Accounting questions and answers

Accounting Questions and Answers

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.

56.

Bello withdraws cash from bank to office, this is called ---------- entry

A.

Credit

B.

Contra

C.

Double

D.

Debit

Correct answer is B

Contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.

57.

Use the following information to answer the question

Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership.

The total interest on drawings to be charged to profit and loss appropriation account is

A.

GH⊄ 1,120

B.

GH⊄ 1,920

C.

GH⊄ 700

D.

GH⊄ 800

Correct answer is B

To calculate the interest on Ant's withdrawal:

Interest on Ant's Drawings = Ant's Withdrawal x Interest Rate

Interest on Ant's Drawings = GH⊄ 14,000 x 8% = GH⊄ 1,120

 

To calculate the interest on Bee's withdrawal:

Interest on Bee's Drawings = Bee's Withdrawal x Interest Rate

Interest on Bee's Drawings = GH⊄ 10,000 x 8% = GH⊄ 800

 

Total Interest on Drawings = Interest on Ant's Drawings + Interest on Bee's Drawings

Total Interest on Drawings = GH⊄ 1,120 + GH⊄ 800 = GH⊄ 1,920

58.

Given:

I. Settlement of debts
II. Cessation of business
III. Introduction of assets
IV. Disposal of assets

Which of these constitutes dissolution of partnership?

A.

I, II and III only

B.

I, II and IV only

C.

II and IV only

D.

II and III and IV only

Correct answer is B

Bankruptcy of a partner, illegality of object of the business, expiration of the time given, non performance of the business, admission of a new partner, withdrawal or retirement of partners give rise to dissolution of partnership.

59.

Use the following information to answer the question

Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership.

The interest on drawings for Ant is

A.

GH⊄ 800

B.

GH⊄ 1,920

C.

GH⊄ 1,120

D.

GH⊄ 700

Correct answer is C

Interest on Drawings for Ant = GH⊄ 14,000 x 8%

Interest on Drawings for Ant = GH⊄ 14,000 x 0.08

Interest on Drawings for Ant = GH⊄ 1,120

60.

Which fund is used to meet unforeseen or urgent expenditure?

A.

Special fund

B.

Contingencies fund

C.

General reserve fund

D.

Consolidated reserve fund

Correct answer is B

Contingency fund is established by the constitution of 1979 to take care of any nation disaster or unforeseen circumstances.