Use the following information to answer the question
The health department of Banjul Local Government incurred the following expenditure in 2020:
Le
Construction of hospital wards
200,000
Purchase of hospital beds
20,000
Purchase of stationeries
15,000
Salaries and wages
60,000
Purchase of drugs
50,000
Purchase of x-ray machine
100,000
The capital expenditure for the year is
Answer
(B)
Le 320,000
2
Use the following information to answer the question
The health department of Banjul Local Government incurred the following expenditure in 2020:
Le
Construction of hospital wards
200,000
Purchase of hospital beds
20,000
Purchase of stationeries
15,000
Salaries and wages
60,000
Purchase of drugs
50,000
Purchase of x-ray machine
100,000
The recurrent expenditure for the year is
Answer
(B)
Le 125,000
3
Memoradum branch account is prepared to determine
Answer
(A)
gross profit
4
Use the following information to answer the question
The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
D
Balance b/f
200,000
Commission received
180,000
Receipts from Ojah
98,000
Electricity bill
40,000
Rent
73,400
Drawings
28,600
Insurance
12,800
The total income for the month is
Answer
(A)
D 278,000
5
Use the following information to answer the question
The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
D
Balance b/f
200,000
Commission received
180,000
Receipts from Ojah
98,000
Electricity bill
40,000
Rent
73,400
Drawings
28,600
Insurance
12,800
The balance brought down at the end of the month is
Answer
(D)
D 323,500
6
Use the following information to answer the question
The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
D
Balance b/f
200,000
Commission received
180,000
Receipts from Ojah
98,000
Electricity bill
40,000
Rent
73,400
Drawings
28,600
Insurance
12,800
The total expenses for the month is
Answer
(D)
D 154,800
7
Reliability as a quality of accounting information means that accounting
Answer
(B)
information is prepared based on evidence
8
Use the following information to answer the question
Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership.
The interest on drawings for Ant is
Answer
(C)
GH⊄ 1,120
9
Use the following information to answer the question
Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership.
The total interest on drawings to be charged to profit and loss appropriation account is
Answer
(B)
GH⊄ 1,920
10
Which of the following items is a tangible asset?
Answer
(B)
Machinery
11
Use the following information to answer the question
Le
Capital (01/01/2020)
1,934,600
Capital (31/12/2020)
2,530,000
Expenses
3 45,900
Drawings for 2020
72,500
Additional capital for 2020
250,000
The gross profit for the year is
Answer
(C)
Le 417,900
12
Use the following information to answer the question
Le
Capital (01/01/2020)
1,934,600
Capital (31/12/2020)
2,530,000
Expenses
346,900
Drawings for 2020
72,500
Additional capital for 2020
250,000
The net profit for 2020 is
Answer
(B)
Le 417,900
13
Use the following information to answer the question
The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
D
Purchases
160,000
Returns outwards
880
Carriage inwards
740
Returns inwards
620
Sales
195,000
Salaries
27,600
Closing stock
14,100
The cost of goods available for sale is
Answer
(D)
D 175,460
14
Use the following information to answer the question
The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
D
Purchases
160,000
Returns outwards
880
Carriage inwards
740
Returns inwards
620
Sales
195,000
Salaries
27,600
Closing stock
14,100
The gross profit
Answer
(C)
D 36,360
15
Use the following information to answer the question
The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
D
Purchases
160,000
Returns outwards
880
Carriage inwards
740
Returns inwards
620
Sales
195,000
Salaries
27,600
Closing stock
14,100
The net profit is
Answer
(C)
D 21, 020
16
The source of funds available to a local government/district assembly includes
Answer
(B)
none of the above
17
A reason a business is not able to keep full set of accounting records is that
Answer
(B)
double entry is expensive to maintain
18
Which of the following items is classified as capital expenditure in public sector accounting?
Answer
(B)
Construction works's cost
19
Use the following information to answer the question
$
Trade creditors (31/12/2020)
4,000
Paid for purchases in 2021: Cheques
110,000
Carriage inwards
1,000
Trade creditors (31/12/2021)
6,000
The total purchase in 2021 is
Answer
(D)
$111,000
20
Use the following information to answer the question
$
Trade creditors (31/12/2020)
4,000
Paid for purchases in 2021: Cheques
110,000
Carriage inwards
1,000
Trade creditors (31/12/2021)
6,000
The balance c/d on trade creditors will be recorded in the balance sheet as
Answer
(B)
short-term liability
21
In the final account of a limited liability company, debenture interest paid is recorded in the
Answer
(B)
profit and loss account
22
Suppliers' personal account are found in the
Answer
(C)
purchases ledger
23
One of the internal users of accounting information is the
Answer
(A)
management
24
The accounting concept which is the basis upon which assets of a business are valued is the
Answer
(D)
historical concept
25
Profit distributed to ordinary shareholders of a limited liability company is
Answer
(A)
dividend
26
The accounts maintained in the nominal ledger are
Answer
(D)
expenses and income
27
Beauty started business with ₦40,000, made a profit of ₦50,000 and ended the year with ₦70,000 capital. What would have accounted for the closing capital?
Answer
(C)
Beauty was paid a salary of ₦90,000
28
A partnership is formed by
Answer
(A)
two or more individuals
29
The purchase day book is used to record
Answer
(D)
credit purchase
30
A business should not lay claim to any profit before it is earned. This is in accordance with the
Answer
(B)
prudence concept
31
The allocation of funds from treasury to accounting heads in public sector is
Answer
(B)
vote
32
The accumulated fund for a not-for-profit making organization is
Answer
(B)
assets - liabilites
33
Use the following information to answer the questions
The transactions of All Girls' Social Club for the year 2021 are as follows:
Bar sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
31st December
2020
2021
D
D
Stock at bar
1400
1600
Owing for bar supplies
6500
7300
The value of purchases for the year is
Answer
(B)
D 17,800
34
Use the following information to answer the questions
The transactions of All Girls' Social Club for the year 2021 are as follows:
Bar sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
31st December
2020
2021
D
D
Stock at bar
1400
1600
Owing for bar supplies
6500
7300
The net profit on the bar to be transferred to the income an expenditure account for the year ended 31st December 2021 is
Answer
(A)
D 11,600
35
The reason for treating carriage inwards in the trading account is because
Answer
(C)
it is an expense on goods purchased
36
The concept which underlines double entry bookkeeping is
Answer
(D)
duality concept
37
Wages of machine operators in manufacturing account are treated as
Answer
(C)
direct labour
38
The error that affects the agreement of a trial balance totals is
Answer
(B)
undercasting
39
Which of the following items is found in the profit and loss account of a company?
Answer
(A)
Proposed dividends
40
Carriage inwards on raw materials is recorded in the
Answer
(D)
manufacturing account
41
If sales is D 12,000 and the gross profit mark -up percentage is 25%. What is the cost of sales?
Answer
(B)
D 9,000
42
Which of the following items are apportioned on the basis of purchases in preparing departmental accounts?
Answer
(C)
Carriage inwards
43
Use the following information to answer the question
Sammy acquired plant an machinery costing ₦120,000 with an estimated useful life of 4 years and residual value of ₦2,000. The sum of the year digits method is used.
The depreciation to be charged for the third year will be
Answer
(B)
₦4,000
44
Use the following information to answer the question
Sammy acquired plant an machinery costing ₦120,000 with an estimated useful life of 4 years and residual value of ₦2,000. The sum of the year digits method is used.
The value of the asset at the end of the first year is
Answer
(B)
₦8,000
45
Discount allowed is shown in financial statements as
