VICTORIOUS GROUP OF SCHOOLS

*Creche *Nursery *Primary *Secondary

Address: Beside Teacher’s Cooperative Building Orogun, Ibadan, Oyo State
THIRD TERM EXAMINATION
(Objective part answer all Questions)
SUBJECT: COMMERCE CLASS: SS2
1. The document prepared by the buyer and sent to the seller listing the items to be
supplied is (a) Sales order (b) proforma invoice (c) credit note
2. Adiza gave an instruction to her banker to pay a premium of N30,000 from her
account to union rock on a quarterly basis for a policy. This instruction is an example
of (a) Credit transfer (b) Direct debit (c) Standing order
3. Trade discount is (a) Allowance for prompt payment (b) Allowance for damaged
goods (c) Allowance off price list
4. When a buyer returns damaged goods to the seller the buyer receives a (a) Proforma
invoice (b) Credit note (c) Debit note
5. Publications which serve as sources of information to the buyer as it contains articles
on matters of interest is called (a) Newspaper (b) Trade journals (c) Magazine
6. Official paper which facilitates the act of buying and selling of goods is known as
_____ document (a) Commercial (b) official (c) buying
7. The process of setting business transaction is known as (a) Settlement (b) Payment
(c) Surplus
8. The quotation of price of a commodity which excludes all delivery charges is known
as (a) Ex-work (b) Ex-warehouse (c) loco
9. The price quotation for goods in which the seller bears all delivery and transportation
charges is known as (a) Carriage (b) Carriage paid (c) Ex-work
10. The term used in foreign trade to denote price off goods at the warehouse of the
exporter is called (a) Loco (b) Ex-warehouse (c) E&OE
THEORY
1a. Give 2 uses of the following
i. Price list
ii. Receipts
iii. Consignment note
iv. Delivery note
v. Advice note
vi. Quotation
vii. Pricelist
viii. Credit note
ix. Debit note
x. Statement of account
b. Differentiate between Invoice and Proforma Invoice (2 differences)
2a. What is discount
b. Explain 3 types of discounts
c. List 4 reason for granting discount
3a. Explain the following terms
i. Spot cash
ii. Cash with order
iii. Prompt cash
iv. Cash on delivery
v. Errors and omissions expected
4a. explain the following terms
i. Legal tender
ii. Standing order
iii. Bank draft
iv. Postal Giro
v. Poundage
5a. Differentiate between the following
i. Money order and postal order
ii. Bill of exchange and promissory note
iii. Direct debit and credit transfer
5b. Classify 2 means of payment each under the following heading
i. Legal tender
ii. Banking system
iii. Post office
iv. Business men means of payment
 VICTORIOUS GROUP OF SCHOOLS
*Creche *Nursery *Primary *Secondary
Address: Beside Teacher’s Cooperative Building Orogun, Ibadan, Oyo State
THIRD TERM EXAMINATION
(Objective part answer all Questions)
SUBJECT: ACCOUNT CLASS: SS2
Use the following information to answer question 1 and 2
Sales 200,000
Purchases 170,000
Opening stock 40,000
Closing stock 50,000
1. The gross profit as a percentage of sales is (a) 25% (b) 20% (c) 15%
2. Stock turnover ratio is (a) 4 times (b) 3 times (c) 3.56 times
3. In the balance sheet of non-profit making organizations, subscriptions in arrears is
shown under (a) Fixed assets (b) Current assets (c) Long-term liabilities
4. The reason for treating carriage in wards in the trading account is because (a) It is an
expense on goods sold to customers (b) It is an expense on goods purchased
5. In the final account of a limited liability company, debenture interest paid is recorded
in the (a) Trading account (b) Profit and loss account (c) Capital account
Use the following information to answer question 6&7
The transactions of all Girls social club for the year 2021 are as follows:
Bar sales N30,000
Bar purchases N17,000
Rent N1,200
31st December 31st December
2020 N 2021 N
Stock bar 1,400 1,600
Owing for bar supplies 6,000 7,300
6. The value of purchases for the year is (a)N17, 80 (b) N17,000 (c) N16,200
7. The net profit on the bar to be transferred to the income and expenditure account for
the year ended 31st December 2021 is (a) N12,400 (b) N11,200 (c) N11,800
8. A reason a business is not able to keep full set of accounting records is that (a) The
business does not make profit (b) The business is not a trading concern (c) Double
entry is expensive to maintain
9. If sales is N12,000 and the gross profit mark-up percentage is 25%. What is the cost
of sales? (a) N9,600 (b) N9,000 (c) N3,000
10. The accumulated fund for a non-for-profit making organization is (a) Assets +
liabilities (b) Assets – liabilities + capital (c) Assets – liabilities
THEORY
1. The receipts and payment of show Boy club for the year ended sist December, 2010
are as follow:
Opening balance 1/1/10 289,860
Proceeds from balance 216,900
Transfer to bank deposit 720,000
Rates 60,000
Entrance fees received 30,000
Ways paid 433,800
Subscriptions received 1,800,000
Equipment bought 240,000
Repairs 97,032
General expenses 293,376
Stationery 58,740
Interest received on bank deposit 72,000
Donations received 25,200
Additional information:
i. Accrued wages as at 31/12/10 – N28,800
ii. Rates prepaid amounted to N12,000
iii. General expenses included N18,000 owed since previous year.
iv. Out of the subscription received, N48,000 was in arrears for the previous year
while N120,000 was in advance for the coming year. In addition, N72,000 was
still owing as at 31st Dec. 2010.
v. Assets of the club as at 1/1/2010
Ware: Club house N5,760,000
Equipment N3,600,000
Bank deposit N2,400,000
Depreciation: club house 5%
Equipment 10%
You are required to prepare:
a. Statement of affairs as at 1/01/2010
b. Receipts and payment account for the year ended 31/12/2010
c. Subscription’s account
d. Income and expenditure account for the year ended 31st Dec.2010
2. Explain the following terms: i. Accumulated funds ii. Statement of affairs
b. List 5 sources of income for a non-for-profit -making organization
c. State 3 differences between receipt and payments account and income and expenditure
account
Question 3