Accounts - Principles of Accounts Past Questions and Answers

The understatement of closing value of work-in-process would have the effect of?

Emeka Manufacturing Company (Extract) Manufacturing Account.<br/>Direct material.....................N5 000<br/>Direct labour.......................N4 500<br/>Direct expenses.....................N3 000<br/>Factory overhead....................N2 500<br/>Selling distribution................N1 500<br/>Calculating the production cost?

Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.<br/>Calculate the profit for Adamu?

Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?

Share premium can be used to?<br/>i. write off discount on shares <br/>ii. give loans to directors<br/>iii.pay dividends<br/>iv. pay company's formation expenses.