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Principle of Accounts

Total questions: 40

Worksheet time: 21mins

Name
Class
Date
1.

Which of the following is entered in the purchases account of a grocery?

a)

Goods for sale

b)

Duplicating mechanics

c)

Typewriters

d)

Office Stationary

2.

Which of the following transaction should be debited in the cash account?

a)

Bought goods for cash from J. Jones

b)

Sold goods for cash

c)

Paid office cleaner

d)

Paid Loan Account

3.

Patrick is to Join Dennis and Tony in partnership. Patrick brings to the partnership furniture valued at $3 000. and a motor van worth $5 000. how much would be Patrick's capital?

a)

$4 000

b)

$6 000

c)

$8 000

d)

$9 000

4.

Work in progress January 1 $1 600

Work in progress December 31 $1 700

Cost of material used $3 000

Indirect expenses $3 200

Factory wages $5 000


from the above list of balances, what what is the cost of goods produced?

a)

$8 000

b)

$ 8 700

c)

$11 100

d)

$11 200

5.

John Jones bought goods on credit from Henry Stokes for $15. The correct entry for recording this transaction in the book of Henry stokes is a

a)

Credit entry in the name of Henry Stokes

b)

Credit entry in the account of John Jones

c)

Debit entry in the account of Henry Stokes

d)

Debit entry in the account of John Jones

6.

The recording and analysis of financial records is called

a)

Accounting

b)

Adjusting

c)

Record keeping

d)

Decision making

7.

A trader started with a capital of $20,000 and used $12 000 of it to purchase building and plant. what is the new capital balance?

a)

$32 000

b)

$20 000

c)

$12 000

d)

$8 000

8.

If a Buyer's invoice has been over stated the seller should send him a

a)

Debit note

b)

Corrected invoice

c)

Credit note

d)

Return voucher

9.

Bad Debts _____________________$70

K.Lamb_________________________$70


How would the above journal entry posted in the ledger?

a)

Debit Profit &Loss:

Credit Bad Debts

b)

Debit K. Lamb;

Credit Profit & Loss

c)

Debit K. Lamb;

Credit Bad Debts

d)

Debit Bad Debit

Credit K. Lamb

10.

Petty Cash Cashier information


Imprest amount ________________________$200

petty cash expense______________________$150

Received for stamps_____________________$10


what amount will be reimbursed to restore the imprest?

a)

$40

b)

$140

c)

$150

d)

$200

11.

Debtors at the start of the year___________________$8 200


Cash received from debtors during the year_______$17 400


Debtors at the end of the year_____________________$9 300


the following information was provided by a trader, what was his credit sales for the year?

a)

$16 300

b)

$18 500

c)

$25 600

d)

$26 700

12.

You are required to reconcile the debit balance in the cash book with the balance found in the bank statement. A credit entry recorded on the bank statement but not in the cash book should be?

a)

Added to the Cash Book balance

b)

Deducted from the Cash Book balance

c)

Added to the balance from the Bank Statement

d)

Deducted from the balance from the bank statement

13.

In a partnership a partner, Mr. B. takes home merchandise costing $80 this amount this amount should be charged to

a)

Merchandise/Purchase Account

b)

Sales Account

c)

Mr. B's Drawings Account

d)

Mr. B's Capital Account

14.

A trade discount can be described an an amount deducted from the

a)

Catalogue price in determining the actual price

b)

Selling price when the customer pays within a specific period

c)

Invoice price because a large quantity of goods is bought

d)

Selling price when an article has a flaw

15.

A. Gill Purchase a Machine for $3 500 from Wayne and Co. Ltd. paying $1 500 in cash and the balance in 10 days. which is the correct procedure for recording this transaction?

a)

Debit machinery a/c $3 500

credit cash a/c $2 000

b)

Debit purchase a/c $3 500

Wayne and Co. Ltd. $3 500

c)

Debit Machinery $3 500

credit cash a/c $1 500

Wayne and Co. Ltd $2 000

d)

Debit Wayne and company a/c Ltd. $2 000

Debit cash a/c $1 500

Credit purchase a/c $3 500

16.

The gross profit of a firm is $3 600;

bad debts $100; rent paid $120 which includes rent prepaid $20; general expense $80 discount received $110.


What is the net profit?

a)

$3 400

b)

$3 410

c)

$3 430

d)

$3 710

17.

Item 22 refers to the following business of T&T Ltd.


opening stock cost (cost price)________________$3 500

closing stock cost (cost price)_________________$4 200

cost of sales__________________________________$ 34 650


What is the rate of stock turn over?

a)

4.5

b)

9

c)

10

d)

8

18.

A trader sent Mr. Jones an invoice for $68 instead of $65. which note should the trader subsequently send to Mr. Jones?

a)

Promissory note

b)

Advice note

c)

Debit note

d)

Credit note

19.

