Accounts - Principles of Accounts Past Questions and Answers

A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?

A 35%
B 30%
C 20%
D 15%

Question 27:

Given:
Cash purchases ..............................N25000
Trading creditors............................N45000
Opening balance of trade creditors...........N35000
Calculate the purchases for the period?

A N80,000
B N35,000
C N105,000
D N70,000

Question 28:

Which method of pricing can be used satisfactorily in either a rising or falling price situation?

A Standard price
B Marketing price
C FIFO
D Average method

Question 29:

Given:
Capital at start.......................N3250
Capital at close ......................N6250
Additional capital during the period...N1000
Calculate the profit or loss?

A N8500 profit
B N2000 loss
C N2000 profit
D N8500 loss

Question 30:

In a control account, discount received is found on the?

A Debit side of the purchase ledger control account
B Debit side of the sales ledger control account
C Credit side of the purchase ledger control account
D Credit side of the sales ledger control account