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.
Use the information below to answer question 38 and 39.
Dan and Baker are in partnership with capital of N50,000 and N30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of N8,000.
(iii) both partners earn interest on capital at 6% p.a.
(iv) both partners pay interest on drawing at 6% p.a.
At the end of the year, Dan drew N15,000 while Baker drew N14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was N48,000. N5,000 is to be written off the Goodwill account.
What is the interest on the drawing by Baker?
AN210
BN315
CN450
DN840
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Question 722
jamb1998
The price paid by an acquiring company is the?
Apremium
Bpurchase consideration
Csales consideration
Dconversion fee
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Question 723
jamb1998
Which of the following is an intangible asset and a measure of a firm's superior earning power?
APatent
BGoodwill
CTrademark
DRight issue
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Question 724
jamb1998
Umar and Ahemed share profit and losses equally and have capital balances of N40,000 and N60,000 respectively. If bdullahi purchases one-third interest with no bonus, how much will he have to contribute to the partnership?
AN33,333
BN40,000
CN44,444
DN50,000
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Question 725
jamb1998
When forming a partnership, new partners should record non-monetary assets on the new partnership's books at?
Atheir current fair market values
Btheir historical costs when first use
Ctheir historical costs when first purchase by each new partner
Dthe highest values practical so that future income tax deductions are maximized
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Question 726
jamb1998
Which of the following indicate that a partnership business is in place?
(i) There is a business
(ii)It is run commonly by partners
(iii)It has profit-making in view
(iv) Partners' liability is limited
Ai and ii only
Bi, ii and iii only
Ci, iii and iv only
Dii, iii and iv only
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Question 727
jamb1998
A non-profit-making organization differs from a profit-making one in that?
Ait does not earn income
Bproceeds from sale of shares form part of its income
Call its income is committed
Dannual subscriptions and levies form part of its income
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Question 728
jamb1998
The trading account is to a sole trader what income and expenditure account is to a?
Apartnership
Bpublic limited organization
Cmanufacturing organization
Dnon-profit making organization
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Question 729
jamb1998
The limitations of the receipts and payments account arise mainly because of the reliance on?
Acash movement as evidence of transaction
Bthe acconuting officer to report
Cthe capital account of the organization
Dthe transaction papers as evidence of transaction
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Question 730
jamb1998
What was the cost of materials available for use during the period?
AN487,100
BN449,500
CN448,500
DN440,300
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Question 731
jamb1998
Use the information below to answer question 28 and 29.
Raw materials inventory at the beginning of a period was N 46,800 and at the close of the period there was a balance of N38,600. From the purchases made during the period, defective materials costing N9,200 were returned. Cost of materials consumed during the period was N448,500.
What was the total purchases made during the period?
AN497,100
BN457,700
CN449,500
DN440,300
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Question 732
jamb1998
The objective of allocating all costs to producer is to?
Aproduce a scientifically accurate cost
Bavoid unallocated overhead and compute total accounts
Cco-odinate the cost and financial accounts
Dcompute the contribution of the product to the final profit
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Question 733
jamb1998
The contribution marginal on a job is the?
Agross profit
Bnet profit
Cexcess of sales revnue over variable costs
Ddifference between fixed and variable costs
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Question 734
jamb1998
The statement of affairs prepared from incomplete records can be described as?
Athe summary of all the business transactions of the trader ascertained by the accountant
Ba balance sheet at a particular date showing the assets and liabilities of the business
Ca schedule of all the business ventures entered into for the period to which the records relates
Dthe statement that shows the profit or loss made during the period
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Question 735
jamb1998
Derive the total sales figure from the following information extracted from a firm's cash book and other relevant records.
Total debtors b/f N 5,600
Total cash receipts from debtors
and cash sales N 153,000
Total debtors c/f N 6,800
AN6,800
BN153,000
CN154,200
DN159,800
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Question 736
jamb1998
Determine the year''s purchase from the following information relating to a firm.
Total creditor''s b/f N 7,200
Total cash payment to suppliers N 98,800
Total creditors c/f N 8,400
AN7,200
BN98,800
CN100,000
DN105,800
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Question 737
jamb1998
Mini Enterprises Sales Ledger as at 31/12/94
read:
N
Balance b/f 12750
Total credit sales 28185
Payments by debtors 12112
Discount allowed 638
Sales returns 1500
Prepare the sales ledger control account and determine the balance due from debtors.
AN40,935
BN27,961
CN26,685
DN1,185
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Question 738
jamb1998
A powerful instrument of control over both the sales ledger and the clek whose duty is to post the ledger is the?
Atotal debtors account
Bpurchase day book
Csales day book
Dcash book
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Question 739
jamb1998
The balance on a purchase ledger control account represents the?
Apresent amount that a business owes its suppliers at date
Btotal credit avaiable to the end of the year to be utilized in future
Ctotal credit the business enjoyed for the particular year from its suppliers
Dtotal credit owd the business by its customers
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Question 740
jamb1998
On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?