The excess of income over expenditure of a non-profit-making organization is called

a)

Gross profit

b)

Net profit

c)

Accumulated fund

d)

Surplus

20.

which of the following is a prime cost in Manufacturing Accounts?

a)

Depreciation

b)

General expense

c)

Direct wage

d)

Production overhead

21.

in preparing an income and expenditure Account, subscriptions paid in advance should be

a)

Added this year and subtracted next year

b)

Subtracted this year and added next year

c)

Subtracted this year and entered into the receipts Payments Account next year

d)

Added this year and entered into the receipts and Payment Account this year

22.

Which of the following should not be used when calculating total wages?

a)

Employees Register

b)

Income Tax Return Forms

c)

Pay Sheet

d)

Time Sheet

23.

use the information below to answer the following questions.


Stock_______________$2 200 Bank over draft $3 000


Machinery__________$4 000 Debtors $700

Creditors ___________$ 500 cash $5 000


what is the working capital?

a)

$2 200

b)

$4 200

c)

$7 200

d)

$8 200

24.

A vehicle was bought on January 1, 2005 for $30 000. it is depreciated at the rate of 10% per annum using the diminishing method. what will the depreciated charge for year ended December 31, 2006?

a)

$2 700

b)

$2 970

c)

$5 970

d)

$6 000

25.

Paul began his Photography business with $80 000 capital. Drawings during the year amount to $15 000 and his closing capital was $70 600 what was the amount of his net profit?

a)

$5 600

b)

$24 000

c)

$55 000

d)

$65 000

26.

An asset purchased for $1 000 is depreciated at 10% per annum using the diminishing balance method. what would be the value of the asset at the beginning of the third year?

a)

$800

b)

$810

c)

$900

d)

$1 190

27.

A form on which details of employees earnings and deductions for each pay period are assembled and summarized is frequently referred to as

a)

Payroll Register

b)

Payroll Distribution

c)

Employees Earnings Records

d)

Payroll

28.

On January 01, 2005 a firm owed $60 for electricity. During the year $1 250 was paid towards electricity. on December 31, 2005 total electricity usage for the year amounted to$1 800. What is the amount owing for electricity for the year ending December 31, 2005?

a)

$550

b)

$610

c)

$1 190

d)

$1 800

29.

The credit entry for of rent of $80 in the cash book is posted to the ledger as

a)

A credit rent account $80

b)

A Debit rent account $80

c)

A Debit in the cash account

d)

A credit in the cash account

30.

Which of the following is not a book of original entry?

a)

General Journal

b)

Cash Book

c)

Sales Day Book

d)

Ledger

31.

which of the following errors would NOT affect the profit of a business?

a)

Purchase of a motor van debited in purchase account

b)

sale of machinery credited in sales account

c)

An amount credited to discount received instead of debited to discount allowed

d)

Paul Mullings account debited instead of John's account

32.

The sum of $375 Imprest cash was advanced to the petty cashier on February 1, during the month the following payments were made:

Travelling expenses $46; postage$20; and stationary$123.


on February 28 the petty cash was reimbursed and no further payments were made. what was the petty cash balance after reimbursement?

a)

$186

b)

$189

c)

$375

d)

$564

33.

A firm has sales of $24 000 during the period and it adds a mark-up of 20%. what is the gross profit?

a)

$4 000

b)

$4 800

c)

$6 000

d)

$6 800

34.

Which item should NOT have been included in the Appropriation account?

a)

Debenture Interest $3 000

b)

Statutory Reserve $4 000

c)

Honorarium $6 000

d)

Proposed Dividend $15 000

35.

Which of the following items will be carried forward to the Appropriation Account in the new accounting period?

a)

Undistributed income from last year $1 600

b)

Statutory and special reserves, $7 500

c)

Honorarium $6 000

d)

undistributed income earned $5 100

36.

Paul Mullings has just started a business. he owns a motor car valuing $20,000 and a truck valuing $45,000. he decides to bring the tuck into the business. in determining the total value of the business's fixed assets he does not include the value of the motor car.


Which accounting concept is Paul Mullings observing?

a)

Money measurement

b)

Separate Entity

c)

Prudence

d)

Matching

37.

Paul Mullings and his Uncle are in Partnership with capitals of $6 000 and $4 000 respectively. Interest on capital is charged at the rate of 5% per annum. The firms net profit was $ 12 500.


what is Paul Mullings's hare of the net profit?

a)

$4 800

b)

$5 200

c)

$6 000

d)

$6 500

38.

Which of the following list of assets are arranged in the order of liquidity?

a)

Land, Machinery, stock , Debtors, Bank, cash

b)

Land, Stock, Machinery, Cash, Debtors, Bank

c)

Cash, Bank, Debtors, Stock, cash, Machinery, Land

d)

Bank, Debtors, Stock, Cash, Land, Machinery

39.

Mr. Mullings gross earnings is $9 500 per month, his income tax is 8% on gross earnings and national insurance contribution is $145 monthly. What is is net pay for June 2005?

a)

$9 355

b)

$8 595

c)

$8 740

d)

$7 687

40.

From which of the following items in the Trading Account should Return Outwards be deducted?

a)

Carriage outwards

b)

Carriage inwards

c)

Purchase

d)

Sales