The directors’ salaries paid are items of?
- A. current liabilities
- B. profit and loss account
- C. trading account
- D. current account
Given:
N6 000 10% preference shares of N0.50 each
N6 000 ordinary shares of N1 each
Capital reserves N2 700 000
Long-term liabilities N4 000 000
Find the value of authorized share capital?
- A. 13 000 000
- B. 12 000 000
- C. 9 000 000
- D. 15 700 000
The capital contribution by the partners is treated in the?
- A. current account
- B. capital account
- C. trading account
- D. balance sheet
The interest on partners’ loans is?
- A. debited in current account
- B. credited in profit and loss account
- C. debited in profit and loss account
- D. credited in current account
The rules which govern the internal management of a firm and its financial affairs in a partnership business is a?
- A. memorandum
- B. bye-law
- C. deed
- D. financial regulation
The salary of a partner is usually debited to the?
- A. sundry debtors' account
- B. appropriation account
- C. profit and loss account
- D. sundry current account
Which of the following is mostly used in treating partners’ current earnings?
- A. Savings account
- B. Current account
- C. Capital account
- D. Share capital account
Goods returned to branch by customers is recorded in the head office books be debiting?
- A. bank account and crediting branch stock account
- B. goods sent to branch account and crediting branch debtors''account
- C. branch stock account and crediting branch debtors account
- D. branch debtors' and credting cash acount
The branch expenses paid by the head office is recorded in the books by debiting branch?
- A. bad debt account and crediting branch debtor's account
- B. expenses account and crediting bank account
- C. profit and loss account and crediting branch stock account
- D. discount allowed account and crediting branch debtors' account
If goods were returned to branch by the customers, the correct posting for this transaction is to debit?
- A. branch debtor's account and credit head office account
- B. head office account and credit branch stock account
- C. branch stock account and credit branch debtors' account
- D. branch cash account and credit branch stock account
The Akachala Limited has four department W, X Y and Z. The profits or loss of the departments were N20 000 loss, X N25 profit, Y were N30 000 loss and Z N1800 profit. How much is the net profit or loss of the company?
- A. N7 000 loss
- B. N5 000 loss
- C. N5 000 profit
- D. N7 000 profit
The summary of receipts and payments account represent?
- A. cash at hand
- B. journal proper
- C. general journal
- D. ledger accounts
The equivalent of a club’s receipts and payment account is the?
- A. trading account
- B. revenue account
- C. cash account
- D. suspense account
In the not-for-profit-making organization, the excess of income over expenditure is?
- A. deducted from the capital
- B. added to the accumulated fund
- C. added to the capital
- D. deducted from the the accumulated fund
The prime cost is the total of the?
- A. production cost + selling expenses
- B. direct material + direct labour + direct expenses
- C. direct material + work overhead expenses
- D. administrative expenses + selling + distribution expenses
The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the?
- A. debit side of manufacturing and profit and loss account
- B. debit side of profit and loss account only
- C. credit side of profit and loss account only
- D. debit side of manufacturing and balance sheet
The gross loss on manufacturing is always transferred to the?
- A. credit side of balance sheet
- B. debit side of profit and loss account
- C. credit side of profit and loss account
- D. debit side of balance sheet
Use the information below to answer questions
……………………31/12/08………..31/12/09
Furniture and fittings..N21 000,…………N28 000
Office equipment……..N9 800,………….N13 200
Debtors……………..N6 800,………….N5 200
Creditors……………N4 900,………….N5 100
Cash at bank…………N7 000,………….N4 600
Accrued electricity bills……………….N1 200
Monthly drawings average N330.
Determine the net profit ?
- A. N5 000
- B. N3 960
- C. N1 040
- D. N8 960
Use the information below to answer questions 25 and 26.
……………………31/12/08………..31/12/09
Furniture and fittings..N21 000,…………N28 000
Office equipment……..N9 800,………….N13 200
Debtors……………..N6 800,………….N5 200
Creditors……………N4 900,………….N5 100
Cash at bank…………N7 000,………….N4 600
Accrued electricity bills……………….N1 200
Monthly drawings average N330.
Find the opening capital?
- A. N39 700
- B. N35 900
- C. N35 740
- D. N43 660
Determine the total expenses to be charged to profit and loss account?
- A. N2 350
- B. N1 600
- C. N800
- D. N3 150
- E. NO OPTION
Use the information below to answer questions 23 and 24.
……………………….31/12/07…….31/12/08
Stocks……………………N4 200………N3 900
Rates in advance…………..N1 000………N1 500
Accrued wages……………..N1 150………N1 350
Cost of goods sold was valued at N6 000.
Cash paid for rates and wages during the year was N1 300 and N2 200 respectively.
What is the value of purchases for the year 2008?
- A. N6 000
- B. N9 900
- C. N14 100
- D. N5 700