- A debit entry in a fixed asset account represents
A. an increase in the fixed asset account.
B. a decrease in the fixed asset account
C. a profit on disposal of the fixed asset
D. a loss on disposal of the fixed asset- When bank charges are discovered in a bank statement, the adjustment is effected in the
A. bank reconciliation statement
B. cash book
C. suspense account
D. bank loan account - The double entry for interest on drawings by a partner is: debit
A. Partner’s Current Account; credit Appropriation Account
B. Profit and Loss Account: credit Interest Account
C. Appropriation Account credit Partner’s Current Account
D. Interest Account: credit Profit and Loss Account - A credit purchase of N200 from Osae was posted to the account of Osei. This is an error of
A. principle.
B. commission
C. omission
D. original entry
- When bank charges are discovered in a bank statement, the adjustment is effected in the
| Le | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Provision for doubtful debt | 1,000Cr | |||||||||||||
| Bad debts | 500Dr | |||||||||||||
| Debtors | 50,000Dr | |||||||||||||
| Additional bad debts to be written off | 500 |
New provision for doubtful debts to stand at 5% of debtors
5. The net figure for debtors in the balance sheet is
A. Le 47,025
B. Le 46,550
C. Le 45,600
D. Le 45,500
6. The provision for doubtful debts to be charged to the Profit and Loss Account is
A. Le 2,500
B. Le 2,475
C. Le 2,450
D. Le 1,000
7. An office equipment bought for use was found to be defective and returned to the supplier. The subsidiary book to record this transaction is
A. returns outwards journal
B. returns inwards Journal
C. purchase journal
D. general journal
8. In a situation of incomplete records, profit is determined as
A. closing capital drawings opening capital
B. closing capital- drawings-opening capital
C. closing capital drawings – opening capital
D. closing capital drawings + opening capital
9. The document which serves as the authority to incur expenditure in the public sector is
A. warrant
B. vote
C. budget
D. voucher
10. A debit balance of N420 on the purchases ledger control account means that the
A. trade creditors were overpaid by N420
B. trade creditors are owed N420
C. goods returned to trade creditors amounted to N420
D. total supplies from trade creditors amounted to N420
11. A total of D 9,160 was entered in the sales account as D9,610. To correct this error: debit A.
A. Sales Account D450: credit Sales Day Book D450
B. Sales Day Book D 450: credit Sales Account D 450
C. Sales Account D450; credit Suspense Account D 450
D. Suspense Account D 450; credit Sales Account D450
Use the following information to answer questions 12 to 14
Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capital contributions:
| Capital | Drawings | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ₦ | ₦ | |||||||||||||
| Ata | 40,000 | 8,000 | ||||||||||||
| Bubu | 30,000 | 5,000 | ||||||||||||
| Chikum | 20,000 | – |
Net profit for the year was 40,500 and the interest on capital was 5% per annum.
12. The profit available for sharing by the partners is <br><br>
A. N90,000 <br>
B. N40,500 <br>
C. N36,000 <br>
D. N27,500<br><br>
13. The balance in Chikum's Current Account is <br><br>
A. N14,000 <br>
B. N9,000 <br>
C. N8,000 <br>
D. N4,000<br><br>
14. Bubu's share of profit is <br><br>
A. N16,000 <br>
B. N12,000 <br>
C. N8,000 <br>
D. N4,000<br><br>
15. Recognition of profit when goods are sold and the buyer takes ownership of them is in line with <br><br>
A. realization concept <br>
B. matching concept <br>
C. business entity concept <br>
D. going concern concept<br><br>
16. The purpose of preparing a trading account is to ascertain <br><br>
A. average stock <br>
B. gross profit <br>
C. cost of goods sold <br>
D. cost of goods available for sale<br><br>
17. A trader adds 25% on cost as profit. The profit on sales of $300,000 would be <br><br>
A. $75,000 <br>
B. $60,000 <br>
C. $50,000 <br>
D. $20,000<br><br>
18. The accounting concept which distinguishes an enterprise from its owners is <br><br>
A. money measurement <br>
B. dual aspect concept <br>
C. going concern concept <br>
D. business entity concept<br><br>
19. Eze introduces his private car into his business. The aspect of the accounting equation of the business that would be affected are <br><br>
A. Assets and Capital <br>
B. Capital and Profit <br>
C. Liabilities and Assets <br>
D. Capital and Liabilities <br><br>
20. Debtors and credit sales for a period are D 120,00 and D 600,00 respectively. The debtor's payment period would be <br><br>
