Which of the following is not true of a partnership business without written agreement?
- A. profit and losses will shared equally
- B. interest not to be paid on capital
- C. interest on drawings is to be at the rate 5% per annum
- D. salaries are not allowed to partners
- E. money in excess of capital agreed to subscribe is to attract an interest of 5% per annum
Rate of stock turnover is defined as
- A. purchases over stock
- B. cost of goods available for sale over total of opening and closing stock
- C. cost of goods available for sale ovet total of opening and closing stock
- D. cost of goods sold over total opening and closing stock
- E. cost of goods sold over average stock
The excess of current assets over current liabilities is
- A. fixed capital
- B. registered capital
- C. nominal capital
- D. paid-up capital
- E. working capital
Debtors at start was N5,620 and at close N3,460. Cash and cheques received from customers amounted to N16,330. Credit sales for the year valued
- A. N3,460
- B. N5,620
- C. N14,170
- D. N16,330
- E. N18,490
Which of the following is treated under partnership appropriation account?
- A. interest on loan
- B. salary of workers
- C. electricity
- D. salary of partner
- E. travelling expenses of a partner
A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance, what is the net book value at the second year?
- A. N512
- B. N525
- C. N640
- D. N700
- E. N800
A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the straight-line method, what is the depreciation charge for the second year?
- A. N128
- B. N140
- C. N160
- D. N175
- E. N200
Which of the following serves the same purpose as the income and expenditure account of a non-trading organization?
- A. trading account
- B. profit and loss account
- C. balance sheet
- D. income distribution account
- E. appropriate account
A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance method, what is the amount of depreciation for the second year?
- A. N128
- B. N140
- C. N160
- D. N175
- E. N200
Which of the following is a Real account item?
- A. wages and salaries account
- B. machinery account
- C. capital account
- D. drawings account
- E. alagja and sons account
Which of he following is a current asset item?
- A. goodwill
- B. overdraft
- C. preliminary expenses
- D. prepayments
- E. outstanding expense
Where there is no partnership agreement, any contribution in excess of the agree capital attracts
- A. no interest at all
- B. interest at the rate of 2\(\frac{1}{2}\)% per annum
- C. interest at the rate 5% per anuum
- D. interest at all
- E. interest at the per annum
Cash discount is given for
- A. buying in large quantity
- B. prompt settlement of account
- C. being a cash reqular customer
- D. introducing other customers
- E. sales returns
Cash discount is given for
- A. buying in large quantity
- B. prompt settlement of account
- C. being a regular customer
- D. introducing other customers
- E. sales returns
When a buyer is undercharged, the seller forwards
- A. undercast note
- B. consignment invoice
- C. purchases in voice
- D. debit note
- E. credit note
A debit cash balance of N26,900 was brought down as N24,300. The entries necessary to correct the error are
- A. debit cash account N5,200, credit suspense account N5,200
- B. credit cash account N5,200, debit suspense account N5,200
- C. debit cash account N2,600, credit suspense account N2,600
- D. credit cash account N2,600, debit suspense account N2,600
- E. credit cash account N2,600, debit bank account N2,600
Where a proprietor withdraws cash from bank for office use, the entries would be
- A. credit cash account, debit bank account
- B. debit cash account, credit bank account
- C. debit officer account, credit bank account
- D. debit drawings account, credit bank account
- E. debit bank account, credit drawings account
Carriage outwards is charged to the
- A. debit side of profit and loss account
- B. credit side of profit and loss account
- C. credit side of trading account
- D. debit side of profit and loss Appropritation account
- E. debit side of Balance under current liabilities
Which of the following statements is not valid?
- A. provision for bad debts is deducted from debtors total in the Balance sheet
- B. An increase in provision for bad debts appears on the debi side of the profit and loss account
- C. a decrease in the provison for bad debts appears on the credit side of profit and loss accoun
- D. the bas debt account is closed to the debit side of the profit and loss account
- E. bad debt is a deduction from debtors total afte making provision for bad and boughtful debts
Use the following to answer the given question
DEBTORS CONTROL ACCOUNT:
\(\begin{array}{c|c} & N & N \\ \hline \text{ Balance b/d} & 8,000 & & \\ & & Bank & \text{“Y”} \\ \text{‘X”} & 12,000 & Discount & 200 \\ & & \text{Balanced c/d} & 3,000\end{array}\)
The closing balance balance is a
- A. current asset
- B. current liability
- C. fixed asset
- D. fictitious asset
- E. long term liability
Use the following to answer the given question
DEBTORS CONTROL ACCOUNT:
\(\begin{array}{c|c} & N & N \\ \hline \text{ Balance b/d} & 8,000 & & \\ & & Bank & \text{“Y”} \\ \text{‘X”} & 12,000 & Discount & 200 \\ & & \text{Balanced c/d} & 3,000\end{array}\)
How much is the figure for bank?
- A. N20,000
- B. N17,000
- C. N16,800
- D. N12,000
- E. N8,000