Accounts - Principles of Accounts Past Questions and Answers

Use the information below to answer this question A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis. The share premium account would be

A Credited with application and allotment ₦187,500
B Debited with application and allotment ₦375,000
C Debited with application and allotment ₦187,500
D Credited with application and allotment ₦375,000

Question 22:

Use the information below to answer this question A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis. The second final call account was debited with

A Ordinary share capital account ₦187,500
B 12% preference share capital account ₦187,500
C 12% preference share capital ₦375,000
D Bank account ₦187,500

Question 23:

If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to

A Have a higher cost of goods sold
B Have a higher value of closing stock
C Have a higher gross profit
D Pay higher income tax

Question 24:

Use the information below to answer the question [table][tbody][tr][td]Gross profit b/dLess: Salaries and wages Electricity Depreciation Net profit c/d [/td][td]Dept A ₦[u]6,000[/u]1,800 ? 600?[u]6,000[/u][/td][td]Dept B ₦[u]4,000[/u]1,200 ? ?[u]1,6004,000[/u][/td][td]Total ₦[u]10,000 [/u] 3,000 2,000 1,000 [u] 4,00010,000[/u][/td][/tr][/tbody][/table] It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively. What is the net profit made by department A?

A ₦2000
B ₦3600
C ₦3000
D ₦2400

Question 25:

Use the information below to answer the question [table][tbody][tr][td]Gross profit b/dLess: Salaries and wages Electricity Depreciation Net profit c/d [/td][td]Dept A ₦[u]6,000[/u]1,800 ? 600?[u]6,000[/u][/td][td]Dept B ₦[u]4,000[/u]1,200 ? ?[u]1,6004,000[/u][/td][td]Total ₦[u]10,000 [/u] 3,000 2,000 1,000 [u] 4,00010,000[/u][/td][/tr][/tbody][/table] It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively. The depreciation to be charged to department B is

A ₦500
B ₦300
C ₦400
D ₦600