Accounts - Principles of Accounts Past Questions and Answers

When provision is made for doubtful debt, the accounting entries are debit

A Profit and loss account, credit debtors account
B Debtors account, credit trading account
C Profit and loss account, credit sales account
D Trading account, credit debtors account
E Profit and loss account, credit provision for doubtful debt account

Question 172:

Chukwu's Capital at 1/1/89 and 31/12/89 were N30,000 and N50,000 respectively. During the year he introduced additional capital of N10,500 and withdrew N5,300 for private use. What is his profit for 1989?

A N30,500
B N25,300
C N20,000
D N15,800
E 14,800

Question 173:

The excess of the par value of a company's shares over the amount for what for which they are issued to the public is called

A Discount
B Profit
C Loss
D Premium
E Reserve

Question 174:

Which of the following is not a balance sheet item?

A Provision for discount
B Outstanding wages
C Prepais rent
D Proposed dividend
E Dividend received

Question 175:

Which of the following is not on debtor's legal control account?

A Credit sales
B Cash sales
C Bills receivable
D Dishonoured cheque
E Cash received from customers