Accounts - Principles of Accounts Past Questions and Answers

If Mr. Ajasin paid his creditors N5000 out of N20 000 owed, what would be the effect of this transaction on the accounting equation?

A A decraese in the total asssets by N5000
B An incraese in the total liabilities and owners' equity by by N15 000
C An increase in the total assets by N15 000
D A decrease in owners' equuity by N5000

Question 632:

One of the benefits of book-keeping records is that they?

A Give prospective investors accurate and direct information for decisions-making
B Provide the public and creditors with details of the operations of an entity
C Give legal backing to all the transactions undertaken by a business entity
D Provide information without which the task of management would be difficult

Question 633:

Given:
Bank overdraft..............N2000
Cash........................N2000
Furniture...................N4000
Calculate the total amount on the credit side of the trial balance?

A N4000
B N2000
C N6000
D N8000

Question 634:

A sole trader purchased goods in cash worth N2000 at 2% discount and made a cash sale of N1000 at the same rate of discount. Determine the amount of discount allowed?

A N20
B N40
C N400
D N200

Question 635:

If cheques of N40 000 were received but a cheque of N8 000 was dishonoured, the amount owed was

A N9 000
B N20 000
C N 1000
D N17 000