Which of the following is not the purpose of a control account?
Check on errors of addition
Locate errors
Locate missing figures
Monitor the cash book
Correct answer is D
In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created.
The details for each control account will be found in a related (but separate) subsidiary ledger. The control account keeps the general ledger free of details, but still has the correct balance for preparing the company's financial statements.
The excess of value of assets over the purchase consideration on acquisition of a business is to
Share capital account
Goodwill account
Capital reserved account
General reverse account
Correct answer is B
In accounting, goodwill is the value of the business that exceeds its assets minus the liabilities.
Which of the following errors affects the agreement of a Trial balance?
Wrong addition in the sales account
Crediting a purchase to the sales account
Failure to enter sales in the books
Posting the purchase of a van to the debit side of the purhases account
Correct answer is A
No explanation has been provided for this answer.
Share of ₦3 nominal value were issued at a price ₦4. The difference of ₦1 is a
Commission
Discount
Premium
Bonus
Correct answer is C
Issue of shares at premium means that the issuing of shares above the face value (also called as nominal value or par value). The difference between the face value of shares and the price of shares issued at premium is the premium amount.
An increases in the provision for doubtful debts results is a\an
Increase in the gross profit
Decrease in the gross profit
Decrease in the net profit
Increase in the net profit
Correct answer is C
The higher the provision for doubtful debt, the lower the net profit at the end of the period