Accounts - Principles of Accounts Past Questions and Answers

When shares are issued at a discount, entries are to debit

A Application allotment account and credit discount accoun
B Discount account and credit
C Cash account and credit discount account
D Discount account and credit bank account

Question 37:

When there is no basis of apportionment in an organization, the expenses should be apportioned based on

A Sales
B Purchases
C Equality
D Floor space

Question 38:

Department K Y
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #8,000 #30,000
Closing stock #3,000 #1,500
Rate expenses of #1,500 are apportioned in the ratio 1:2.
The gross profit for K is

A #23,500
B #60,500
C #60,700
D #82,500

Question 39:

Department K Y
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #8,000 #30,000
Closing stock #3,000 #1,500
Rate expenses of #1,500 are apportioned in the ratio 1:2.
What is the net profit of Y?

A #52,000
B #68,300
C #68,800
D #69,300

Question 40:

The objective of departmental account is to

A Ascertain the cost of running the organization
B Ascertain the amount of profit or loss for each department
C Ascertain the amount of profits for losses for the enterprises
D Offset the loss of each treatment