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 entries for credit sales at branch where the head office keeps all records are: Debit
Branch stock account; credit branch debtors account
Branch debtors account; credit branch stock account
Branch debtors account; credit branch adjustment account
Branch adjustment account; credit branch debtors account
Correct answer is B
The accounting entry for credit sales at the branch would be to debit branch debtors accounts and credit stock account. To understand this better, remember we debit all receipts whether cash or stock (money or goods that come into the business) and credit all payments (money or goods that goes out of the business). People who buy our goods on credits are our debtors and recorded as current assets in the balance sheet, because in future, we expect to collect are payments for the goods.
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The authorized share capital is
N300,000
N250,000
N200,000
N150,000
Correct answer is A
The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The unsubscribed share capital is
N300,000
N250,000
N200,000
N150,000
Correct answer is D
No explanation has been provided for this answer.
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The subscribed share capital is
N300,000
N250,000
N200,000
N150,000
Correct answer is C
No explanation has been provided for this answer.
When allotments have been fully paid, subscribers are referred to as
Allotters
Applicants
Non-members
Shareholders
Correct answer is B
No explanation has been provided for this answer.