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.

616.

 Rakiya and joy are in a partnership and agreed that 5% interest per annum is to be charged on drawings. The drawing made by both partners in one year were:

  Rakiya, #200 on March 31 and #300 on September 30.

  Joy, #100 on April 1 and #240 on July 1.

  The interest on Joy’s drawing is___________

A.

#511.25 debit

B.

#500.00 credit

C.

#349.75 debit

D.

#340.00 credit

Correct answer is C

The amount withdrawn by the partners for their personal use out of the firm is known as drawings. Interest are charged on this drawings

617.

Cost of rent as an expense can be apportioned to all department on the basis of:

A.

No of employees

B.

Stock value

C.

Space occupied

D.

Wages

Correct answer is C

Indirect expenses are allocated among departments in order to ascertain the profits or loss made by each department.

619.

Why should a new partner contribute towards goodwill on his admission?

A.

It is a norm

B.

To ensure new partner also have a stake in the business

C.

The firm into which he is entering already has some goodwill in the market

D.

To purchase the business

Correct answer is C

Goodwill is being paid by a new partner because the partnership he is entering into already has goodwill in the market as well as to pay for the portion sacrificed by existing partners in form to their profit to admit the new partner.

620.

Which of the following is a common cause of a discrepancy between head office and branch trial office_______

A.

Stock and repayment

B.

Creditors and cash in transit

C.

Stock and cash in transit

D.

Debtors and cash in transit

Correct answer is C

Goods in transit are goods sent by the head office to branch but by the close of financial year, these goods have not yet reached the branch.

  Cash in transit are cash remitted by the branch to head office by the end of the financial year this cash has not yet reached the head office

  Another major cause of discrepancy is returns in transit. This is the returns by the branch to head office but by the end of the year, they have not been received by the head office