCIPLES OF ACCOUNTING 1
PATRIOT ODUNARO BABATUNDE JIMOH
(08038454008)
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TUTORIAL QUESTIONS:
1. Book-Keeping is to Accounting as ICT is to Computing. Discuss
2. Accounting is both an art and science. Briefly discuss
3. State five each quantitative and qualitative nature of accounting.
4. Oniduro Mi Nigeria Limited provides the following information relating to its accounts for three years as shown in the table below:
|
Year |
Capital |
Profit |
Returns on Capital |
|
|
N |
N |
% |
|
2020 |
975,000 |
|
45 |
|
2019 |
585,000 |
117,000 |
|
|
2018 |
650,000 |
|
35 |
Required:
(i) Calculate profits for year 2018 and 2020.
(ii) Calculate returns on capital for year 2019.
(iii) Calculate percentage increase in profit between year 2019 and 2020.
(iv) Calculate percentage decrease in profit between year 2018 and 2019.
(v) Calculate increase in capital between year 2019 and 2020.
(vi) Calculate decrease in capital between year 2018 and 2019.
Hints: show all formular and workings
5. The following errors were discovered in the Books of Precious and Co. in the month
of January 2021.
i. Sales day book was understated by N5,000.
ii. Cash sales of N40,000 was not recorded in the books at all.
iii. Sales of N60,000 for motor vehicle was recorded in the sales account of the company.
iv. A figure of N753 was posted into the debit of Gabriel`s account as N735.
v. Amount of N5,000 discount allowed was posted to the credit side of discount received account.
You are required to use Journal entries to correct the above errors.
6. What is Double Entry Book-Keeping? State the basic Principle of Double Entry Book-Keeping according to Luca Pacioli.
7. Explain with examples of each , what is meant by:
i. Nominal Accounts ii. Real Accounts iii. Personal Accounts
8. What do you understand by source document? State ten source documents known to you.
9. Classify the underlisted ledger accounts into capital and recurrent.
i. Depreciation Account vi. Interest Paid Account
ii. Salaries and Wages Account vii. Discount Received
iii. Furniture and Fittings Account viii. Patent and Trade Marks Account
iv. Rent of Warehouse Account ix. Goodwill Account
v. Office Building Account x. Purchase Account
10. Define Bank Reconciliation Statement and state the causes of bank reconciliation statement?
11. On 31st December 2020, Oloko cash book showed a debit balance of N29,520.
His bank statement showed a credit balance of N25,260.
The reasons for the difference were follow:
i. A cheque of N1,960 was received and entered in the cash book but was not recorded in the bank statement.
ii. Unpresented cheques totalled N3,740.
iii. The payment side of the cash book had been undercasted by N2,000.
iv. Standing order for N1,260 appearing in the bank statement was yet to be posted in the cash book.
v. A bill of exchange of N1,340 had matured and the bank had paid on Oloko ` behalf but it had not been recorded in the cash book.
vi. A withdrawal of N1,440 by Banuso, another customer of the bank had been charged in error to Brits account.
You are required to prepare:
a. Adjusted cash book
b. Bank Reconciliation Statement.
12. Write short note on the following:
(a) Periodicity
(b) Materiality
(c) Matching Concept
(d) Going Concern Concept
(e) Entity Concept
13. The following information has been given to you about Onimole Nigeria Limited`s factory plant and machinery.
Cost N 7.5 million
Scrap value N 1.75 million
Useful life 5 years
You are required to calculate the annual depreciation charges for each year using:
(a) Straight-line Method
(b) Reducing Balance Method
(c) Sum of the year Digit Method
14. The following information has been given to you about Titus Nigeria Limited`s factory plant and machinery.
Cost N 15 million
Scrap value N0.75 million
Useful life 5 years
You are required to calculate the annual depreciation charges for each year using:
(a) Straight-line Method
(b) Reducing Balance Method
(c) Sum of the year Digit Method
15. State what the Accountant will do if the error still cannot be located in the trial balance.
16. Define a trial balance and state five reasons for preparing a trial balance.
17. Omonipele Nigeria Limited provides the following informations and you are required to prepare a trial balance as at 31st December, 2020.
