Which fund is used to meet unforeseen or urgent expenditure?
General reserve fund
Consolidated Reserve Fund
Contingencies fund
Special fund
Correct answer is C
Contingencies fund: if there is an urgent and unforeseen need for expenditure for which no other provision exist, such expenses shall be deducted from the contingencies fund
₦110,000
₦80,000
₦90,000
₦30,000
Correct answer is D
\(\begin{array}{c|c} \text{Assets} & N \\ \hline \text{Plant and Machinery} & 190 000 \\ \hline \text{Motor Vehicle} & 170 000 \\ \hline \text{Stock} & 60 000 \\ \hline & 420,000 \\ \hline \text{Less Liabilities} & 50 000 \\ \hline \text{Value / Net worth of the business} & 370,000\end{array}\)
Purchase Consideration less worth of the business
400,000 - N 370,000
= N30,000
Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.
₦4,000
₦4,500
₦5,000
₦1,400
Correct answer is D
No explanation has been provided for this answer.
₦4,350
₦6,000
₦5,150
₦4,000
Correct answer is C
If the gross profit is ₦5,000, then the net profit is calculated below;
The item that will appear in the profit and loss account are;
Bad debt written off ₦350, Discount allowed ₦500 and Discount received ₦1,000
\(\begin{array}{c|c} \text{Gross Profit} & 5000 & \\ \hline \text{Discount Received} & 1000 & 6000 \\ \hline \text{Expenses} & & \\ \hline \text{Bad debt.} & 350 & \\ \hline \text{Discout Allowed} & 500 & 850 \\ \hline \text{Net profit} &
& 5,150 \end{array}\)
Net profit is the profit made after all the expenses incurred are deducted from the gross profit
₦5150 is the net profit calculated i.e bad debt 350 &nplus; discount allowed 500 &nplus; net profit 5,150 less gross profit 5,000 + discount received 1,000
Unpresented
Dividend
Uncredited cheque
Credit transfer
Correct answer is C
Uncredited cheque: This have to be deducted when starting balance as per cash book