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.

641.

Calls in advance are treated in the balance sheet as______

A.

Current asset

B.

Fixed asset

C.

Current liability

D.

Fixed liability

Correct answer is C

Calls in advance is treated as a current liability until the calls are made and the amount actually becomes payable by the shareholders

642.

Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?

A.

1 : 1

B.

3 : 6

C.

2 : 1

D.

2 : 6

Correct answer is C

The existing ratio between Tony and Rose = 2/6 and 1/6

  Ade’s ratio = 3/6

  Ade’s share to be taken by Tony and Rose in the ratio 2 : 1

  Tony gets: 3/6 x 2/6

  = 6/18

  Rose gets: 3/6 x 1/3

  = 3/18

New ratio between Tony and Rose = 6 : 3

  = 2 : 1

643.

Gross profit in the branch adjustment account is transferred to the branch____________

A.

Income and expenditure account

B.

Profit and loss account

C.

Receipt and payment account

D.

Trading account

Correct answer is B

Records profit on branch account

644.

If the purchase price exceeds the net assets of a company, the excess amount is debited to_______________

A.

Cash account

B.

Purchase account

C.

Goodwill account

D.

Sales account

Correct answer is C

Goodwill is the excess of purchase consideration over the total value of the business

645.

Use the following information to answer the question below

\(\begin{array}{c|c} & Ade(N) & Bola(N) \\ \hline Capital & 40,000 & 30,000 \\ \hline Drawings & 10,000 & 15,000 \end{array}\)

Interest on drawing is 5%; profit is shared equally.

Bola's share of profit is

A.

N4,500

B.

N4,250

C.

N3,000

D.

N2,750

Correct answer is D

No explanation has been provided for this answer.