The principle use of control accounts is to

• A. localize error within the ledger
• B. prevent fraud
• C. increase sales
• D. record assets and liabilities

Use the information below to answer questions below;

A company advertised and issued N750,000, 12% preference shares of N1 each to be issued at N1.50 per share. Applications for N1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received . Application money for 120,000 shares was refunded to unsuccessful applicants were allotment shares on pro-rata basis.

The second and final call account was debited with?

• A. ordinary share capital account N187,500
• B. 12% preference share capital N375,000
• C. bank account N187,500
• D. 12% preference share capital account N187,500

Which of the following concept stipulates that accounting profit is the difference between revenue and expenses?

• A. Accrual concept
• B. Conservatism concept
• C. Prudence concept
• D. Materiality concept

The most important reason for studying accounting is that

• A. the information provided by accounting is useful in making decision
• B. Accounting plays an important role in the society
• C. the study of Accounting leads to challeging career
• D. Accounting provides gross profit information

Which fund is used to meet unforeseen or urgent expenditure

• A. General reserve fund
• B. Consolidated Reserve Fund
• C. contingencies fund
• D. special fund

Accounts relating to tangible things such as cash, plant are called

• A) personal accounts
• B) Nominal accounts
• C) Real accounts
• D) Asset account

Given:

Capital:..G...........N5 000

..........T...........N8 000

Drawings: G...........N2 000

..........T..........N1 000

Interest on capital..10%

Interest on Drawings..5%

Find the interest on drawings of G?

• A. N50
• B. N100
• C. N200
• D. N250

The following information is provided for amusa company limited , a manufacturer Prime cost N999,000 Manufacturing overhead N132,000 Closing work in progress N75,000 values of finished goods transferred to the trading account N1,116,000 If including in the manufacturing overhead were rents of N5,000 paid in advance, what is the opening work in progress for the period?

• A. N85,000
• B. N80,000
• C. N70,000
• D. N65,000

#

Bank account 59,410

Capital account 50,000

Purchases account 20,000

Rent 2,500

Stationery 90

Typewriter 6,500

Sales 38,500

In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?

• A. #I38,500
• B. #147,910
• C. #85,800
• D. #88,500

The accumulated fund of a non-trading concern can equally be referred to as?

• A. members equity
• B. share capital
• C. general fund
• D. surplus fund