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.
Rates owing Insurance prepaid Subscription in arrears |
1/199 3,600 50 700 |
31/12/99 2000 1000 600 |
The figure ₦1000 represent what in the balance sheet.
Assets
Liability
Capital
Subscription
Correct answer is B
The ₦1000 represent liability in the balance sheet, since it is paid by the members representing dues for next year. Subscription in advance are liabilities, because the company that received the money has not yet earned it and it has an obligation (a liability) to deliver the related goods or services in the future.
Rates owing Insurance prepaid Subscription in arrears |
1/199 3,600 50 700 |
31/12/99 2000 1000 600 |
Calculate the subscriptions in the Income and expenditure account.
8400
7400
6400
7200
Correct answer is B
xplanation
| Dr | Cr |
| Bal b/f 700 | cash (99) 7500 |
| J $ K 7400 | (2000) 1000 |
| Bal c/d 1000 | Bal c/d 600 |
250
200
300
400
Correct answer is C
Interest on drawings:
Ojo = 5% × 1000 = ₦50
Sam = 5% × 2000 = ₦100
Ade = 5% × 900 = ₦45
Interest on Capital:
Ojo = 5% × 5000 = ₦250
Sam = 5% × 4,000 = ₦200
Ade = 5% × 6000 = ₦300
Use the information below to answer this question.
7000
4921
3000
991.8
Correct answer is D
No explanation has been provided for this answer.
Retained profits is an example of
Revenue reserve
Capital reserves
General reserves
Loan capital
Correct answer is A
Retained profit is part of the part of the profits of an organization not distributed as dividends but ploughed back into the business for expansion.