N
Purchases 184,200.00
Revenue 724,200.00
Drawing 70,500.00
Return Inwards 36,500.00
Return Outwards 31,000.00
Discount Allowed 51,000.00
Discount Received 42,000.00
Trade Receivables 225,000.00
Trade Payables 285,500.00
Inventory 171,500.00
Land 23,000.00
Motor at cost 60,000.00
Furniture at cost 12,500.00
Accumulated depreciation on motor 22,500.00
Accumulated depreciation on furniture 5,000.00
Cash at bank 25,000.00
Cash in hand 9,500.00
Salaries 203,000.00
Carriage Inwards 111,000.00
Carriage Outwards 51,500.00
Printing and Stationery 18,000.00
Electricity and water 74,000.00
Insurance 34,000.00
General Expenses 174,000.00
Provision for bade debt 1,000.00
Bad debt already written off 2,000.00
Capital 350,000.00
Rent Received 19,000.00
Commission Received 56,000.00
18. Susan Nigeria Limited provides the following informations and you are required to prepare a trial balance as at 31st December, 2020.
N
|
Advertising |
1,143 |
|
Postage |
1,242 |
|
Purchases |
366,365 |
|
Accumulated depreciation on motor |
95,000 |
|
Accumulated depreciation on furniture |
55,082 |
|
Electricity |
819 |
|
Salaries |
25,533 |
|
Tenement Rate |
909 |
|
Telephone |
306 |
|
Furniture |
9,936 |
|
Revenue |
511,400 |
|
Sales Returns |
504 |
|
Purchases Returns |
3,528 |
|
Bad Debts |
234 |
|
Insurance |
1,728 |
|
Commissions received |
15,750 |
|
Trade Receivables |
43,938 |
|
Trade Payables |
75,645 |
|
Cash in hand |
3,168 |
|
Bank |
34,128 |
|
Stock |
108,225 |
|
Premises |
45,000 |
|
Motor Vans |
8,343 |
|
Capital |
145,116 |
|
Motor at cost |
150,000 |
|
Furniture at cost |
100,000 |
19. Enumerate seven accounting concepts and three accounting convention you know.
20. List and explain six needs for accounting.
21. List ten users of financial statement information.
22. Explain the uses of accounting information to the following stakeholders:
i. Management
ii. Employees
iii. Investors
iv. Creditors
v. Government
23. List six qualities of a good financial accounting information.
24. Distinguish between accrued expenses and prepaid expenses.
25. What do you understand by the term suspense account?
26. List two errors not affecting trial balance and two errors affecting trial balance.
27. Define depreciation in accordance with IAS 4 and state six methods of depreciation
you know.
28. State five causes for depreciation.
29 state five types of subsidiary books.
30. The following information has been given to you about Ayegbaogbon Nigeria
Limited`s factory plant and machinery.
Cost N5 million
Scrap value N250,000
Useful life 5 years
You are required to calculate the annual depreciation charges for each year using:
(a) Straight-line Method (b) Reducing Balance Method
(c) Sum of the Year Digit Method
31. The following information has been given to you about factory plant and machinery of
Motirigbo Nigeria Limited.
Cost N25 million
Scrap value N1.25 million
Useful life 5years
You are required to calculate the annual depreciation charges for each year using:
(a) Straight Line Method (b) Reducing Balance Method
(c) Sum of the year Digit Method
32. Efura started a photographic business under the business name Efura Special Photos in
May, 2020. The following transactions relate to the first month of operation.
2020:
May 1 Paid N200,000 into bank.
May 5 Withdrew cash N90,000 from bank.
May 7 Bought two brand new cameras for N30,000 cash.
May 9 Paid cash for supplies N45,000
May 11 Purchased office equipment with cheque N25,000.
May 13 Received cash for work done N56,000.
May 15 Bought supplies with cash N10,000
May 18 Paid cash for repair of equipment N15,000.
