Jamb Accounts - Principles of Accounts Questions
Question 221:
If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?
- A Preliminary expenses, credit cash accounts
- B Promoter, credit creditors' accounts
- C Lawyer's credit cash accounts
- D Cash , credit incorporation accounts
Question 222:
Calls in advance are treated in the balance sheet as?
- A Current asset
- B Current liability
- C Fixed assets
- D Fixed liability
Question 223:
Shares issued to a vendor in payment of business purchased would require a debit to?
- A Cash account and credit to share capital account
- B Share capital account and credit to vendor's account
- C Vendor's account and credit to share capital account
- D Share capital account and credit to cash account
Question 224:
The best method of allocating expenses among departments is to?
- A Allocate expenses to each department in proportion to the sales of that department
- B Charge against each department those costs which are within its control
- C Charge expenses against each department in proportion to the purchases of that department
- D Allocate expenses to each section of the department in relation to the number of people
Question 225:
To record the transfer of stock from one department to another, the correct entry would be to debit?
- A Goods outwards and credit goods inwards
- B Merchandise account and credit department stock account
- C Department transfering and credit department receivving
- D Department receiving and credit department transfering