Accounts - Principles of Accounts Past Questions and Answers

Bola, UTC's regular customer, owed N1,00 on account of a radio bought. If he sent in a cheque for N1,500, UTC would send him a

A Credit note
B Debit note
C Journal voucher
D Way bill

Question 47:

A payment of cash of N20 to John was entered on the receipt side of the cash book in error and credited to John's account. Which of the following journal entry can be used to correct the error?

A John: N40 Dr, cash: N40 Cr
B Cash: N40 Dr, John: N40 Cr
C John: N20 Dr, cash: N20 Cr
D Cash: N20 Dr, John: N20 Cr

Question 48:

The following represent extracts from the trading account of a retail outlet for a given month: Opening stock N2,400 Closing stock N6,400 Other expenses N2,000 Sales N11,000 Profit N900 What is the purchase figure for the month?

A N13,000
B N12,100
C N12,000
D N11,200

Question 49:

Adama's bank account showed an overdraft of N600 on 31st march. On going through the account, it was discovered that the N1,080 paid into the account on 29th March had not been credited. what should be the balance in Adama's cash accounts?

A N1,680 Dr
B N1,080 Cr
C N600 Dr
D N480 Cr

Question 50:

Why are adjustments in the profit and loss account necessary?

A To cover some expenses of the following year
B To ascertain the actual expenses incurred and income earned during the year
C To show the provision made during the year
D To show the total expenses paid and income received during the year