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Question 1 Report
Interim dividend paid in a year is
Question 2 Report
Use the following information to answer questions the question below
| 01/01/17 | 31/12/17 | |
| Trade creditors | 630,000 | 780,000 |
| Stock | 540,000 | 480,000 |
Trade creditors
Stock
Cash paid to trade creditors in 2017 was N2,700,000. 00
What was the purchase for 2017
Question 3 Report
Use the following information to answer question below
April 11:Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000
Total cash receipts for the period is
Answer Details
The total cash receipts for the period can be calculated by adding up all the cash received during the period. From the information given, the following cash transactions took place: Cash sales on April 11 = N50,000 Cash sales on April 28 = N49,000 Therefore, the total cash receipts for the period is: N50,000 + N49,000 = N99,000 So the correct option is (A) N99,000.
Question 4 Report
Use the following information to answer the question below
Opening capital ---10,800
Drawings----------- 2,500
Trade creditors ----2,560
Trade debtors ------2,880
Cash in hand -------1,000
Net profit------------- 6,000
The closing capital is
Answer Details
The closing capital can be calculated using the following formula: Closing Capital = Opening Capital + Net Profit - Drawings Plugging in the values from the information given, we get: Closing Capital = 10,800 + 6,000 - 2,500 Closing Capital = 14,300 Therefore, the closing capital is 14,300. This represents the total amount of capital that the business has at the end of the accounting period after taking into account the net profit earned during the period and the amount withdrawn by the owner. The closing capital is an important figure that helps the business owner to understand the financial health of the business and make decisions about its future operations.
Question 5 Report
Use the following information to answer the question below
Ajem and Ogah were in partnership sharing profits and losses in the ratio 2:3. Interest on capital and drawings were 5% and 3% respectively. The following details relate to the partnership for the year 2017.
| Ogah | Ajem | |
| Capital Account | 60,000 | 65,000 |
| Current Account | 40,000 | 50,000 |
| Drawings | 20,000 | 30,000 |
| Salary | 10,000 | - |
Netprofit was 100,000
Ogah's share of profit was
Answer Details
First, we need to calculate the interest on capital for both partners. Interest on Ogah's capital = 5% of 60,000 = 3,000 Interest on Ajem's capital = 5% of 65,000 = 3,250 Next, we need to calculate the interest on their drawings. Interest on Ogah's drawings = 3% of 20,000 = 600 Interest on Ajem's drawings = 3% of 30,000 = 900 Now, we can calculate the total amount of interest for each partner by adding the interest on their capital and the interest on their drawings. Total interest for Ogah = 3,000 + 600 = 3,600 Total interest for Ajem = 3,250 + 900 = 4,150 We can now calculate the adjusted capital for each partner by adding their capital account, current account balance, and subtracting their drawings and the interest on their drawings. Adjusted capital for Ogah = 60,000 + 40,000 - 20,000 - 600 = 79,400 Adjusted capital for Ajem = 65,000 + 50,000 - 30,000 - 900 = 84,100 The total adjusted capital for the partnership is the sum of the adjusted capital for both partners. Total adjusted capital = 79,400 + 84,100 = 163,500 Now, we can calculate each partner's share of the profit. Ogah's share of the profit = (2 / 5) x (100,000 - 10,000 - 3,600) = 51,150 Ajem's share of the profit = (3 / 5) x (100,000 - 10,000 - 4,150) = 48,850 Therefore, the answer is option A - 51,150.
Question 6 Report
Use the following information to answer questions the question below
| 01/01/17 | 31/12/17 | |
| Trade creditors | 630,000 | 780,000 |
| Stock | 540,000 | 480,000 |
Trade creditors
Stock
Cash paid to trade creditors in 2017 was N2,700,000. 00
The cost of goods sold was?
Question 7 Report
Companies issue shares to the public in order to
Answer Details
Companies issue shares to the public in order to raise capital. When a company issues shares, it is essentially selling ownership in the company to investors in exchange for funds. These funds can then be used to invest in new projects, expand the business, pay off debts, or for any other purpose that the company deems necessary. In return, shareholders receive a portion of the company's profits, as well as voting rights and other benefits depending on the type of shares they own.
Question 8 Report
Where there is provision for depreciation, fixed asset is shown in the balance sheet at
i. cost less depreciation for the period only.
ii. cost less total depreciation to date.
iii. written down values
Answer Details
Question 11 Report
The primary concern of shareholders in a business is the
Answer Details
The primary concern of shareholders in a business is the dividend payable. Dividends are payments made by a company to its shareholders, typically from the company's profits. Shareholders invest in a business with the expectation of receiving a return on their investment, and one way they can receive this return is through dividends. Shareholders generally want to see the company perform well so that they can receive higher dividends. While other factors such as the ability to pay interest and welfare of employees may also be important to shareholders, the primary concern is typically the dividend payable.
