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 641: Dan and Baker are in partnership with capitals of ₦50,000 and ₦30,000 each. The partnership agreement provides that: (i) profits be shared in the ratio of capital (ii) both partners earn interest on capital at 6% p.a (iv) both parents pay interest on drawings at 6% p.a. At the end of the year, Dan drew ₦15,000 while baker drew ₦14,000 in four installments on 31/3, 30\6, 30\9 and 30\12. The net profit for the year was ₦48,000. ₦5000 is to be written off the goodwill account.
Determine the total interest on capital due to the partners?
Options:
A) ₦1200
B) ₦1800
C) ₦3000
D) ₦4800
Show Answer
The correct answer is D .
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Question 642:
Use the information below to answer questions
Subscription received during the year ₦30,000
Subscription owed last year ₦4,000
Subscription received for next year ₦6,000
The ₦6,000 subscription received is?
Options:
A) current asset
B) current liability
C) fixed asset
D) capital
Show Answer
The correct answer is B .
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Question 643: X and Y are two departments that are to share 50% of all joint costs equally and the balance in ratio 2:1. If a sum of ₦150,000 is incurred jointly, what will be the portion attributable to X?
Options:
A) ₦37,500
B) ₦62,500
C) ₦87,500
D) ₦100,000
Show Answer
The correct answer is B .
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Question 644: In converting single entry to final account, the balancing figures on the income and expenses accounts are transferred to the?
Options:
A) revenue and expenditure account
B) receipts and payments account
C) profit and loss apporpriation account
D) profit and loss account
Show Answer
The correct answer is D .
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Question 645:
Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled #800,000. A provision for bad and doubtful debts.
Find the amount for sundry debtors after provision.
Options:
A) #744,800
B) #760,000
C) #784,000
D) #744,000
Show Answer
The correct answer is D .
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Question 646: The following accounting entries are made when bad debt is recovered
Options:
A) debit bad debts accounts and credit bad debt recovered account
B) debit debtors accounts and recovered account
C) debit bad debts recovered account and credit bad debts account
D) debit bad debts account and credit profit and loss account
Show Answer
The correct answer is B .
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Question 647:
Use the information below to answer the question
Entrance fees.........................₦1200
Subscriptions (including ₦850 arrears)....₦4310
Donations received....................₦1500
Proceeds from sales...................₦2300
Total payments........................₦8200
Depreciation..........................₦2100
Closing cash balance..................₦1110
The club deposited 200% of the closing cash balance in the bank during the period.
Determine the opening cash balance of the club.
Options:
A) ₦3070
B) ₦2220
C) ₦5710
D) ₦4320
Show Answer
The correct answer is B .
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Question 648:
| | N |
| sales | 20,000 |
| cost of sales | 10,000 |
| operating expenses | 2,500 |
| expenses prepaid included in operating expenses | 500 |
Use the information above to answer the following question.
What is the gross profit margin?
Options:
A) 100%
B) 50%
C) 40%
D) 30%
Show Answer
The correct answer is B .
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Question 649: The major advantage of the journal proper is that it
Options:
A) helps in the preparation of the balance sheet
B) prevents fraud and theft of item of the business
C) serves as a book of instruction to the bookkeeper
D) help the banking industry to be efficient
Show Answer
The correct answer is B .
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Question 650:
Use the information below to answer question .
Capital.....................N?
Profit and loss.............₦3500
Current assets..............N?
Current liabilities.........₦2000
Fixed assets................₦11000
The company maintains a current ratio of 3:1.
The capital balance is?
Options:
A) ₦95 00
B) ₦12 500
C) 11 500
D) 10 00
Show Answer
The correct answer is B .