Under which of the following conditions is a partnership dissolved?
Answer
(C)
admission of a new partner
2
Which of the following accounting records are source documents?
Answer
(B)
sales invoice and debit note
3
In preparing accounting records, the owners of a business and the business are treated as
Answer
(A)
separate legal entities
4
₦
Bank account 59,410
Capital account 50,000
Purchases account 20,000
Rent 2,500
Stationery 90
Typewriter 6,500
Sales 38,500
In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?
Answer
(D)
₦88,500
5
Use this information below to answer this question
₦
Capital: Opening balance 307,000
Closing balance 342,000
Net profit for the period 121,600
Purchases 706,000
Carriage inwards 17,500
Cost of goods sold 740,700
Total selling, general and
administration expenses 526,000
Discount received 9,650
Opening stock 98,800
Calculate the closing stock for the period.
Answer
(B)
₦81,600
6
Use this information below to answer this question
₦
Capital: Opening balance 307,000
Closing balance 342,000
Net profit for the period 121,600
Purchases 706,000
Carriage inwards 17,500
Cost of goods sold 740,700
Total selling, general and
administration expenses 526,000
Discount received 9,650
Opening stock 98,800
What is the gross profit for the period?
Answer
(C)
₦647,600
7
Which of the following errors will affect the trial balance total?
Answer
(A)
omission of sales of ₦3000 and purchases of
₦2000
8
Danjuma Ltd. bought 10 bags of rice for N500 each. The company was given 5% and 12% trade and cash discounts respectively. What will be recorded as discount received in the company's book?
Answer
(D)
₦600
9
Given ₦
Stock (1/4/94) 800
Purchases of flour 2,450
Sales 4,745
Wages of bakery staff 675
Carriage outwards 50
Salary of administrative staff 225
Stock (31/3/95) 940
Capital 1,540
Calculate the cost of goods sold.
Answer
(C)
₦2,985
10
In a control account, provision for bad debts is found on the
Answer
(A)
credit side of the sales ledger control account
11
The rule of accounting equation requires that account payable should be placed under
Answer
(D)
liabilities
12
Use the following information below to answer this question
Five hundred naira monthly is allowed on an imprest system. The following transactions took place Period 1: ₦
Cash advanced to petty cashier 500
Petty cashier paid out: Stamp 200
Newspaper 250 Period 2:
Cash to petty cashier 450
Cashier paid for writing materials 350
How much should the petty cashier receive after period 2?
Answer
(B)
₦350
13
Use the following information below to answer this question
Five hundred naira monthly is allowed on an imprest system. The following transactions took place Period 1: ₦
Cash advanced to petty cashier 500
Petty cashier paid out: Stamp 200
Newspaper 250 Period 2:
Cash to petty cashier 450
Cashier paid for writing materials 350
What was the balance of cash with the petty cashier at the end of period 1?
Answer
(C)
₦50
14
Accrual accounting differs from cash accounting because it recognizes
Answer
(D)
debtors and creditors
15
The amount of subscriptions accrued is reported in the balance sheet under
Answer
(B)
current asset
16
One of the major features of book keeping is that it
Answer
(C)
provides permanent records for all financial transactions
17
Use the information below to answer this question
₦
Total current assets 2000
Total fixed assets 4000
Current liabilities 1200
Drawings 200
Long term loan 2000
Calculate the capital of the business.
Answer
(A)
₦3000
18
Use the information below to answer this question
₦
Total current assets 2000
Total fixed assets 4000
Current liabilities 1200
Drawings 200
Long term loan 2000
What is the net working capital?
Answer
(B)
₦800
19
A major cause of discrepancy between the bank statement and the cashbook that overstates the bank statement balance is the
Answer
(D)
direct payment
20
The major feature of a journal is that it has
Answer
(A)
five columns, date, particulars, folio, debit and credit
21
In the head office ledger, the value of goods sent to the branch are
Answer
(B)
debited to the head office current account
22
Use the information below to answer this question
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000.
The yearly depreciation using the straight-line method would be
Answer
(A)
₦5200
23
Use the information below to answer this question
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000.
If the scrap value is presently ₦15,000 what will be the yearly depreciation using straight-line method?
Answer
(C)
₦4,000
24
Fiyinfoluwa Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000 on debiting the vehicle account, the corresponding credit for the purchase will appear in the
Answer
(B)
cash book
25
The term "accounting period" is used to refer to the
Answer
(A)
time span, usually one year covered by the financial statement
26
Appropriation Account
TAYO TOPE
₦ ₦
interest on capital 750 550
Salaries 800 600
Share of profit 3,300 3,300
Determine the net profits of the partnership
Answer
(B)
₦9,300
27
The major distinguishing element between the final accounts of a partnership and a sole trader is the
Answer
(D)
creditors account
28
Advertising expenses incurred on a product in a business organization should be charged to
Answer
(C)
sales department
29
Four broad classifications of overheads are
Answer
(A)
production, selling, distribution and administration
30
Which of the following are advantages of departmental accounts?
Answer
(D)
the department making the highest profit can be easily determined
31
The debenture issued at par above the nominal value is Said to be issued at a
Answer
(B)
premium
32
The standing order is a payment instruction given by a
Answer
(C)
customer to the bank
33
The value of the sales ledger control account is derived from the summation of the
Answer
(B)
total debtors control account
34
The addition of prime cost, indirect cost and opening work- in-progress less the closing work-in-progress will result in cost of
Answer
(A)
goods manufactured
35
The power to appoint the Auditor General of the Federation is vested in the
