Which of the following is an item in the debit side of the sales ledger control account?

• A. Interest charged by suppliers
• B. Bills receivable honored
• C. Transfer of credit balances from credit control account
• D. Transfer of debit balance from creditors control account

July 1 - Started business with #10,500 July 31- Paid Agromachinex #6,000 owing them The double entry for July 1 would be

• A. debit capital and credit cash
• B. credit cash and debit bank
• C. debit cash and credit capital
• D. debit purchases and credit cash

Which of the following is not a form of business asset?

• A) Deposit account in bank
• B) Interest due on loan
• C) Five acres of land
• D) Library books owned by a lawyer

Where a non-profit organization prepares the accounts using accruals basis of reporting, the statement showing how well the organization is doing is the

• A) appropriation account
• B) balance sheet
• C) income and expenditure account
• D) receipt and payment account

In a balance sheet, bank overdraft is

• A) Current Asset
• B) Fixed asset
• C) Long term liability
• D) Current Liability

Departments K Y

Opening 2,500 800

Purchases 120,000 100,000

Sales 180,000 200,000

Salary 8,000 30,000

Closing stock 3,000 1,500

Rate expenses of 1,500 are apportioned in the ratio 1:2

The gross profit for K is

• A. # 60,700
• B. #23,500
• C. #60,500
• D. #82,500

Musa, a prepaid customer of XYZ and KLM, bought N1500 recharge card from XYZ, and N2000 recharge recharge card from KLM, for business calls. The entry to record these transaction is debit?

• A. telephone N3,500 credit XYZ and KLM, N3,500
• B. telephone N3,500, credit cash N3,500
• C. sundries N3,500, credit KLM N3,500
• D. sundries N3,500, credit telephone N3,500

Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of N19000 from the business tray and banked it.

The transaction would be recorded in the cash book as debit?

• A. cash and credit bank
• B. bank and credit cash
• C. cash and credit cash
• D. bank and credit bank

July 1 - Started business with #10,500 July 31- Paid Agro machine x #6,000 owing them The double entry for July 31 would be

• A. debit Agromachinex and credit cash
• B. debit equipment and credit Agromachinex
• C. credit capital and debit cash
• D. credit cash and debit purchases

A debit may signify:

• A) an increase in the owner
• B) an increase in a liability account
• C) a decrease in an asset account
• D) an increase in an asset account