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.
Discount received is charge to
Current account
Profit and loss
Trading account
Balance sheet
Correct answer is B
Discount received is treated as income to the business hence it is credited to the profit and loss.
The purpose of profit and loss account is to ascertain
Gross profit
Capital
Expenses
Net profit
Correct answer is D
The profit and loss account also known as Income statement is prepared to ascertain the net profit. The net profit is ascertain when the expenses is deducted from the Gross Profit.
A rent of ₦50,000 was paid by samson to his landlady by cheque. The double entry in Samson's book is
Debit rent account, Credit bank account
Debit Rent account, Credit Samson's account
Debit Bank account, Credit Rent account
Debit Samson's account, Credit Rent account
Correct answer is B
Since Rent is receiving then rent account is debited while Samson's account is credited because it is giving out.
The difference between double entry and single entry is
Double entry is based on the dual concept while single entry is not based on dual concept
Double entry is an account while single entry is not an account
Double entry keeps personal account while single does not
Double entry is useful for business enterprise while single entry is not
Correct answer is A
Double entry is based on dual concept, i.e two-fold aspect of transaction whereby single entry ignored the principle of double entry.
The rules of double entry states that
For every debit entry, there must be a corresponding debit entry
For every credit entry, there must be a corresponding credit entry
All transactions must be recorded in two accounts, one account is debited and another is credited
All transaction must be credited
Correct answer is C
Double entry system is the entry of debit and credit for each transaction in the ledger. Hence the double entry rules states that "debit the receivers, credit the giver".