Accounting Questions and Answers

Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?

 

Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20,000, N15,000 and N5,000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5,500.

Calculate the profit for Adamu?

Emeka Manufacturing Company (Extract) Manufacturing Account.
Direct material...................N5,000
Direct labour......................N4,500
Direct expenses..................N3,000
Factory overhead................N2,500
Selling distribution.............N1,500

Calculating the production cost?

The understatement of closing value of work-in-process would have the effect of?

Which of the following stock valuation methods is suitable under inflationary conditions?