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.
The use of a three column cash book is determined by
Cash discount
Trade discount
Cash transaction
Bank transaction
Correct answer is A
A cash discount is a deduction allowed by the seller of goods or by the provider of services in order to motivate the customer to pay within a specified time
II and IV only
I, II and IV only
I, II and III only
II, III and IV only
Correct answer is B
Dissolution of partnership business simply means the break up of partnership business and which are caused by many factors
II,III and IV: disposal of asset does not constitute dissolution
Goodwill can be created in the books of a partnership firm when
The partnership experiences super profit
A new member is admitted
The business is being expanded
The business suffers high loss
Correct answer is A
The partnership experiences super profit: super profit is the profit that is generated by intangible asset or the profit that is attributed by the tangible asset when such profit is capitalized we get intangible asset or goodwill
The following appears in trading account except
Sales
Carriage outward
Carriage inward
Opening stock
Correct answer is B
Carriage outward: it is the cost of transporting goods from the company to the buyer. it is on debit side of the profit and loss account because it is an expenses incurred on distributing the goods to customer.
The accounting entries for goods stolen in branch will be to debit
The accounting entries for goods stolen in branch will be to debit
Branch stock account and credit branch adjustment account
Branch adjustment account and credit profit and loss account
Branch adjustment account and credit branch stock account
Correct answer is A
A branch account is a small part of business account operating with some degree of independence . It maintains its own personal/self accounting entries to determine the profit/loss made by a specific period of time
The accounting entries is to debit profit and loss account and credit branch stock. The profit and loss is debited because the cost of the stolen goods must be charged against the profit for the period to balance the account and the branch stock account is credited because the cost of the goods is out of the branch already.