Social Club Subscription (Extract)
31/12/2009 Subscription accrued #18,900
Subscription received in advance #16,400
Subscription received during
the year 2009 #38,570
What is the amount of subscription to be shown as liability in the balance sheet as at December 2009
- A. #14,200
- B. #16,400
- C. #18,900
- D. #20,500
Social Club Subscription (Extract)
31/12/2009 Subscription accrued #18,900
Subscription received in advance #16,400
Subscription received during
the year 2009 #38,570
Determine the amount of subscription for the year
- A. #57,470
- B. #41,070
- C. #40,210
- D. #35,300
Subscription in arrears is treated in the balance sheet of a club as
- A. current asset
- B. current liability
- C. fixed asset
- D. intangible asset
The value of the sales ledger control account is derived from the summation of
- A. the total debtors' account
- B. the total creditors' account
- C. all day books
- D. both the debtors'and creditors' accounts
A book of account that possesses the features of both day book and ledger is
- A. sales day book
- B. cash book
- C. purchases day book
- D. returns day book
The control account is used in facilitating
- A. the location of errors in the various accounts
- B. up to date bank transactions
- C. the payment of debts and liabilities of the firm
- D. assets distribution with respect to income
2/3 Purchases 900 books at #1,000 each
4/3 Purchases 590 books at # 950 each
15/3 Sales 300 books at #900 each
Calculate the cost of goods available for sale using LIFO
- A. #801,000
- B. #1,100,500
- C. #1,160,500
- D. #1,175,500
2/3 Purchases 900 books at #1,000 each
4/3 Purchases 590 books at # 950 each
15/3 Sales 300 books at #900 each
Determine the cost of goods sold using FIFO
- A. #285,000
- B. #300,000
- C. #570,000
- D. #600,000
The excess of sales over cost of goods sold is
- A. gross sales
- B. gross profit
- C. net profit
- D. net sales
Balance sheet (Extract)
Creditors #7,940
Prepaid expenses # 290
Accrual expenses # 323
Stock #4,500
Cash balance #4,956
Debtors # 905
Determine the current liabilities
- A. #8,553
- B. #8,263
- C. #7,940
- D. #1,228
Balance sheet (Extract)
Creditors #7,940
Prepaid expenses # 290
Accrual expenses # 323
Stock #4,500
Cash balance #4,956
Debtors # 905
The value of the current assets will be
- A. #10,361
- B. #10,651
- C. #17,396
- D. #17,848
If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method; depreciation charged for two years will be
- A. #700,000
- B. #240,000
- C. #220,000
- D. #202,000
If goods were bought from Tanko at a cost price of #9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?
- A. #4,500
- B. #8,550
- C. #9,000
- D. #9,450
The major focus of the trading account is to show
- A. net profit
- B. gross margin
- C. total purchases
- D. total sales
An item credited in the bank statement but yet to be recorded in the firm’s cash book is
- A. bank loan
- B. contract payment
- C. standing order
- D. direct deposit
1. Cash sales
11. Cash purchases
111. Cash discount allowed
1V. Cash payment
V. Cash receipts
Which of the following are recorded on the debit side of the cash book
- A. 1 and 11
- B. 1 and 111
- C. 1 and V
- D. 1 and 1V
A major way by which the headquarters guard against fraud in branches on cash remittance is through the introduction of
- A. imprest system only
- B. direct purchase by branch
- C. separate accountant for the branch
- D. credit sales by only the headquarters
Petty cash book records transactions on
- A. the debit side only
- B. the credit side only
- C. both credit and debit sides
- D. reversed entry
The major advantage of an imprest system is that it
- A. ensures a proper accountability for every expenditure
- B. trains the young accountants in preparation for greater responsibilities
- C. relieves the cheif cashier of the numerous petty cash payments
- D. serves as an analysis column for every expenses
Given:
If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming #22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company’s cash book?
- A. #25,650
- B. #22,800
- C. #19,950
- D. #18,240
The accounting entries to record a cheque issued by a business is to
- A. debit cash book and credit drawer
- B. credit cash book and debit drawer
- C. debit cash book and credit suspense account
- D. credit cash book and debit suspense account