Transactions are recorded or posted to the ledger in line with
Answer
(C)
Double Entry Principle
2
Show how the following transaction will be recorded applying the double-entry principle:
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July 2017 by cheque.
Answer
(C)
Dr Rent A/c; Cr Bank A/c
3
A statement in a double-entry system in which are recorded all the transactions of one specific class, which takes place during the period is called
Answer
(B)
Ledger
4
The advantage of double entry is that
Answer
(A)
it is easy to prepare the final account
5
Accounts can be classified into
Answer
(D)
personal and impersonal account
6
Goods were purchased for resale on credit costing ₦150,000 on 30th September 2008 from Tosanwumi International. The entry to record these transaction is debit
Answer
(B)
Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
7
If only wages is shown on the trial balance, it should be charged to the
Answer
(A)
profit and loss account
8
What is the Gross Profit on percentage of sale?
Answer
(C)
27.0%
9
Calculate the net profit on percentage of expenses.
Answer
(D)
65.7%
10
Mr Ojo gives you the following information on 31st July 2017
Opening Stock 7,000
Closing Stock 12,000
Purchases 60,000
Expenses 4,500
Uniform margin of 33 \(\frac{1}{3}\) %
You are required to calculate the sales
Answer
(B)
#82,500
11
The company's paid-up capital is
Answer
(B)
₦80,000
12
The Unissued capital of the company is
Answer
(D)
₦100,000
13
Given:
Ordinary share dividend ₦100,000, General reserve ₦4,100, Net profit b/d ₦27,370, corporation tax ₦2,500, Profit and loss ₦28,200, Interim ordinary dividend ₦4,050, Goodwill 20,50 provide for preference Dividend ₦2100 and Final ordinary Dividend of 5% and also write off Goodwill at ₦1500.
The retained profit in the Appropriation account is
Answer
(B)
₦36,320
14
Retained profits is an example of
Answer
(A)
Revenue reserve
15
Sam's share of profit is
Answer
(D)
991.8
16
The rate of interest on capital for Ade is
Answer
(C)
300
17
Calculate the subscriptions in the Income and expenditure account
Answer
(B)
7400
18
The figure ₦1000 represent what in the balance sheet.
Answer
(B)
Liability
19
What is the opening cash balance
Answer
(C)
₦3,650
20
Which of these will not appear in the preparation of control account.
I. Bad debts
II. Discounts
III. Returns
IV. Provision for bad debts
Answer
(D)
IV only
21
Use the following Information to answer this question.
Stock of finished goods: Jan 1st
Dec 31st
Stock of Raw materials: Jan 1st
Dec 31st
Purchase of Raw Materials
Manufacturing Wages
Depreciation: Factory equipment
Direct expenses
Factory Fuel
Carriage inwards on Raw Materials
Use the following Information to answer this question.
Stock of finished goods: Jan 1st
Dec 31st
Stock of Raw materials: Jan 1st
Dec 31st
Purchase of Raw Materials
Manufacturing Wages
Depreciation: Factory equipment
Direct expenses
Factory Fuel
Carriage inwards on Raw Materials
A fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence is referred to as
Answer
(B)
Depreciation
24
The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight line method, what is the amount of depreciation charged per annum?
Answer
(C)
1500
25
Recurrent expenditure is
Answer
(C)
₦421,000
26
Capital expenditure is
Answer
(D)
₦4,245,000
27
Goods can be charged to branches using any of these pricing methods except
Answer
(D)
selling plus percentage
28
Abelawo ltd operates a retail branch at Aba. All purchases are made by the head office in Onitsha and goods are charged to the branch at cost plus 50%. During the year ended. Goods sent to branch at invoiced price is ₦30,870, cash sales ₦13,020 and Bad debt amounted to 129. From the following, what is the profit?
