The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as

• A) credit note
• B) Debit note
• C) invoice
• D) voucher

Provision for discount allowed can be recorded as debit to?

• A. the profit and loss account and a credit to provision for discount allowed
• B. provision for discount allowed and a credit to the profit and loss account
• C. discount allowed and a credit to the profit and loss account
• D. expenses and a credit to customers' account

Use the information below to answer question

Stock (1/1/02) at selling price..........N2000

Goods sent to branch (selling price).....N?

Sales by branch (selling price)..........N4500

Stock (31/12/02).........................N?

Opening stock is 1/4 of goods sent to branch.

The value of goods sent to branch is?

• A. N4 000
• B. N6 000
• C. N8 000
• D. N2 000

Use the information to answer question .

A piece of equipment costing N120,000 was purchased on 1/1/1996. Depreciation was provided at 20% per annum on a straight-line basis. it was sold on 30/6/1999 for N31,500.

The net book value of the piece of equipment at the time of sale was?

• A. N96 000
• B. N48 000
• C. N36 000
• D. N24 000

On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.

the rate of the yearly depreciation expense would be?

• A. 50%
• B. 40%
• C. 30%
• D. 20%

Didi Ltd offered 10,000 ordinary shares of N1.50 each at a discount of 2% which were fully subscribed. With regard to the offer above?

• A. shares are never offered at a discount; the offer is invalid
• B. the value of shares in the capital account will be lowered by 2%
• C. the company incurs a loss to the tune of 2% of the offer
• D. each of the subscribers loses 2% of investment

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

• A. Goodwill account and credit partners capital account
• B. Cash account and credit goodwill account
• C. Goodwill account and credit cash account
• D. Partners capital account and credit goodwill account

Why should a new partner contribute towards goodwill on his admission?

• A. It is a norm
• B. to ensure new partner also have a stake in the business
• C. the firm into which he is entering already has some goodwill in the market
• D. to purchase the business

Which of the following entries classes the owner’s drawing account ant the end of the period?

• A) A) Debit the drawing account, credit the owner's capital account
• B) Debit the income summary account credit the drawing account
• C) Debit the drawing account credit income summary accounting
• D) Debit the owner

Income and Expenditure account is the same as the --------- of a sole trader

• A. balance sheet
• B. trading account
• C. profit and loss account
• D. cash book