The entries for cash drawn from the bank by a proprietor for the private use is: debit
- A. Bank Account; credit Cash Account
- B. Cash Account; credit Bank Account
- C. Cash Account; credit Drawings Account
- D. Drawings Account; credit Bank Account
An item that would be considered a first charge against profit in a company’s account is
- A. ordinary dividend
- B. preference dividend
- C. capital reserve
- D. general reserve
Use the following information to answer questions below
| Le | |
| Raw materials: | |
| Stock (01/01/2017) | 822000 |
| Stock (31/12/2017) | 560000 |
| Purchases | 125000 |
| Returns of raw materials | 15000 |
The cost of raw materials consumed is
- A. Le 402,000
- B. Le 947,000
- C. Le 932,000
- D. Le 372,000
Use the following information to answer questions below
| Le | |
| Raw materials: | |
| Stock (01/01/2017) | 822000 |
| Stock (31/12/2017) | 560000 |
| Purchases | 125000 |
| Returns of raw materials | 15000 |
The cost of raw materials available for production is
- A. Le 372,000
- B. Le 932,000
- C. Le 947,000
- D. Le 402,000
The principal book of account where accounts are classified and summarized is
- A. balance sheet
- B. ledger
- C. trial balance
- D. journal
Books of accounts are opened by the use of
- A. balance sheet
- B. general ledger
- C. general journal
- D. trial balance
The authority to incur expenditure to address natural disaster is contained in
- A. contingency warrant
- B. supplementary general warrant
- C. reserved expenditure warrant
- D. virement warrant
In the balance sheet of not-for-profit making organizations, subscription in arrears is shown under
- A. long-term liabilites
- B. current assets
- C. current liabilities
- D. fixed assets
The maximum amount a company can raise through the issue of shares is
- A. paid-up capital
- B. authorized capital
- C. reserve capital
- D. loan capital
Use the following information to answer questions below
Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.
Teteh’s share of interest on capital is
- A. #15,000
- B. #25,000
- C. #10,000
- D. #75,000
Use the following information to answer questions below
Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.
Kukuma’s current account balance is
- A. #50,000
- B. #70,000
- C. #90,000
- D. #60,000
Use the following information to answer questions below
Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.
Teteh’s share of profit is
- A. #60,000
- B. #90,000
- C. #75,000
- D. #50,000
The document prepared by the buyer and sent to the seller listing the items to be supplied is
- A. purchase order
- B. credit note
- C. proforma invoice
- D. sales order
Drawings made by a partner would be
- A. credited to current account
- B. credited to appropriation account
- C. debited to appropriation account
- D. debited to current account
Adiza gave an instruction to her banker to pay a premium of Le 30,000 from her account to Union Rock Insurance on a quarterly basis for a policy. This instruction is an example of
- A. bank charges
- B. direct debit
- C. standing order
- D. credit transfer
Manufacturing account is prepared to ascertain
- A. profit on goods produced
- B. cost of goods produced
- C. cost of goods sold
- D. profit on goods sold
The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is
- A. dual aspect concept
- B. realization concept
- C. materiality concept
- D. business entity concept
Provision for doubtful debts is made in conformity with
- A. business entity concept
- B. money measurement concept
- C. prudence concept
- D. materiality concept
Use the following information to answer questions below
| $ | |
| Cash book balance (credit) | 750 |
| Uncredited cheques | 500 |
| Unpresented cheques | 1680 |
| Direct credit | 300 |
| Bank charges | 150 |
Balance as per bank statement is
- A. $ 580 Cr.
- B. $ 430 Dr.
- C. $ 430 Cr.
- D. $ 1,480 Cr.
Use the following information to answer questions below
| $ | |
| Cash book balance (credit) | 750 |
| Uncredited cheques | 500 |
| Unpresented cheques | 1680 |
| Direct credit | 300 |
| Bank charges | 150 |
The adjusted cash book balance is
- A. $ 600 Cr
- B. $ 300 Cr
- C. $ 900 Cr
- D. $ 1,200 Cr
The sales ledger contains accounts of
- A. cash sales
- B. trade debtors
- C. credit sales
- D. trade creditors