The trial balance at 31st December 2014 showed a difference of ?4,000, being a shortage on the credit side. A suspense account is opened and the difference of ?4,000 is entered on the credit side of the account. On 2nd January 2015, it was found that the sales account was under cast by N 4,000. To correct the error

• A) debit suspense account; credit sales account
• B) debit sales account; credit suspense account
• C) debit undercast account; credit sales account
• D) debit suspense account; credit undercast account

The process of allocating the cost of an intangible assets over its useful life is known as

• A. depreciation
• B. extraction
• C. depletion
• D. amortization

In a control account, discount received is found on the?

• A. debit side of the purchase ledger control account
• B. debit side of the sales ledger control account
• C. credit side of the purchase ledger control account
• D. credit side of the sales ledger control account

Which of the following is the effect of an increase in the provision for discount allowed?

• A) Increase in net profit
• B) Decrease in gross profit
• C) Decrease in net profit
• D) Increase in gross profit

Which of the following is shown in the profit and loss appropriation account of a company

• A. interest charges
• B. depreciation
• C. directors emoluments
• D. dividends

(i) Facilitating the preparation of final accounts (ii) Making the existence of error easy to detect (iii)Checking the accuracy of positions periodically.

From the above, which of the following are among the uses of control accounts?

• A. i, ii and iii
• B. i and iii
• C. ii and iii
• D. i and ii

The manufacturing account is prepared to ascertain

• A. cost of goods sold
• B. cost of production
• C. Gross profit
• D. Finished goods

What was the bank balance at the end of the month?

• A. N7 000
• B. N6 500
• C. N 7 500
• D. N 9 000

Use the information below were to answer questions

...................Stationary Dept.............Video Dept.

Sales ..............N10,600.....................N15,175

Cost of goods sold..N5,247......................N6704

The expenses incurred were rent N4500, motor repairs N1200 and telephone N900.

The basis of cost apportionment is 1/2 stationary 1/3 video.

Find the total expenses allocated to the stationary department?

• A. N3600
• B. N1400
• C. N4400
• D. N3800

A source document that aids the ascertainment of amount paid out of current account is the?

• A. teller
• B. cheque stub
• C. cheque
• D. teller stub