POA 19

A trader had an opening capital of $3,900. If his drawings were $900 and his closing capital was $4,860, what was his net profit?

• $900

• $960

• $1,860

• $3,000

A company's rent expense account had an opening debit balance of $2,000. During the year $6,000 was paid for rent. At the end of the year there was a closing debit balance of $1,500 in the account.

What was the rent expense recorded for the year?

• $6,000

• $6,500

• $7,500

• $9,500

In a partnership which of the following transactions is compulsory?

• Paying of salaries

• Interest on captial

• Interest on Drawings

• Sharing of profits or losses

Which of the following terms describes the exchange of goods and services?

• Journal

• Transaction

• Balance Sheet

• Trial Balance

Which of the following BEST describes the 'double entry' system of accounting?

• A ledger account must have two sides

• An account must be written twice in the ledger

• Each transaction must have a debit entry and a credit entry

• Each transaction must be written into TWO subsidiary books

Which of the following items are examples of current liabilities?

I. Mortgages

II. Accounts Payable

III Accrued wages

• I and II only

• I and III only

• II and III only

• 1,iii and III

Which of the following is usually used to complete a general journal?

• Narration

• Description of assets

• Description of liabilities

• Name of book to which entry must be posted

The purpose of electronic clock cards is to record

• Employees' skills

• Employees' attendance

• Jobs done by employees

• Deductions from employees wages

The Cash Book is BEST used for recording

• goods sold for cash

• goods returned for cash

• goods purchased for cash

• Cash receipts and cash payments

Item 10 refers to the following data which pertain to Tarisha Ali, an employee of a bank.

Monthly Salary $3,500

Overtime $800

Income Tax Rate:

25% on every dollar

$2,000 of monthly salary

30% on overtime earned

The TOTAL income tax to be deducted from Tarisha Ali is

• $615

• $740

• $875

• $1,075