Accounts - Principles of Accounts Past Questions and Answers

A pottery company had sales of N176,000 during the current period and a gross profit rate of 40%.
The company's cost of merchandize available for sale during the period was N128,000. The company's ending inventory is?

A N22,400
B N32,000
C N51,200
D N76,800

Question 157:

On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?

A N10,000 loss
B N2,000 loss
C N6,000 gain
D N8,000 gain

Question 158:

The balance on a purchase ledger control account represents the?

A Present amount that a business owes its suppliers at date
B Total credit avaiable to the end of the year to be utilized in future
C Total credit the business enjoyed for the particular year from its suppliers
D Total credit owd the business by its customers

Question 159:

A powerful instrument of control over both the sales ledger and the clek whose duty is to post the ledger is the?

A Total debtors account
B Purchase day book
C Sales day book
D Cash book

Question 160:

Mini Enterprises Sales Ledger as at 31/12/94
read:
N
Balance b/f 12750
Total credit sales 28185
Payments by debtors 12112
Discount allowed 638
Sales returns 1500
Prepare the sales ledger control account and determine the balance due from debtors.

A N40,935
B N27,961
C N26,685
D N1,185