The basis of accounting which eliminates debtors and creditors is ______.

• A) cash basis
• B) accrual basis
• C) fund basis
• D) commitment basis

Use the information to answer this question.

..............ZEBRA PLC..............

.............Balance sheet as at 31st March, 2002

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

Capital......100,000...Fixed assets:

Current................Land &..................

Liabilities...........buildings..50,000......

Creditors........30000..Furniture..10,000....60,000

.......................Current..................

.......................Assets: .......

..................Stock .........30,000...........

..................Debtors.......30,000.............

..................Cash..........10,000......70,000..

.............130,000.........................130,000

The business was acquired on 1st April, 2002 at a purchase consideration of N120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional N20,000 was paid into the bank.

Calculate the network of the business

• A. N120,000
• B. N90,000
• C. N80,000
• D. N30,000

Use the following to answer the question below Oleku (Nig.) Limited issued 100,000 ordinary shares of ?1 each at a market value of ?2.50 each. The share premium is

• A) ?250,000
• B) ?20,000
• C) ?100,000
• D) ?150,000

_______ checks the arithmetical accuracy of double entry accounts Options

• A) Trading account
• B) profit and loss account
• C) balance sheet
• D) trial balance

Sule and Ahmed are in partnership sharing profit and losses equally. If Khadija is admitted as a new partner to take 1/5 th as her share. What is the new profit or loss sharing?

• A. Sule1/3, Ahmed1/3, Khadija 1/3
• B. Sule1/3, Ahmed1/3, Khadija 1/3
• C. Sule1/5, Ahmed1/5, Khadija3/5
• D. Sule2/5, Ahmed1/5, Khadija2/5

If cost price is 9000 and selling price is 12000, then i. Markup is 25% ii. Margin is 33?% iii. Margin is 25% iv. Mark up is 33?%

• A) i and ii only
• B) ii and iii only
• C) iii and iv only
• D) ii and iv only

The principle of double entry system ensures?

• A. mathematical accuracy in trial balance
• B. balances at the bank
• C. increase in the assets and liabilities
• D. balance of cash account

Partners' share of profit is credited to?

• A. a partner's current account
• B. a partner's capital account
• C. the profit and loss account
• D. the profit and loss appropriation account

Use the information below to answer this question

Segun Ojo, didn’t keep her books on double principle. On 1st Jan, 2014, cash in hand was 850, bank overdraft 3500, debtor 15,500,stock 18,000, fittings 9,000 and creditors 12,700. As at Dec, 2014, cash in hand was 1200, cash at bank 2,500, debtors 10,000, stock 20,500, furnishing 4,000 and creditors 17,000

Compute the capital as at 1st Jan, 2014.

• A. 27,150
• B. 43,350
• C. 16,200
• D. 34,350

If the opening stock is 5% of sales. calculate the purchases

• A. N95,600
• B. N95,000
• C. N90,600
• D. N85,000