Accounts - Principles of Accounts Past Questions and Answers

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

Question 17:

Sales ledger control account contains the total amount in respect of

A Creditors
B Debtors
C Investors
D Shareholders

Question 18:

The purchase ledger control account of a company had an opening balance of N45,600 credit and closing balance of N72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of N18,600 on this account. What were the credit purchase for the period?

A N509,600
B N482,600
C N428,600
D N418,400

Question 19:

The starting point for the production of accounts from incomplete records is to

A Ascertain the total sales
B Compute the opening stock of goods sold
C Verify the total purchase
D Prepare an opening statement of affairs

Question 20:

I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
Compute the average amount of stock in hand at cost price

A N3,860
B N3,806
C N3,680
D N3,086