Use the information below to answer questions 40 and 41.
Keme and Kemi are in partnership sharing profit and losses in the ratio 3:2.
Capital – Keme………….N20 000
…….. – Kemi………….N10 000
Drawings – Keme………….N2 000
…….. – Kemi………….N3 000
Profit………………….N6 000
Interest on capital………5%
Interest on drawings……..10%
The interest on Kemi’s capital is?
- A. N1 000
- B. N2 000
- C. N500
- D. N3 000
The major point of agreement carried by the partnership deed is?
- A. 5% interest annum on any loan
- B. an oral agreement among the partners
- C. method of inhertance by the partners' children
- D. the profit and loss sharing ratio of the partners
Goods invoiced to a branch can be sent using?
- A. cost price, selling price and fixed percentage on selling price
- B. cost price, selling price and fixed percentage on cost price
- C. cost priceand fixed percentage on cost price
- D. cost price and fixed percentage on selling price
The two accounts that are normally opened in the head office when goods are transferred to a branch are?
- A. branch supplies and branch receipts
- B. branch stock account and goods sent to branch accounts
- C. goods sent to brannch account and branch receipt account
- D. goods sent to branch accounts and branch supplies
The correct entries to record goods transferred to branch from head office is to debit?
- A. branch stock account and credit goods sent to branch account
- B. branch supplies account and credit branch stock account
- C. branch stock account and credit purchases account
- D. goods sent to branch account and credit branch stock account
The cost method of charging goods to branch is used where?
- A. branch stock adjustment account is in use
- B. the retention of branch trading account is in addition to the cost of goods sold
- C. goods are sent without invoice or any source documents
- D. goods are of a perishable nature on which a pre-determined price is inapplicable
The transactions relating to liquidation in partnership account is drawn by using?
- A. current account
- B. cash account
- C. capital account
- D. realization account
The major objective of departmental accounts is to ascertain the?
- A. contribution of each department to profit
- B. materials sold in each department
- C. insurance premium payable on employees
- D. number of employees in each department
The capital of not-for-profit-making organization is referred to as?
- A. entity fund
- B. capital owned
- C. accumulated fund
- D. capital employed
The subscription paid in advance is treated in the balance sheet of a club as?
- A. a surplus
- B. a liability
- C. a deflicit
- D. an asset
The major festure of not-for-profit-making-organization is that they are formed?
- A. to use accumulated fund to described the net amount owed to members
- B. mainly to improve the welfare of her member
- C. to engaged in trading activities to sponsor its activities
- D. in order to compute the receipts and payment account
Work-in-progress is the?
- A. value of party finished goods
- B. value of finished goods sold
- C. sales less cost of goods sold
- D. value of goods produced
The product cost that does not form part of the product but is incidental to product and facilitates the production activities is the?
- A. prime cost
- B. indirect cost
- C. total cost
- D. direct cost
The cost that are directly traceable to the the goods being produced is?
- A. party manufactured goods
- B. overhead cost
- C. total factory expenses
- D. prime cost
Use the information below to answer questions 23 and 24.
Incomplete Record (Extract)
Sales………………………………..N10,600
Rent………………………N200
Depreciation of vehicle (cost N5000) 10%
Gross profit margin is 20%
What is the cost of goods sold?
- A. N4 800
- B. N8 480
- C. N2 320
- D. N 9 900
The control accounting can be used in?
- A. recording all the business transactions of the enterprise
- B. Keeping records of all direct deposit in the bank account
- C. monitoring the books of original entry
- D. monitoring the efficiency of bookkepping by accountants
A typical example of a real account is?
- A. prepayment
- B. expenses
- C. plant
- D. income
What is the value of stock as at the end of July 10 using FIFO?
- A. N14 400
- B. N13 300
- C. N15 200
- D. N12 600
Use the information above to answer questions 19 and 20.
July 30 Closing stock 100 units at N90
July 8 Purchased 200 units at N95
July 10 Sold 160 units
July 17 Returned 80 faulty units purchased at N95
July 18 Purchased 200 units at N105
July 20 Sold 180 units
July 28 Purchased 200 units at N110
July 29 Sold 120 units
July 30 Sold 100 units
How many units were at hand as at July 30?
- A. 80
- B. 100
- C. 60
- D. 160
The item on the credit side of the trading account is the?
- A. returns outwards
- B. caarriage on sales
- C. sales
- D. purchases