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The difference between a trading account and a manufacturing account is that while the manufacturing account
Ahas no particular period, the trading account has
Bdoes not consider the cost of goods involved, the trading account does
Cis concerned with the cost of production, the trading account is not
Dis not concerned with the stock of raw materials the rading account is
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Question 1432
jamb1997
Given: N
Direct material - 10 000
Direct labour - 5000
Direct expenses - 2000
Factory overhead - 4000
What is the prime cost?
AN21 000
BN 17 000
CN 15 000
DN 6 000
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Question 1433
jamb1997
In analyzing incomplete records, which of the following should be investigated?
Athe general ledger
Bthe purchases day book and sales day book
Cthe nature of trading activities and the basis on which goods are sold
Dthe asset register together with the depreciation schedule
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Question 1434
jamb1997
What is the balance of the bank account shown above?
AN88 500 debit
BN 88 500 credit
CN 59 410 credit
DN 59 410 debit
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Question 1435
jamb1997
Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?
AN125 000
BN500 000
CN50 000
DN25 000
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Question 1436
jamb1997
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.
Ai and iv only
Bi and iii only
Cii and iii only
Diii and iv only
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Question 1437
jamb1997
Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?
AFaruk, (N450); Osawe, (N1 050)
BFaruk, (N3 150); Osawe, (N7350)
CFaruk, (2 250); Osawe, (N7 350)
DFaruk, (N450); Osawe, (N1 050)
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Question 1438
jamb1997
Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.
Calculate the profit for Adamu?
AN583
BN1 000
CN1 167
DN1 750
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Question 1439
jamb1997
Emeka Manufacturing Company (Extract) Manufacturing Account.
Direct material.....................N5 000
Direct labour.......................N4 500
Direct expenses.....................N3 000
Factory overhead....................N2 500
Selling distribution................N1 500
Calculating the production cost?
AN16 500
BN15 000
CN14 000
DN12 500
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Question 1440
jamb1997
The understatement of closing value of work-in-process would have the effect of?
Aunderstating cost of goods manufactured
Boverstating prime cost of manufactured
Coverstating cost of goods manufactured
Dundersating prime cost of goods manufactured
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Question 1441
jamb1997
Which of the following stock valuation methods is suitable under inflationary conditions?
AFIFO
BLIFO
CSimple average
DWeighted average
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Question 1442
jamb1997
Given:
Capital at the beginning...............N20 000
Drawings...............................N3 000
Capital................................N30 000
New capital introduced.................N8 000
What is the profit for the period?
AN4 000
BN5 000
CN6 000
DN8 000
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Question 1443
jamb1997
The total of the creditors at the beginning of the year was N4,600 and at the end of the year N5,250. During the year, N26,500 was paid to suppliers and N130 was received in discounts from these suppliers. The purchases for the year would be
AN26,630
BN27,038
CN27,150
DN27,280
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Question 1444
jamb1997
which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?
Adecrease in the closing balance of sales ledger control accout
Bincrease in net profit
Cincrease in the value of sales
Ddecrease in the value of purchases in the trading account
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Question 1445
jamb1997
In the absence of a sales day book or sales account the credit for sales can be computed from
Acreditors control account
Bdebtors control account
Copening figures of the balance sheet
Dclosing figures of the balance sheet
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Question 1446
jamb1997
The principle use of control accounts is to
Alocalize error within the ledger
Bprevent fraud
Cincrease sales
Drecord assets and liabilities
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Question 1447
jamb1997
The process of allocating the cost of an intangible assets over its useful life is known as
Adepreciation
Bextraction
Cdepletion
Damortization
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Question 1448
jamb1997
The records of wages due but not yet paid is an example of an adjustment for
Aapportionment of revenue between two periods
Brecognizing accrued expenses
Crecognizing unaccounted revenue
Drecognizing prepaid expenses
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Question 1449
jamb1997
Given: capital N13,000; office machinery, N9,000; creditors N900, stock of goods N1,550; debtors, N275; cash at bank, N5,075 and loan from Jumbo, N2,000. What is the balance sheet total?
AN19,500
BN18,500
CN17,900
DN15,900
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Question 1450
jamb1997
Given:
Net profit-----------------------N25,000
Cost of sale---------------------N25,000
Sales----------------------------N85,000
Determine the total expenses.
