Which of the following is not a profit and loss appropriation account item?
- A. staff salaries
- B. interest on capital
- C. interest on money advanced by partners
- D. share of profit
- E. interest and drawings
Which of the following does not appear on the debit side of a company’s profit and loss appropriation account?
- A. compny tax
- B. unappropriated surplus
- C. proposed dividend
- D. transfer to rserve
- E. interim dividend paid
Bosun bought goods worth N500 and sold it at a margin of 20% on selling price. For how much did he sell the goods?
- A. N100
- B. N125
- C. N500
- D. N600
- E. N625
Profit expressed as a proportion of cost price is known as
- A. grss profit
- B. profit make-up
- C. profitt margin
- D. profit percentage
- E. profit ratio
Which of the following errors will not allow a trial balance to agree?
- A. where a transaction is completely omitted from the books
- B. where the correct amount is entered but in the wrong account
- C. where the figure entered on one side is different from the one entered on the other side
- D. where an item is entered in the wrong class of account
- E. where the correct amount is used but each item is shown on the wrong side of the account
Debtors on 1st January was N1,490 and sales for the year was N5,760. Cash received from debtors during the year was N5,410. Bad debt written off was N410. Discount allowed amounted to N320. What was the net profit for that year, assuming a gross profit of N3,650 was made?
- A. N2,920
- B. N3,240
- C. N3,330
- D. N5,340
- E. N5,440
Debtors on 1st January was N1,490 and sales for the year was N5,760. Cash received from debtors during the year was N5,410. Bad debt written off was N410. Discount allowed amounted to N320. What was the debtors’ balance at the end of the year?
- A. N1,110
- B. N1,430
- C. N1,520
- D. N1,750
- E. N2,980
A cheque drawn for N1200 was entered in the cash book as a receipt. The accounting entries are
- A. credit cash account, debit bank account with N1,200
- B. debit cash account, creidit bank account with N1,200
- C. credit cash account, debit suspense account with N2,400
- D. debit cash account, debit suspense account with N2,400
- E. credit bank account, debit suspense account with N2,400
Creditors at start was N940 and purchases for the year was N4,060. During the year, cash paid to creditors was N3,890. N490 was received as discount. What is the creditors amount in the balance sheet?
- A. N450
- B. N620
- C. N660
- D. N1,110
- E. N1,430
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