Accounting entry for dissolution expenses is
Dr : Partnership account ;Cr: Realization account
Dr: Revaluation account; Cr: Partnership account
Dr: Realization account; Cr: Cash account
Dr: Partners current account; Cr: Realization account
Correct answer is C
When dissolution expenses are paid, the Realization account is debited because it represents the expenses related to the dissolution of the partnership. The Cash account is credited because cash is going out of the business to pay for these expenses. Hence, the correct accounting entry is 'Dr: Realization account; Cr: Cash account'.
Danladi Bako's Statement of Affairs as at 30/06/17
| ₦ |
₦ |
||
| Capital | ?? | Fixtures and fittings | 4,000 |
| Stock | 20,500 | ||
| Sundry debtors | 40,000 | ||
|
Creditors |
18,000 | Bank | ?? |
| 78650 | 78650 |
What is the value of Dalandi Bako's capital?
₦60,150
₦78,650
₦50,160
₦60,650
Correct answer is D
No explanation has been provided for this answer.
A part of public company's profit belonging to the shareholders is
Right issue
Bonus
Dividends
Public issue
Correct answer is C
Dividends are a part of a public company's profit that is distributed to shareholders. It is a way for companies to distribute a portion of their earnings back to their shareholders. Public issue, bonus, and right issue are not parts of a company's profit that belong to the shareholders
The principle of double entry developed from the axioms of accounting equation is given as
Liabilties + Equity = Net assets
Assets + Equity = Liabilities
Liabilities + Equity = Assets
Assets + Liability = Equity
Correct answer is C
The accounting equation states that:
- Capital( Equity) = Assets - Liabilities
- Assets = Capital (Equity) - Liabilties
- Liabilties = Assets - Capital (Equity)
- Equity(Capital ) = Assets
|
₦ |
|
|
Debtors opening |
4000 |
| Debtors closing | 1500 |
|
Cash received from debtors |
8500 |
|
Bad debts written off |
350 |
| Discount allowed | 500 |
| Discount received | 1000 |
What is the amount of sales for the year?
₦6850
₦6650
₦3850
₦1550
Correct answer is A
The amount of sales for the year is calculated using the formula: Opening Debtors + Sales - Cash received from debtors - Closing Debtors + Bad debts written off + Discount allowed - Discount received. Plugging in the given values, we get: 4000 + Sales - 8500 - 1500 + 350 + 500 - 1000 = Sales. Solving for Sales, we get Sales = 6850.