BASIC ACCOUNTING SECTION C EXAM QUESTIONS

MODULE 1 – INTRODUCTION TO FINANCIAL ACCOUNTING

1. Accounting evolved as a means of enabling businesses keep track of

past events and provide useful information for making future
decisions
a. Mention four of such information that accounting provides for
people and organizations. 2
marks
b. State and explain the three primary functions of accounting 3
marks
(Total = 5 marks)
2. Under the sole proprietorship form of business organization, explain
the following terms:
a. Capital Invested
b. Capital Employed
c. Working Capital
d. Drawings
10 marks
3. The sole proprietorship is the simplest form of a business
organization. Mention the other two major forms of business
organization. Compare and contrast their features.
10 marks
MODULE 2 – ACCOUNTING AS AN INFORMATION SYSTEM

4. Differentiate between financial accounting and management

accounting
(5 marks)
5. Identify 5 major users of accounting information and explain the
types of
decisions for which each group may require accounting information.
(5 marks)

6. List and describe (i.e., functions, features, elements, structure etc)

the four basic financial statements included in a corporate annual
report.
10 marks

7. An accounting information system is the combination of people,

procedures and business records that a company maintains to
manage financial data.

a. Describe the activity sequence of an accounting information

system

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

5 marks
b. Mention and explain 5 advantages of a computerized accounting
system
5 marks
(Total = 10 marks)

MODULES 3 – FUNDAMENTAL PRINCIPLES OF ACCOUNTING

8. a. Explain the following statement of financial position terms

i. Non-Current Assets
ii. Current Liabilities
iii. Retained Earnings (5 marks)

b. Explain each of the following accounting assumptions:

i. Entity Assumption
ii. Going Concern Assumption
iii. Monetary Assumption
iv. Bad debt
v. Importanc of note
vi. Structure and ownership of sole proprioship
(5 marks)
(Total = 10 marks)

9. Explain each of the following concepts highlighting the relationship

between them (if any):
a. Revenue Recognition Principle
b. Matching Concept
c. Accrual Principle

d. What can cause diperrence in bank reconciliation

e. Importance of income statement and financial statements

(5 marks)

MODULE 4 – THE ACCOUNTING PROCESS PART 1

10. On April 1, Miss Nana Mensah commenced an import/export

business. The following transactions occurred during the months of
April.
April 1: Deposited $10,000 in Access Bank GH Plc being initial equity
capital contribution to start the business.
April 3: Paid $1,200 rent for an office for the year.
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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

April 6: Bought office furniture and fixtures on credit for $800

April 10: Bought a delivery van which cost $2,500, paid $1,000 in cash
and the balance to be paid in 3 months, precisely July 10.
April 15: Purchases some goods for export for $5,000 on credit.
April 20: Received merchandise imported from United States of
America worth $20,000 on a 30 days credit terms.
April 22: Sold some of the imported merchandise valued at a cost of
$8,000 for $15,000 cash.
April 30: Paid $2,300 for salaries and wages for the month.

Required:
Use the information provided above to determine the cash balance
that will appear in the Trial Balance at 30 April. Show the cash ledger
account (Hint: You do not have to do journal entries. You can post the
transaction direct into the cash ledger account). 10 Marks
11. During the month of May, Tom Banda a Sole Trader reported the
following revenue transactions.
May 1: Sold goods for cash $20,000
May 2: Sold goods on Credit $15,000
May 3: Sold goods for cash: $30,000
May 10: Sold goods on Credit $20,000
May 15: Sold goods for cash $5,000
May 29: Sold goods for cash $18,000
May 25: Sold goods on Credit $35,000
May 28: Sold goods on Credit $45,000
May 30: Collected cash on receivables $35,000
May 31: Sold goods for cash $10,000
Required:
Use the information provided above to determine the values (i.e.
amount) that will appear in the Trial Balance as at May 31
a. Sales Revenue 6 Marks

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

b. Accounts receivable 4 Marks

Total = 10 marks
Hints: You do not need to raise the Journal entries. You can post the
transactions direct to the relevant Ledger Accounts. i.e. Sales Revenue
Accounts and Accounts Receivable Accounts.
12. The following transactions were reported for Chibuzo Enterprises
a sole trader during the month of December
December 1: Purchased goods for resale, valued at $100,000 on credit
December 3: Purchased inventory valued $15,000 paid cash
December 15: Purchased inventory valued at $100,000, paid 50% cash
and balance to be paid later.
December 20: Sold inventory valued at $50,000 for $75,000 cash.
December 30: Purchased additional inventory valued at $20,000 on
credit.
December 31: Paid $40,000 on accounts payable.
Required:
Use the information provided above to determine the values that will
appear in the Trial Balance as at December 31 for each of the following
Ledger Accounts.
a. Inventory 5 Marks
b. Accounts Payable 5 Marks
Total: 10 Marks
Hints: You do not need to raise Journal entries. You can post the
transaction direct into the relevant Ledger Accounts i.e. Inventory
Account and Accounts Payable Accounts.

13. Anuoluwapo David a Sole Trader, commenced business in the

month of April and reported the following transactions in the first
month of its operations.
April 1: Deposited $30,000 in a Current Account, Anuoluwapo Trading
Stores, being her initial equity capital for the business.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

April 2: Anuaoluwapo Trading Stores bought inventory valued at

$15,000 on credit.
April 4: Paid $2,400 as office rent for the next 12 months.
April 5: Sold goods valued at $10,000 on credit for $15,000.
April 10: Bought office furniture & fixtures valued @ $7,500 on credit.
April 15: Bought additional inventory value at $5,000 paid cash.
April 20: Bought additional inventory valued for $20,000 on credit.
April 22: Sold inventory costing $20,000 for $30,000 collected cash.
April 25: Collected $10,000 from Accounts receivable.
April 30: Paid staff salaries and other operating expenses ($7,500) and
recognize the rent expense for the month of April.
Required:
Use the information provided above to determine the values of the key
components of Expanded Accounting Equation as at April 30.
10 Marks

Hint: You do not need to raise the Journal entries. You can post the
transactions direct into the relevant components of the equation.

