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.
When expenses are paid on behalf of the venture, the accounting entries is to debit
Expenses account and credit bank account
Bank account and credit joint venture account
Joint venture account and credit bank account
Joint venture account and credit expenses account
Correct answer is C
Expenditure paid on bahalf of joint venture
Accountint entries:
Dr: Joint venture account
Cr: Bank account
An advantage of FIFO method of stock valuation is that
It is calculated at the end of the year
Its flow of cost is in sequence with the flow of stock
It is progressive in nature
It serves as a control during inflation
Correct answer is B
One of the advantages of FIFO method is that the stock received first will be issued out first thereby reducing the problem of deterioration or obsolesence and also items are issued in order of receipt therefore, it is realistic.
Dr. Sales Ledger Control Account . Cr
| ₦ |
₦ |
||
| Bal b/f | 3,250 | Bal b/f | 125 |
| Sales | 19,075 | Bank | 16,387.50 |
|
Dishonoured cheque |
625 | Discount |
862.50 |
|
Stopped cheque |
250 | Returns inwards | 325 |
| Bal c/d | 230 | Set off | 900 |
| Bal c/d | 4740 | ||
| 23430 |
23430 |
||
| Bal b/d | 4740 | Bal b/d | 230 |
The amount ₦19,075 represents
The double entry for the total sales account
Total sales for the month
Credit sales
Cash sales for the month
Correct answer is C
The amount ₦19,075 represents credit sales. In the Sales Ledger Control Account, the 'Sales' line item typically represents credit sales made during the period. Cash sales would usually be recorded directly in the bank or cash account, not in the sales ledger control account. The sales ledger control account is used to record transactions with credit customers, including sales, payments, returns and discounts.
Use the following information to answer the question
The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
| D | |
|
Balance b/f |
200,000 |
| Commission received | 180,000 |
| Receipts from Ojah | 98,000 |
| Electricity bill | 40,000 |
|
Rent |
73,400 |
| Drawings | 28,600 |
| Insurance | 12,800 |
The total income for the month is
D 278,000
D 180,000
D 154,800
D 306,900
Correct answer is A
To calculate the total income for the month, we add up the commission received:
Total Income = Commission received + Receipt
Total Income = D180,000 + D 98,000
= D 278,000
| ₦ |
₦ |
||
|
Bal. b/f |
3,250 | Bal. b/f. | 215 |
|
Sales |
19,075 | Bank |
16,387.50 |
|
Dishonoured cheque |
625 | Discount | 862.50 |
|
Stopped cheque |
250 | Returns inwards | 325 |
|
Bal c/d |
230 | Set off | 900 |
| Bal c/d |
4740 |
||
| 23,430 |
23430 |
||
|
Bal b/d |
4740 | Bal b/d | 230 |
Dr. Sales Ledger Control Account . Cr
The amount ₦16,378.50 described as "Bank" represents
Receipts from trade debtors only
Cash sales for the month including discount
Receipts from all debtors of the business
Cash sales for the month excluding discount
Correct answer is C
Cheques received source is from bank/cash book. Therefore, the bank represent the receipts from all the debtors of the business. Since the account contains transactions related to all the trade receivable (of all the debtors) in the business.