Accounts - Principles of Accounts Past Questions and Answers

The accumulation fund of a non-trading concern can equally be referred to as?

A Members' equity
B Share capital
C General fund
D Surplus fund

Question 267:

When a purchase business is revalued, the effect is that?

A A decrease in the value of asset has no effect on value of goodwill
B An increase in the value of asset is treated as an increase in the value of goodwill
C A decrease in the value of asset is treated as an decrease in the value of goodwil
D An increase in the value of asset is treated as an decrease in the value of goodwill

Question 268:

An item of appropriation in partnership profit and loss account is?

A Interest on partners' capital
B Interest on partners' loan
C Employees' salaries
D Partners' drawings

Question 269:

Use the information below to answer question
Rakiya and Joy are in partnership and agreed that 5% interest per annul is to be charged on drawings. The drawing made by both partners in one year were: Rakiya, N200 on March 31 and N300 on September 30. Joy, N100 on April 1 and N240 on July 1.
The interest on joy's drawing is?

A N6.00
B N7.25
C N9.00
D N9.75

Question 270:

Use the information below to answer question
Rakiya and Joy are in partnership and agreed that 5% interest per annul is to be charged on drawings. The drawing made by both partners in one year were: Rakiya, N200 on March 31 and N300 on September 30. Joy, N100 on April 1 and N240 on July 1.
Assuming that Rakiya was not credited with any income during the period, what is her closing current account balance?

A N340,000 credit
B N349,75 debit
C N500.00 credit
D N 511.25 debit