Social Club Subscription (Extract)

31/12/2009 Subscription accrued #18,900

Subscription received in advance #16,400

Subscription received during

the year 2009 #38,570

What is the amount of subscription to be shown as liability in the balance sheet as at December 2009

• A. #14,200
• B. #16,400
• C. #18,900
• D. #20,500

Where partnership is converted into a limited liability company, current account balances of partners are transferred to a

• A. realization account
• B. savings account
• C. share capital account
• D. capital account

In a departmental account, where no basis of apportionment exist, apportionment is

• A. on profit basis
• B. according to employee decision
• C. according to material available
• D. on equal basis

Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch

Determine the profit on the goods sent to the branch at profit margin of 25% mark-up

• A. #150,000
• B. #160,000
• C. #170,000
• D. #180,000

Aduke Motors bought three Toyota Hilux vans on cash at the cost of #6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the

• A. sales day book
• B. purchases day book
• C. sales subsidiary book
• D. cash book

Given:

Sales #180,000

Stock 1/1 # 25,000

Purchases #110,000

Sales returns # 1000

Purchases returns # 1,500

Gross profit # 58,000

Determine the value of stock as at 31st December

• A. #8000
• B. #9,500
• C. #12,500
• D. #15,500

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

If goods are sent to to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of #100,000?

• A. #130,000
• B. #125,000
• C. #80,000
• D. #75,000

The control account is used in facilitating

• A. the location of errors in the various accounts
• B. up to date bank transactions
• C. the payment of debts and liabilities of the firm
• D. assets distribution with respect to income

Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each.

The book value of issued share capital is

• A. #675,000
• B. #975,000
• C. #1,350,000
• D. #1,950,000