Accounts - Principles of Accounts Past Questions and Answers

Given:
Capital ...........N1000
Liabilities........N500
Assets.............N1500
The accounting equation can be expressed as?

A N1000 + N500 + N1500 = N3000
B N1000 - N500 + N1500 = N2000
C N1000 + N500 = N1500
D N1500 + N500 = N2000

Question 12:

Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?

A N280,000
B N289,000
C N250,000
D N340,000

Question 13:

Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
What is the actual profit or loss arising from the vehicle disposed of?

A N250 000 loss
B N50 000 loss
C N450 000 profit
D N575 000 profit

Question 14:

Given:
(i) Order of performance
(ii) Order of liquidity
(iii)Vertical order
(iv) Horizontal order
The order in which a balance assets is arranged are?

A I and ii
B I and iv
C Ii and iii
D Iii and iv

Question 15:

Provision for discount allowed can be recorded as debit to?

A The profit and loss account and a credit to provision for discount allowed
B Provision for discount allowed and a credit to the profit and loss account
C Discount allowed and a credit to the profit and loss account
D Expenses and a credit to customers' account