Accounts - Principles of Accounts Past Questions and Answers

To account for expenses paid by head office on behalf of the branch, the branch should?

A Debit head office account and credit cash
B Debit profit and loss account and credit headoffice account
C Credit cash and debit profitand loss account
D Credit profit and loss account and debit head office account

Question 42:

The correct entry to reflect the receipt of cash sent by a branch to a head office is?

A Debit cash and credit branch current account
B Debit branch, current account and credit cash
C Credit branch, debtors and debit cash
D Credit branch current account and debit branch debtors

Question 43:

The officer responsible for ascertaining whether all public expenditure and appropriation are in line with approved guidelines is the?

A Acountant General
B Auditor General
C Finance Minister
D Permanent Secretary

Question 44:

Use the information below to answer question
Given: 31/12/98 31/12/99
Assets: Plant and Mach. N1,500 N1,200
Fixtures N700 N520
Stock N500 N600
Debtors N900 N400
Cash N200 N300
Liabilities: Creditor N500 N600
Loan N600 N400
What is the capital from the opening balance sheet?

A N3,600
B N 2,700
C N2,070
D N1,520

Question 45:

Given:
Authorized Capital: N
100,000 ordinary shares of N 1 eash
Issued and fully paid:
50,000 ordinary shares of N 1 each 50,000
10, 000 8% perference shares
of N 1 each
Reserves 10,000
Creditors 25,000
Debtors 13 000
Cash in hand 5000
Determine the net current assets

A N 43,000
B N 28,000
C N13,000
D N3,000