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 711:
The part of capital issued only at the time of liquidation of the company is
Options:
A) issued capital
B) called-up capital
C) paid-up capital
D) reserved capital
Show Answer
The correct answer is D .
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Question 712: 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 713:
| Receipts and Payments Account |
| | ₦ | | ₦ |
| Bal. b/f | 1,000 | Salaries | 5,000 |
| Donations | 5,000 | Secretariat expenses | 5,000 |
| Subscriptions | 7,000 | Dance expenses | 5,000 |
| Sales of refreshments | 11,000 | Refreshments | 15,000 |
| Entertainment | 21,000 | Bal. c/d | 15,000 |
| | 45,000 | | 45,000 |
Given:
Calculate the surplus income.
Options:
A) ₦45 000
B) ₦44 000
C) ₦30 000
D) ₦14 000
Show Answer
The correct answer is D .
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Question 714: Subscription in advance is treated in the balance sheet as a
Options:
A) current asset
B) current liability
C) fixed asset
D) long term liability
Show Answer
The correct answer is B .
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Question 715: Use the information below to answer this question.Dangote acquired Dantata’s business for ₦350,000. The total asset work were ₦820,000 and liabilities amounted to ₦640,000The double entry to record the goodwill in the books is debt
Options:
A) purchase of business account and credit cash account
B) goodwill account and credit purchase of business account
C) cash account and credit goodwill account
D) goodwill account and credit cash account
Show Answer
The correct answer is B .
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Question 716: THE BOOK VALUE OF THE ASSET AS AT 31/12/86 WAS
Options:
A) ₦3 731 250.00
B) ₦2 487 500.00
C) ₦1 268 750.00
D) ₦1 020 000. 00
Show Answer
The correct answer is A .
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Question 717: Which of the following transaction is BEST recorded in the general journal?
Options:
A) Payment of rent with cheque
B) Purchase of stock with cash
C) Purchase of an asset on credit terms
D) Transfer of cash from head office branch
Show Answer
The correct answer is D .
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Question 718:
Use the information below to answer question.
Given:
Fixed assets ₦85,600
Sales ₦197,000
Stock ₦34,300
Salaries ₦37,000
Purchases ₦127,700
Share capital ₦120,000
Creditors ₦16, 050
Motor expenses ₦10,500
Debtors ₦25,000
Determine the total of the trial balance?
Options:
A) ₦335,050
B) ₦333,050
C) ₦323,050
D) ₦230,550
Show Answer
The correct answer is B .
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Question 719:
Stock or raw materials(1st January) 3000
Direct wages 2500
Direct expenses 1000
Factory overheads 2000
Cost of raw materials used 5500
Stock of finished goods (31st December) 2000
The cost of goods manufactured is?
Options:
A) ₦11000
B) ₦12000
C) ₦14000
D) ₦9000
Show Answer
The correct answer is A .
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Question 720:
The principle of double entry system ensures
Options:
A) balances at the bank
B) increase in the assets and liabilities
C) balance of cashbook
D) mathematical accuracy in trial balance
Show Answer
The correct answer is D .