43
Mark-up on goods sent to branch offices are recorded in the books by creating
- A. stock adjustment account debiting branch stock account
- B. goods sent to branch account and debiting branch stock account
- C. branchh stock account and debiting stock adjustment account
- D. cash account and crediting branch stock account
- E. branch stock account and crediting defalcations account
44
A share is under-subscribed when
- A. it is offered for sale at less than the nominal value
- B. it is offered for sale at nominal value
- C. the number of shares applied for is less than the offer
- D. it is offered for sale at more thn norminal value
- E. the number of shares applied for is more than the offer
45
shares are sold at less than nominal value. They are issued at a
- A. profit
- B. loss
- C. discount
- D. premium
- E. par
46
An excess of the value of the assets over the purchases consideration for acquisition of business is credited to
- A. general reserve
- B. capital reserve
- C. goodwill
- D. current asset
- E. share capital
47
Payment for future services are
- A. prepayment
- B. deposit
- C. accruals
- D. invesment
- E. advances
48
Which of the following is a credit item on an income and expenditure account?
- A. bar expenses
- B. electricity
- C. salaries
- D. subscription
- E. rates
49
Which of the following is not contained in the sales ledger control account?
- A. receipts from debtors
- B. returns inwards
- C. returns outwards
- D. dishonoured cheque
- E. discunt allowed
50
Return inwards was understated. The effect is that
- A. amount of goods available was understated
- B. cost of sales was understated
- C. amount of purchase returns was understated
- D. amount of sales was understated
- E. amount of sales returns was understated
51
Which of the following is true of trade discounts?
- A. they are recorded in the ledger only
- B. they are not different from cash discount
- C. they are recorded in journal onlu
- D. they are recorded in ledgers and journals
- E. each discount receives double entries
52
The books of accounts are opened by means of a
- A. sales journal
- B. principle journal
- C. purchases journal
- D. return inwards journal
- E. return outwards journal