Where partnership is converted into a limited liability company, current account balances of partners are transferred to a
- A. realization account
- B. savings account
- C. share capital account
- D. capital account
The profit of a branch is usually credited to the
- A. adjustment account
- B. head office sales
- C. head office goods account
- D. head office current account
In the absence of a partnership deed, the act stipulates that
- A. an amount should be fixed as salary for partners
- B. interest on partners loan should be 25%
- C. interest should not be allowed on partners drawings
- D. profits and losses should not be shared equally
Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch
Determine the profit on the goods sent to the branch at profit margin of 25% mark-up
- A. #150,000
- B. #160,000
- C. #170,000
- D. #180,000
Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch
What is the cost price of the goods sent to the branch
- A. #600,000
- B. #620,000
- C. #640,000
- D. #700,000
If goods are sent to to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of #100,000?
- A. #130,000
- B. #125,000
- C. #80,000
- D. #75,000
In a departmental account, the expenses to be apportioned on the basis of turnover is
- A. carriage inwards
- B. returns outwards
- C. discount recieved
- D. carriage outwards
In a departmental account, where no basis of apportionment exist, apportionment is
- A. on profit basis
- B. according to employee decision
- C. according to material available
- D. on equal basis
Given:
Sales #180,000
Stock 1/1 # 25,000
Purchases #110,000
Sales returns # 1000
Purchases returns # 1,500
Gross profit # 58,000
Determine the value of stock as at 31st December
- A. #8000
- B. #9,500
- C. #12,500
- D. #15,500
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
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