If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.
The reason for treating carriage inwards in the trading account is because
It is an expense on goods sold to customer
Carriage outwards is an expense item in the profit and loss account
It is an expense on goods purchased
It does not appear in the balance sheet
Correct answer is C
Carriage inwards is the cost of transportation charged on goods purchased. It must be added to the goods purchased. Carriage inwards is the cost incurred in order to bring the goods purchased to the present location hence it is debited to trading account.
| 31st December | 2020 | 2021 |
| D | D | |
| Stock at bar | 1400 | 1600 |
| Owing for bar supplies | 6500 | 7300 |
The net profit on the bar to be transferred to the income an expenditure account for the year ended 31st December 2021 is
D 11,600
D 11,800
D 13,000
D 12,400
Correct answer is A
According to the information provided:
Bar sales: D30,000
Bar purchases: D17,000
Opening stock: D1,400
Closing stock: D1,600
Rent: D1,200
To calculate the net profit on the bar, you can use the following formula:
Net Profit on Bar = Bar Sales - (Bar Purchases + Other Expenses + (Closing Stock - Opening Stock))
Net Profit on Bar = D30,000 - (D17,000 + D1,200 + (D1,600 - D1,400))
Net Profit on Bar = D30,000 - (D17,000 + D1,200 + D200)
Net Profit on Bar = D30,000 - D18,400
Net Profit on Bar = D11,600
Therefore, the net profit on the bar to be transferred to the income and expenditure account for the year ended 31st December 2021 is D11,600.
Hence, the correct answer is D11,600
| 31st December | 2020 | 2021 |
| D | D | |
| Stock at bar | 1400 | 1600 |
| Owing for bar supplies | 6500 | 7300 |
The net profit on the bar to be transferred to the income an expenditure account for the year ended 31st December 2021 is
D 11,600
D 11,800
D 13,000
D 12,400
Correct answer is A
According to the information provided:
Bar sales: D30,000
Bar purchases: D17,000
Opening stock: D1,400
Closing stock: D1,600
Rent: D1,200
To calculate the net profit on the bar, you can use the following formula:
Net Profit on Bar = Bar Sales - (Bar Purchases + Other Expenses + (Closing Stock - Opening Stock))
Net Profit on Bar = D30,000 - (D17,000 + D1,200 + (D1,600 - D1,400))
Net Profit on Bar = D30,000 - (D17,000 + D1,200 + D200)
Net Profit on Bar = D30,000 - D18,400
Net Profit on Bar = D11,600
Therefore, the net profit on the bar to be transferred to the income and expenditure account for the year ended 31st December 2021 is D11,600.
Hence, the correct answer is D11,600
| 31st December | 2020 | 2021 |
| D | D | |
| Stock at bar | 1400 | 1600 |
| Owing for bar supplies | 6500 | 7300 |
The value of purchases for the year is
D 16,200
D 17,800
D 17,000
D 16,800
Correct answer is B
To determine the value of purchases for the year, you need to consider the opening stock, purchases made during the year, and the closing stock. The formula for calculating purchases is as follows:
Purchases = Opening Stock + Purchases Made - Closing Stock
According to the information provided:
Opening Stock = D1,400
Closing Stock = D1,600
Owing for bar supplies at the end of 2021 = D7,300
Bar purchases = D17,000
Using the formula above:
Purchases = D1,400 + D17,000 - D1,600
Purchases = D17,800
Therefore, the value of purchases for the year is D17,800.
The accumulated fund for a not-for-profit making organization is
Capital + liabilities
Assets - liabilites
Assets + liabilites
Assets - liabilities + capital
Correct answer is B
The capital of a non-profit making organization is known as Accumulated fund. It is calculated as: Accumulated fund = Total assets - Total liabilities.