Accounts - Principles of Accounts Past Questions and Answers

Which of the following does not relate to government accounting system?

A Vote
B Trial balance
C Consolidated fund
D Profit and loss account

Question 1832:

Jeng Limited disposed a fixed asset in 1999 for N2,000. The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method. What was the book value when the asset was sold?

A N8,000
B N6,000
C N4,000
D N2,000

Question 1833:

Jeng Limited disposed a fixed asset in 1999 for N2,000. The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method. What is the correct entry for the sale of the asset in the Asset Account and Disposal of Asset Account? Debit

A Fixed Asset Accunt N4,000, credit Disposal of Assets Account N4,000
B Disposal of Asset Account N4,000, credit fixed Access Account N4,000
C Disposal of Asset Account N2,000, credit Fixed Asset account N2,000
D Fixed Asset Account N2,000, credit Disposal of Assets Account 2000

Question 1834:

Jeng Limited disposed a fixed asset in 1999 for N2,000. The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method. What is the profit or loss on the disposal asset?

A N4,000 profit
B N2,000 profit
C N2,000 loss
D N2,000 loss

Question 1835:

"The Accountant thinks the investment in the books are worthless". This is

A Consistency concept
B Objectivity concept
C Conservatism concept
D Money measurement concept