Balance as per cashbook 2, 970
Bank Charges 220
Unpresented cheques 3, 950
Uncredited cheques 4, 178
Direct debit by bank 1, 0000
Determine the balance as per bank statement.
Answer
(D)
# 2,522
2
The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?
Answer
(D)
#168,500
3
The major advantage of the journal proper is that it
Answer
(B)
prevents fraud and theft of item of the business
4
Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 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
(C)
#60,500
5
One of the objectives of accounting is that it can be used for
Answer
(A)
business decision making
6
The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a
Answer
(A)
return on capital employed
7
The instrument used in analysis and interpretation of financial statement is the
Answer
(A)
accounting ratios
8
An item in the balance sheet of a limited liability company is
Answer
(A)
accrued expenses
9
The documents that provide instant information to firms on their tranactions with banks are
Answer
(A)
bank statement and debit note
10
Which of the following is the capital reserve of a company?
Answer
(B)
Retained profit
11
The effect of overstating revenue expenditure in the profit and loss account is that the
Answer
(B)
net profit will be understand
12
Which of the following condition would attract credit and debit notes to be used?
Answer
(C)
When a buyer is under or over charged
13
Given: #
Drawings 3,500
Net loss 2,500
Capital 1.1,2007 35,000
Additional capital 10,000
The adjusted capital as at 31 : 12 : 2007 is
Answer
(B)
#39, 000
14
A receipt is an evidence of
Answer
(A)
payments
15
Turaki Youth Club Income and Expenditure for the year ended 31/12/04
# #
Bal.b/d 390 Expenses on cleaning 300
Sales of - New tool 510
trickets 4,000 Repairs 400
Donations 3,000 Electricity 350
Subscription 6,500
What is the total income for the period?
Answer
(C)
#13,890
16
An organization which has records of only personal accounts is said to be operating on the basis of
Answer
(A)
single entry
17
A proprietor started business with #13,000. Assets and liabilities at the end of the year; fixed assets #8,800, stock #, 600, debtors #1,000, cash #3, 000 and creditors #1,000. Determine the profit for the year?
Answer
(D)
#1,400
18
Badge Plc issued 450,000 ordeinary shares of 50k each at #1.50 per share
Application and allotment 45k
1st call 50k
2nd call 55k
Determine the amount received on final call.
Answer
(C)
#247,500
19
When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at
Answer
(B)
any price but not below the transfer price
20
The income and expenditure account differs from receipts and payments account because it
Answer
(B)
records transactions that relate to the period on cash basis
21
The major sources of revenue for the state and local governments is
Answer
(B)
statutory allocation
22
1. The amount of the imprest is the same from one organization to another.
2. At the end of a fixed period, the petty cashier received a fixed sum of money.
3. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
4. The system is a method by which a measure of control is kept on petty cash expenses.
Which of the following is correct about the imprest system?
Answer
(B)
II, III and IV
23
When the fixed capital method is used, the partners' share of profits and remunerations are credited to the
Answer
(D)
capital account
24
A discount that is allowed to encourage a debtor to pay off his debt within a period is the
Answer
(D)
cash discount
25
The costs of acquiring fixed assets and bringing them into the firm is a
Answer
(D)
capital expenditure
26
Impersonal account is subdivided into
Answer
(A)
real and nominal accounts
27
Opening balance of Diks company was #12,202, closing balance #15,300, total cash received during the period #40,000. What was the amount of cash paid during the same period?
Answer
(A)
#36,902
28
The total cash and cheques received from customers in a control account is derived from the
Answer
(C)
purchases day book
29
Which of the foloowing is a credit item in creditors ledger control account?
Answer
(D)
Purchases
30
The trader's capital in a single entry system is ascertained by preparing
Answer
(B)
statement of affairs
31
I. Members subscription
II. Fines from members
III. Donation
IV. Loan from bank
From the information above, sources of income for a Not-for-profit-making organization include
Answer
(B)
I,II,III
32
Clifford pays rent of #200 per month for premises, He paid #2,800 within the year. Compute the prepayment.
Answer
(A)
#300
33
Purchases can be ascertained through the preparation of a
Answer
(A)
stock account
34
When stock is withdrawn for personal use, the accounting entries is to debit
Answer
(B)
drawing account, credit stock account
35
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.
Answer
(D)
#744,000
36
Which of the following is accounted for in receipts and payments account?
Answer
(C)
interest on bank deposit
37
When the purchase consideration is lower ttan the net asset, the buyer has gained the advantage of
Answer
(A)
capital reserve
38
An increase in government expenditure within a year is taken care of by means of
Answer
(C)
supplementary estimate
39
A business organization prepares departmental account in order to
Answer
(A)
asertian the contribution of each department to the organization
40
The objective of departmental account is to
Answer
(B)
ascertain the amount of profits or losses for each department
41
Which of the following expenses relate to the profit and loss account of a manufacturing firm?
Answer
(A)
Administrative overhead
42
The difference between book keeping and accounting is that while
Answer
(C)
book keeping records data accounting interprets it
43
Alaka who owed Saka N15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka, debit
Answer
(A)
Saka's account and credit discount received account
44
If the scrap value is now N15,000. What will be the yearly depreciation using the straight line method.?
Answer
(C)
N4,000
45
The yearly depreciation using the straight line method would be?