MODULE 5 – THE ACCOUNTING PROCESS PART 2

14. StillWaters Ltd keeps its records without the help of an

accountant. After much effort, an outsourced accounting firm was
able to prepare the following unadjusted trial balance as of the end
of the annual accounting period, December 31, 2015.

Debit Credit
N’ 000 N’000
Cash 5,032
Accounts Receivable 1,700
Notes Receivable 200

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Debit Credit
Prepaid Expenses 100
Land (at cost) 3,750
Equipment(at cost) 4,600
Accounts Payable 220
Accrued Expenses 3,700
Unearned Revenue 1,600
Contributed Capital 9,000
Revenue 5,200
Interest Revenue 12
Wages Expenses 3,900
Fuel Expenses 410
Interest Expense 40
TOTAL 19,732 19,732
The following information were omitted while preparing the trial
balance
a. 25% of the N1,600,000 Unearned Revenue at the beginning of
the year had been earned.
b. The Company depreciation policy is 20% on straight line basis.
No provision has been made for it.
c. Wages accrued during the month of December which was their
peak period was N1,200,000
d. Insurance costing N100,000 recorded as prepaid has been
utilized in the month of December.
e. Outstanding Tax liability stood at N2,300,000
f. Deposit for shares N2,650,000

Required:
a. Prepare an adjusted Trial balance at 31 December 2015 (6
marks)
b. Prepare a Statement of Comprehensive Income for the year
ended December 31, 2015
(7 marks)
c. Also prepare a Statement of Financial Position as at that date.
(7 marks)

15. The following trial balance has been extracted from the ledger of
Esther Faith, a sole trader.

Trial Balance as at May 31, 2012

Debit Credit
$ $
Sales 138,078

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Purchases 82,350
Carriage 5,144
Drawings 7,800
Rents, rates and insurance 6,622
Postage and Stationery 3,001
Advertising 1,330
Salaries and Wages 26,420
Bad debts 877
Provision for bad debts 130
Accounts Receivable 12,120
Accounts Payable 6,471
Cash in hand 177
Cash at bank 1,002
Stock @ June 1, 2011 11,927
Equipment @ cost 58,000
Accumulated Depreciation 19,000
Capital 53,091
TOTAL 216,770 216,770

The following additional information as at 31 May 2012 is available:

a. Inventory at the close of business has been valued at $13,551.

b. Equipment is to be depreciated at 10% per annum using the
straight-line method.
c. Rent is accrued by $210.
d. Rates have been prepaid by $880.
e. $2,211 of carriage represents carriage inwards on purchases.
f. The provision for bad debts is to be increased by $140. Please note
that no entries had been posted for Bolutife’s prompt payment of
her debt balance of $3,400 for which a discount of 2% was allowed.

Required:
Prepare the following:
a. All the adjusting entries and extract a final trial balance. (7
marks)
b. A Statement of Comprehensive Income for the year ended 31
May 2012 and (7 marks)
c. A Statement of Financial Position as at that date. (6 marks)

16. The following Trial Balance was extracted from the books of
Florida Everglads Inc. as at June 30, 2013.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

DR CR

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

N N
Accounts
Receivable/Accounts
Payable 320,400 402,700
Purchases and Sales 902,800 1,590,000
Returns(inwards/outwards) 30,000 27,800
Discounts
(allowed/received) 37,500 58,000
Inventory July 1, 2012 347,250
Cash in Hand 8,900
Cash in Bank 120,005
Freehold Land 500,000
Motor Vehicles 800,000
Furniture & Fittings 77,500
Salaries and Wages 187,500
Electricity Expense 18,900
Delivery Expenses 46,950
Telephone Expense 62,300
Bank Overdraft 400,000
Printing & Stationery
16,450
Expenses
Travelling Expenses 17,300
Carriage Inwards 33,405
Postages Expense 6,400
Rents & Rates 250,000
Bad Debts 15,000
Interest Expense 25,000
Long Term Loan 400,000
Share Capital, $0.50 par
600,000
value
Share Premium 120,000
Retained Earnings 225,060
3,823,560 3,823,560

Additional Information:
i. Inventory as at June 30, 2013 was N150,480
ii. Unpaid telephone bill was N8,700
iii. Depreciation charge: Straight Line
● 20% on Motor Vehicles
● 10% on furniture
iv. 15% of Accounts receivable (debtors) is considered doubtful and
should be reflected in the accounts of the current year.
v. Rents and rates prepaid was N100,000
vi. Salaries and wages accrued was N15,500

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

vii. The company pays corporate income tax at the rate of 35%
payable in the following year.
viii. The Board of Directors has approved that a dividend of N0.05 per
share be paid to shareholders, payable September 20, 2013.

Required:
Prepare the following financial statements for Florida Everglads Inc:
a. Statement of Comprehensive Income (Profit & Loss) for the year
ended June 30, 2013 10 marks
b. Statement of Financial Position (Balance Sheet) as at June 30, 2013.
10 marks (Total =20 marks)

17. The trial balance of Bonanza Ltd as at 31 March, 2010 is as

follows:-

N ‘000 N ’000
Administrative expenses 72
Bank 100
Accounts Payable 40
5% Debentures (2010) 20
Accounts Receivable 100
Goodwill 40
Land and buildings 270
Plant and equipment - accumulated 68
depreciation to 31/3/2009
Plant and equipment at cost 156
Purchases 170
Salaries & Wages 20
Retained profit as at 31/3/2009 80
Revaluation reserve 50
Sales 520
Selling expenses 50
Share capital ($ 1 ordinary shares) 220
Share premium 30
Inventory as at 31/03/2009 50
Total 1,028 1,028

None of the following transactions has been reflected in the trial

balance above:-

a. A physical stock count as at 31 March, 2010 showed inventory

to be valued at cost of N40,000.
b. Depreciation is to be provided on the plant and equipment so as
to write their cost off over a period of 10 years.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

c. The debentures were redeemed at par for cash on 31 March,

2010.
d. 20% of the trade debtors were over six months old. It was
decided that a bad debt provision of 50% of this figure would be
taken in this financial year.
e. A year’s rental of N24,000 for a new factory was paid on 1
March, 2010.
f. A bonus payment of N6,000 is to be made to the Sales Director
in relation to her achievements in the year ending 31 March,
2010.
g. The tax charge for the year is estimated at N20,000.
h. Goodwill is to be written off over 10 years.
i. A dividend of 10% is proposed.

