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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 12
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 13
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 14
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 15
jamb1997
Which of the following stock valuation methods is suitable under inflationary conditions?
AFIFO
BLIFO
CSimple average
DWeighted average
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Question 16
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 17
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 18
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 19
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 20
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 21
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 22
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 23
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 24
jamb1997
Given:
Net profit-----------------------N25,000
Cost of sale---------------------N25,000
Sales----------------------------N85,000
Determine the total expenses.
AN45,000
BN35,000
CN25,000
DN15,000
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Question 25
jamb1997
At the end of a financial period, the trading profit and loss account of a company showed a profit of N120,000. It was however discovered that revenue of N12,000 was recorded as expenses while expenses of N4,000 had been recorded as revenue. What should be the correct profit for the period?
AN104,000
BN128,000
CN136,000
DN144,000
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Question 26
jamb1997
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
AN576
BN588
CN600
DN624
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Question 27
jamb1997
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?
Adebit rent account and credited adjustment account
Bdebit prepayment account and credit rent account
Cdebit rent account and credit prepayment account
Ddebit adjustment account and credit prepayment account
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Question 28
jamb1997
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
At 31/12/93, what portion of that amount was prepaid?
AN14,583
BN25,000
CN35,417
DN37,415
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Question 29
jamb1997
An examination of the cash book on 3rd August 1993 showed a different balance from the bank statement of 31st July, 1993 which read N722. Uncredited cheques were Bimpe N40; Wale N60 while unpresented cheques were; Usman N20, Kalu N32 and Musa N70. What is the cash book balance after the reconciliation?
AN700
BN770
CN800
DN822
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Question 30
jamb1997
When the sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as