Question 12 Report
Sulah took two textile materials worth N500 from his business for his children's use. This would be treated as
Answer Details
This would be treated as "drawings". Drawings refer to the goods or cash that the owner of a business takes out of the business for personal use. In this case, Sulah took two textile materials worth N500 from his business for his children's use. Since this was not a sale or a loan, but rather an extraction of goods for personal use, it would be considered as "drawings" from the business. It is important for business owners to keep track of their drawings as it affects the profitability and financial position of their business.
Question 13 Report
When bank charges are deducted from a customer's account, the balance on the bank statement would be
Answer Details
The balance on the bank statement would be less than the cash book balance if bank charges are deducted from the customer's account. The cash book balance is the record of all the money that has come into and gone out of a customer's account as recorded by the customer. However, the bank statement is a record of all transactions in a customer's account as recorded by the bank. When the bank deducts charges such as service fees or overdraft fees, these charges are not recorded in the customer's cash book, but they are recorded in the bank's records and will appear on the bank statement. This means that the balance on the bank statement will be lower than the balance recorded in the customer's cash book.
Question 15 Report
Use the following information to answer the question below
Cost of raw materials available------ 32,000
Manufacturing wages -----10,000
Factory expenses-----5,000
Royalty-------3,000
Factory rent ------2,000
Depreciation of plant and machinery---- 5,000
closing stock of raw materials-------- 3,000
Factory overhead cost is
Answer Details
Question 16 Report
The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of N2.00 each. The amount of dividend declared is
Answer Details
The amount of dividend declared is N200,000. To calculate this, you first need to find out the total value of the company's ordinary share capital, which is 1,000,000 shares x N2.00 per share = N2,000,000. Next, you take 10% of this amount to find the dividend, which is 10% of N2,000,000 = N200,000. So the directors of Olu Ltd. declared a dividend of N200,000.
Question 18 Report
A quality of accounting information is that it should be
Answer Details
The quality of accounting information is that it should be "verifiable". This means that the information should be capable of being checked and confirmed by independent sources or methods. In other words, the accuracy and truthfulness of the accounting information should be able to be verified by others to ensure that it is reliable and trustworthy. Verifiability is important in ensuring that financial statements are free from bias or manipulation, which is crucial for making sound business decisions.
Question 19 Report
Use the following information to answer the question below
Cost of raw materials available------ 32,000
Manufacturing wages -----10,000
Factory expenses-----5,000
Royalty-------3,000
Factory rent ------2,000
Depreciation of plant and machinery---- 5,000
closing stock of raw materials-------- 3,000
The prime cost is
Answer Details
Question 20 Report
Kadiri paid his debt to Suleman by cheque. The accounting entries in Kadiri s books are: debit
Question 21 Report
When closing stock is undervalued, the cost of goods sold would be
Answer Details
Question 22 Report
When the letter "C" is written in front of an entry in the folio column of a cash book, it shows a
Answer Details
When the letter "C" is written in front of an entry in the folio column of a cash book, it shows that it is a contra entry. A contra entry is a type of transaction in accounting that involves two accounts. In this type of entry, the debit and credit entries cancel each other out, resulting in a net effect of zero. In other words, if you were to add up the two entries, the total would be zero. This type of entry is used when money is transferred from one account to another, such as when you transfer money from your checking account to your savings account.
Question 23 Report
The concept that recognizes revenue at the time of sale and not only when cash is received is
Answer Details
Question 25 Report
Use the following information to answer the question below
Ajem and Ogah were in partnership sharing profits and losses in the ratio 2:3. Interest on capital and drawings were 5% and 3% respectively. The following details relate to the partnership for the year 2017.
| Ogah | Ajem | |
| Capital Account | 60,000 | 65,000 |
| Current Account | 40,000 | 50,000 |
| Drawings | 20,000 | 30,000 |
| Salary | 10,000 | - |
Netprofit was 100,000
Ajem's current account balance was
Answer Details
Question 27 Report
To show the evidence of payment to a government ministry, the revenue collector issues a
Answer Details
Question 28 Report
Debtors Control Account is kept in the
Question 29 Report
Use the following information to answer the question below
A firm bought a lathe machine for Le 45,600 on 1s January 2015. The life span was estimated to be 20 years while scrap at the end of the period was valued at Le 1,600. It was to be depreciated by the fixed installment method.
The depreciation per annum is
Answer Details
The fixed installment method of depreciation assumes that the asset loses an equal amount of value each year over its useful life. To determine the depreciation per annum using this method, we subtract the salvage value (scrap value) from the original cost of the asset and then divide the result by the useful life in years. In this case, the original cost of the lathe machine is Le 45,600, and the salvage value is Le 1,600. The useful life of the machine is 20 years. Therefore, the annual depreciation is: Depreciation = (Original cost - Salvage value) / Useful life Depreciation = (45,600 - 1,600) / 20 Depreciation = 44,000 / 20 Depreciation = 2,200 Therefore, the depreciation per annum for the lathe machine is Le 2,200.