Required:
Using the above information, prepare Bonanza Ltd’s Statement of
Comprehensive Income for the year ended 31 st March 2010 and a
Statement of Financial Position as at that date.
(20 marks)

18.Bam-Bam Enterprises is a major distributor for Unilever Nigeria Plc

and has been trading for some time. The following lists of balance
have been extracted from the firm’s ledger as at 30 April 2017, its
recent financial year-end.

DR CR
(N) (N)
Capital 83,887
Sales 259,870
Accounts Payable 19,840
Returns outwards 13,407
Provision for doubtful debts 512
Discounts allowed 2,306
Discounts received 1,750
Purchases 135,680
Returns inwards 5,624
Carriage outwards 4,562
Drawings 18,440
Carriage inwards 11,830
Rent and insurance 25,973
Electricity and utilities 11,010
Postages, Stationary & Telephone 2,410
Advertising 5,980

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Salaries & wages 38,521

Bad debts 2,008
Cash at hand 534
Cash in bank 4,440
Inventory as at 1 May, 2016 15,654
Accounts Receivable 24,500
Customers Advance Deposit 14,775
Motor Vehicles 35,018
Accumulated depreciation (motor 23,745
vehicles)
Furniture and Fixtures 120,740
Accumulated depreciation (furniture
63,020
& fixtures) @30/4/2017
Depreciation for the year 15,576
Total 480,806 480,806

The following additional information as at 30 April, 2017 is available:

i. Inventory at the close of business was valued at N17,750
ii. Insurance have been prepaid by N1,120
iii. Electricity & utilities is accrued by N1,360
iv. Rent have been prepaid by N5,435
v. The provision for doubtful debts is to be adjusted so that it’s 3%
of the Accounts Receivable

Required:
Prepare the following for Bam-Bam Enterprises:
a. Statement of Comprehensive Income for the year ended 30 April 2016
(12 marks)
b. Statement of Financial Position (Balance Sheet) as at 30 April, 2016
(8
marks)

19. The following trial balance has been extracted from the ledger of
King Arthur Alberto, a sole trader.

Trial Balance as at May 31, 2016

Debit Credit

N N

Sales 138,078

Purchases 82,350

Carriage 5,144

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Drawings 7,800

Rents, rates and insurance 6,622

Postage and Stationery 3,001

Advertising 1,330

Salaries and Wages 26,420

Bad debts 877

Provision for bad debts 130

Accounts Receivable 12,120

Accounts Payable 6,471

Cash in hand 177

Cash at bank 1,002

Inventory @ June 1, 2011 11,927

Equipment @ cost 58,000

Accumulated Depreciation 19,000

Capital 53,091

TOTAL 216,770 216,770

The following additional information as at 31 May 2016 is available:

a. Equipment is to be depreciated at 10% per annum using the straight

line method. An old equipment purchased six years ago at a cost of
N9,600 had become quite problematic. Management scrapped the
equipment on the last day of the year end, after it has added value to
the company fitfully. N1,500 was spent to scrap the equipment and the
scrap fetched N1,890. No entries have been posted in respect of the
scrapping of the asset.

b. Rent is accrued by N210.

c. Rates have been prepaid by N880.

d. N2,211 of carriage represents carriage inwards on purchases.

e. The provision for bad debts is to be increased by N140. Please note

that no entries had been posted for Bolutife’s prompt payment of her
debt balance of 3,400 for which a discount of 2% was allowed.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

f. Inventory at the close of business has been valued at N13,551.

Prepare:
a. A Statement of Comprehensive Income for the year ended 31 May
2012 and (12 marks)
b. A Statement of Financial Position as at that date. (8 marks)
(Total 20 marks)

20. The following balances were extracted from the books of

Goodwill Limited as at 31 December 2012 after the preparation of
the Trading account:

N’000
Share capital: Authorised, issued and fully paid:
300 million ordinary shares of N1 each 300,000
Cash at bank and in hand 750
Inventories as at 31 December 2012 91,800
Trade receivables 28,657
Trade payable s 22,513
Gross profit from trading account- 31 December 193,413
2012
Revenue reserve as at 1/1/2012 50,000
Salaries and wages 42,645
Prepayments 900
Bad debts 750
Accrued expenses 789
Directors’ current account 3,750
Finance cost 900
Rents and insurance 2,280
Sundry expenses 6,150
6% Loan notes 30,000
Electricity 1,965
Postages and telephones 1,200
Motor vehicle (cost N37.5 million) 22,500
Office fittings and equipment (cost N98.25 63,525
million)
Retained earnings as at 1 January 2012 33,450
Land and buildings 369,893

Additional Information:

(i) Office fittings and equipment to be depreciated at 15% per

annum on cost and motor vehicles at 20% on cost.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

(ii) Provisions are to be made for:

Directors’ fees N12,000,000
Audit fees N5,000,000

(iii) N822,000 in respect of electricity consumed up to 31 December

2012 has not been posted to the ledger.
(iv) The Directors have recommended that N30,000,000 be
transferred to revenue reserves.
(v) The Corporate Tax rate is 30%

Required:
a. The Statements of Profit and Loss of Goodwill Limited for the
year ended 31 December 2012. (12 marks)
b. The statement of financial position as at 31 December 2012.
(8 marks)

21. The following trial balance has been extracted from the ledger of
Donald John Restaurant.

Trial Balance as at September 30, 2016

Debit Credit

N N

Sales 238,078

Purchases 182,350

Carriage 5,144

Drawings 10,000

Rents, rates and insurance 6,622

Postage and Stationery 3,001

Advertising 1,330

Salaries and Wages 26,420

Bad debts 877

Provision for bad debts 130

Trade Debtors 12,120

Trade Creditors 6,471

Cash in Bank 177

Cash at Hand 1,002

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Stock @ October 1, 2015 11,927

Equipment @ cost 60,000

Accumulated Depreciation 21,000

Capital 55,291

TOTAL 320,970 320,970

The following additional information as at 30 September 2016 is available:

a. No entries was made for the Generator bought during the year for
N96,000 and to be depreciated at 25% per annum using the straight
line method.
b. N960 out of carriage was meant for Return Inwards
c. Travel expenses incurred and not paid was not captured in the trial
balance was N78,000
d. The provision for bad debts is to be reduced to N105.
e. Stock at the close of business has been valued at N8,115.

