Balance sheet (Extract)

Creditors #7,940

Prepaid expenses # 290

Accrual expenses # 323

Stock #4,500

Cash balance #4,956

Debtors # 905

The value of the current assets will be

• A. #10,361
• B. #10,651
• C. #17,396
• D. #17,848

A system where a separate cash book is maintained for small payments is _______.

• A) single entry
• B) imprest
• C) float
• D) reimbursement

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

• A. sales day book
• B. cash book
• C. sales subsidiary book
• D. purchase day book

Which of the following items does not feature in the balance sheet of a club?

• A. Arrears of current year's subscription
• B. Salary arrears paid in the current year
• C. Rental income received in advance
• D. Advances subscription in respect of a coming year

Under which of the following conditions is a partnership dissolved?

• A. change of the partnership's head office
• B. purchase of a large quantity of fixed assets
• C. admission of a new partner
• D. retirement of a manager who is not a partner

The accounts maintained in the nominal ledger are

• A. liabilities and capital
• B. assets and liabilities
• C. income and capital
• D. expenses and income

Use the information to answer the question.

...................................................30/9/06.......30/9/07.....

.......................................................N.............N.........

Accrued insurance premium........600...........710.......

Prepaid rent income....................490............630......

The cash book includes N1,850 and N,2,100 with respect to insurance premium and rent income respectively.

What amount is to be credited to the profit and loss account in respect of rent income?

• A. N1,710
• B. N1760
• C. N2000
• D. N2240

Ngozi and Musa with a capital of #30,000 each decide to admit Mary into the partnership business with a capital of #20,000 and goodwill #15,000.If the profits and losses are to be shared equally, the journal entries to record goodwill are

• A. debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
• B. credit goodwill #15,000, cash #20,000 and debit Mary's #35,000
• C. debit goodwill #15,000, credit cash #20,000 and credit Mary's capital #20,000
• D. debit old partners capital #15,000, credit cash #20,000 and Mary's capital #35,000

Cost reports for the intention of management should reflect?

• A. as much details as possible
• B. summary figures only
• C. details of non-controllable expenses
• D. cost and comparable data useful in decision-making

Which of these errors would be disclosed by the trial balance

• A) Selling expenses had been debited to sales account
• B) A cheque for ?321 from J.T Adam entered in Adam
• C) Credit sales of ?4015 entered in both double entry account as ?401
• D) A purchase of HI0,000 was completely omitted from the books