A partnership on admitting a new member, revalued the business’ land and building from N30,000 to N70,00. The difference of N40,000 should be
- A. credited to land and building account
- B. debited to asset revaluation account
- C. credited to asset revaluation account
- D. credited to profit and loss appropriation account
Interest on a partner’s drawings is debited to the
- A. Partners current account and credited to the profit and loss appropriation account
- B. profit and loss appropriation account and credited to the partner's current account
- C. profit and loss account and credited to the partner's current account
- D. Partner's current account and credited to the profit and loss account
Which of the following is a strong feature of partnership?
- A. The life of the partnership is generally assumed to be indefinite
- B. The owners are liable personally for all debts of the business
- C. The transfer of ownership interest is frequent and easy to accomplish
- D. The partnership is complex to form because of many legal and reporting requirements
A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as
- A. current asset
- B. current liability
- C. capital
- D. profit
Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the
- A. appropriation account
- B. balance sheet
- C. income and expenditure account
- D. receipts and payment account
Subscription in arrears are
- A. Credited to the income and expenditure account and shown as a liability in the balance sheet
- B. debited to the income and expenditure account and shown as an asset in the balance sheet
- C. credited to the income and expenditure account and shown as a liability in the balance sheet
- D. debited to the income and expenditure account and shown as a liability in the balance sheet
The following information is provided for amusa company limited , a manufacturer
Prime cost N999,000
Manufacturing overhead N132,000
Closing work in progress N75,000
values of finished goods transferred to the
trading account N1,116,000
If including in the manufacturing overhead were rents of N5,000 paid in advance, what is the opening work in progress for the period?
- A. N85,000
- B. N80,000
- C. N70,000
- D. N65,000
The factory cost of producing goods is made up of
- A. prime cost and factory overhead
- B. prime cost and office overhead
- C. raw materials consumed and fixed cost
- D. Raw materials and administrative overhead
Given:
Prime cost N220,000
Factory cost N32,000
work in progress at beginning N25,000
work in progress at close N19,000
Administrative expenses N21,000
Determine the production cost
- A. N296,000
- B. N277,000
- C. N258,000
- D. N246,000
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
The net profit for the year is
- A. N5,750
- B. N5,650
- C. N3,200
- D. N2,300
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
Compute the average amount of stock in hand at cost price
- A. N3,860
- B. N3,806
- C. N3,680
- D. N3,086
The starting point for the production of accounts from incomplete records is to
- A. ascertain the total sales
- B. compute the opening stock of goods sold
- C. verify the total purchase
- D. prepare an opening statement of affairs
The purchase ledger control account of a company had an opening balance of N45,600 credit and closing balance of N72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of N18,600 on this account. What were the credit purchase for the period?
- A. N509,600
- B. N482,600
- C. N428,600
- D. N418,400
Sales ledger control account contains the total amount in respect of
- A. creditors
- B. debtors
- C. investors
- D. shareholders
Why are adjustments in the profit and loss account necessary?
- A. To cover some expenses of the following year
- B. To ascertain the actual expenses incurred and income earned during the year
- C. To show the provision made during the year
- D. To show the total expenses paid and income received during the year
Adama’s bank account showed an overdraft of N600 on 31st march. On going through the account, it was discovered that the N1,080 paid into the account on 29th March had not been credited. what should be the balance in Adama’s cash accounts?
- A. N1,680 Dr
- B. N1,080 Cr
- C. N600 Dr
- D. N480 Cr
The following represent extracts from the trading account of a retail outlet for a given month:
Opening stock N2,400
Closing stock N6,400
Other expenses N2,000
Sales N11,000
Profit N900
What is the purchase figure for the month?
- A. N13,000
- B. N12,100
- C. N12,000
- D. N11,200
A payment of cash of N20 to John was entered on the receipt side of the cash book in error and credited to John’s account. Which of the following journal entry can be used to correct the error?
- A. John: N40 Dr, cash: N40 Cr
- B. Cash: N40 Dr, John: N40 Cr
- C. John: N20 Dr, cash: N20 Cr
- D. Cash: N20 Dr, John: N20 Cr
Bola, UTC’s regular customer, owed N1,00 on account of a radio bought. If he sent in a cheque for N1,500, UTC would send him a
- A. credit note
- B. debit note
- C. journal voucher
- D. way bill
What are the advantages of an imprest petty cash book?
I cheques can be drawn easily
II A cheque on the use of cash
III Liability of the petty cashier is limited to the value of petty cash
IV Loses through the petty cashier can be minimized
- A. I, II and III only
- B. I, II and IV only
- C. I, III and IV only
- D. II, III and IV only
A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of
- A. classifying accounts in the ledger
- B. testing arithmetical accuracies of the ledger account balances
- C. identifying the balance sheet items
- D. providing a basis for establishing the accountant's competence