A. 1825 days <br>
B. 365 days <br>
C. 73 days <br>
D. 5 days<br><br>
Use the following information to answer questions 21 to 23<br><br>
Receipts and payments accounts of Abaluare Youth Club for the year ended 31st December 2018<br><br>
<table>₦ ₦
Balance bf 650,000 Wages and salaries 2,400,000 Subscriptions 9,660,000 Rent and rate 600,000 Annual dance ticket 1,500,000 Anniversary dance expenses 955,000 Donations 800,000 Travelling expenses 140,000 Kitchen equipment 4,000,000 balance c/d 4,515,000 12,610,000 12,610,000
Subscriptions for 2017 and 2019 received during the year were N180,000 and N150,000 respectively
21. Subscriptions credited to income and expenditure account for 2018 was <br><br>
A. N9,990,000 <br>
B. N9,690,000<br>
C. N9,630,000 <br>
D. 9,330,000<br><br>
22. Total expenses debited to income and expenditure account for 2018 was <br><br>
A. N12,610,000 <br>
B. N8,095,000 <br>
C. N4,515,000 <br>
D. N4,095,000<br><br>
23. The surplus for the year 2018 was<br><br>
A. N7,865,000 <br>
B. N7,535,000 <br>
C. N5,845,000 <br>
D. N5,235,000 <br><br>
24. A non-cash expense chargeable against profit and loss account is <br><br>
A. insurance payable <br>
B. debenture interest. <br>
C. provision for doubtful debts <br>
D. rent and rates<br><br>
25. The cost incurred on goods purchased for production which can be traced to a particular unit is classified as <br><br>
A. direct labour <br>
B. direct expenses <br>
C. direct materials <br>
D. factory overhead<br><br>
Use the following information to answer the questions below:<br><br>
A manufacturing company's cost of production was D 200,000. The finished goods were transferred to the warehouse at D 220,000. At the end of the year, 9% of these goods were still in stock.<br><br>
26. The value of the closing stock of finished goods in the trading account is? <br><br>
A. D37,800 <br>
B. D 20,000 <br>
C. D19,800 <br>
D. D 18,000.<br><br>
27. The value of the closing stock of finished goods that would be shown in the balance sheet is <br><br>
A. D37,800 <br>
B. D 20,000 <br>
C. D 19,800 <br>
D. D 18,000<br><br>
28. Items shown in the manufacturing account include<br><br>
i. Purchases of raw materials
ii. Purchases of finished goods
iii. Carriage inwards
iv. Carriage outwards
A. I and II only <br>
B. I and IIl only <br>
C. I, ll and Il only <br>
D. I, III and IV only<br><br>
Use the following information to answer questions 29 to 31<br><br>
Kwamenah bought goods worth Le 50,000 from Doe and Sons Limited on the following terms: 3% trade discount: 10% cash discount. Kwamenah returned defective goods worth Le 8,000 the next day and made payment for the
remaining goods on the due date<br><br>
29. The cash paid by Kwamenah was <br><br>
A. Le 43,650 <br>
B. Le 43,500 <br>
C. Le 37,800 <br>
D. Le 36,660<br><br>
30. Kwamenah would record the 10% discount in the <br><br>
A. sales journal <br>
B. cash book <br>
C. purchases journal <br>
D. journal proper<br><br>
31. Doe and Sons Limited would enter the 3% discount in the <br><br>
A. sales journal <br>
B. cash book <br>
C. purchases journal <br>
D. journal proper<br><br>
32. A partner who contributes capital but does not participate in the day-to-day running of the business is <br><br>
A. an active partner <br>
B. a limited partner <br>
C. a nominal partner <br>
D. a sleeping partner<br><br>
33. An example of a real account is <br><br>
A. Computer Repairs Account <br>
B. Computer Insurance Account <br>
C. Office Computer Account <br>
D. Depreciation of Computer Account<br><br>
34. The concept that guides a firm to adopt a regular method of recording transactions in its books over a period is <br><br>
A. periodicity concept <br>
B. consistency concept <br>
C. going concern concept <br>
D. historical cost concept<br><br>
35. A business extracted its trial balance and discovered that the total of the credit side exceeded the total of the debit side. Pending further investigation, the difference would be <br><br>
A. credited to suspense account <br>
B. debited to suspense account <br>
C. credited to Profit and Loss Account <br>
D. debited to Profit and Loss Account<br><br>
Use the following information to answer questions 36 to 38<br><br>
<table>GHȼ GHȼ
Balance bf 127,000 Salaries 142,000 Amount received from debtor 409,000 Electricity 238,000 Stationery 126,000 Balance c/d 30,000 536,000 536,000 Other balances were as follows: 01/10/2017 31/12/2017 GHȼ GHȼ Salaries owing 40,000 55,000 Electricity prepaid 58,000 60,000 Stationary outstanding 49,000 36,000
