|
₦ |
|
|
Balance as per cash book |
5467 |
|
Uncredited cheques |
4410 |
|
Unpresented cheques |
19404 |
The balance as per bank statement is
₦20,461
₦21,091
₦21,109
₦19,021
Correct answer is A
The balance as per bank statement is calculated by adding the balance as per cash book and the unpresented cheques then subtracting the uncredited cheques. Therefore, the balance as per bank statement is ₦5467 + ₦19404 - ₦4410 = ₦20,461. Unpresented cheques are cheques that have been issued by a company but have not yet cleared through the bank. Uncredited cheques are cheques that have been received by a company but have not yet cleared through the bank.
Subscription in advance is treated in the balance sheet as a
Fixed asset
Long term liability
Current asset
Current liability
Correct answer is D
Subscription in advance is the sum of money prepaid by the members of club representing their dues for next year. It is treated as a liability in the balance sheet.
When the goods are sold on credit to a buyer, the account receivable account will be
Debit and credit
Contra entry
Debited
Credited
Correct answer is C
No explanation has been provided for this answer.
| # | |
|
Stock Jan 1 |
2600 |
| Purchases | 4000 |
| Carriage inwards | 500 |
| Sales | 9000 |
| Carriage outwards | 500 |
Determine the net profit
#4,000
#4,500
#5,000
#1,400
Correct answer is D
Cost of goods sold = 2600 + 4000 + 500
= 7100
Gross profit = 9000 - 7100
= 1900
Therefore, Net profit = Gross profit - Expenses
= 1900 - 500
= ₦1400
Profit expressed in relation to cost of goods sold is
Turnover
Cost price
Margin
mark-up
Correct answer is D
Mark up is when profit is expressed as a percentage of cost price i.e cost of goods sold