Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
- A. they will simply continue since there are no new members
- B. the partnership is formally ended and new company books opened
- C. the shares and all other items will be shared equally and not in their former ratios
- D. computation of goodwill must be done as it is legally required
When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner’s?
- A. goodwill account balance
- B. current account credit balance
- C. current account debit balance
- D. profit and loss credit balance
As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
- A. N7,500
- B. N9,000
- C. N12,500
- D. N20,000
Goodwill can be valued in partnership when?
- A. a partners make profits
- B. large losses are made
- C. a partner retires
- D. a new branch is opened
A credit balance on a receipt and payments account indicates that the non-profit making organization?
- A. had more revenues than expenses during the period
- B. did not owe much liabilities during the period
- C. received more cash than it paid out during the period
- D. made more cash payments than it received during the period
Given:
Club N150
Cash sales N4,850
Club debtors at close N900
Cash received from debtors N550
What is the amount of club sales?
- A. N6,150
- B. N4,850
- C. N4,650
- D. N1,300
Receipt and payments account of a non-profit making organization is principally a summary of the?
- A. bak entries
- B. cash bok entries
- C. expenditure entries
- D. balance sheet entries
The difference between the factory cost of production and the prime cost of production is?
- A. direct materials
- B. direct labour
- C. selling expenses
- D. overhead
Manufacturing costs can be classified based on?
- A. timing of charges degree of averaging and size of capital
- B. degree of averaging, ease of traceability and timing of charges
- C. degree of averaging, size of floor space occupied and cost accounts
- D. number of employees, timing of charges and management style
Lawal and co makes blocks and sell to builders.
In computing prime cost, which of the following costs would be considered appropriate?
- A. Cement, sand and carriage outwards
- B. Water carriage inwards and cement
- C. Sales boys'wages, cement and sand
- D. Carriage outwards,carriage inwards and cement
When the factory cost of production has been ascertained, manufactured goods are transferred to trading account by?
- A. debting manufacturing account and crediting trading acccount
- B. crditing sales account and debtiting trading account
- C. debiting sales account and crediting trading account
- D. crediting manufacturing account and debiting trading account
In dealing with incomplete records, fixed assets are posted to?
- A. opening profit and loss as brought forward figures
- B. closing balance sheet as carried forward figures
- C. closing balance sheets as brought forward figures
- D. closing profit and loss as brought forward figures
The principal function of a sales ledger control account is to?
- A. serve as internal check and provide quick information for the preparation of interim financial statements
- B. serve as external check and provide quick information for the preparation of interim financial statements
- C. provide quick information for the preparation of customers' statement
- D. provide information for the control of salesmen's activities
The main features of the single system are that?
- A. books of accounts are not maintained and business relies only on bank statement
- B. the journal records are absent and only the main ledger is kept 7
- C. there are incomplete classifications and recording procedures
- D. only credit sales transactions and credit purchase are recorded
Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?
- A. an addition was made to the asset during the sixth year
- B. the estimate of salvage value on this equipment was decreased
- C. a unit-of-output method of depreciation was used during the sixth year
- D. the estimate remaining service life of the assets was increased at the beginning of the sixth year
Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?
- A. N338.58
- B. N342.00
- C. N345.42
- D. N360,00
Asa Company bought a vehicle worth N20,000 and the vehicle is to be depreciated at 5%. Using the reducing balance method of depreciation, what would be the value of the asset after 3 years?
- A. N19,000.00
- B. N18,050.50
- C. N17,147.50
- D. 16,290.13
A provision for bad debt account had N3,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/2% of annual sales, what was the credit sales for the period?
- A. N2,100,000
- B. N844,400
- C. N840,000
- D. N500,000
The fixed amount of money given to a petty cashier at the beginning of a period is called?
- A. imprest
- B. petty cash
- C. float
- D. cash advance
Which of the following bank reconciliation items should not be added or subtracted from the bank statement balance to determine the adjusted cash balance?
- A. Outstanding cheques
- B. Bank service charges
- C. Deposit in the mail not yet received by the bank
- D. Bank error, charging a company for another company's cheque
If the total discount allowed in a cash book was N230 and the total discount received was N255, which of the following is true concerning the two discounts?
- A. They must be balanced in the cash book and the difference taken to the debtors ledger
- B. They must be balanced in the cash book and the difference taken to the trial balance
- C. They should not be balanced in the cash book before being taking to the trial balance
- D. They should not appear in the trial balance as they were already either received or paid out