Answer
(B)
10,290
29
The cost of goods for department B is
Answer
(D)
2800
30
The net profit for departmental A is
Answer
(D)
425
31
Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having economic interest is
Answer
(B)
entity concept
32
The two recognised accounting bases are
Answer
(C)
Accrual and Cash
33
Given:
Additional capital
Capital
Closing capital
Net profit
₦
4000
8000
12000
1500
The drawings for the period stand at
Answer
(A)
1500
34
The importance of bank statement is all except
Answer
(C)
helps to debit an account
35
Accounting standards are issued at the International level by the
Answer
(B)
International Accounting Standards Board
36
The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is
Answer
(D)
WAP
37
One of these is not a similarity between Joint Venture and Partnership.
Answer
(B)
It is for a specific venture
38
Majority of commercial transactions are termed credit transactions, which means
Answer
(B)
Settlement is deferred to a future date
39
Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be
Answer
(A)
Increase in assets of motor vehicle account
40
A proprietor withdraws cash from the business for private use, he
Answer
(B)
credits cash account and debits drawing A/C
41
The rules of double entry states that
Answer
(C)
all transactions must be recorded in two accounts, one account is debited and another is credited
42
The difference between double entry and single entry is
Answer
(A)
double entry is based on the dual concept while single entry is not based on dual concept
43
A rent of ₦50,000 was paid by samson to his landlady by cheque. The double entry in Samson's book is
Answer
(B)
Debit Rent account, Credit Samson's account
44
The purpose of profit and loss account is to ascertain
Answer
(D)
Net profit
45
Discount received is charge to
Answer
(B)
profit and loss
46
What was the cost of goods sold?
Answer
(D)
₦75,000
47
What was the gross profit?
Answer
(D)
₦25,000
48
An ordinary share of ₦100 was issued at ₦80. The share was issued at
Answer
(C)
discount
49
Shares that are offered to existing shareholders at a price is called
Answer
(C)
right issue
50
Use the following information to answer this question
Year
₦
1991
1992
1993
1994
14,000
24,000
10,000
16,000
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
Answer
(B)
16000
51
Where there is no agreement made by the partners, the following provisions takes place except
Answer
(B)
There is interest on capital
52
In the absence of partnership agreement, a loan by a partner attracts interest at
Answer
(B)
5%
53
In a non-profit making organisation, the excess of Assets over liabilities equals
Answer
(D)
accumulated funds
54
The similarities between Receipts and payments and income and expenditure account is
Answer
(C)
Both include capital items
55
Given:
Equipment
Motor Vehicle
Loan
Creditors
Sub in advance
Sub in arrears
₦
10,000
15,000
4,500
3,000
150
3500
What is the accumulated fund?
Answer
(B)
₦20,850
56
Use the information to answer this question
Payment to creditors ₦12,250
Creditors at start ₦550
Creditors at end ₦830
What us the amount of purchase
Answer
(A)
₦11,970
57
Use the information to answer this question
Payment to creditors ₦12,250
Creditors at start ₦550
Creditors at end ₦830
What is the creditors amount in the balance sheet?
Answer
(D)
₦830
58
In the preparation of statement of profit, if the opening capital is greater than closing capital, there will be
Answer
(C)
loss
59
The manufacturing account is prepared to ascertain
Answer
(B)
cost of production
60
Which of the following is not charged to the manufacturing account?
Answer
(C)
Distribution expenses
61
Which of the following cannot depreciate?
Answer
(D)
land
62
An officer that is charged with the responsibility of carrying out investigations on the book of accounts to show the true and fair view is
Answer
(D)
Auditor General
63
The instrument isued by the Minister who authorized an officer to incure expenditure is a/an
Answer
(A)
warrant
64
One of the objective of maintaining the account of a branch at the head office is to
Answer
(A)
to access the performance of the branches
65
A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is
Answer
(C)
₦6,174
66
The objective of departmentalization is to
Answer
(D)
evaluate the profit of different departments
67
Given:
Fixed assets
Liabilities
Current assets
₦
55,000
20,000
13,000
What is the capital?
Answer
(B)
₦48,000
68
One of the limitations of accounting is that
Answer
(C)
transactions are recorded in monetary terms
69
Capital at start was ₦250,000, while capital at the end of the year was ₦400,000. Drawings during the year amounted to ₦15,000. What is the profit?
Answer
(A)
₦165,000
70
In the preparation of account, the owners of the business and the business concerned are treated as:
