CATHOLIC DIOCESE OF ABAKALIKI

DEPARTMENT OF EDUCATION
2024/2025 MOCK EXAMINATION FOR SS 3
SUBJECT: BOOK-KEEPING TIME: 3HRS
SECTION A: OBJECTIVES
INSTRUCTION: Answer all questions (1mark each)
1. The parties to consignment are------ A. Consignor and consignee B. Principal and vice
C.Partners and ventures D. partners and cooperative society
2. Which of these does a consignee prepares and send to the consignor? A. Proforma
invoice B.Account on sale. C. goods on consignment D. Current account
3. Calculate the selling price of goods on consignment invoiced at #2000 being cost plus
25% mark-up price. A. #8000 B. #2500 C. #6000 D. #500
4. The term depreciation means ------ of an asset A. Accumulation in value B.Shrinkage
in value C. Purchases in value D. Appreciation in value
5. The amount to be recovered on the sale of asset after its useful life is ------- value
A.Scrap B.Depreciation C. Asset D. Purchases
6. Goods sent back to suppliers as a result of poor quality is called....... A. Returns outwards
B.Returns forward C. Returns inward D. Credit Return
7. Which of the following date lines is correct for a profit and loss account? A. For the year
ended 31st December 2009 B. Accounts at 31st December 2009 C. For the period 31st
December 2009 D. Accounts at the year 2009
8. Provision for depreciation on delivery van is to ------ A. Trading account B.Profit and
loss account C. Appropriation account D. Cash book
9. Discount on the debit side of the cash book is ------ A. Discount received B.Discount
allowed C. Trade Discount D. Quantity discount
10. In manufacturing account, WIP stands for ---------- (No options).
11. The concept which states that the assets are not to be recorded at their current market
value is ------ A. Money measurement B. Materiality C. Cost D. Entity
12. When there is increase in value of assets, revaluation account is ----- A.Decreased
B.Increased C. Credited D. Debited
13. The business entity concept ----A. Involves other business transaction B. Does not
separate the owner's transactions from the business transactions D. Separates the owner's
transactions from the business transactions
14. The process of recording financial transactions of government is ------- A. Management
accounting B. Financial accounting C. Cost accounting D. Public sector accounting

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Use the following information to answer questions 15 and 16
Parish's sales ledger control account

# #
Balance b/d 12,590 Discount allowed 968
Sales 21,610 Sales returns 942
Dishonoured cheques 271 Cash received from customers ****
Balance c/d 2,561

34,471 34,471

15. The total cash received from customers is ------ A. #30,000 B. #68,942 C. #43,220 D.
#41,336
16. Net sales is -------- A. #20,668 B. #41,878 C. #41,284 D. #39,400
17. When shares are issued to the public and the issuing company has not requested for
payments, it is referred to as A. Authorized capital B. Uncalled capital C. Paid-up capital
D. Unissued capital
18. Rent owed by a department is treated in the balance sheet as ------ A. Asset of the
business B.Liability of the department C. Assets of the department D. Liability of the
business
19. A debenture is ----- A. Money given to a company as a gift B. Accrued expenses C. a
loan capital raised by a company D. Share capital
20. A debit balance in partner's current account indicates that A. he is owing .B. he is being
owed C.he has a credit D. he is sufficient
21. The going concern concept assumes that ------ A. Every transaction is represented by a
debit and credit entry B. The currency must not change. C. The business will continue to
operate indefinitely D. The firm is a legal entity
22.The total value received by a company as consideration for share issued constitutes
A.Authorized capital B. Working capital C. Capital employed D. Paid-up capital
Use the following information to answer questions 23 and 24
Prime cost #2,000
Factory overheads #3,000
Stock on 1/1/24 work in progress #500
Stock on 31/12/24 work in progress #1,000
Returns inwards #400
Sales #10,000
23. Cost of production is------ A. #10,000 B. #8,000 C. #4,500 D. #6,000
24. Net sales for the period is ----- A. #20,000 B. #20,800 C. #9,600 D. #10,000
25. The income and expenditure account of non-trading Organization is similar to ------
A.Cash account B. Trading account C. Balance sheet D. Profit and loss account