Prepare:
i. A Statement of Comprehensive Income for the year ended 30
September, 2016 (12
marks)
ii. A Statement of Financial Position as at that date. (8 marks)

22. The following trial balance was extracted from the books of
BeamRahM PLC as on 31 December 2015

Trial Balance of BeamRahM PLC as at 31 December 2015

Dr Cr
N N
10% preference share capital 400,000
Ordinary share capital 1,400,000
10% loan notes (repayable 2019) 600,000
Goodwill at cost 510,000
Buildings at cost 2,100,000
Equipment at cost 240,000
Motor vehicles at cost 344,000
Prov for deprn: buildings 1.1.2015 200,000
Prov for deprn: equipment 1.1.2015 48,000
Prov for deprn: motor vehicles 103,200
1.1.2015
Inventory 1.1.2015 169,824
Sales 2,044,000
Purchases 878,200

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Carriage inwards 12,400

Salaries and wages 384,800
Director’s remuneration 246,000
Motor expenses 6,240
Business rates and insurance 17,380
General expenses 11,200
Loan note interest 30,000
Accounts receivable 372,200
Accounts payable 227,400
Bank 16,780
General reserve 100,000
Share premium account 200,000
Interim ordinary dividend paid 70,000
Retained profits 31.12.2014 86,424
5,409,024 5,409,024

The following adjustments are needed:

a. Inventory as at 31.12.2015 was N182,826.
b. N12,200 of the account receivable is deemed irrecoverable and
should be written off. BeamRahM PLC’s policy is to make a provision
of 3.5% on the remaining account receivable balance.
c. BeamRahM PLC depreciates all non-current assets on a straight line
basis with no residual value. The following are the depreciation rates
for each class of asset:
i. Buildings: 5%;
ii. Motor Vehicles: 25% and
iii. Equipment: 10%.
d. Write-off goodwill impairment of N60,000
e. Provide for corporation tax N100,000
f. Loan note interest is payable on a semi-annual basis. The payment
due on December 31, 2015 is yet to be paid.
g. A transfer of N20,000 is to be made to the general reserve account.

Required:
a. Prepare a Statement of Comprehensive Income for the year ended
December 31, 2015 (12
marks)
b. Also prepare a Statement of Financial Position as at that date (8
marks)

23. Chief Chandler is a wine merchant and has been trading for
some time as Chief Chandler Wine Merchant. The following lists of

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

balance have been extracted from his ledger as at 30 April 2016, the
end of his recent financial year.

DR CR
(N) (N)
Capital 83,887
Sales 259,870
Accounts Payable 19,840
Returns outwards 13,407
Provision for doubtful debts 512
Discounts allowed 2,306
Discounts received 1,750
Purchases 135,680
Returns inwards 5,624
Carriage outwards 4,562
Drawings 18,440
Carriage inwards 11,830
Rent and insurance 25,973
Electricity and utilities 11,010
Postages, Stationary & Telephone 2,410
Advertising 5,980
Salaries & wages 38,521
Bad debts 2,008
Cash at hand 534
Cash in bank 4,440
Inventory as at 1 May, 2015 15,654
Accounts Receivable 24,500
Furniture and Fixtures 120,740
Accumulated depreciation (furniture &
63,020
fixtures) as at 30 April, 2016
Depreciation 12,074
442,286 442,286

The following additional information as at 30 April, 2016 is available:

a. Inventory at the close of business was valued at N17,750
b. Insurance have been prepaid by N1,120
c. Electricity & utilities is accrued by N1,360
d. Rent have been prepaid by N5,435
e. The provision for doubtful debts is to be adjusted so that it’s
3% of the Accounts Receivable
Required:
Prepare the following for Chief Chandler Wine Store:
a. Statement of Comprehensive Income for the year ended 30 April
2016 (12 marks)

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

b. Statement of Financial Position (Balance Sheet) as at 30 April,

2016 (8 marks)
(Total – 20 marks)

MODULE 6 – ACCRUAL ACCOUNTING

24. Construct the ledger accounts for Tinuke Enterprises based on

the following
data:
a. Heating and lighting owing as at 1 Jan 2010 N32. Amounts paid
during 2010 N453. Heating and lighting owing as at 31 December
2010 N56.
b. Insurance owing at 1 Jan 2010 N187. Amount paid during 2010
N955. Insurance prepaid as at 31 December 2010 N42.
c. Wages paid in advance in 2009 for the year 2010 N211. Wages paid
during 2010 N6,980. Wages owing as at 31 December 2010 N544.
d. Telephone paid in 2010 N378. Prepaid as at 1 January 2010, N17.
Prepaid as at 31 December N61.
(10 marks)

25. The financial year of Jokotola Ent ended on 31 December 2015.

From the following, prepare the ledger accounts for each of the
following, and extract the relevant expenses/income for the period:

Rent: Paid during 2015 N395,000, prepaid for 2016 N45,000.

Electricity: Owing as at 1 January 2015 N32,000, paid during 2015

N178,000, still owing at end of the year N22,000.

Accounts Receivable: No receivables as at 1 Jan 2015, received

cheques from Debtors during 2015 totalling N480,000. Still owed
N87,000 as at 31 December 2015

Insurance: Prepaid at 1 January 2015 N44,000; Paid in 2015 N501,000.

(10
marks)

MODULE 7 - ACCOUNTING FOR RECEIVABLES

26. On 1 Jan 2013, Bolade had debtors of $500,000 on which she had
made a provision for doubtful debts of 3%. During 2013:

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

a. Osa Ltd who owed Bolade $24,000 was declared bankrupt and a
settlement of $0.52 in the $ was made, the balance being
treated as bad debt. Other bad debts written off during the year
amounted to $41,000.
b. On 31 Dec 2013 total debtors amounted to $486,000 but this
requires to be adjusted as follows:
c. Sadiq Muhammad, a debtor owing $12,000, was known to be
unable to pay and this amount was to be written off
d. A cheque for $34,000 from McEgbeyemi was returned from the
bank unpaid.
e. Bolade maintained her provision for doubtful debts at 3% of
debtors.

