In a partnership account, interest on drawings is
Debited to appropriation account
Credited to appropiation account
Treated as an expense in profit and loss account
Recorded in the balance sheet as current assets
Correct answer is B
Charging interest on drawings is a means of discouraging partners from withdrawing excessive amounts from the business. From this, it follows that interest on drawings is a debit entry in the partners' current accounts and a credit entry in the Appropriation Account.
A partnership's internal regulations are set out by
A deed
A law
A constitution
An article
Correct answer is A
A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business.
Bonus
Commission
Premium
Goodwill
Correct answer is D
Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable.
i. Direct materials
ii.Direct labour
iii.Direct expenses
iv. Factory expenses
Prime cost consist of
i, ii and iii
i, ii and iv
i, iii and iv
ii, iii and iv
Correct answer is A
Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs. Direct material and direct labor costs are prime cost because they are the main incremental costs of a product.
Which of the following expenses relates to the profit and loss account of a manufacturing firm?
Direct materials
Direct labour
Administrative overhead
Work-in-progress
Correct answer is C
Administrative overhead is those costs not involved in the development or production of goods or services. This is essentially all overhead that is not included in manufacturing overhead. Examples of administrative overhead costs are the costs of: Front office and sales salaries, wages, and commissions. Office supplies