When the debit side total of an account, it means that the account has
Answer
(C)
debit balance
3
July 1 - Started business with #10,500
July 31- Paid Agromachinex #6,000 owing
them
The double entry for July 1 would be
Answer
(D)
debit purchases and credit cash
4
July 1 - Started business with #10,500
July 31- Paid Agro machine x #6,000 owing them
The double entry for July 31 would be
Answer
(A)
debit Agromachinex and credit cash
5
The total credit sales for a period can be extracted from the
Answer
(B)
sales day book
6
The major source document which enables an employer to calculate the employee wages is the
Answer
(B)
record of number of hours worked
7
Which of the following items is a capital expenditure?
Answer
(D)
Purchase of office machinery
8
The corresponding entry of personal accounts found in the debit side of the cash is to
Answer
(C)
credit the ledger
9
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
Answer
(D)
discount allowed account and credit Alaka's account
10
i The amount of the imprest is the same from one organization to another
ii.At the end of a fixed period, the petty cashier received a fixed sum of money.
iii At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv The system is a method by which a measure of control is kept on petty cash expenses.
Which of the above is correct about the imprest system?
Answer
(C)
i, ii and iv
11
A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000.
If the scrap value is presently #15,000 what will be the yearly depreciation using straight line method?
Answer
(A)
#4,000
12
The purchase of mattresses from Freehold enterprises by cheque amounted to #305,150. The correct entries for this transaction in the book of the buyer is to debit
Opening capital - #50,000
Closing capital - #64,000
Drawings - #16,000
Determine the net profit
Answer
(D)
#30,000
21
The estimated profit or loss for a period is calculated by
Answer
(A)
closing capital less opening capital add drawings
22
Given:
Drawings - #3,500
Net loss - #2,500
Capital 1/1/2007 - #35,000
Additional capital - #10,000
The adjusted capital as at 31/1/2007 is
Answer
(B)
#39,000
23
When goods produced are transferred at cost plus mark-up sale, the difference between the cost and the transferred price is a
Answer
(C)
manufacturing profit
24
The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of
Answer
(C)
goods manufactured
25
Opening stock of raw materials - #75,000
Purchase of raw materials - #330,000
Closing stock of raw materials - #80,000
Direct wages - #30,000
Carriages of raw materials - #10,000
Calculate the cost of raw materials used
Answer
(C)
#325,000
26
Purchase of raw materials - #330,000
Closing stock of raw materials - #80,000
Direct wages - #30,000
Carriages of raw materials - #10,000
Determine the prime cost
Answer
(D)
#370,000
27
In manufacturing account, the work-in-progress at the end of the year is
Answer
(A)
deducted from the cost of goods completed during this year
28
Which of the following is accounted for in receipts and payment account
Answer
(A)
Subscriptions recieved in advance
29
Which of the following expenses relates to the profit and loss account of a manufacturing firm
Answer
(C)
Administrative overhead
30
i. Direct materials
ii.Direct labour
iii.Direct expenses
iv. Factory expenses
Prime cost consist of
Answer
(A)
i, ii and iii
31
The amount paid by a new partner on admission as a compensation for the reputation built up by old partners is a
Answer
(D)
goodwill
32
A partnership's internal regulations are set out by
Answer
(A)
a deed
33
In a partnership account, interest on drawings is
Answer
(B)
credited to appropiation account
34
When a share valued at 50k is issued at #1.59, it is said to be issued at
Answer
(B)
premium
35
The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of
Answer
(C)
capital reserve
36
When shares are issued at a discount, entries are to debit
Answer
(A)
application allotment account and credit discount accoun
37
When there is no basis of apportionment in an organization, the expenses should be apportioned based on
Answer
(C)
equality
38
Department K Y
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #8,000 #30,000
Closing stock #3,000 #1,500
Rate expenses of #1,500 are apportioned in the ratio 1:2.
The gross profit for K is
Answer
(B)
#60,500
39
Department K Y
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #8,000 #30,000
Closing stock #3,000 #1,500
Rate expenses of #1,500 are apportioned in the ratio 1:2.
What is the net profit of Y?
Answer
(C)
#68,800
40
The objective of departmental account is to
Answer
(B)
ascertain the amount of profit or loss for each department
41
Which of the following is the capital reserve of a company
Answer
(A)
Share premium
42
Given:
Applications were invited by the directors of Abiodun PLC for 500,000 ordinary shares of #1:00 each at #1:10 per share payable as follows;
On application 46k
On allotment 20k
1st Call 15k
2nd Call 19k
How much is to be paid for application?
Answer
(A)
#230,000
43
The issued share capital is the number of shares that are
Answer
(C)
fully subscribed
44
The distributable profit available to shareholders at the end of each year is the
Answer
(D)
total profit less creditors balance
45
The debenture issued at par above the nominal value is said to be issued at a