Required:
For the financial year ended 31 Dec 2013, show the entries in the
following accounts: a) Provision for doubtful debts and b) Bad Debts.
(10 marks)

27. Niger Pacific Travels & Tours commenced business on 1st

January 2010 and makes its accounts to December 31, every year.
For the year ended 31st December 2010, total accounts receivable
written off amounted to ₦12,000. It was also found necessary to
create a provision for doubtful debts of ₦20,000.

In 2011 debts amounting to ₦16,000 proved bad and was written off.
Ngozi, whose debt of ₦3,500 was written off in 2010, settled her
account in full on 30th November 2011. As at December 31 2011, total
accounts receivable outstanding were ₦560,000. It was decided to
bring the provision up to 5% of this figure on that date.

In 2012, ₦23,500 debts were written off during the year, and another
recovery of ₦1,500 was made in respect of debts written off in 2010.
As at December 31 2012, total accounts receivable outstanding were
₦420,000. The provision for doubtful debts is to be maintained at 5%
off this figure.

Required:
a. Show all the relevant ledger accounts for the years 2010
through 2012.
(10 marks)
b. Explain the term accounts receivable? What specific business
transaction creates this asset? What is the specific accounting
principle that is obeyed by the recognition of this asset?
(5 marks)

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

28. RecessionKillMe Nigeria Limited makes 10% provision for

doubtful debt on the Receivables balance at the end of the year.
● The opening balance on the Trade Debtors account is N800,000
as at 1/1/16.
● During the year, the sum of N680,000 debt was written off.
● As at 31/12/16, the balance on the Trade Debtor account totaled
N3,000,000.

You are required to show the entries during the year ended 31
December 2016:
a. Trade Debtor A/c
b. Provision for Doubtful Debt A/c
c. Bad Debt A/c
d. Extract from the Statement of Comprehensive Income
e. Extract from the Statement of Financial Position (10 marks)

29. On 1 Jan 2015 Dahlia had debtors of N100,000 on which she had
made a provision for doubtful debts of 5%. During 2015, Sunflower
Ltd who owed Dahlia N4,800 was declared bankrupt and a
settlement of 45k in the N was made, the balance being treated as
bad debt. Other bad debts written off during the year amounted to
N9,200.

On 31 December 2015, total debtors amounted to N 97,200 but this

requires to be adjusted as follows:
i. Tulip, a debtor owing N2,400, was known to be unable to pay
and this amount was to be wri
ii. tten off;
iii. A cheque for N800 from McSage was returned from the bank
unpaid.
Dahlia maintained her provision for doubtful debts at 5% of debtors.

Required:
a. For the financial year ended 31 Dec 2011, show the entries in the
following accounts: a) Provision for doubtful debts and b) Bad
Debts. (9
marks)
b. Explain the term accounts receivable? What specific business
transaction creates this asset? What is the specific accounting
principle that is obeyed by the recognition of this asset?

(3marks)

c. Distinguish between trade discount and cash discount.

(3marks)

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

30. On 1 Jan 2013, Bolade had debtors of N500,000 on which she

had made a provision for doubtful debts of 3%. During 2013:

a. Osa Ltd who owed Bolade N24,000 was declared bankrupt and a
settlement of 52k in the N was made, the balance being treated
as bad debt. Other bad debts written off during the year
amounted to N41,000.
b. On 31 Dec 2013 total debtors amounted to N486,000 but this
requires to be adjusted as follows:
c. Sadiq Muhammad, a debtor owing N12,000, was known to be
unable to pay and this amount was to be written off
d. A cheque for N34,000 from Egbeyemi was returned from the
bank unpaid.
e. Bolade maintained her provision for doubtful debts at 3% of
debtors.

Required:

For the financial year ended 31 Dec 2013, show the entries in the
following accounts: a) Provision for doubtful debts and b) Bad Debts.
(10
marks)

31. On 1 Jan 2013 Mary and Martha Enterprises had an Accounts

Receivable balance of N1,000,000 on which the company had made
a provision for doubtful debts of 5%. During 2013:

a. FarmHouse Ltd who owed the company N48,000 was declared

bankrupt and a settlement of 30kobo on each N was made, the
balance being treated as bad debt.

b. Other bad debts written off during the year amounted to

N210,000.

c. Tunex Ventures, a debtor owing N120,000 previously written off

last year, settled his debts with the company.

d. A cheque for N400,000 from Mr Mauve was returned from the

bank unpaid. Mr Mauve has been since out of reach for 6months
and the company has decided to write off the debt.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

On 31 Dec 2013 total Accounts Receivable amounted to N1,286,000.

Mary and Martha Ltd increased its provision for doubtful debts to 7% of
debtors.

Required:

For the financial year ended 31 Dec 2013, show these entries in all the
necessary books of accounts (15 marks)

32. Daniel Stephen Associates commenced business on January 1 st

2014 and makes accounts to December 31, every year. For the year
ended 31st December 2014, total receivable written off amounted to
N36,000. It was later found necessary to create a provision for
doubtful debts of N60,000.

In 2015 debts amounting to N43,000 proved bad and was written off.
Eniola, whose outstanding debt was N155,000 decided to pay 45kobo
in its N Naira while the balance was written off. By year end the
outstanding trade debtors was N840,000 and the company decided to
keep provision up to 17.5% of this figure on that date.

In 2016, N56,000 debts were written off during the year and a recovery
of N107,000 was made in respect of debts written off in 2014. As at
December 31, 2016 total accounts receivable outstanding were
N600,000. The provision for doubtful debts is to be maintained at
17.5% of this figure.

Required:
Show all the relevant ledger accounts for the years 2014 -2016.

