Us the following information to answer the question given.
\(\begin{array}{c|c} \text{Cost of motor vehicle – 1\1\12} & ₦ 85,000 \\ \text{Residual value} & ₦5,000 \\ \text{Estimated useful lifespan 10 years} & \end{array}\).
The business make use of the straight line method for providing depreciation, the annual depreciation is
- A. ₦9,000
- B. ₦8,500
- C. ₦8,000
- D. ₦6,500
Which of the following is entered in the general journal?
- A. purchase of goods
- B. sale of goods on credit
- C. returns inward
- D. aquisition of fixed assets
An error of principle is made, if
- A. an entry has been made on the wrong class of account
- B. a transaction has been completely omitted
- C. an entry has been made on the wrong side of the two accounts corcened
- D. a transaction is entered in both accounts for the wrong amount
Which of the following is used to record the disposal of a fixed asset?
- A. journal proper
- B. petty cash book
- C. sales day book
- D. purchase day book
Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is
- A. an error of omission
- B. a compensating error
- C. an error of commision
- D. an error of principal
Which of the following transactions will result in disagreement between the cash book and the bank statements?
- A. selling of goods on credit to a customer
- B. withdrawal of goods by the proprietor for his personel use
- C. cheque paid directly into the bank account by a customer
- D. omission of purchases received from a supplier on credit
Net turnover is referred to as
- A. purchases
- B. assets
- C. sales
- D. profits
The accounting treatment for a dishonored cheque is; debit
- A. customer's account; credit bank account
- B. bank account; credit customer's account
- C. customer's account; credit sales account
- D. sales account; credit customer account
Which of the following subsidiary books involves cash movements?
- A. sales day book
- B. purchases day book
- C. returns inwards book
- D. petty cash book
An example of a credit entry in a profit and loss account is
- A. carriage inwards
- B. carriage outwards
- C. discounts allowed
- D. discounts received
In the operation of an imprest of petty cash, the
- A. petty cashier pays all expenses
- B. petty cashier pays money to the accountant
- C. petty cashier regularly begins each period with the same amount of money
- D. main cashier accounts to the petty cashier for some experiences made by him
A book that contains individual accounts of suppliers is the
- A. purchase ledger
- B. general ledger
- C. nominal ledger
- D. sales ledger
The source document used to make entries in the purchase day book is
- A. debt note
- B. credit note
- C. invoice
- D. receipt
In government accounting, the method used which records on the basis of financial entity with self-balancing books instead of entity of proprietorship is
- A. virement
- B. fund accounting
- C. consolidated fund
- D. financial regulation
The account of government into which all monies are received and from which all expenditures are disbursed is the
- A. Federation account
- B. Petroleum Technology Development Fund
- C. Central Bank Account
- D. Development fund
Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each.
The book value of issued share capital is
- A. #675,000
- B. #975,000
- C. #1,350,000
- D. #1,950,000
Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each.
Determine the amount received on application and allotment
- A. #224,950
- B. #225,000
- C. #324,950
- D. #325,000
#800,000 worth of ordinary shares of 50k were issued at #1 each, payable in full on application. The entry in the cash book would be to
- A. credit #1,600,000
- B. debit #1,600,000
- C. credit #1,600,000
- D. debit #800,000
The details of the share capital which a company is authorized to issue is contained in the
- A. Articles of Association
- B. Companies and Allied Matters Act
- C. Memorandum of Association
- D. Share capitak certificate
Payment for shares in excess of amount offered gives rise to
- A. subscription in advance
- B. revenue reserves
- C. capital reserves
- D. calls-in-advance
The expenses incurred in purchasing a vehicle is a
- A. revenue expenditure
- B. capital expenditure
- C. recurrent expenditure
- D. concurrent expenditure