101 Accounting O Level MCQ’S P-1 Topical/Yearly Worked Solutions

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1.1 BASIC ACCOUNTING & ACCOUNTING EQUATIONS 10
1.1 ANSWERS SECTION 13
1.2 JOURNAL ENTRIES 14
1.2 ANSWERS SECTION 19
1.3 LEDGER ACCOUNT 20
1.3 ANSWERS SECTION 22
1.4 BOOK KEEPING & ACCOUNTING 23
1.4 ANSWERS SECTION 25
1.5 THEORY 26
1.5 ANSWERS SECTION 28
2.1 PURCHASES JOURNAL 30
2.1 ANSWERS SECTION 31
2.2 SALES JOURNAL 32
2.2 ANSWERS SECTION 33
2.3 RETURN OUTWARDS JOURNAL 34
2.3 ANSWERS SECTION 35
2.4 RETURN INWARDS JOURNAL 36
2.4 ANSWERS SECTION 37
2.5 GENERAL JOURNAL 38
2.5 ANSWERS SECTION 40
2.6 PURCHASES LEDGER 41
2.6 ANSWERS SECTION 42
2.7 SALES LEDGER 43
2.7 ANSWERS SECTION 46
2.8 OTHER SOURCE DOCUMENTS 48
2.8 ANSWERS SECTION 51
2.9 MULTIPLE TOPICS 53
2.9 ANSWERS SECTION 57
3.1 TRADE DISCOUNT 60
3.1 ANSWERS SECTION 61
3.2 CASH DISCOUNT 62
3.2 ANSWERS SECTION 64
3.3 CALCULATION OF AMOUNTS NET OF DISCOUNTS 65
3.3 ANSWERS SECTION 67
3.4 DOUBLE ENTRY IN CASH BOOK 69
3.4 ANSWERS SECTION 71
3.5 CALCULATION OF CASH BOOK BALANCES 72
3.5 ANSWERS SECTION 74
3.6 MULTIPLE TOPICS 76
3.6 ANSWERS SECTION 77
4.1 UPDATED CASHBOOK 80
4.1 ANSWERS SECTION 81
4.2 BANK RECONCILIATION STATEMENTS 82
4.2 ANSWERS SECTION 85
4.3 CALCULATION OF OTHER MISSING ITEMS 87
4.3 ANSWERS SECTION 88
4.4 THEORY 89
4.4 ANSWERS SECTION 91
4.5 MULTIPLE TOPICS 92
4.5 ANSWERS SECTION 93
5.1 IRRECOVERABLE DEBTS 96
5.1 ANSWERS SECTION 97
5.2 PROVISION FOR DOUBTFUL DEBTS 98
5.2 ANSWERS SECTION 103
5.3 IRRECOVERABLE & DOUBTFUL DEBT 105
5.3 ANSWERS SECTION 106
5.4 MULTIPLE TOPICS 107
5.4 ANSWERS SECTION 108
6.1 THEORY 110
6.1 ANSWERS SECTION 112
6.2 STRAIGHT LINE METHOD 113
6.2 ANSWERS SECTION 115
6.3 REDUCING BALANCE METHOD 117
6.3 ANSWERS SECTION 119
6.4 REVALUATION METHOD 121
6.4 ANSWERS SECTION 122
6.5 DEPRECIATION METHODS COMBINED 123
6.5 ANSWERS SECTION 124
6.6 DISPOSAL OF ASSETS 125
6.6 ANSWERS SECTION 128
6.7 MULTIPLE TOPICS 130
6.7 ANSWERS SECTION 131
7.1 TRAIL BALANCE 133
7.1 ANSWERS SECTION 136
8.1 TRADING SECTION OF INCOME STATEMENTS 138
8.1 ANSWERS SECTION 140
8.2 PROFIT AND LOSS SECTION OF INCOME STATEMENT 142
8.2 ANSWERS SECTION 145
8.3 INCOME STATEMENT OF SERVICE BUSINESSES 147
8.3 ANSWERS SECTION 148
8.4 MULTIPLE TOPICS 149
8.4 ANSWERS SECTION 150
9.1 CURRENT ASSETS & CURRENT LIABILITIES 152
9.1 ANSWERS SECTION 154
9.2 WORKING CAPITAL 155
9.2 ANSWERS SECTION 157
9.3 INVENTORY VALUATION 158
9.3 ANSWERS SECTION 160
9.4 NON-CURRENT ASSETS & LIABILITIES 161
9.4 ANSWERS SECTION 164
9.5 CAPITAL & CAPITAL EMPLOYED 165
9.5 ANSWERS SECTION 168
9.6 MULTIPLE TOPICS 170
9.6 ANSWERS SECTION 172
10.1 PRE-PAID & ACCRUED EXPENSES 174
10.1 ANSWERS SECTION 180
10.2 PRE-RECEIVED & ACCRUED INCOMES 183
10.2 ANSWERS SECTION 187
10.3 MULTIPLE TOPICS 189
10.3 ANSWERS SECTION 191
11.1 ENTITY & DUALITY 194
11.1 ANSWERS SECTION 195
11.2 PRUDENCE AND MONEY MEASUREMENT 196
11.2 ANSWERS SECTION 197
11.3 MATCHING & ACCRUAL 198
11.3 ANSWERS SECTION 199
11.4 MATERIALITY & CONSISTENCY 200
11.4 ANSWERS SECTION 201