36. The salaries that would be charged to profit and loss account for the year 2017 is <br><br>
A. GH¢197,000 <br>
B. GH¢157,000 <br>
C. GH¢142,000 <br>
D. GH¢127,000 <br><br>
37. The electricity that would be charged to profit and loss account for the year is <br><br>
A. GH¢296,000 <br>
B. GH¢240,000 <br>
C. GH¢238,000 <br>
D. GH¢236,000<br><br>
38. The stationery that would be shown in the balance sheet as at 31st December 2017 is <br><br>
A. GH¢139,000 <br>
B. GH¢113,000 <br>
C. GH¢36,000 <br>
D. GH¢13,000<br><br>
39. The accounting equation of a business shows the <br><br>
A. current assets and current liabilities only <br>
B. difference between current assets and liabilities <br>
C. assets and the sources of financing them <br>
D. owner's interest in the business only<br><br>
40. The internal users of accounting information are the <br><br>
A. creditors <br>
B. employees <br>
C. investors <br>
D. customers<br><br>
41. A computer set bought for150,000 was disposed of for N45,000 after some years of use. The profit on disposal was 7,500. Accumulated depreciation at the time of disposal was <br><br>
A. 112,500 <br>
B. N105,000 <br>
C. N97,50o <br>
D. N37,500<br><br>
42. Accumulated fund of a club is equivalent to it’s <br><br>
A. net worth <br>
B. gross worth <br>
C. total assets <br>
D. total liabilities<br><br>
Use the following information to answer questions 43 to 45<br><br>
<table>
<thead>
<tr>
<th></th>
<th></th>
<th></th>
<th></th>
<th></th>
<th></th>
<th></th>
<th></th>
<th></th>
<th>GHȼ</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stock 01/01/2018:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>-Sportwear</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>11,400</td>
</tr>
<tr>
<td></td>
<td>-Cosmestics</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>28,500</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Purchases:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>-Sportwear</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>80,000</td>
</tr>
<tr>
<td></td>
<td>-Cosmestics</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>120,000</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Sales:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>-Sportwear</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>150,000</td>
</tr>
<tr>
<td></td>
<td>-Cosmestics</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>250,000</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Wages paid:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>-Sportwear</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>7,600</td>
</tr>
<tr>
<td></td>
<td>-Cosmestics</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>6,500</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Stock:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>-Sportwear</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>15,200</td>
</tr>
<tr>
<td></td>
<td>-Cosmestics</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>27,600</td>
</tr>
</tbody>
</table><br><br>
43. The cost of sales for sportswear department was <br><br>
A. GH¢127,400 <br>
B. GH¢120,900 <br>
C. GH¢83,800 <br>
D. GH¢76,200<br><br>
44. The cost of sales for cosmetics department was <br><br>
A. GH¢127,400 <br>
B. GH¢120,900 <br>
C. GH¢83,800 <br>
D. GH¢76,200<br><br>
45. The gross profit for sportswear department was <br><br>
A. GH¢76,200<br>
B. GH¢73,800 <br>
C. GH¢66,200 <br>
D. GH¢58,600<br><br>
46. Income received in advance is treated in the balance sheet as a <br><br>
A. current liability <br>
B. current asset <br>
C. long-term liability <br>
D. fixed asset <br><br>
Discount allowed N2,000;
Bad debts 1,000
Cheque received from customers 24,000
Returns inwards 500;
Sales ledger balance at the beginning 2.000
47.The amount of sales is <br><br>
A. N29,500 <br>
B. N26,000 <br>
C. N25,500 <br>
D. 24,000<br><br>
48. The document which contains the internal regulations of a limited liability company is the <br><br>
A. Certificate of Incorporation <br>
B. Prospectus <br>
C. Article of Association <br>
D. Memorandum of Association<br><br>
49. The excess of net assets acquired over purchase consideration is <br><br>
A. capital reserve <br>
B. goodwill <br>
C. purchase price <br>
D. discount<br><br>
50. A method of charging depreciation at a fixed percentage of the net book value is <br><br>
A. straight line method <br>
B. reducing balance method <br>
C. sum of the years' digits method <br>
D. revaluation method<br><br>