In manufacturing account, the work-in-progress at the end of the year is
- A. deducted from the cost of goods completed during this year
- B. added to the cost of goods completed
- C. stated in the profit and loss account
- D. stated in the prime cost section
Purchase of raw materials – #330,000
Closing stock of raw materials – #80,000
Direct wages – #30,000
Carriages of raw materials – #10,000
Determine the prime cost
- A. #525,000
- B. #515,000
- C. #465,000
- D. #370,000
Opening stock of raw materials – #75,000
Purchase of raw materials – #330,000
Closing stock of raw materials – #80,000
Direct wages – #30,000
Carriages of raw materials – #10,000
Calculate the cost of raw materials used
- A. #495,000
- B. #415,000
- C. #325,000
- D. #305,000
The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of
- A. goods available for sale
- B. goods sold
- C. goods manufactured
- D. materials put into production
When goods produced are transferred at cost plus mark-up sale, the difference between the cost and the transferred price is a
- A. discount
- B. sales commission
- C. manufacturing profit
- D. factory reserves
Given:
Drawings – #3,500
Net loss – #2,500
Capital 1/1/2007 – #35,000
Additional capital – #10,000
The adjusted capital as at 31/1/2007 is
- A. #35,000
- B. #39,000
- C. #45,000
- D. #46,000
The estimated profit or loss for a period is calculated by
- A. closing capital less opening capital add drawings
- B. opening capital less closing capital add drawings
- C. opening capital less drawings add closing capital
- D. opening capital add closing add drawings
Given:
Opening capital – #50,000
Closing capital – #64,000
Drawings – #16,000
Determine the net profit
- A. #2,000
- B. #14,000
- C. #20,000
- D. #30,000
1/1/2010 31/12/2010
Creditors – #9,000 #9,800
Rent owing – #3,800 #2,500
Rates prepaid – #2,000 #3,500
Motor van – #8,000 #8,000
Premises – #10,000 #10,500
Calculate the closing capital
- A. #8,700
- B. #9,500
- C. #9,700
- D. #10,700
1/1/2010 31/12/2010
Creditors – #9,000 #9,800
Rent owing – #3,800 #2,500
Rates prepaid – #2,000 #3,500
Motor van – #8,000 #8,000
Premises – #10,000 #10,500
Find the opening capital
- A. #5,700
- B. #7,700
- C. #9,800
- D. #14,900
The total cash and cheques received from customers in a control account is derived from the
- A. purchases day book
- B. cash book
- C. income and expenditure account
- D. sales journal
What type of stock valuation would a vegetable seller adopt in valuing it’s product?
- A. LIFO
- B. FIFO
- C. Simple average
- D. Weighted average
Given:
Opening capital – #1,500
Capital introduced – # 500
Profit for the year – # 800
Cash drawings – # 250
Calculate the closing capital
- A. #2,550
- B. #2,500
- C. #2,350
- D. #2,250
Sales – #232,000
Opening stock – # 28,000
Purchases – #128,000
Carriage inwards – # 4,000
Carriage outwards – # 6,000
Closing stock – # 10,000
Discount received – # 18,000
Expenses – # 20,000
Calculate the expenses debited to the profit and loss account
- A. #17,000
- B. #23,000
- C. #26,000
- D. #30,000
Sales – #232,000
Opening stock – # 28,000
Purchases – #128,000
Carriage inwards – # 4,000
Carriage outwards – # 6,000
Closing stock – # 10,000
Discount received – # 18,000
Expenses – # 20,000
Calculate the gross profit
- A. #100,000
- B. #86,000
- C. #82,000
- D. #76,000
The purchase of mattresses from Freehold enterprises by cheque amounted to #305,150. The correct entries for this transaction in the book of the buyer is to debit
- A. sales account and credit bank account
- B. purchases and credit bank account
- C. cash and credit freehold
- D. bank and credit freehold
A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000.
If the scrap value is presently #15,000 what will be the yearly depreciation using straight line method?
- A. #4,000
- B. #7,000
- C. #11,000
- D. #24,000
i The amount of the imprest is the same from one organization to another
ii.At the end of a fixed period, the petty cashier received a fixed sum of money.
iii At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv The system is a method by which a measure of control is kept on petty cash expenses.
Which of the above is correct about the imprest system?
- A. i, ii and iii
- B. i, iii and iv
- C. i, ii and iv
- D. iii and iv
Alaka who owed Saka #15,000, settled his debt after deducting cash discount of 10percent. To record the discount in the book of Saka, debit
- A. discount recieved account and credit Alaka's account
- B. Alaka's account and credit discount recieved account
- C. Saka's account and credit discount recieved account
- D. discount allowed account and credit Alaka's account
The corresponding entry of personal accounts found in the debit side of the cash is to
- A. credit real accounts
- B. debit real accounts
- C. credit the ledger
- D. debit the ledger
Which of the following items is a capital expenditure?
- A. Maintenance of office machine
- B. Purchase of office stationery
- C. Carriage inwards
- D. Purchase of office machinery