Accounts - Principles of Accounts Past Questions and Answers

Which of the following is not true of a partnership business without written agreement?

A Profit and losses will shared equally
B Interest not to be paid on capital
C Interest on drawings is to be at the rate 5% per annum
D Salaries are not allowed to partners
E Money in excess of capital agreed to subscribe is to attract an interest of 5% per annum

Question 1532:

Creditors at start was N940 and purchases for the year was N4,060. During the year, cash paid to creditors was N3,890. N490 was received as discount. What is the creditors amount in the balance sheet?

A N450
B N620
C N660
D N1,110
E N1,430

Question 1533:

A cheque drawn for N1200 was entered in the cash book as a receipt. The accounting entries are

A Credit cash account, debit bank account with N1,200
B Debit cash account, creidit bank account with N1,200
C Credit cash account, debit suspense account with N2,400
D Debit cash account, debit suspense account with N2,400
E Credit bank account, debit suspense account with N2,400

Question 1534:

Debtors on 1st January was N1,490 and sales for the year was N5,760. Cash received from debtors during the year was N5,410. Bad debt written off was N410. Discount allowed amounted to N320. What was the debtors' balance at the end of the year?

A N1,110
B N1,430
C N1,520
D N1,750
E N2,980

Question 1535:

A N2,920
B N3,240
C N3,330
D N5,340
E N5,440