Stock at branch 1st January at cost
Goods sent to branch at cost
Returns to head office
Stock at branch 31st December at cost
Use the information below to answer the question.
Adex Ltd. Issues stock to its retail branches at cost price.
Calculate the cost of goods credited to the head office trading account
- A. #7200
- B. #7460
- C. #7500
- D. #7660
In dealing with incomplete record, fixed assets are posted to___________-
- A. Profit and loss account as brought forward figure
- B. Closing balance sheet as carried forward figure
- C. Closing balance sheet as brought forward figure
- D. Profit and loss as carried forward figure
33. Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January ,2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?
- A. ₦705
- B. ₦500
- C. ₦1000
- D. ₦10000
34. Which of the following should not be adjusted for in the profit and loss account?
- A. Accruals
- B. inventory
- C. subscription
- D. depreciation
35. Use the information below to answer the question .
Goods worth #300 was transferred from department Q to P. Similarly, P’s total expenses for the period was #200.
Department P’s net profit was
- A. #2,500
- B. #2,800
- C. #3,000
- D. #5,200
36. In the absence of a partnership deed, the act stipulates that____________
- A. An amount should be fixed as salaries for partners
- B. Profits and losses should not be shared equally
- C. Interest on partner’s loan should be 25%
- D. Interest should not be allowed on partners drawings
37. A partnership’s internal regulation are set out by________—
- A. A constitution
- B. A law
- C. A deed
- D. An article
38. Sule and Ahmed are in partnership sharing profit and losses equally. If Khadija is admitted as a new partner to take 1/5 th as her share. What is the new profit or loss sharing?
- A. Sule1/3, Ahmed1/3, Khadija 1/3
- B. Sule1/3, Ahmed1/3, Khadija 1/3
- C. Sule1/5, Ahmed1/5, Khadija3/5
- D. Sule2/5, Ahmed1/5, Khadija2/5
39. Transfers from the head office to branches are best carried out at__________
- A. Cost price
- B. Cost plus mark up
- C. Selling price
- D. Market price
40. Which of the following is a common cause of a discrepancy between head office and branch trial office________
- A. Stock and repayment
- B. Creditors and cash in transit
- C. Stock and cash in transit
- D. Debtors and cash in transit