May 21 Withdrew cash for personal use N12,000.
May 23 Paid telephone bills for the month N6,600 by cheque.
May 25 Delivered 100 pieces of pictures at N200 on credit to customers.
May 27 Received N76,000 cash from customers.
May 28 Bought supplies with cash N5,000.
You are required to prepare the two-column cash book for Efura for the month of May, 2020.
33. You are required to prepare a trial balance.
The following balances were extracted from the books of Foyegbe and sons on 31st
December, 2017.
N
Premises 150,000
Motor Vans 27,810
Capital 483,720
Advertising 3,810
Postage 4,140
Purchases 2,054,550
Electricity 2,730
Salaries 85,110
Tenement Rate 3,030
Telephone 1,020
Furniture 33,120
Sales 2,204,940
Sales Returns 1,680
Purchases Returns 11,760
Bad Debts 780
Insurance 5,760
Commissions received 52,500
Debtors 146,460
Creditors 252,150
Cash in hand 10,560
Bank 113,760
Stock 360,750
34. Define a trial balance and state six types of errors which do not affect the agreement of
trial balance.
35. State five causes for depreciation with six methods of depreciation you know.
36. Who is an accountant? State five roles of an Accountant.
37. Fesojaiye Nigeria Limited provides the following informations and you are required to prepare a trial balance as at 31st December, 2019.
N
|
Premises |
2,250,000 |
|
Motor Vans |
417,150 |
|
Capital |
7,255,800 |
|
Motor at cost |
7,500,000 |
|
Furniture at cost |
5,000,000 |
|
Advertising |
57,150 |
|
Postage |
62,100 |
|
Purchases |
18,318,250 |
|
Accumulated depreciation on motor |
4,750,000 |
|
Accumulated depreciation on furniture |
2,754,100 |
|
Electricity |
40,950 |
|
Salaries |
1,276,650 |
|
Tenement Rate |
45,450 |
|
Telephone |
15,300 |
|
Furniture |
496,800 |
|
Revenue |
25,570,000 |
|
Sales Returns |
25,200 |
|
Purchases Returns |
176,400 |
|
Bad Debts |
11700 |
|
Insurance |
86,400 |
|
Commissions received |
787,500 |
|
Trade Receivables |
2,196,900 |
|
Trade Payables |
3,782,250 |
|
Cash in hand |
158,400 |
|
Bank |
1,706,400 |
|
Stock |
5,411,250 |
38. Ajimatanraeje Nigeria Limited provides the following information relating to its accounts for three years as shown in the table below:
|
Year |
Capital |
Profit |
Returns on Capital |
|
|
N |
N |
% |
|
2019 |
48,750 |
|
45 |
|
2018 |
29,250 |
5,850 |
|
|
2017 |
32,500 |
|
35 |
Required:
(a) Calculate profits for year 2017 and 2019. (b) Calculate returns on capital for year 2018.
(c) Calculate percentage increase in profit between year 2018 and 2019.
(d) Calculate percentage decrease in profit between year 2017 and 2018.
(e) Calculate increase in capital between year 2018 and 2019.
(fi) Calculate decrease in capital between year 2017 and 2018.
Hints: show all formular and workings
39. Ajepeaiye Nigeria Limited provides the following informations and you are required to prepare a trial balance as at 31st December, 2019.
N
Purchases 184,200.00
Revenue 724,200.00
Drawing 70,500.00
Return Inwards 36,500.00
Return Outwards 31,000.00
Discount Allowed 51,000.00
Discount Received 42,000.00
Trade Receivables 225,000.00
Trade Payables 285,500.00
Inventory 171,500.00
Land 23,000.00
Motor at cost 60,000.00
Furniture at cost 12,500.00
Accumulated depreciation on motor 22,500.00
Accumulated depreciation on furniture 5,000.00
Cash at bank 25,000.00
Cash in hand 9,500.00
Salaries 203,000.00
Carriage Inwards 111,000.00
Carriage Outwards 51,500.00
Printing and Stationery 18,000.00
Electricity and water 74,000.00
Insurance 34,000.00
General Expenses 174,000.00
Provision for bade debt 1,000.00
Bad debt already written off 2,000.00
Capital 350,000.00
Rent Received 19,000.00
Commission Received 56,000.00
40. Briefly discuss the role of Accountants and types of Accountants you know.
41. Ayegbajeje Nigeria Limited provides the following informations and you are required to prepare a trial balance as at 31st December, 2019.
