Subscription in advance is treated in the balance sheet under
Long-term liabilities
Current liabilities
Accumulated fund
Current assets
Correct answer is B
Subscription in advance is the sum of money prepaid by the members of club representing their dues for next year. It is treated as a liability in the balance sheet.
A set of rules and procedures guiding the operations of a partnership is called partnership
Code
Business
Seal
Deed
Correct answer is D
Partnership deed is a document drawn up by partners, which contains the rules and regulations guiding the business. It is also a document, which will clarify the respective positions and duties of the partners in a business.
Use the following information to answer below
| GH⊄ | |
| Sales | 200000 |
| Purchase | 170000 |
| Opening stock | 40000 |
| Closing stock | 50000 |
Stock turnover ratio is
3.78 times
3.56 times
4 times
3.2 times
Correct answer is B
Stock turnover = Cost of goods sold/Average stock
where Average stock = Opening stock + Closing stock /2
160,000 / 40,000 +50,000 /2
= 160,000 /45,000
= 3.555
≃ 3.56 times
Use the following information to answer below
| GH⊄ | |
| Sales | 200000 |
| Purchase | 170000 |
| Opening stock | 40000 |
| Closing stock | 50000 |
The gross profit percentage is
10%
20%
25%
15%
Correct answer is B
Gross profit percentage = Gross profit/Sales x 100
Cost of goods sold = 40,000 + 170,000 - 50,000
= 160,000
Gross profit = 200,000 - 160,000
= 40,000
Gross profit % = 40,000/200,000 x 100
= 20%
The profit or loss on disposal of the machine was
D 280,000 profit
D 87,480 loss
D 320,000 loss
D 92,680 profit
Correct answer is B
From 2018 to 2021( accounting year) is three (3) years
| D | |
| Cost | 1200000 |
| Year 1 ( 10% x 1200000) | 120000 |
| 1080000 | |
| Year 2 ( 10% x 1080000) | 108000 |
| 972000 | |
| Year 3 ( 10% x 972000) | 97200 |
| Depreciation | 874800 |