Accounts - Principles of Accounts Past Questions and Answers

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

Question 42:

Which of the following is the capital reserve of a company

A Share premium
B Retained profit
C Accumulated depreciation
D Loss on forfeited shares

Question 43:

Given:
Applications were invited by the directors of Abiodun PLC for 500,000 ordinary shares of #1:00 each at #1:10 per share payable as follows;
On application 46k
On allotment 20k
1st Call 15k
2nd Call 19k
How much is to be paid for application?

A #230,000
B #280,000
C #500,000
D #550,000

Question 44:

The issued share capital is the number of shares that are

A Authorized by share holders
B Shared among the directors
C Fully subscribed
D In the share certificate

Question 45:

The distributable profit available to shareholders at the end of each year is the

A Total profit and debtors balance
B General reserve and retained profit
C Retained profit and fictitious assets
D Total profit less creditors balance