N
Purchases 921,000.00
Revenue 3,621,000.00
Drawing 352,500.00
Return Inwards 182,500.00
Return Outwards 155,000.00
Discount Allowed 255,000.00
Discount Received 210,000.00
Trade Receivables 1,125,000.00
Trade Payables 1,427,500.00
Inventory 857,500.00
Land 115,000.00
Motor at cost 300,000.00
Furniture at cost 62,500.00
Accumulated depreciation on motor 112,500.00
Accumulated depreciation on furniture 25,000.00
Cash at bank 125,000.00
Cash in hand 47,500.00
Salaries 1,015,000.00
Carriage Inwards 555,000.00
Carriage Outwards 257,500.00
Printing and Stationery 90,000.00
Electricity and water 370,000.00
Insurance 170,000.00
General Expenses 870,000.00
Provision for bade debt 5,000.00
Bad debt already written off 10,000.00
Capital 1,750,000.00
Rent Received 95,000.00
Commission Received 280,000.00
42. The following information has been given to you about factory plant and machinery of
Ajikawe Nigeria Limited.
Cost N25 million
Scrap value N1,250,000
Useful life 5years
You are required to calculate the annual depreciation charges for each year using:
(a) Reducing Balance Method
(b) Sum of the year Digit Method
(c) Straight Line Method
43. Define a Journal and state its components.
44. What are the uses of Journal Proper?
45. List advantages of the Journal.
46. Ajigbotoko Nigeria Limited is maintaining a petty cash book with the following analysis column: postage, transport, general expenses, advertisement and fuel.
The cashier is given a cash float of N50,000, reimbursement being made to cashier at the end of each week.
The following transactions took place:
July 16, 2018 Postage stamps purchased N3,500.
July 16, 2018 Fare on delivery parcel N2,500.
July 17, 2018 Cost of registration letter N9,500.
July 18, 2018 Petrol for van N7,500.
July 19, 2018 Advertisement on local Newspaper N10,000.
July 19, 2018 Paid creditor N10,000.
July 20, 2018 Paid for tea and milk for office staff N5,500.
July 23, 2018 Petrol and oil for van N7,500.
July 23, 2018 Postage on parcel N2,500.
July 24, 2018 Traveller`s order book bought N4,000.
July 25, 2018 Paid creditor N10,000.
July 26, 2018 Transport fare to Ikoyi N5,000.
July 26, 2018 Paid officer cleaners N6,000.
July 27, 2018 Cash count N15,000.
From the knowledge acquired through the study of petty cash book, you are required
to :
(a) Prepare petty cash book from the above information.
(b) How much is the reimbursement for:
i. Third week of July 2018.
ii. Four week of July 2018.
HINTS:
i. Third week of July 2018 is from July 16, 2018 to July 22, 2018.
ii. Fourth week of July 2018 is from July 23, 2018 to July 29, 2018
47. Sogbae Nigeria Limited provides the following information relating to its accounts for three years as shown in the table below:
|
Year |
Capital |
Profit |
Returns on Capital |
|
|
N |
N |
% |
|
2019 |
750,000 |
|
45 |
|
2018 |
450,000 |
90,000 |
|
|
2017 |
500,000 |
|
35 |
Required:
(i) Calculate profits for year 2017 and 2019.
(ii) Calculate returns on capital for year 2018.
(iii) Calculate percentage increase in profit between year 2018 and 2019.
(iv) Calculate percentage decrease in profit between year 2017 and 2018.
(v) Calculate increase in capital between year 2018 and 2019.
(vi) Calculate decrease in capital between year 2017 and 2018.
Hints: show all formular and workings
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