Use the following information to answer questions below
| Le | |
| Raw materials: | |
| Stock (01/01/2017) | 822000 |
| Stock (31/12/2017) | 560000 |
| Purchases | 125000 |
| Returns of raw materials | 15000 |
The cost of raw materials available for production is
Le 372,000
Le 932,000
Le 947,000
Le 402,000
Correct answer is B
Cost of raw materials available = Opening stock of raw materials + Purchases of raw materials - returns of raw materials
= 822,00 + 125,000 + 15,000
= 932,000
The principal book of account where accounts are classified and summarized is
Balance sheet
Ledger
Trial balance
Journal
Correct answer is B
The ledger contains permanent records of all the transactions of the business in a classified and summarized form. The entries in the cash book and other original books are posted to the ledgers.
Books of accounts are opened by the use of
Balance sheet
General ledger
General journal
Trial balance
Correct answer is C
Journal is a prime entry into which transactions are entered on a daily basis. The journal is used to correct errors, recording entry transactions etc.
The authority to incur expenditure to address natural disaster is contained in
Contingency warrant
Supplementary general warrant
Reserved expenditure warrant
Virement warrant
Correct answer is A
Contingency warrant gives authority to the accountant general to release fund for urgent and unforeseen events. It is used when virement is not possible and there is an urgent need for the fund, which cannot be postponed.
In the balance sheet of not-for-profit making organizations, subscription in arrears is shown under
Long-term liabilites
Current assets
Current liabilities
Fixed assets
Correct answer is B
Subscription in arrears is the sum of money due from members for a particular year but which has not been paid for that year. It is treated as current asset in the balance sheet.