(10marks)

33. The following balances appeared in the books of Mandelson Ltd

on 1 January, 2015:

Trade Receivables Account ₦125,000

Provision for doubtful debts account ₦ 12,500

Transactions during the year ended 31 December, 2015 were:

₦
Credit sales to trade customers 410,000

Returns by trade customers 6,000

Discount allowed to trade customers 3,750

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Payments received from trade customers 315,250

Receivables considered irrecoverable 9,000

a. During the year, Kennedy Dare paid ₦10,000; an amount that had
been written off as irrecoverable in 2013. This figure was included in
the payments received from trade customers above.
b. Mandelson Ltd maintained its policy of account receivable to
provision for doubtful debts at 10:1.

Required:
Show the effect of these transactions on the following accounts for the
year-ended December 31, 2015:

a. Trade Receivable Account (5 marks)

b. Provision for doubtful debts account (3 marks)
c. Extracts of the Income Statement and the Statement of Financial
Position. (2 marks)

34. Cape Coast Tours Limited commenced business on 1st January

2013 and makes its accounts to December 31, every year. For the
year ended 31st December 2013, total accounts receivable written
off amounted to 12,000cedis. It was also found necessary to create a
provision for doubtful debts of 20,000cedis.

In 2014 debts amounting to 16,000cedis proved bad and were written

off. Nana, whose debt of 3,500cedis was written off in 2013, settled her
account in full on 30th November 2014. As at December 31 2014, total
accounts receivable outstanding were 560,000cedis. It was decided to
bring the provision up to 5% of this figure on that date.

In 2015, 23,500cedis debts were written off during the year, and
another recovery of 1,500cedis was made in respect of debts written
off in 2013. As at December 31 2015, total accounts receivable
outstanding were 420,000cedis. The provision for doubtful debts is to
be maintained at 5% off this figure.

Required:
a.Compute the Bad Debt expense for each of the three years 2013,2014
and 2015, which will show in the company’s Income Statements. 3
marks
b. Show the following ledger accounts for the years 2013 through
2015.
i. Bad Debt Account
ii. Provision for Bad Debt 6 marks

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

c. How will the Account Receivable be shown in the Statements of

Financial Position? 3 marks
d. Explain the term accounts receivable? What specific business
transaction creates this asset? What is the specific accounting
principle that is obeyed by the recognition of this asset?
3 marks
(Total = 15 marks)

35. FGE Amiable owns a block of flats, and earns a living by rental
income and general dealing. On 1 January 2015 his ledger included
the following balances.

Debtors’ account ₦75,000

Provision for doubtful debts account ₦ 2,235
The balance on the provision account consisted of the following:
₦
Specific provision of 100% against the debt of
Charles Salomon, a tenant 1,500
General provision of 1% against remaining debts 735
2,235
During the year ended 31 December 2015 the following occurred:
a. Charles Salomon paid FGE Amiable ₦150 and then vanished without
trace to a new world, leaving no assets.
b. Another tenant, Anthony Badejo, who owed ₦900, fell into a river
and was also found to have died penniless.
c. Azuma Nickson returned from total obscurity and paid an amount of
₦450 which FGE Amiable had written off in 2013.
d. Credit sales for the year amounted to ₦167,400 and cash received
from debtors (other than Salomon and Azuma) totalled ₦150,000.
e. At 31 December 2015 FGE Amiable decided to provide in full
against a disputed debt of ₦1,200 owed by Abees Owlah, and to
maintain the 1% general provision on other debtors.

Required:
Write up FGE Amiable’s Account Receivable (debtors’) account,
provision for doubtful debts account and bad debts expense account
for the year ended 31 December 2015.
(15 marks)

MODULE 8 – CONTROLS ON CASH

36. Accounting controls are methods and procedures that form the
total internal control system of an organization. Mention the
objectives of the accounting control system and give examples of

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

some of the control measures that management put in place to

achieve these objectives.
(5 marks)

37. The bank statement of Henrietta Hair Salon Ltd for June 2015
shows an ending balance of N114,400 debit while the company's
Cash account shows a balance of N96,700. You are required to
prepare the company’s Bank Reconciliation Statement as at June
2015, taking into account the following transactions that occurred in
the month.
a. On June 30 the bank statement shows charges of N350 for the
COT charge on the account.
b. On June 30, the bank statement shows a returned cheque of
N10,000 earlier debited on the 29th, plus a returned cheque
charge of N100.
c. The bank statement shows a charge of N200 for cheque-book
printing on June 20.
d. The bank statement shows that N800 was added to the account
on June 30 for interest earned by the company on its Term-
Deposit during the month of June.
e. The bank statement shows that a note receivable of N100,000
was collected by the bank on June 29 and was deposited into the
company's account. On the same day, the bank charged N50 to
the company's account as a fee for processing the note
receivable.
f. Cheques from other banks deposited by the company on June 30
totaling N302,100 had not yet cleared into the account.
g. On June 29 the company's Cash account shows cash sales of
N14,500. The bank statement shows the amount deposited was
actually N15,400. The company reviewed the transactions and
found that N15,400 was the correct amount.
(10
marks)

38. From the following, draw up a bank reconciliation statement from

details as on 31 December, 2006:

$
Cash at bank as per bank column of the cash book 2,910
Unpresented cheques 730
Cheques received and paid into the bank,
but not yet entered on the bank statement 560

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Credit transfer entered as banked on the bank statement

but not entered in the cash book 340
cash at bank as per bank statement 3,420
(5 marks)

39. Draw up a bank reconciliation statement, after writing the cash

book up to date, ascertaining the balance on the bank statement,
from the following as on 31 March 2009:
$
Cash at bank as per bank column of the cash book (Dr) 2,740
Bankings made but not yet entered on bank statement 410
Bank charges on bank statement but not yet in cash book 32
Unpresented cheques W Shute 131
Standing order to Giffy Ltd entered on bank statement,
but not in cash book 93
Credit transfer from B Barnes entered on bank statement,
but not yet in cash book
201
(5 marks)

40. Bis Awlar Ltd received a bank statement for the month of July
2016. The bank statement showed the following information:

Balance as at July 1, 2016 N136,652

Cash Deposits N50,300
Cheques processed N60,444
Cash paid N12,000
Service charges N100
Cheque lodgments credited N40,300
Monthly deposit into saving account directly
deducted by bank from account N1,360
Balance as at July 31, 2016 N153,344

Bis Awlar Ltd’s general ledger cash account had a balance of N156,604
at the end of July 2016.
a) A cash deposit amounting to N10,400 and chegue lodgments
amounting to N6,000 are yet to be processed;
b) All cheques written by the company were processed by the
bank except for those totaling N18,200;
c) A N4,000 check to a supplier correctly recorded by the bank
but was incorrectly recorded by the company as N400 credit
to cash.

