ICAN Financial Accounting 2021
Past Questions

Which of the following transactions is recorded in the journal proper (general journal) rather than in any other specialised book of prime entry?

Nneka Trading Company's rent account for the year ended 30 September 2023 shows the following: Opening prepayment ₦90,000; Cash paid during the year ₦540,000; Closing accrual ₦45,000. What is the rent…

Falcon Nigeria Plc sells goods with a one-year warranty. Based on historical data, 3% of goods sold will require minor repairs costing ₦8,000 per unit and 1% will require major repairs costing ₦50,000…

Zenith Properties Nigeria Limited revalued a building on 31 December 2023. The building had an original cost of ₦45,000,000, accumulated depreciation of ₦9,000,000 and a remaining useful life of 30 ye…

Adekunle Manufacturing Limited acquired a piece of machinery on 1 January 2022 at a cost of ₦18,500,000. The company incurred installation costs of ₦750,000 and a one-year maintenance contract of ₦300…

A company purchased a motor vehicle on 1 January 2021 for ₦12,000,000. It is the company's policy to depreciate motor vehicles at 25% per annum on the reducing balance basis, with a full year's charge…

Under IAS 36 Impairment of Assets, Okafor Steel Works Limited identified an item of plant with a carrying amount of ₦22,400,000. The estimated value in use is ₦19,800,000 and the fair value less costs…

Abuja Furniture Works Plc manufactures custom chairs. For a batch of 500 chairs, the following costs were incurred: Direct materials ₦2,500,000; Direct labour ₦1,200,000; Variable production overheads…

Zenith Manufacturing Limited purchases raw materials at a list price of ₦850,000. The supplier grants a trade discount of 10% and a settlement discount of 2% if payment is made within 14 days. The com…

Okonkwo Trading Company's trial balance failed to agree, and a suspense account with a credit balance of ₦124,000 was opened. The following errors were subsequently discovered: (i) A payment of ₦68,00…

Alhaji Musa, a sole trader in Lagos, recorded the following for the year ended 31 December 2023: Opening inventory ₦480,000; Purchases ₦3,240,000; Carriage inwards ₦60,000; Closing inventory ₦520,000;…

Adaeze, Bello, and Chukwu are partners sharing profits and losses in the ratio 3:2:1 respectively. The partnership profit for the year ended 31 December 2023 before charging interest on capital was ₦7…

Lagos Retailers Plc issued 5,000,000 ordinary shares of ₦1 each at ₦3.50 per share on 1 March 2023. Issue costs of ₦2,500,000 were incurred. Under IFRS (IAS 32), how should the issue costs be treated …

QUESTION 3 Chukwuemeka & Associates, a firm of estate surveyors and valuers in Lagos, maintains its accounting records on a manual double entry system. During a routine review of the firm's books for…

QUESTION 2 Kaduna Manufacturers Plc is a medium-sized manufacturing company listed on the Nigerian Exchange Group (NGX). The company's financial controller, Mrs. Okonkwo, is preparing the year-end ac…

Alhaji Musa Dangote operates a retail trading business in Kano under the name 'Dangote General Stores'. He has been in business for several years but does not keep a full set of accounting records. Hi…