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.

986.

How much rent is apportioned to department K?

A.

N1200

B.

N1800

C.

N2000

D.

N750

Correct answer is A

Since department K has the biggest shop space, its only fair that it pays the bigger chunk of rent. Hence it would be shared amongst the three department as;
Department k = 1200
                   L  = 800
                  M =  1000
Total = 3000

990.

...................................................30/9/06.......30/9/07.....
.......................................................N.............N.........
Accrued insurance premium........600...........710.......
Prepaid rent income....................490............630......

The cash book includes N1,850 and N,2,100 with respect to insurance premium and rent income respectively.

The insurance premium to be taken to the profit and loss account would be.

A.

N1,310

B.

N1,850

C.

N1,990

D.

N2,210

Correct answer is A

The insurance premium to be taken to the profit and loss account will be the amount which could not be recovered by the trader on account of credit sales. It is a business loss, so is debited in the profit and loss account.

Insurance premium posted to the P/L account would be;

710 + 600 = 1310