Accounts - Principles of Accounts Past Questions and Answers

Shares issued to a vendor in payment of business purchased would require a debit to?

A Cash account and credit to share capital account
B Share capital account and credit to vendor's account
C Vendor's account and credit to share capital account
D Share capital account and credit to cash account

Question 37:

The best method of allocating expenses among departments is to?

A Allocate expenses to each department in proportion to the sales of that department
B Charge against each department those costs which are within its control
C Charge expenses against each department in proportion to the purchases of that department
D Allocate expenses to each section of the department in relation to the number of people

Question 38:

To record the transfer of stock from one department to another, the correct entry would be to debit?

A Goods outwards and credit goods inwards
B Merchandise account and credit department stock account
C Department transfering and credit department receivving
D Department receiving and credit department transfering

Question 39:

Use the information below to Answer questions 46 and 47.
Among Limited invoiced goods at a cost of N10,000 to its Ikeja branch at a marginal of 20%. The branch later returned goods worth N1,200 at invoice price to the head office.
The profit marginal should be?

A Debit to goods sent to branch account
B Debit to branch stock adjustment account
C Credit to branch adjustment account
D Credit to branch stock adjustment account

Question 40:

What is the correct entry in the head office books at the point of initial transfer of the goods?

A Branch stock account would be credited with
B Branch stock account would be debited with N12,000
C Goods sent to branch account would be debited with N10,800
D Goods sent to branch account would be credited with N12,000