If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.
An ordinary share of ₦100 was issued at ₦80. The share was issued at
Premium
Par
Discount
Loss
Correct answer is C
Share issued at discount is a situation whereby shares are quoted below the nominal value.
Opening stock Purchases Sales Closing Stocks |
₦ 20,000 70,000 100,000 15,000 |
What was the gross profit?
₦35,000
₦75,000
₦50,000
₦25,000
Correct answer is D
Gross profit = sales - cost of goods sold
100,000 - 75,000
⇒ ₦25,000
| Opening stock | ₦ |
| Department A B |
100 800 |
| Purchases: A B Wages of workers Salaries |
1500 2000 50 100 |
| Sales A B |
3000 5000 |
Expenses are to be shared in the ratio of sales.
What was the cost of goods sold?
₦25,000
₦35,000
₦50,000
₦75,000
Correct answer is D
Cost of goods sold = Opening stock + Purchases - closing stocks
20,000 + 70,000 - 15,000
⇒ ₦75,000
Discount received is charge to
Current account
Profit and loss
Trading account
Balance sheet
Correct answer is B
Discount received is treated as income to the business hence it is credited to the profit and loss.
The purpose of profit and loss account is to ascertain
Gross profit
Capital
Expenses
Net profit
Correct answer is D
The profit and loss account also known as Income statement is prepared to ascertain the net profit. The net profit is ascertain when the expenses is deducted from the Gross Profit.