Study and practice Accounting past questions with answers and detailed explanations. Then test your knowledge using our interactive CBT practice platform and prepare confidently for your upcoming examinations.
If a sole proprietorship is purchased for cash, then?
Athe purchaser debits his business purchase account with the consideration he pays
Ball assets and liabilities must be bought
Cgoodwill results where value of assets
Dthe vendor debits his business purchase account with the considerstion he receives
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Question 12
jamb1999
Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
Athey will simply continue since there are no new members
Bthe partnership is formally ended and new company books opened
Cthe shares and all other items will be shared equally and not in their former ratios
Dcomputation of goodwill must be done as it is legally required
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Question 13
jamb1999
When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?
Agoodwill account balance
Bcurrent account credit balance
Ccurrent account debit balance
Dprofit and loss credit balance
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Question 14
jamb1999
As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
AN7,500
BN9,000
CN12,500
DN20,000
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Question 15
jamb1999
Goodwill can be valued in partnership when?
Aa partners make profits
Blarge losses are made
Ca partner retires
Da new branch is opened
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Question 16
jamb1999
A credit balance on a receipt and payments account indicates that the non-profit making organization?
Ahad more revenues than expenses during the period
Bdid not owe much liabilities during the period
Creceived more cash than it paid out during the period
Dmade more cash payments than it received during the period
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Question 17
jamb1999
Given:
Club N150
Cash sales N4,850
Club debtors at close N900
Cash received from debtors N550
What is the amount of club sales?
AN6,150
BN4,850
CN4,650
DN1,300
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Question 18
jamb1999
Receipt and payments account of a non-profit making organization is principally a summary of the?
Abak entries
Bcash bok entries
Cexpenditure entries
Dbalance sheet entries
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Question 19
jamb1999
The difference between the factory cost of production and the prime cost of production is?
Adirect materials
Bdirect labour
Cselling expenses
Doverhead
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Question 20
jamb1999
Manufacturing costs can be classified based on?
Atiming of charges degree of averaging and size of capital
Bdegree of averaging, ease of traceability and timing of charges
Cdegree of averaging, size of floor space occupied and cost accounts
Dnumber of employees, timing of charges and management style
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Question 21
jamb1999
Lawal and co makes blocks and sell to builders.
In computing prime cost, which of the following costs would be considered appropriate?
ACement, sand and carriage outwards
BWater carriage inwards and cement
CSales boys'wages, cement and sand
DCarriage outwards,carriage inwards and cement
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Question 22
jamb1999
When the factory cost of production has been ascertained, manufactured goods are transferred to trading account by?
Adebting manufacturing account and crediting trading acccount
Bcrditing sales account and debtiting trading account
Cdebiting sales account and crediting trading account
Dcrediting manufacturing account and debiting trading account
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Question 23
jamb1999
In dealing with incomplete records, fixed assets are posted to?
Aopening profit and loss as brought forward figures
Bclosing balance sheet as carried forward figures
Cclosing balance sheets as brought forward figures
Dclosing profit and loss as brought forward figures
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Question 24
jamb1999
The principal function of a sales ledger control account is to?
Aserve as internal check and provide quick information for the preparation of interim financial statements
Bserve as external check and provide quick information for the preparation of interim financial statements
Cprovide quick information for the preparation of customers' statement
Dprovide information for the control of salesmen's activities
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Question 25
jamb1999
The main features of the single system are that?
Abooks of accounts are not maintained and business relies only on bank statement
Bthe journal records are absent and only the main ledger is kept 7
Cthere are incomplete classifications and recording procedures
Donly credit sales transactions and credit purchase are recorded
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Question 26
jamb1999
Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?
Aan addition was made to the asset during the sixth year
Bthe estimate of salvage value on this equipment was decreased
Ca unit-of-output method of depreciation was used during the sixth year
Dthe estimate remaining service life of the assets was increased at the beginning of the sixth year
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Question 27
jamb1999
Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?
AN338.58
BN342.00
CN345.42
DN360,00
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Question 28
jamb1999
Asa Company bought a vehicle worth N20,000 and the vehicle is to be depreciated at 5%. Using the reducing balance method of depreciation, what would be the value of the asset after 3 years?
AN19,000.00
BN18,050.50
CN17,147.50
D16,290.13
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Question 29
jamb1999
A provision for bad debt account had N3,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/2% of annual sales, what was the credit sales for the period?
AN2,100,000
BN844,400
CN840,000
DN500,000
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Question 30
jamb1999
The fixed amount of money given to a petty cashier at the beginning of a period is called?
