It is the tradition of the club to write off an amount equal to 25% of the subscriptions received as other expenses.

What is the amount to be written off as other expenses?

• A. N4500
• B. N6000
• C. N4000
• D. N5000

What is the net profit made by department S?

• A. N3,600
• B. N,3000
• C. N2,400
• D. N2,000

Miscellaneous expense is 10% of revenue Calculate the net income.

• A. N583,000
• B. N563,000
• C. N483,000
• D. N581,000

Given:

Ordinary share dividend ₦100,000, General reserve ₦4,100, Net profit b/d ₦27,370, corporation tax ₦2,500, Profit and loss ₦28,200, Interim ordinary dividend ₦4,050, Goodwill 20,50 provide for preference Dividend ₦2100 and Final ordinary Dividend of 5% and also write off Goodwill at ₦1500.

The retained profit in the Appropriation account is

• A. ₦55,570
• B. ₦36,320
• C. ₦50,000
• D. ₦30,000

Use the information below to answer questions

........................1/7/2005............30/6/2006

Drawings.....................................N3 000

Capital.................25 000...............N42 500

Furniture...............6 500...............N10 200

Additional capital during the year amounts to 300% of the drawings.

What is the amount of the additional capital?

• A. N900
• B. N900 000
• C. N90 000
• D. N9 000

The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is

• A. matching
• B. consistency
• C. realization
• D. going concern

The concept which underlines double entry bookkeeping is

• A. money measurement concept
• B. historical cost concept
• C. accrual concept
• D. duality concept

a. The following is the trial balance of Abete Trading Company as at 31st December 2020:

Additional information

(i) Stock in hand on 31st December 2020 was Le 4,000

(ii) Investigation revealed the following errors which necessitated the opening of suspense account:

- Drawings of Le 1,000 was posted to salaries and wages account

- Furniture bought at Le 1,560 was wrongly debited to fixed asset as Le 300

- Purchases day book was undercast by Le 2,000

- Discount allowed of Le 200 to a customer had not been posted to the customer's account

(iii) Depreciation of fixed assets is 10% per annum.

You are required to:

Correct the errors through journal entries (no narration is required).

b. The following is the trial balance of Abete Trading Company as at 31st December 2020:

A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of

• A. classifying accounts in the ledger
• B. testing arithmetical accuracies of the ledger account balances
• C. identifying the balance sheet items
• D. providing a basis for establishing the accountant's competence

Goods worth N300 was transferred from department Q to P Similarly, P's total expenses for the period was N200

Department P's net profit was

• A. N5 200
• B. N3000
• C. N2800
• D. N2 500