Derive the total sales figure from the following information extracted from a firm’s cash book and other relevant records.
Total debtors b/f N 5,600
Total cash receipts from debtors
and cash sales N 153,000
Total debtors c/f N 6,800
- A. N6,800
- B. N153,000
- C. N154,200
- D. N159,800
Determine the year”s purchase from the following information relating to a firm.
Total creditor”s b/f N 7,200
Total cash payment to suppliers N 98,800
Total creditors c/f N 8,400
- A. N7,200
- B. N98,800
- C. N100,000
- D. N105,800
Mini Enterprises Sales Ledger as at 31/12/94
read:
N
Balance b/f 12750
Total credit sales 28185
Payments by debtors 12112
Discount allowed 638
Sales returns 1500
Prepare the sales ledger control account and determine the balance due from debtors.
- A. N40,935
- B. N27,961
- C. N26,685
- D. N1,185
A powerful instrument of control over both the sales ledger and the clek whose duty is to post the ledger is the?
- A. total debtors account
- B. purchase day book
- C. sales day book
- D. cash book
The balance on a purchase ledger control account represents the?
- A. present amount that a business owes its suppliers at date
- B. total credit avaiable to the end of the year to be utilized in future
- C. total credit the business enjoyed for the particular year from its suppliers
- D. total credit owd the business by its customers
On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?
- A. N10,000 loss
- B. N2,000 loss
- C. N4,000 loss
- D. N8,000 gain
A pottery company had sales of N176,000 during the current period and a gross profit rate of 40%.
The company’s cost of merchandize available for sale during the period was N128,000. The company’s ending inventory is?
- A. N22,400
- B. N32,000
- C. N51,200
- D. N76,800
Sobande Incorporation acquired a machine that involved the following expenditures and related factors.
N
Gross invoice price 15,000
Sales tax 900
Purchases discount taken 300
Freight 750
Assembly of machine 500
Installation of machine 800
Assorted spare parts for future use 1200
Turing and adjusting machine 700
What is the initial accounting cost of the machine?
- A. N19,550
- B. N18,950
- C. N18,350
- D. N17,500
Mayana Corporation uses special journals to record its transactions. If one of Mayana’s customers returns merchandize purchased with cash (for a refund), it makes an entry in the?
- A. cash receipts journal
- B. sales journal
- C. general journal
- D. cash disbursement journal.
State Bank collected a note for A-Makura Company. This collection, not yet recorded in AL-Makura’s books, appears on the bank reconciliation as?
- A. an addition to balance per book
- B. a deduction from balance per bank statement
- C. an addition to balance per bank statement
- D. a deduction from balance per books
The amount required to replenish the payments made from the imprest was?
- A. N399
- B. N394
- C. N358
- D. N101
Use the information below to answer questions 11 and 12.
The initial imprest as at July Ist was N500. Petty cash vouchers with the custodian by July 15th added up to N394. An IOU slip received from a co-worker was N65 and there was a shortage of N5 cash. The co-worker made refund on July 18th just before the imprest was replenished.
What was the actual cash in the till as at 15th July?
- A. N106
- B. N101
- C. N70
- D. N36
The total of the discounts received column in the cash book is posted to the?
- A. credit of the discounts received account
- B. debit of the discounts allowed account
- C. credit of the discounts allowed account
- D. debit of the discounts received account
If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to?
- A. overstate income this year and understate in next year
- B. understate income this year and overstate in next year
- C. understate this year's income with no effect on the next year's
- D. overstate the income for the two-year period
The purchase of two generators by Hassan Electronics Enterprises should be recorded as?
- A. an acquistion of fixed assets
- B. an expenses in its general office expenses account
- C. an acquistion of stock
- D. a part of capital in the capital account
N
Bank account 59,410
Capital account 50,000
Purchase account 20,000
Rent 2,500
Stationery 90
typewriter 6,500
Sales 38,000
In preparing a trial from the list of balances given above, what is the total in debit and credit columns?
- A. N147,910
- B. N138,500
- C. N88,500
- D. N85,800
When a transaction causes an assets account to increase, there is?
- A. a decrease of equal amount inthe owner's equity account
- B. an increase in a liability account
- C. an increase of equal amonut in another assets account
- D. a decrease of equal amount in a liability account
A business transaction is recorded in the books of account when the?
- A. owner of the business invests his N10,000 in another company
- B. business retains part of ofits profits for future expansion purposes
- C. business invest applies for overdraft facilities from its bankers
- D. owner of the business collects N5,000 from the accountant
An advantage of the use of the voucher system is that it?
- A. reduces the number of cheques that will be writen during any given period
- B. provides a highly flexible system for handling unusual transactions
- C. provides a comprehensive record of business done with particular suppliers
- D. ensure that every expenditure is reviewed and verified before payment is made
Responsibility accounting is particularly concerned with?
- A. histoical accounting
- B. controllable costs
- C. storekeeping
- D. valuation of stock
Cost reports for the intention of management should reflect?
- A. as much details as possible
- B. summary figures only
- C. details of non-controllable expenses
- D. cost and comparable data useful in decision-making