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 | ?? |
| 78,650 | 78,650 |
What is his bank balance as at 30/06/17?
₦14,150
₦18,500
₦15,300
₦65,150
Correct answer is A
Bank balance = 78,650 - ( 4000 + 20500 + 40000)
= 78650 - 64500
= ₦14,150
Which of the following concepts recognizes the principle of double entry?
Business entity
Accrual
Going concern
Dual aspect
Correct answer is D
Dual aspect concept ensures the mathematical accuracy of all records. It states that there are two aspects of accounting: one debit and one credit.
Another name for control accounts is
Total account
Purchases ledger
Creditors' account
Debtors' account
Correct answer is A
Control account is also known as self balancing ledger of total control account.
The authority to transfer fund from one head to another within the same organization is called
Fund
Wallet
Vote
Virement
Correct answer is D
Virement warrants is used to transfer fund from one vote head to another. It is used to create a new vote head but to transfer fund within the same economic head.
Which of the following is not charged to manufacturing account?
Raw materials
Factory wages
Direct expenses
Distribution expenses
Correct answer is D
Distribution expenses covers the cost of warehousing, transport, material handling and control of finished goods from the moment. It is not charged to manufacturing account.