Accruals, Prepayments and Provisions
ICAN Financial Accounting

QUESTION 1 Adekunle & Sons Nigeria Limited is a manufacturing company based in Kano. The company prepares its financial statements to 31 December each year. The following information relates to the y…

QUESTION 2 Oluwaseun Pharmaceuticals Plc, a company listed on the Nigerian Exchange Group (NGX), prepares its financial statements in accordance with International Financial Reporting Standards (IFRS…

QUESTION 3 Fatima Agro-Allied Services Limited is a medium-sized agribusiness company operating in Kaduna State, Nigeria. The company's accountant is preparing the financial statements for the year e…

Zubair Manufacturing Plc is being sued by a former employee for wrongful dismissal. The company's legal counsel estimates a 65% probability that the company will lose the case and be required to pay d…

Adaeze Enterprises prepares accounts to 31 December each year. On 1 April 2023, the company paid an annual insurance premium of ₦480,000 covering the period 1 April 2023 to 31 March 2024. What amount …

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…

Okonkwo & Partners prepares accounts to 31 March each year. The following information relates to its rates (local government levy) account: Rates paid on 1 October 2022 for the six months to 31 March …

Kelechi & Sons Ltd received an electricity bill of ₦75,000 on 5 January 2024 in respect of consumption for the quarter ended 31 December 2023. The company's year-end is 31 December 2023. Under IAS 37 …

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…