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.

157.

Use the following information to answer questions below
 

Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.

Teteh's share of profit is

A.

#60,000

B.

#90,000

C.

#75,000

D.

#50,000

Correct answer is C

Ratio in their capital = 300,000/200,000 = 3/2 = 3: 2
Total ratio = 3+ 2 = 5

Interest on capital = 5%
Teteh = 5% x 300,000 = 15,000
Kukuma = 5% x 200,000 = 10,000

= 150,000 - ( 15,000 + 10,000)
= 150,000 - 25,000
= 125,000

Teteh's share of profit = 3/5 x 125,000

= 75,000

158.

The document prepared by the buyer and sent to the seller listing the items to be supplied is

A.

Purchase order

B.

Credit note

C.

Proforma invoice

D.

Sales order

Correct answer is A

The purchase order is a document generated by the buyer and serves the purpose of ordering goods from the supplier. The document indicates the details on the items that are to be purchased, such as the types of goods, quantity and price.

159.

Drawings made by a partner would be

A.

Credited to current account

B.

Credited to appropriation account

C.

Debited to appropriation account

D.

Debited to current account

Correct answer is D

Drawing is the amount withdrawn or taken out of the business by partners during the year. The drawings can be in cash or kind. it is debited to the current account.

 

160.

Adiza gave an instruction to her banker to pay a premium of Le 30,000 from her account to Union Rock Insurance on a quarterly basis for a policy. This instruction is an example of

A.

Bank charges

B.

Direct debit

C.

Standing order

D.

Credit transfer

Correct answer is C

Standing order is an instruction given by the account holder to the bank to make regular payment on his behalf. The bank will make the payment and debit the bank statement but no entry in the cash book.