BUSINESS DEPARTMENT (FINANCIAL ACCOUNTING)

The amount set aside out of profit earned by a company which are not meant for liability or contingencies are

• Dividend

• Provisions

• retained profit

• reserve

Which of the following is not the purpose of control account?

• Check on errors of addition

• Locate errors

• Locate missing figures

• monitor the cash book

A sole trader purchased goods in cash worth N2, 000 at 2% discount and made a cash sale of N 1, 000 at the same rate of discount. Determine the amount of discount allowed.

• N20

• N40

• N400

• N200

In a bonus issue of one share for every four held, a holder of 100,000 shares will get additional shares of

• N50,000

• N25,000

• N20,000

• N10,000

Purchase of goods on credit would be recorded in the account as a debit

• Supplier’s account, credit purchases account

• purchases account, credit cash account

• purchase account, credit supplier’s account

• supplier’s account, credit sales account

  
  

The primary book used to record the acquisition of  fixed assets on credit is

• Purchases journal

• returns outward book

• journal proper

• cash book

The final stage of the accounting process is

• interpretation

• recording

• reporting

• summarizing

Any loan given by a partner to the business where there is no partnership agreement attracts an annual interest of

• 6%

• 5%

• 3%

• 4%

Which of the following is found in a sales ledger account?

• Credit purchases

• bills payable

• discount received

• discount allowed

Calculate the total amount on the credit side of the trial balance

• N4,000

• N2,000

• N6,000

• N8,000