Accounts - Principles of Accounts Past Questions and Answers

The straight-line depreciation is

A A fixed sum set aside for the replacement of the asset
B A fixed percentage of the balance of the asset at the end of the year
C An estimated amount each year
D An inctease in the value of the asset
E A fixed percentage of the cost of the asset written off each year

Question 1357:

motor car costing N10,000 was depreciated at 20 per cent anuum by the diminishing balance method. Two years late, it was sold for N6,000. The net result of the sale was

A N6,400 profit
B N6,000 loss
C N4,000 loss
D N400 profit
E N400 loss

Question 1358:

Use the following information to answer the given question: \(\begin{array}{c|c} \text{Date of delivery} & customer & \text{Gross amount N} & \text{Trade discount %} & \text{Cash Discount %} & \text{Terms of payment} \\ \hline \text{4/1/86} & \text{Mr. A.F.P} & 12,000 & 15 & 10 & \text{30 days of delivery} \end{array}\) The amount of discount in the ledger is

A N10,200
B N2,820
C N1,800
D N1,200
E N1,020

Question 1359:

Use the following information to answer the given question: \(\begin{array}{c|c} \text{Date of delivery} & customer & \text{Gross amount N} & \text{Trade discount %} & \text{Cash Discount %} & \text{Terms of payment} \\ \hline \text{4/1/86} & \text{Mr. A.F.P} & 12,000 & 15 & 10 & \text{30 days of delivery} \end{array}\) If Mr. A.F.P settled his account a week after delivery, his total discount would be

A N10,200
B N2,820
C N1,800
D N1,200
E N10,200

Question 1360:

Use the following information to answer the given question: \(\begin{array}{c|c} \text{Date of delivery} & customer & \text{Gross amount N} & \text{Trade discount %} & \text{Cash Discount %} & \text{Terms of payment} \\ \hline \text{4/1/86} & \text{Mr. A.F.P} & 12,000 & 15 & 10 & \text{30 days of delivery} \end{array}\) If Mr. A.F.P. settled his account after 30 days of the delivery, his total discount would be

A N1,020
B N1,200
C N10,800
D N2,820
E N10,800