PUTME Financial Accounting 2025 · Question 1
Accounting is primarily concerned with
- aProduction of goods
- bRecording, classifying and summarizing financial transactions — correct answer
- cMarketing of goods
- dManaging staff
Worked solution
Accounting records, classifies and summarises financial transactions and reports the results.
PUTME Financial Accounting 2024 · Question 1
What is the purpose of charging depreciation in accounts?
- aTo reduce the cost of the asset in the statement of financial position to its estimated market value
- bTo account for the revaluation of the asset over its life
- cTo ensure that funds are available for the eventual replacement of the asset
- dTo allocate the cost of a non-current asset over the accounting periods expected to benefit from its use — correct answer
Worked solution
Depreciation applies the matching concept: the cost of a non-current asset is spread over its useful life.
PUTME Financial Accounting 2023 · Question 1
Receipts and payments account — Receipts: Balance b/d ?; Subscriptions received ?; Gate-fee collections ₦50,000. Payments: Rent and rates ₦30,000; General expenses ₦10,000; Electricity ₦20,000; Insurance ₦150,000; Balance c/d ?. The subscription received represents 80% of total payments and the opening balance is 30% of gate-fee collections. What is the closing cash balance?
- a₦335,000
- b₦3,211,000
- c₦23,000 — correct answer
- d₦310,000
Worked solution
Total payments = 30,000 + 10,000 + 20,000 + 150,000 = ₦210,000; subscriptions = 80% × 210,000 = ₦168,000; opening balance = 30% × 50,000 = ₦15,000; receipts = 15,000 + 168,000 + 50,000 = ₦233,000; closing balance = 233,000 − 210,000 = ₦23,000.
PUTME Financial Accounting 2022 · Question 1
Use the following information: Machinery (cost) 1/1/2020 ₦20,000; Accumulated depreciation at the end of year 2 ₦4,000; Scrap value ₦8,000; Estimated useful life 6 years; Percentage depreciation 10%. If depreciation is charged at reducing balance from year 3, what will be the net book value at the end of the third year?
- a₦14,000
- b₦16,000
- c₦12,000
- d₦14,400 — correct answer
Worked solution
NBV at start of year 3 = 20,000 − 4,000 = ₦16,000; year-3 depreciation = 10% × 16,000 = ₦1,600; NBV = 16,000 − 1,600 = ₦14,400.
PUTME Financial Accounting 2021 · Question 1
The total of the returns outwards journal is posted to the
- aCredit side of the returns outwards book
- bDebit side of the returns outwards account
- cDebit side of the purchases returns book
- dCredit side of the returns outwards account — correct answer
Worked solution
Returns outwards reduce purchases; the journal total is credited to the returns outwards account (suppliers' accounts are debited).