ICAN Financial Accounting 2022
Past Questions

Sunrise Manufacturing Ltd, a Nigerian company, received a government grant of ₦24,000,000 on 1 January 2023 to acquire a machine costing ₦120,000,000 with a useful life of 10 years (straight-line, nil…

Alhaji Musa, a sole trader, received a cheque of ₦450,000 from Debtor A in full settlement of an invoice of ₦500,000. The ₦50,000 discount allowed was recorded only in the discount allowed account and…

Alhaji Bello's cash book shows a debit balance of ₦485,000 at 31 March 2024. The bank statement for the same date shows a credit balance of ₦612,000. Investigations reveal: unpresented cheques totalli…

During a review of Zenith Trading Limited's receivables ledger control account for the year ended 31 December 2023, the following information was extracted: Opening balance ₦1,240,000; Credit sales ₦8…

Kelechi & Sons recorded a purchase of office equipment costing ₦360,000 by debiting the Repairs and Maintenance Expense Account instead of the Office Equipment Account. The bookkeeper also omitted to …

Mr Emeka Obi, a sole trader, extracted the following balances at 31 March 2024: Trade receivables ₦620,000; Allowance for doubtful debts (opening) ₦40,000; Bad debts written off during the year ₦25,00…

Under the Partnership Act 1890 (applicable in Nigeria in the absence of a partnership deed), which of the following statements correctly reflects the default rule regarding partners' entitlements?

Section 29 of the Companies and Allied Matters Act (CAMA) 2020 requires that a business name used by a partnership must be registered if it differs from the partners' surnames. Which regulatory body i…

Abuja Holdings Plc has the following information as at 30 June 2023: Total assets ₦480,000,000; Current liabilities ₦85,000,000; 10% Loan notes (2027) ₦60,000,000; Deferred tax liability ₦14,000,000; …

Under IAS 7 Statement of Cash Flows, which of the following transactions would be classified as a FINANCING activity for a non-financial entity?

Adeola Manufacturing Limited reported profit before tax of ₦42,500,000 for the year ended 31 December 2023. The following information is also available: Depreciation charge ₦6,800,000; Increase in tra…

The Ikeja Community Club received the following receipts and payments for the year ended 31 December 2023: Subscriptions received ₦1,200,000; Bar takings ₦850,000; Donations ₦300,000; Bar purchases pa…

Under the framework applicable to not-for-profit organisations in Nigeria, which of the following best describes the principal financial statement prepared by a club or association to show the results…

Lagos Traders Ltd does not maintain full accounting records. The following information is available for the year ended 31 December 2023: Opening trade receivables ₦640,000; Closing trade receivables ₦…

QUESTION 2 Oluwafemi Superstore Plc (OSP) is a large retail chain with outlets across Lagos, Abuja, and Port Harcourt. The company adopts the periodic inventory system. The following transactions rel…

QUESTION 1 Adekunle & Sons Nigeria Limited, a trading company based in Lagos, extracted a trial balance as at 31 March 2024 which failed to agree. The difference of N47,600 (debit excess) was posted …

QUESTION 2 Okonkwo Pharmaceutical Distributors Limited, a company incorporated under the Companies and Allied Matters Act (CAMA) 2020 and based in Onitsha, Anambra State, prepared its draft financial…

Mrs. Chidinma Okafor runs a fashion design and retail shop called 'Chidi Couture' located in Enugu. The following trial balance was extracted from her books as at 30 June 2024: …

Emeka and Fatima have been partners in E&F Consultants, an Abuja-based management consulting firm, sharing profits and losses equally. On 1 July 2023, they admitted Garba as a new partner. The followi…

QUESTION 3 Dangote Foods Nigeria Limited is a private limited company. The company's accountant, Mr. Emeka Obi, has prepared the following trial balance as at 31 March 2024: …