|
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
The interest on Dairo's drawings is
₦1,600
₦1,200
₦1,400
₦1,800
Correct answer is B
The interest on Dairo's drawings is calculated by multiplying the amount of his drawings (₦12,000) by the interest rate on drawings (10%). This gives us ₦1,200.
Which of the following is recorded in the folio column of the journal?
Particulars of transactions
Date of entries
All credit and cash sales transactions
Amount of money posted
Correct answer is A
The folio shows the page of a ledger to which a transactions is posted. It also helps in identifying where the transaction is recorded in ledger.
Bello withdraws cash from bank to office, this is called ---------- entry
Credit
Contra
Double
Debit
Correct answer is B
Contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.
I, II and III only
I, II and IV only
II and IV only
II and III and IV only
Correct answer is B
Bankruptcy of a partner, illegality of object of the business, expiration of the time given, non performance of the business, admission of a new partner, withdrawal or retirement of partners give rise to dissolution of partnership.
Goodwill can be introduced when
The business suffers high loss
The business is being expanded
The partnership experience super profit
A new member is admitted
Correct answer is D
The circumstances giving rise to the ascertainment of goodwill are:
- admission of a new partner
- change in profit sharing ratio
- death or retirement of a partner
- the business has been purchased
- dissolution of a business