Accounts, also called Principles of Accounts by some exam boards, focuses on the organized and thorough recording of a business's financial transactions.
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Question 201: In a partnership account, interest on drawings is
Options:
A) debited to appropriation account
B) credited to appropiation account
C) treated as an expense in profit and loss account
D) recorded in the balance sheet as current assets
Show Answer
The correct answer is B .
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Question 202: When the fixed capital method is used, the partners' share of profits and remunerations are credited to the
Options:
A) current account
B) profit and loss account
C) profit and loss appropriation account
D) capital account
Show Answer
The correct answer is D .
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Question 203: To realize an asset means to
Options:
A) mortgage it
B) open its account in the ledger
C) turn it to cash
D) give it out as a collateral
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The correct answer is C .
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Question 204:
Given:
Shaku Company Ltd.
Stock..........................₦3600 000
Cash at hand...................₦800 000
Cash at bank...................₦2400 000
Debtors........................₦580 000
Trade creditors................₦920 000
Bank overdraft.................₦200 000
Tax liabilities................₦600 000
Salary owed to staff...........₦180 000
Determine the working capital?
Options:
A) ₦7380 000
B) ₦8480 000
C) ₦5480 000
D) ₦6480 000
Show Answer
The correct answer is C .
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Question 205:
The Accounting term used to describe a partnership firm that stops operation and disposes its assets is
Options:
A) Amortization
B) Revaluation
C) Realization
D) Dissolution
Show Answer
The correct answer is D .
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Question 206: What is the net profit?
Options:
A) ₦46,000
B) ₦45,000
C) ₦28,000
D) ₦27,000
Show Answer
The correct answer is C .
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Question 207: Alaka who owed Saka #15,000, settled his debt after deducting cash discount of 10percent. To record the discount in the book of Saka, debit
Options:
A) discount recieved account and credit Alaka's account
B) Alaka's account and credit discount recieved account
C) Saka's account and credit discount recieved account
D) discount allowed account and credit Alaka's account
Show Answer
The correct answer is D .
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Question 208:
The following appears in the trading account except
Options:
A) carriage inward
B) opening stock
C) carriage outward
D) sales
Show Answer
The correct answer is C .
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Question 209:
The addition of prime cost, indirect cost and opening work- in-progress less the closing work-in-progress will result in cost of
Options:
A) goods manufactured
B) materials put into production
C) goods available for sale
D) goods sold
Show Answer
The correct answer is A .
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Question 210:
Given:
Capital...............................₦2375 000
Debtors...............................₦495 000
Motor vehicle.........................₦870 000
Creditors.............................₦245 000
Prepayment............................₦500 000
Bills receivable......................₦505 000
Furniture.............................₦150 000
What is the total debit for the trial balance?
Options:
A) ₦4 690 000
B) ₦2 620 000
C) ₦2 520 000
D) ₦1 565 000
Show Answer
The correct answer is C .