Use the following information to answer this question
| ₦ | ₦ | |
| Sales less: cost of goods sold |
233,000 170,000 |
|
| 63,000 | ||
| less: Overhead Expenses Admin expenses Selling expenses Other overhead expenses |
16,800 15,000 6,200 |
|
| Net profit | 25,000 |
What is the Gross Profit on percentage of sale?
2.7%
0.27%
27.0%
29.8%
Correct answer is C
No explanation has been provided for this answer.
If only wages is shown on the trial balance, it should be charged to the
Profit and loss account
Trading account
Balance sheet
Wages account
Correct answer is A
Wages should be charged in the trading account only if shown separately on the trial balance from salaries. In such circumstances, the assumption, unless you are otherwise told, is that the wage is a direct trading expense to be included in the trading account while salary is an Indirect (i.e overhead) expense to be included in the P & L account.
Tosanwumi International, credit purchase Account
Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
Credit Account ₦150,000, Credit Tosanwumi International ₦150,000
Tosanwumi International ₦150,000, credit credit Account ₦150,000
Correct answer is B
When a purchase was made, a credit purchase invoice would have been issued by the supplier, Tosanwumi International, which would be signed by Mr. Roi as evidence of his acceptance of liability to pay for the goods.
The two accounts needed to record this transaction are the purchase Account and Tosanwumi International Account. purchase account would be debited while the Tosanwumi International Account credited.
Accounts can be classified into
Cash and credit transactions
Cash and credit accounts
Personal and private account
Personal and impersonal account
Correct answer is D
A personal account is an account for use by an individual for that person's own needs. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
impersonal accounts: Accounts which are not held in the name of the persons or are directly related to the customers or suppliers of a business. a. Real Accounts, e.g. Asset Account; and, 2. Nominal Accounts, e.g. Income and Expenditure Accounts.
The advantage of double entry is that
It is easy to prepare the final account
It increase assets
Has cash and bank column
It disburses cash
Correct answer is A
Double-entry accounting is easy to prepare and helps guarantee accurate financial records by revealing data entry errors. Double-entry accounting provides a complete record of financial transactions for a business.