Use the information below to answer question .

Capital ...................N2000

Bank ......................N1200

Purchase ..................N2500

Sales .....................N6700

Stock .....................N1300

Creditors .................N1000

Fixed assets...............N3700

Drawings ..................N?

Drawings are always estimated at 50% of capital.

Compute the amount withdrawn

• A. N2000
• B. N1500
• C. N1250
• D. N1000

Sai Baba made sales of N10,000 having computed his gross profit % to sales to be 20. His opening stock was N250 and ending stock is N200. Calculate his purchases.

• A. N7950
• B. N8050
• C. N7050
• D. N8950

A petty cash fund is:

• A) Used to pay relatively small amount
• B) reimbursed when the amount of money in the fund is reduced to a predetermined minimum amount
• C) Established by estimating the amount of cash needed for disbursement of relatively small amount during a specified period
• D) All of the above

Which of the following is not part of the main uses of the journal Options

• A) purchase and sale of fixed assets on credit
• B) the correction of errors
• C) writing off bad debts
• D) none of the above

In a departmental account, where no basis of apportionment exist, apportionment is

• A. on profit basis
• B. according to employee decision
• C. according to material available
• D. on equal basis

Which of the following is mostly used in treating partners' current earnings?

• A. Savings account
• B. Current account
• C. Capital account
• D. Share capital account

Use the following to answer the question below: On partnership dissolution, if a partner’s capital account has a debit balance and the partner is insolvent, the deficiency will, in accordance with the decision of the case of the Garner V Murray, be

• A) Borne by all the partners
• B) Borne by the insolvent partner
• C) Written off
• D) Borne by the solvent

Use the information below to answer question

Jide and Haruna contribute N12000 each as capital and share profit equally. Jide draws N1500 and Haruna N1700 half-yearly. The profit for the year is N10000. Jide receives a salary of N2000.

Calculate the profit available for appreciation?

• A. N12 000
• B. N10 000
• C. N8 000
• D. N7 000

The sum of money given to a petty cashier out of which small payments are made is called ______.

• A) bonus
• B) loan
• C) advance
• D) float

The part of equity which is payable on winding up is called?

• A. general reserve
• B. revenue reserve
• C. capital reserve
• D. normal reserve