The Akachala Limited has four department W, X Y and Z. The profits or loss of the departments were N20 000 loss, X N25 profit, Y were N30 000 loss and Z N1800 profit. How much is the net profit or loss of the company?
- A. N7 000 loss
- B. N5 000 loss
- C. N5 000 profit
- D. N7 000 profit
The summary of receipts and payments account represent?
- A. cash at hand
- B. journal proper
- C. general journal
- D. ledger accounts
The equivalent of a club’s receipts and payment account is the?
- A. trading account
- B. revenue account
- C. cash account
- D. suspense account
In the not-for-profit-making organization, the excess of income over expenditure is?
- A. deducted from the capital
- B. added to the accumulated fund
- C. added to the capital
- D. deducted from the the accumulated fund
The prime cost is the total of the?
- A. production cost + selling expenses
- B. direct material + direct labour + direct expenses
- C. direct material + work overhead expenses
- D. administrative expenses + selling + distribution expenses
The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the?
- A. debit side of manufacturing and profit and loss account
- B. debit side of profit and loss account only
- C. credit side of profit and loss account only
- D. debit side of manufacturing and balance sheet
The gross loss on manufacturing is always transferred to the?
- A. credit side of balance sheet
- B. debit side of profit and loss account
- C. credit side of profit and loss account
- D. debit side of balance sheet
Use the information below to answer questions
……………………31/12/08………..31/12/09
Furniture and fittings..N21 000,…………N28 000
Office equipment……..N9 800,………….N13 200
Debtors……………..N6 800,………….N5 200
Creditors……………N4 900,………….N5 100
Cash at bank…………N7 000,………….N4 600
Accrued electricity bills……………….N1 200
Monthly drawings average N330.
Determine the net profit ?
- A. N5 000
- B. N3 960
- C. N1 040
- D. N8 960
Use the information below to answer questions 25 and 26.
……………………31/12/08………..31/12/09
Furniture and fittings..N21 000,…………N28 000
Office equipment……..N9 800,………….N13 200
Debtors……………..N6 800,………….N5 200
Creditors……………N4 900,………….N5 100
Cash at bank…………N7 000,………….N4 600
Accrued electricity bills……………….N1 200
Monthly drawings average N330.
Find the opening capital?
- A. N39 700
- B. N35 900
- C. N35 740
- D. N43 660
Determine the total expenses to be charged to profit and loss account?
- A. N2 350
- B. N1 600
- C. N800
- D. N3 150
- E. NO OPTION
Use the information below to answer questions 23 and 24.
……………………….31/12/07…….31/12/08
Stocks……………………N4 200………N3 900
Rates in advance…………..N1 000………N1 500
Accrued wages……………..N1 150………N1 350
Cost of goods sold was valued at N6 000.
Cash paid for rates and wages during the year was N1 300 and N2 200 respectively.
What is the value of purchases for the year 2008?
- A. N6 000
- B. N9 900
- C. N14 100
- D. N5 700
If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to?
- A. have a higher cost of goods sold
- B. have a higher gross profit
- C. pay higher gross profit
- D. have a higher value for closing stock
If an organization maintains a periodic stock system, the stock quantities are?
- A. updated at the end of the accounting year
- B. not considered in the updating process
- C. updated continuously
- D. updated at the beginning of the accounting year
Use the information below to answer questions
Sundry debtor………………N20,000
Provision for bad debts……..N500
Provision for bad debt at 4% of sundry debtors.
Calculate the provision to be taken to the balance sheet?
- A. N780
- B. N800
- C. 1200
- D. N200
Use the information below to answer questions
Sundry debtor………………N20,000
Provision for bad debts……..N500
Provision for bad debt at 4% of sundry debtors.
Determine the provision for bad debts to profit and loss account?
- A. N500
- B. N820
- C. N1300
- D. N300
Benefit enjoyed for which payments have not been made are?
- A. accruals
- B. prepayments
- C. acquisitions
- D. provisions
Use the information below to answer question
Sales………………………………N10,900
Stock 1/1…………………………..N1, 000
Stock 31/12…………………………N2, 000
Purchases…………………………..N4, 000
Returns outwards…………………….N800
Returns inwards……………………..N600
Carriage outwards……………………N300
Carriage inwards…………………….N200
The cost of goods available for sale is?
- A. N4 600
- B. N5 000
- C. N6 400
- D. N4 400
Use the information below to answer question
Sales………………………………N10,900
Stock 1/1…………………………..N1, 000
Stock 31/12…………………………N2, 000
Purchases…………………………..N4, 000
Returns outwards…………………….N800
Returns inwards……………………..N600
Carriage outwards……………………N300
Carriage inwards…………………….N200
Find the gross profit.
- A. N7 800
- B. N7 900
- C. N9700
- D. 5700
The course of discrepancies between the bank statement and the cash book that overstates the cash book is the?
- A. dividend received
- B. uncredited expenses
- C. uncredited cheques
- D. interest on lodgement
The bank charges levied on a current account holder is the charge on?
- A. transaction
- B. turnover
- C. transfer
- D. cash received
A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the?
- A. commission paid
- B. interest received
- C. direct payment
- D. direct withdrawal