11. In the head office ledger, the value of goods sent to the branch are____________
- A. Debited to the branch current account
- B. Debited to the head office current account
- C. Credited to the head office current account
- D. Credited to the branch current account
12. If the purchase price exceeds the net assets of a company, the excess amount is debited to________________
- A. Cash account
- B. purchase account
- C. goodwill account
- D. sales account
13. Gross profit in the branch adjustment account is transferred to the branch____________
- A. Income and expenditure account
- B. profit and loss account
- C. receipt and payment account
- D. trading account
14. Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?
- A. 1 : 1
- B. 3 : 6
- C. 2 : 1
- D. 2 : 6
15. Calls in advance are treated in the balance sheet as_______
- A. Current asset
- B. Fixed asset
- C. Current liability
- D. Fixed liability
16. Why are adjustments in the profit and loss account necessary?
- A. To cover some expenses of the following year
- B. To show the provisions made during the year
- C. To show the total expenses paid and income received during the year
- D. To ascertain the actual expenses incurred and income earned during the year
17. Which of the following is not a type of branch?
- A. Dependent branch
- B. foreign branch
- C. independent branch
- D. single branch
18. In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________
- A. Debit entry
- A. Contra entry
- C. Credit entry
- D. Reversal entry
19. Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________
- A. Partners salaries
- B. Interest on capital
- C. Interest on loans
- D. Partners drawings
20. Use the information below to answer the question
| Liabilities ₦ | Assets ₦ |
| Capital 40,000 | Furnishing 10,000 |
| Ceiling Fan 1,500 | |
| Cash in Hand 28,500 | |
| 40,000 | 40,000 |
If at 31/1/95 the following information was ascertained;
(i). rent for shop #12,000 paid for the year
(ii). Total purchases #15,000
(iii). Total sales #8,200
(iv). Stock of goods left #10,000
(v). paid sales boy #500
If at 31/1/95 the following information was ascertained;
(i). rent for shop #12,000 paid for the year
(ii). Total purchases #15,000
(iii). Total sales #8,200
(iv). Stock of goods left #10,000
(v). paid sales boy #500
What is the balance on its cash account as at 31/1/95
- A. #22,800
- B. #9,200
- C. #800
- D. #21,200
