The part of capital issued only at the time of liquidation of the company is
Issued capital
Called-up capital
Paid-up capital
Reserved capital
Correct answer is D
A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called 'Reserve Capital' of the company. It is available only for the creditors on winding up of the company.
The journal has the following headings except
Date
Debit
Discount
Credit
Correct answer is C
The journal has debit, credit, date, particulars and folio. It is use to show narration in which the entries are posted to the ledgers.
7%
5%
15%
10%
Correct answer is B
Where there is no agreement betwen the partners, the following must applied:
- there is no interest on capital
- no salary for partners acting in the business
- no interest to be charged on drawings
- profit and loss are to be shared equally
- 5% interest a year on loans made by partners in excess of the agreed capitals
- no partners may introduce a new person without the consent of all existing partners
Which of the following is prepared to ascertain the trader's capital under incomplete records?
Statement of affairs
Statement of capital and liabilites
Statement of complete records
Income statement
Correct answer is A
The statement of affairs is prepared to ascertain both the opening and closing capital of the business. The statement of affairs is smiliar to the balance sheet.
| Drawings: |
₦ |
| Dairo | 12000 |
| Segun | 18000 |
| Capital: | |
| Dairo | 120000 |
| Segun | 60000 |
- Interest on drawings 10%
- Interest on capital 5%
- Profit for the year ₦36,000
- Salary: Segun ₦10,000
Segun's share of profit is
₦12,000
₦21,400
₦14,600
₦16,400
Correct answer is A
Interest on drawings = 10%
- Dairo = 10% x 12,0000
= ₦1200
- Segun = 10% x 18,000
= ₦1800
Interest on capital = 5%
- Dairo = 5% x 120,000
= ₦6,000
- Segun = 5% x 60,000
=₦3,000
Salary: segun = ₦10,000
Segun's share of profit = (Net profit + int on drawings) - ( int on capital + segun salary )
= (36000 + 1200 + 1800) - ( 6000 + 3000 + 10000)
= 39000 - 19000
= 20,000
Total ratio = 2+ 3
= 5
Therefore, Segun share of profit = 3 /5 x 20000
= ₦12,000