Required:
a) Based on the above, prepare the adjusted general ledger cash
account for July 2016.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

b) Prepare a Bank Reconciliation Statement for the month of July

2016. (10 marks)

41. The following is a summary from the Cash Book of Bobo

Engineering
Services for October 2017.

CASH BOOK
N N
Balance 1,407 Payments 15,52
brought 0
forward
Receipts 15,07 Balance carried 960
3 forward

16,48 16,48
0 0

On investigation, you discover that:

1. Bank charges of N35 shown on the bank statement have not been
entered in the Cash Book
2. A cheque drawn for N47 has been entered in error as a receipt
3. A cheque for N18 has been returned by the bank marked “refer to
Drawer” but it has not been written back in the Cash Book
4. An error of transposition has occurred in the opening balance in the
Cash Book should have been carried down as N1,470 instead of
N1,407 as shown in the Cash Book
5. Three cheques paid to suppliers for N214, N370, and N30 have not
yet been presented to the bank.
6. The last page of the teller shows a deposit of N1,542 which has not
yet been credited to the account by the bank
7. The bank has debited a cheque for N72 in error to the company’s
account
8. The bank statement shows an overdrawn balance of N124.

You are required to:

a. Show what adjustments you would make in the Cash Book, and
b. Prepare a bank reconciliation statement for October.
(10 marks)

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

42. The following statement was received from the bank indicating
Omoboriowo’s position during the month of March

DB CR Balance

Marc N N N
h

1 Balance 40,255

4 Sundries 7,450 47,705

5 Credit transfer S Adigun) 16,850 64,555

9 Drawings 14,000 50,555

10 Sundries 18,650 69,205

12 Dividend from Access Bank 2,500 71,705

Plc.

17 Sundries 19,540 91,245

20 Charges 850 90,395

23 Drawings 14,600 75,795

24 Sundries 22,725 98,520

30 Drawings 13,850 84,670

30 Sundries 24,260 108,930

The following discrepancies were found

The sundries item of March 10 had been completely omitted from the
cash book

Three cheques drawn in the last few days of the month had not been
paid by the bank

Mark Inyanya N4,250

Tunde Aluko 155

Chike Chinyere 10,820

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

S. Adigun’s credit transfer, the dividend and the bank charges had not
been notified to the company. Consequently, these have not been
entered in the cash book

Cash paid on March 31, N15,055 is not in the bank statement

The foreign exchange department of his local bank had requested by

post for authorisation for an automatic debit transfer connected with
the subscription to a Ghanaian magazine. This was given and the
bookkeeper had deducted from his cash book, the sum of N1,050 but
the foreign exchange debit transfer had not reached the bank.

Required:

State which of the above items need to be entered in the cash book

Draw up a bank reconciliation statement starting with the balance as

per bank statement and show the final cash book balance. (10
marks)

43. The bank statement of Mofopefoluwa Ltd for August 2014 shows
an ending balance of N2,594,000 Dr while the company's Cash
account shows a balance of N967,000. You are required to prepare
the company’s Bank Reconciliation Statement as at August 2014,
taking into account the following transactions that occurred in the
month.

a. On August 31 the bank statement shows charges of N3,500 for

the COT charge on the account.
b. On August 31, the bank statement shows a returned cheque of
N100,000 earlier debited on the 30th, plus a returned cheque
charge of N1,000. The cheque was also marked "do not
redeposit."
c. The bank statement shows a charge of N2,000 for cheque-book
printing on August 20.
d. The bank statement shows that N8,000 was added to the
account on August 31 for interest earned by the company on its
Term-Deposit during the month of August.
e. The bank statement shows that a note receivable of N1,000,000
was collected by the bank on August 29 and was deposited into
the company's account. On the same day, the bank charged
N500 to the company's account as a fee for processing the note
receivable.
f. Cheques from other banks deposited by the company on Aug 31
totalling N3,021,000 had not yet cleared into the account.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

g. The N1,450,000 of cash received by the company on August 31

was recorded on the company's books as at August 31. However,
the N1,450,000 of cash receipts was deposited at the bank on
the morning of September 1.
h. On August 29 the company's Cash account shows cash sales of
N145,000. The bank statement shows the amount deposited was
actually N154,000. The company reviewed the transactions and
found that N154,000 was the correct amount. (15 marks)

44. Below are the records in the books of Ugochukwu Enterprises for
the month of October, 2014

Dr Ugochukwu Enterprises Cash Ledger Cr

Date Particula Amount Date Particulars Amount

rs $ $
Oct. 1 Balance 302,000 Oct.2 Williams chq 48,000
b/d 02
Oct. Sales- 126,000 Oct 3 Remi chq 04 220,000
12 Henry
Oct. Alabi 38,000 Oct 13 Salaries chq 100,000
20 05
Oct Aluko 20,000 Oct 17 Petty Cash 50,000
23 chq06
Oct R Mike 240,000 Oct 21 Wale chq 07 58,000
27
Oct John 42,000 Oct 25 Aluko & 150,000
29 Sons chq 08
Oct Benson 70,000 Oct 29 AG Guhar 180,000
30 chq 09
Oct 31 Balance c/d 32,000
838,000 838,000

Details of Ugochukwu Enterprises’ Access Bank statement for the

month of October 2014

Date Details Debit Credit Balance

Oct 1 Opening balance 302,000CR
Oct 3 Cash deposit 110,000 412,000CR
Oct 7 Chq 02 48,000 364,000CR
Oct 13 Cheque 2348 126,000 490,000CR
Oct 13 Cheque 005 100,000 390,000CR
Oct 15 Cheque 04 220,000 170,000CR
Oct 17 Cheque 06 50,000 120,000CR
Oct 21 Cheque 645Alabi 38,000 158,000CR

