GCE Financial Accounting 2020
Past Questions

Which of the following best describes the 'accrual concept' in financial accounting?

Bello & Sons purchased land in 2010 for ₦5,000,000. By 2023, the market value of the land had risen to ₦18,000,000. The land is still recorded at ₦5,000,000 in the books. Which accounting concept just…

Adaeze Trading Company has current assets of ₦960,000, current liabilities of ₦640,000, and a long-term loan of ₦400,000. The accountant prepares the financial statements on the assumption that the bu…

Which of the following correctly states the double entry rule for recording a cash sale?

Emeka sold goods on credit to Ngozi for ₦60,000 less 10% trade discount. What amount would be recorded in Emeka's sales day book?

Fatima's three-column cash book showed the following on 1 April 2023: Cash balance ₦12,000; Bank balance ₦85,000. During the month, she received a cheque of ₦30,000 from a debtor and paid ₦15,000 cash…

The following errors were discovered after the preparation of a trial balance. Which TWO errors would cancel each other out? I. The purchases day book was overcast by ₦2,000 II. A payment of ₦2,00…

Eze and Sons extracted a trial balance as at 31 December 2023. The following errors were later discovered: (i) Salaries of ₦15,000 had been debited to the wages account (ii) A credit sale of ₦9,00…

The provision for depreciation account is credited when depreciation is charged on a fixed asset. The corresponding debit entry is made in the:

A sole trader's net sales were ₦320,000 and the cost of goods sold was ₦200,000. Selling expenses amounted to ₦35,000 and administrative expenses to ₦25,000. What is the net profit?

A provision for doubtful debts account had an opening balance of ₦12,000. At the year end, debtors totalled ₦200,000 and the provision is to be maintained at 5% of debtors. What amount will be charged…

Which of the following accounts is credited when a new partner introduces capital into a partnership?

Ade and Bola are partners sharing profits and losses in the ratio 3:2. The partnership made a net profit of ₦150,000. How much profit is credited to Ade's current account?

Aba Furniture Ltd provided the following for 2023: Direct materials consumed ₦200,000; Direct labour ₦150,000; Direct expenses ₦30,000; Indirect factory wages ₦45,000; Factory power and light ₦20,000;…

In preparing a manufacturing account, royalties paid to a patent holder based on the number of units produced are treated as:

The following transactions were carried out by Eze Traders during the month of March 2023: March 1: Started business with cash N150,000 March 3: Purchased goods on credit from Bello Supplies N45,000 …

Books of Original Entry are the first place where business transactions are recorded before being posted to the ledger. (a) Define the term 'Books of Original Entry' and state TWO other names by whic…

The following balances and transactions relate to Adaeze Enterprises for the month of October 2023: The cash book showed a credit balance of N12,600 on 31 October 2023, while the bank statement showe…

The following information was extracted from the books of Adeola Enterprises for the month of March 2023: Balances on 1st March 2023: Debtors Control Account (Dr) - N48,500 Creditors Control Account …

(«a) Explain the term 'Control Account' as used in financial accounting and state FOUR purposes of maintaining control accounts in a business. (8 marks) (b) The Sales Ledger Control Account of Bello …

Emeka and Fatima have been in partnership for several years, sharing profits and losses equally, with no interest on capital or drawings and no salaries. On 1 January 2023, they agreed to admit Garba …