Share premium can be used to?

i. write off discount on shares

ii. give loans to directors

iii.pay dividends

iv. pay company's formation expenses.

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

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

• A. N125 000
• B. N500 000
• C. N50 000
• D. N25 000

On partnership dissolution, if a partner's capital account has a debit balance and the partnr is insolvent, the deficiency will, in accordance with the decision of the case of Garner v Murray, be

• A. borne by all the partners
• B. borne by the insolvent partner
• C. written off
• D. borne by the solvent partners

The term 'posting' in Accounting refers to

• A. recording entries in the journal
• B. transferring the balance in the ledger to the trial balance
• C. tracing amounts from the journal to the ledger to find errors
• D. transferring entries to the ledger from the journal

In analyzing incomplete records, which of the following should be investigated?

• A. the general ledger
• B. the purchases day book and sales day book
• C. the nature of trading activities and the basis on which goods are sold
• D. the asset register together with the depreciation schedule

The instrument that are generated when firms enter into business transactions with others are called

• A. purchase document
• B. journals
• C. source documents
• D. invoices

The difference between a trading account and a manufacturing account is that while the manufacturing account

• A. has no particular period, the trading account has
• B. does not consider the cost of goods involved, the trading account does
• C. is concerned with the cost of production, the trading account is not
• D. is not concerned with the stock of raw materials the rading account is

Which of the following stock valuation methods is suitable under inflationary conditions?

• A. FIFO
• B. LIFO
• C. Simple average
• D. Weighted average

The receipt of cash from a customer who bought goods with N800 list price, 25% trade discount and 2/10, n/30 terms would, if paid within the discount period, amount to

• A. N576
• B. N588
• C. N600
• D. N624

Given: N Direct material - 10 000 Direct labour - 5000 Direct expenses - 2000 Factory overhead - 4000 What is the prime cost?

• A. N21 000
• B. N 17 000
• C. N 15 000
• D. N 6 000