Question 30 Report
Where fixed capital account is maintained, partners Share of profit is transferred to the
Answer Details
In accounting, partners' share of profit is transferred to the credit side of the partner's current account. The current account is a record of the transactions related to each partner's capital contributions, drawings, and share of profits or losses. So, when a profit is made, the partners' share of that profit is credited to their current account to show an increase in their capital balance. On the other hand, the fixed capital account is a record of the long-term investments made by the partners into the business, such as buildings, machinery, and equipment. The fixed capital account is not usually affected by the profits or losses of the business, but rather by any changes in the value of the long-term investments. So, in summary, the partners' share of profit is credited to their current account, while the fixed capital account is maintained separately.
Question 31 Report
Use the following information to answer the question below
Opening capital ---10,800
Drawings----------- 2,500
Trade creditors ----2,560
Trade debtors ------2,880
Cash in hand -------1,000
Net profit------------- 6,000
The working capital is
Answer Details
Question 32 Report
Subscription owing $ 6,000 (31/12/2014);
Subscription in advance $ 4,000 (31/12/2014);
Cash received as subscription during the year was $ 80,000.
The subscription for the year 2014 was?
Answer Details
Question 35 Report
The concept which seeks to prevent profits from being overstated is
Answer Details
The concept that seeks to prevent profits from being overstated is "prudence." Prudence is a principle of accounting that requires caution and conservatism when making estimates or judgments about financial transactions. It encourages accountants to be careful not to overstate the value of assets or profits, and to recognize potential losses or liabilities in a timely manner. By applying the principle of prudence, accountants ensure that financial statements accurately reflect the financial position and performance of a business. This helps to maintain the credibility and integrity of financial reporting, and enables stakeholders to make informed decisions based on reliable information.
Question 36 Report
The document used to correct an undercharge on an invoice is
Question 37 Report
ln a not-for-profit organization, the accumulated fund is
Question 38 Report
Goods bought from Sanmah for Le1,600 was entered into Shamail's Account. This is an error of
Answer Details
Question 39 Report
Use the following information to answer the question below
April 11: Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000
The cash balance at the end of the period is
Answer Details
To determine the cash balance at the end of the period, we need to add up all the cash inflows and subtract all the cash outflows. Starting with the cash inflows: - Cash sales on April 11: N50,000 - Cash sales on April 28: N49,000 Total cash inflows: N99,000 Moving on to the cash outflows: - Bought goods for cash on April 20: N30,000 - Bought postage stamp for cash on April 26: N5,000 - Cash purchases on April 29: N11,000 - Paid salaries on April 30: N18,000 Total cash outflows: N64,000 To determine the cash balance, we subtract the total cash outflows from the total cash inflows: Cash balance = Total cash inflows - Total cash outflows Cash balance = N99,000 - N64,000 Cash balance = N35,000 Therefore, the cash balance at the end of the period is N35,000.
Question 40 Report
Quick ratio is calculated as X-y:z, where
Answer Details
The quick ratio is a measure of a company's ability to pay off its short-term debts with its most liquid assets. It is calculated by subtracting the value of a company's stock (raw materials, work in progress, finished goods) from its current assets, and then dividing the result by the company's current liabilities. So, the correct option is (3): x = current assets; y = stock and z = current liabilities. This is because the quick ratio formula subtracts the stock (inventory) value from the current assets to arrive at the most liquid assets available for paying off short-term obligations. And, the current liabilities reflect the company's immediate debts that must be paid off in the short term.
Question 41 Report
In public sector accounting, salaries of employees are classified as
Answer Details
In public sector accounting, salaries of employees are classified as recurrent expenditure. Recurrent expenditure refers to regular and routine expenses incurred by an organization in carrying out its day-to-day activities. These expenses are incurred repeatedly and are necessary for the normal functioning of the organization. Salaries of employees are a type of recurrent expenditure as they are paid regularly, such as monthly or bi-weekly, to compensate employees for their services. This is in contrast to capital expenditure, which refers to the costs incurred for acquiring and improving assets such as land, buildings, and equipment. Therefore, since salaries are a routine and regular expense necessary for the day-to-day operations of an organization, they are classified as recurrent expenditure in public sector accounting.
Question 42 Report
The net book value of the machine as at 31st December 2017 was
Question 45 Report
The partner whose liability goes beyond his capital is a
Answer Details
A general partner is a type of business partner whose liability goes beyond their capital. This means that if the business is sued or incurs debt, the general partner is personally responsible for paying those debts, even if they go beyond the amount of money they have invested in the business. In simple terms, a general partner is fully responsible for the financial obligations of the business, unlike a limited partner whose liability is limited to the amount of money they have invested. So, if you are a general partner in a business, you are responsible for all of the debts and obligations of the business, even if they are more than the amount of money you have invested.
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