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Oct 24 Dividend 15,000 173,000CR

Oct 24 Aluko Chq312 20,000 193,000CR
Oct 26 Cheque 08 150,000 43,000CR
Oct 27 Cheque 645 38,000 5,000CR
Oct 29 Club subscription 2,000 3,000CR
(standing order)
Oct 30 Cash deposit for goods 120,000 123,000CR
Femi
Oct 31 Bank charges 5,000 118,000CR
Oct 31 Closing Balance 118,000CR

Required:
Prepare Ugochukwu Enterprises’ Bank Reconciliation Statement for the
month of October. 10 marks

MODULE 9 - ACCOUNTING FOR NON-CURRENT ASSETS

45.Tapwater Ltd. acquired equipment for N14million cash. The
Equipment has an estimated useful life of 5yrs and a residual value
of N600,000. You are required to show;
a. The Depreciation Schedule using Straight Line method.
b. The Depreciation Schedule using the Reducing Balance Method
c. Assume that the equipment in exercise (b) above was revalued at
the end of year 3 to N10,000,000. Show the relevant journal entries
to record the revaluation exercise.
d. At the end of the 4th year, the equipment in (a) was disposed for a
value of N8,400,000. Show the relevant accounting (ledger) entries.
(15 marks)

46. On January 2 2008, Roberts Smith Equipment Rentals Inc.

purchased four (4) lathe machines at a unit price of $20,000 per unit
and financed the purchase as follows: cash payment of
$25,000, supplier’s credit of $30,000 and the balance through a
bank loan. The expected useful life of the machines is 20 years
and the company depreciates its machines using the straight line
method.

On January 2, 2016 the company sold one of the lathe machines for
$17,950

Required:

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

Show the following ledger accounts for the two years ended December
31, 2015 and 2016 (Show the ledger balances at January 1, 2015).

a. The Machinery Account 3 marks

b. The Accumulated Depreciation Account 4 marks
c. Assets Disposal Account 4 marks
d. Assume immediately after the disposal of the lathe machine, the
remaining three machines were revalued immediately to
$90,000 in view of the prevailing market and technological
environment. Raise appropriate journal entries to reflect or
recognized the effect of the revaluation on the accounting
records. Also show the relevant ledger accounts 4 marks

47. On January 15, 2012, IKnowMyRight Limited bought five new

motor vehicles for use at N5,000,000 each; paid N15,000,000 cash
and obtained a bank loan to finance the balance of the total
purchase price. The loan, which carries an annual interest rate of
22%, is to be paid back in one full repayment in five years. Interest is
however paid on 31 December of each year.

The company depreciates its motor vehicles at the rate of 25% per
year on a reducing balance method basis on assets held at the end of
the year while no depreciation is charged in the year of disposal.

On March 20, 2015, the company sold one of the vehicles for
N3,500,000 to one of its employees through balloting.

Required:
a. Prepare the following ledger accounts for IKnowMyRight Limited
for the period January 1, 2012 to 31 December, 2015
i. Motor vehicle account (6 marks)
ii. Accumulated depreciation account (MV) (7 marks)
b. Show the assets disposal account for the vehicle sold. (4 marks)
c. Show the full effects of this transaction on the Income Statement
of IKnowMyRight for the year-ended 31 December, 2015
(3 marks)

48. Among the following costs, identify the capital expenditures and
revenue expenditures.
01. Purchase of an office building.
02. Legal charges incurred in relation to the purchase of the building.
03. Depreciation of the building.
04. Purchase of computer.
05. Cost of upgrading the computer.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

06. Cost of repairing and maintaining the computer.

07. Purchase of a machine.
08. Customs duties incurred on the machine.
09. Cost of transporting the machine to purchaser’s location.
10. Cost of installing the machine.
11. Cost of training staff on the operation of the machine.
12. Wages of staff operating the machine
(6 marks)

49. At the end of year 2, Ifedayo Records had an asset that had an
original cost of $120,000, stood in the books at the written down
value of $87,000. Depreciation at 15% reducing balance. The Net
Book Value at the end of the 3rd year will be?
(5 Marks)

50. Murewa Engineering Consult Services Ltd depreciates its

machinery equally over ten years with nil scrap value. It is the
management practice to charge a full year's depreciation in the year
of purchase and no depreciation in the year of disposal. On 1 st
January 2014, the Machinery Account in the books of the firm stood
at N3,945,000 and the provision for depreciation of machinery
account at N2,002,500. On 28th December 2014, the firm sold one of
its machineries for N94,950 and purchased a new one for N303,500.
The machine sold was bought on 15 th September 2006 at a cost of
N175,500. You are required to prepare:

a. A machinery Account for the year ended 31 st December, 2014. (3

marks)
b. The Provision for Depreciation of Machinery Account for the same
period
(3 marks)
c. Disposal of Machinery Account. (4 marks)

51. On January 15, 2012, MountainTop Marketing Ventures

purchased five new cars for use at N2,500,000 each; paid
N7,500,000 cash and obtained a bank loan to finance the balance of
the total purchase price. The loan, which carries an annual interest
rate of 22%, is to be paid back in one full repayment in five years.
Interest is however paid on 31 December of each year.

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 BASIC ACCOUNTING SECTION C EXAM QUESTIONS

The company depreciates its motor vehicles at the rate of 25% per
year on a reducing balance method basis on assets held at the end of
the year while no depreciation is charged in the year of disposal.

On March 20, 2015, the company sold one of the vehicles for
N1,750,000 to one of its employees through balloting.

Required:
a.Prepare the following ledger accounts for MountainTop Marketing
Ventures for the period January 1, 2012 to 31 December, 2015

i. Motor vehicle account (4 marks)

ii.Accumulated depreciation account (MV) (6 marks)

b.Show the assets disposal account for the vehicle sold (5 marks)
c.Show the full effects of this transaction on the Income Statement of
MountainTop Marketing Ventures for the year-ended 31 December,
2015.
(5 marks)
(Total: 20 marks)

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