Accounts - Principles of Accounts Past Questions and Answers

Use the information below to answer this question:

i. cash at bank
ii. cash in hand
iii. premises
iv. land
v. creditors
vi. loan from friends/bank

Determine the fixed assets

A Iii and iv
B I and v
C Ii and iv
D Ii and vi

Question 1332:

Use the information below to answer this question:
i. cash at bank
ii. cash in hand
iii. premises
iv. land
v. creditors
vi. loan from friends/bank

What are the current assets?

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

Question 1333:

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 1334:

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 1335:

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