11.5 GOING CONCERN & COST 202
11.5 ANSWERS SECTION 203
11.6 INTERNATIONAL ACCOUNTING STANDARDS 204
11.6 ANSWERS SECTION 205
11.7 MULTIPLE TOPICS 206
11.7 ANSWERS SECTION 211
12.1 CAPITAL EXPENDITURE 214
12.1 ANSWERS SECTION 216
12.2 REVENUE EXPENDITURE 217
12.2 ANSWERS SECTION 218
12.3 CAPITAL & REVENUE RECEIPTS 219
12.3 ANSWERS SECTION 221
12.4 MULTIPLE TOPICS 222
12.4 ANSWERS SECTION 223
13.1 JOURNAL ENTRIES TO CORRECT MISTAKES 226
13.1 ANSWERS SECTION 229
13.2 CORRECTION OF PROFITS 230
13.2 ANSWERS SECTION 232
13.3 EFFECTS OF ERROS ON PROFIT 234
13.3 ANSWERS SECTION 238
13.4 TYPES OF ERRORS 240
13.4 ANSWERS SECTION 242
13.5 MULTIPLE TOPICS 243
13.5 ANSWERS SECTION 244
14.1 JOURNAL ENTRIES TO CORRECT THE MISTAKES 246
14.1 ANSWERS SECTION 251
14.2 MISTAKES IN TRIAL BALANCE 253
14.2 ANSWERS SECTION 257
14.3 CORRECTION OF PROFITS 259
14.3 ANSWERS SECTION 261
14.4 EFFECTS OF ERROR ON PROFITS 263
14.4 ANSWERS SECTION 264
15.1 SALES LEDGER CONTROL ACCOUNTS 266
15.1 ANSWERS SECTION 269
15.2 PURCHASE LEDGER CONTROL ACCOUNTS 271
15.2 ANSWERS SECTION 275
15.3 THEORY 277
15.3 ANSWERS SECTION 278
15.4 MULTIPLE TOPICS 279
15.4 ANSWERS SECTION 281
16.1 CALCULATION OF SALES 284
16.1 ANSWERS SECTION 286
16.2 CALCULATION OF PURCHASES 288
16.2 ANSWERS SECTION 289
16.3 MARKUP & MARGIN 290
16.3 ANSWERS SECTION 292
16.4 CALCULATION OF PROFITS THROUGH BALANCE SHEET 294
16.4 ANSWERS SECTION 299
16.5 MULTIPLE TOPICS 302
16.5 ANSWERS SECTION 303
17.1 RECEIPTS & PAYMENTS ACCOUNT 306
17.1 ANSWERS SECTION 307
17.2 CALCULATION OF SUBSCRIPTION 308
17.2 ANSWERS SECTION 310
17.3 INCOME & EXPENDITURE ACCOUNTS 312
17.3 ANSWERS SECTION 314
17.4 STATEMENT OF FINANCIAL POSITION 315
17.4 ANSWERS SECTION 318
17.5 MULTIPLE TOPICS 319
17.5 ANSWERS SECTION 320
18.1 PRIME COST 322
18.1 ANSWERS SECTION 325
18.2 FACTORY OVERHEADS 327
18.2 ANSWERS SECTION 328
18.3 COST OF PRODUCTION 329
18.3 ANSWERS SECTION 332
18.4 MULTIPLE TOPICS 334
18.4 ANSWERS SECTION 336
19.1 APPROPRIATION ACCOUNT 338
19.1 ANSWERS SECTION 341
19.2 PARTNERS CURRENT & CAPITAL ACCOUNTS 343
19.2 ANSWERS SECTION 346
19.3 JOURNAL ENTRIES IN PARTNERSHIP 348
19.3 ANSWERS SECTION 350
19.4 PARTNERSHIP AGREEMENT 351
19.4 ANSWERS SECTION 352
19.5 MULTIPLE TOPICS 353
19.5 ANSWERS SECTION 354
20.1 ORDINARY SHARES 356
20.1 ANSWERS SECTION 357
20.2 PREFERENCE SHARES AND DEBENTURES 358
20.2 ANSWERS SECTION 359
20.3 CALCULATION OF DIVIDENDS & RETAINED PROFITS 360
20.3 ANSWERS SECTION 362
20.4 STATEMENT OF CHANGES IN EQUITY 364
20.4 ANSWERS SECTION 366
20.5 STATEMENT OF FINANCIAL POSITION 367
20.5 ANSWERS SECTION 369
20.6 MULTIPLE TOPICS 370
20.6 ANSWERS SECTION 371
21.1 GROSS PROFIT RATIO 374
21.1 ANSWERS SECTION 376
21.2 PROFIL MARGIN AND ROCE 378
21.2 ANSWERS SECTION 381
21.3 WORKING CAPITAL & CURRENT RATIO 383
21.3 ANSWERS SECTION 385
21.4 LIQUID RATIO 387
21.4 ANSWERS SECTION 388
21.5 INVENTORY TURNOVER RATIO 389
21.5 ANSWERS SECTION 392
21.6 TRADE RECEIVABLES & PAYABLES TURNOVER 396
21.6 ANSWERS SECTION 397
21.7 MULTIPLE TOPICS 398
21.7 ANSWERS SECTION 400