Financial Past Questions And Answers
Rakiya and Joy are in partnership and agreed that 5% interest per annul is to be charged on drawings. The drawing made by both partners in one year were: Rakiya, N200 on March 31 and N300 on September 30. Joy, N100 on April 1 and N240 on July 1. Assuming that Rakiya was not credited with any income during the period, what is her closing current account balance?
- A. N340,000 credit
- B. N349,75 debit
- C. N500.00 credit
- D. N 511.25 debit
A book of account that possesses the features of both day book and ledger is
- A. sales day book
- B. cash book
- C. purchases day book
- D. returns day book
In preparing accounting records, the owners of a business and the business are treated as
- A. separate legal entities
- B. partners
- C. the same person
- D. having business relationship
Use the information below to answer question
Total sales of ticket.......................N300 000
Amount received from the sales..............N260 000
Cash purchase of club house.................N100 000
Credit purchase of equipment ...............N60 000
Electricity bill paid ......................N5 000
Salaries owed ..............................N2 000
What is the receipts and payment account balance?
- A. N260 000
- B. N233 000
- C. N155 000
- D. N100 000
Where a correct amount is entered, but in the wrong person’s account, is an error of
- A) Principle
- B) Omission
- C) Commission
- D) Compensation
Given:
I. Cash refunds
II. Debit note issued
III. Dishnoured cheque
IV. Purchases
The item on the credit side of purchase ledger control account includes
- A. I, II and IV only
- B. I and IV only
- C. I and II only
- D. I, II and III only
The major distinguishing element between the final accounts of a partnership and a sole trader is thet
- A. drawings account
- B. appropriation account
- C. capital account
- D. creditors account
The subscription paid in advance is treated in the balance sheet of a club as?
- A. a surplus
- B. a liability
- C. a deflicit
- D. an asset
Social Club Subscription (Extract)
31/12/2009 Subscription accrued #18,900
Subscription received in advance #16,400
Subscription received during
the year 2009 #38,570
What is the amount of subscription to be shown as liability in the balance sheet as at December 2009
- A. #14,200
- B. #16,400
- C. #18,900
- D. #20,500
When the purchase consideration is lower ttan the net asset, the buyer has gained the advantage of
- A. capital reserve
- B. revenue reserve
- C. net income
- D. net loss