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26. A book-keeper debited motor vehicle account instead of motor expenses account is an
error of --------- A. Commission B. Original entry C. Complete reversal of entry
D.Principle
27. The document from which entries are transferred to the purchase day book is the
A.Invoice B.Ware bill C. Credit note D. Receipt
28. Prime cost is derived by adding I. Cost of raw materials consumed II. Indirect
expenses III. Direct Labour IV. Factory expenses V. Work in progress VI. Direct
expenses
A. I, III and VI only B. I, II and IV only C. IV, V and VI D. II, III and V only
29. Subscription owned by members of a club is a /an A. Asset B. Liability C. Profit
D.Surplus
30. Accumulated fund is also referred to as A. Capital B. Surplus C. Deficit D. Profit
31. The two fundamental books of accounts are A. Returns inwards and outwards
B.Journal and ledger C. Discount allowed and received D. Credit note and Debit note.
32. A Petty cashier operates with an imprest of #1000 per week. At the end of the week, he
had disbursed #920. How much is needed to restore the imprest ? A. #9120 B. #920
C.#1000 D.#50
33. The method of ascertaining capital from incomplete records is by preparing the -------
A. Cash book B. Statement of affairs C. Suspense account D. Control account
34. Goods returned by the buyer is recorded in the seller's book as -------- A. Carriage
inwards B.Returns inward C. Return outwards D. Carriage outwards
35. Which of the following is a type of subsidiary book? A. Bank statement B. Control
accounts C. Cash book D. Trial balance
Use the following information to answer questions 16 and 18
Sam and John are in partnership sharing the profits and losses in the ratio 3:2 respectively.
Their respective capitals were #40,000 and #5000, and their drawings were #7000 and
#5000 respectively. Interest on capital was 5% and interest on drawing was 100%. The net
profit was #30,000.
36. Sam's share of profit is ------- A. #17,070 B. #16,020 C. #23,850 D. #10,000
37. John's interest on drawing is ------ A. #2,000 B. #750 C. #7,000 D. #5,000
38. The total interest on capital is ------- A. #2,250 B. #4,000 C. #2,000 D. #750
39. Which of the following errors will affect the totals of a trial balance? A. Error in
addition B.Compensating error C. Complete reversal of entry D. Error of original entry
40. The document used in government accounting to show evidence of cash receipts and
payments is the ------ A. Budget B. Voucher C. Vote D. Warrant
41. Which of the following is not a subsidiary book? A. Sales day book B. Purchases day
book C.Trial balance D. General journal
42. When a transaction is completely left out from the books, it is an error of -------
A.Commission B. Principle C. Compensation D. Omission

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43. Which of the following is not recorded in a partnership appropriation account?
A.Interest on capital B. Share of profit C. Interest on drawings D. Partners drawings
Use the following information to answer questions 44 to 46
#
Opening stock 2,000
Purchases 6,000
Carriage inwards 150
Returns inwards 161
Sales 10,000
Closing stock. 3,000
44. The cost of goods sold is ------- A. #5,150 B. #16,300 C. #15,978 D. #9,978
45. The cost of goods available for sale is ------ A. #16,300 B. #8,150 C. #10,300
D.#9,978
46. The gross profit is -------- A. #9,378 B. #12,300 C. #4,689 D. #10,300
47. The reduction in the value of assets is --------- A. Depreciation B. Amortization
C.Appreciation D. Depletion
48. Another name for owner's equity is -------- A. Capital B. Loan C. Debtors
D.Overdraft
49.Expenses accrued at the end of the accounting year is treated in the balance sheet as -----
---- A. Current assets B. Current liabilities C. Fixed assets D. Long term liability
50. Which of the following is a capital expenditure A. Extension of building B. Repairs of
generator C.Purchase of stock D. Purchase of stationery

SECTION B: Theory
INSTRUCTION: Answer two Questions Only
1a. Who is an entrepreneur?
1b. List 5 qualities of an entrepreneur (10marks)
2a. List 5 documents used in business transaction
2b. Mention one uses of each of the following;
i. Cash book ii. Returns inwards book iii. Returns outwards day book iv. Purchases day
book
v. Sales day book(10marks)
3a. What is partnership business?
3b. State 5 provisions that would be apply in the absence of a formal agreement in a
partnership business. (10marks)

