articles of association
equity share certificate
prospectus
memorandum of association
Correct answer is D
The Memorandum of Association (MOA) of a company defines the constitution and the scope of powers of the company.
|
₦ |
|
|
Net profit for the year |
90,000 |
|
Interim dividends paid: |
|
|
Ordinary shares |
25,000 |
|
Profit and loss appropriation b/f |
10,000 |
|
Goodwill written off |
1,000 |
At the end of the period, what is the balance of the profit and loss appropriation account?
₦66,5000
₦90,000
₦100,000
₦74,000
Correct answer is A
Balance c/d = net profit + profit and loss - ( goodwill + ordinary share + preference share)
= (90,000 + 10,000) - ( 1000 + 25000 + 7500)
= 100,000 - 33500
= ₦66500
I, III and IV
I and III
I, II and III
I, II and IV
Correct answer is C
Change in profit sharing ratio may occur as a result of the following:
- changes in skill contributed by partners
- ill health
- old age
When goods are received from head office, head office will be credited while
Sales will be debited
Requisition will be debited
Issue will be debited
Purchases will be debited
Correct answer is D
Goods received from head office
Accounting entries:
Dr: Purchase account
Cr: Head office current account
|
₦ |
|
|
Net profit for the year |
90,000 |
|
Interim dividends paid: |
|
|
Ordinary shares |
25,000 |
|
Profit and loss appropriation b/f |
10,000 |
|
Goodwill written off |
1,000 |
The amount of preference shares dividends payable at the end of the year is
₦10,000
₦25,000
₦7,500
₦20,000
Correct answer is C
Preference shares dividends are calculated based on the nominal value of the preference shares and the fixed dividend rate. In this case, Larry Limited has 150,000 preference shares of ₦1 each, and the dividend rate is 5%. Therefore, the preference shares dividends payable at the end of the year is 150,000 * 1 * 5% = ₦7,500.