1

Errors in the ledger can be corrected through

A

journal proper

B

sales day book

C

purchases day book

D

control account

CORRECT OPTION:
a

2

Item in the bank statement of a business but not in the Cash Book before preparation of bank reconciliation statement do not include

A

bank charges

B

standing order

C

presented cheque

D

interest overdraft

CORRECT OPTION:
c

3

Discount received is

A

credited to the trading account

B

debited to the Profit and Loss Account

C

credited to the Profit and Loss Account

D

credited to the Appropriation Account

CORRECT OPTION:
c

4

Carriage outwards is charged to

A

credited to the trading account

B

debited to the profit and loss account

C

credited to the profit and loss account

D

credited to the appropriation account

CORRECT OPTION:
a

5

Carriage outwards is charged to

A

trading account

B

appropriation account

C

purchases account

D

profit and loss account

CORRECT OPTION:
d

Carriage outwards refers to the seller's cost of delivering goods to the buyer. Carriage outwards is the expense of the seller when the terms of the sale are FOB destination. Under the accrual method of accounting, the cost of carriage outwards should be reported on the income statement as an operating expense in the same period as the sale of the goods.

It is charged with profit and loss account.

It is charged with profit and loss account.

6

Use the following information to answer the given question

\(\begin{array}{c|c} & N \ \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \\ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}\)

What was the amount of sales for the year?

\(\begin{array}{c|c} & N \ \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \\ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}\)

What was the amount of sales for the year?

A

N8,500

B

N6,625

C

N6,500

D

N6,000

CORRECT OPTION:
c

7

Use the following information to answer the given question

\(\begin{array}{c|c} & N \ \hline \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}\)

Assuming a gross profit of N3,000, what was the net profit?

\(\begin{array}{c|c} & N \ \hline \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}\)

Assuming a gross profit of N3,000, what was the net profit?

A

N3,375

B

N2,625

C

N2,000

D

N1,875

CORRECT OPTION:
d

8

Use the following information to answer the given question

\(\begin{array}{c|c} & N \ \hline \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}\)

The debtors balance to be shown in the Balance Sheet at 31st December, 1998 is

\(\begin{array}{c|c} & N \ \hline \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}\)

The debtors balance to be shown in the Balance Sheet at 31st December, 1998 is

A

N6,000

B

N3,250

C

N2,000

D

N1,250

CORRECT OPTION:
d

9

Which of the following is a contra entry?

A

lodgement of cheques into bank account

B

Loggement of cash in hand into bank account

C

withdrawal of cash for private use

D

treatment of discount receivd in the cash book

CORRECT OPTION:
b

10

Profit expressed as a proportion of cost price is

A

gross profit

B

mark-up

C

margin

D

profit percentage

CORRECT OPTION:
b

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