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 SECTION C: PRACTICAL
INSTRUCTION: Answer One Question Only
1. The following is the summary of cash book of Hallow's Seminary for the year ended,
31st January 2025;

# #
Balance b/f 11,715 Cash paid to creditors 55,280
Cash from Debtors 91,175 Salaries 5,400
Additional Capital 30000 Postage 1,200
General expenses 6,170
Drawings 12,500
Rent 2,850
Balance c/d 49,490
. .
132,890 132,890

Dr Cash Book Cr

Additional Information
1/3/24 31/2/25
# #
Stock 2,800 1,700
Debtors 6,010 4,940
Creditors 4,900 5,225
Accrued salaries 2,100 375
Prepaid Rent 220 335
You are required to prepare:
a. Statement of Affairs as at 1st April 2024
b. Debtors and Creditors Control Account
c. Trading, profit and loss account
d. Balance sheet as at 31st march, 2025 (50marks)
2a. The following information was extracted from the books of EKENE for the
month of January, 1999:
Jan #
1 petrol 100
2 postage stamps 15
3 petrol and oil 70
4 one ream of typing paper 30
6 Onyeka settlement of account 150
7 office cleaning materials 20
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8 traveling 40
10 refund of clerk bus fare 20
14 car polish 30
16 petrol and oil 70
20 office carpet shampoo 20
21 petrol 70
27 Emeka settlement of account 250
28 Obi settlement of account 60
29 carbon paper 40
The Petty cash system is based on an Imprest of #1,000.
You are to enter the above transactions into a Petty cash book under the
following headings : travelling, postage and stationery, motor expenses, cleaning,
and ledger account. (40 marks)
2b. Apply the rule of double principle on the following and post to the ledger.
(10 marks)
i. St John Bosco received a cheque of #200,000
ii. Bought motor vehicle #60,000 paying by cheque
iii. Started business with cash #40,000
iv. Purchase goods #100,000 on credit from Okoli
v. Cash purchases of #20,000
3a. August 1. Uche started business cash #1000
August 2. Received cash from Jude #70.00
August 3. Cash sales #45.00
August 4. Paid Ben Charry ##230.50 cash
August 5. Paid trade expenses #13.93
August 6. Purchased goods on credit from Ben charry #330.50
August 7. Purchased goods on cash from Ben Charry#50.00
August 8. Sold goods on credit to Juliet #144.265
August 9. Bought goods on credit from wisdom bread limited #70.00
August 10. Sold on credit to Benson and Co. #81.265
You are required to prepare:
a. Single column cash book
b. Sales day book
c. Purchases day book
d. Trial balance (25marks)
3b. Afam of Nigeria shipped 200 bags of dangote cement to Nkasah of Ghana on
consignment basis, on 3rd March 1996. The cement cost him #1,050 per bag. He also

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paid voyage expenses of #25,000 and loading expenses of #15,000. By September
20th, Nkasah have sold all 200 bags at #1,500 each but made the following expenses:
Insurance #400 Inland revenue: 1,200. He also deducted an agreed commission of
2% on gross sales and remitted the balance of the proceed to Afam via Union Bank
Western Union money transfer.
You are required to prepare
a. Account on sales by Nkasah to show how much he remitted to Afam
b. Consignment to Nkasah's account to determine the profit and loss incurred in
the transaction with Afam (consignment account) (25marks)

4. St John and St Patrick are in partnership sharing profit and losses equally. On 1st
January 1996, they decided to admit Johnson who would be entitled to one quarter of
any future profits. The balance being shared equally between Johnbosco and Patrick.
The financial position of the business before the admission of Johnson was as
follows :
#
Freehold premises 37,500
Fixtures and fittings 13,000
Stock in trade 52,740
Debtors 22,500
Cash in hand 6,320
Creditors 29,470
Additional Information:
a. It is agreed to value and retain goodwill at #15,000
b. Revalue other assets as follows:
Freehold premises #50,000
Fixtures and fittings #12,000
Stock #51,500
c. Provision for bad debts of #1,500 is to be made
d. Johnson is to bring #40,000 into the business as capital.
You are required to prepare:
i. Revaluation account only
ii. Partner's capital account
iii. Opening balance sheet of the new partnership of Johnbosco, Patrick and
Johnson.(50marks)

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