Accounting questions and answers

Accounting Questions and Answers

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.

2,447.

Given:

Net profit b/d.....................N10,000
Interest on capital:...M...........N2,000
.......................K...........N1,000
Partners' on salary....K...........N800
Interest on drawings...M...........N500
Profit sharing ratio M and K 3:2

Determine M's share of profit?

A.

6,280

B.

4,020

C.

2,820

D.

2,280

Correct answer is B

                       Profit and Loss Appropriation A/C

partners salary - K              800
Int.on capital -    M             2000
                           K  1000
share of profit -  M  4020
                          K   2680   6700
                                          10500
Net profit b/d           10000
Int. on drawings: M    500


                                            
                                 10500

 

2,448.

Sule and Ahmad are in partnership sharing profits and losses equally. If Khadija is admitted as new partner to take 15 as her share,  what is the new profit or loss sharing ratio?

A.

Sule 1/3, Ahmad 1/3 and Khadija 1/3

B.

Sule 1/5, Ahmad 15 and Khadija 3/5

C.

Sule 2/5, Ahmad 2/5 and Khadija 1/5

D.

Sule 2/5, Ahmad 1/5 and Khadija 2/5

Correct answer is C

Recall that Sule and Ahmed have been sharing profit and losses equally. The admission of Khadija will only reduce the rate of losses and profits shared but will still be equally shared. The new sharing formula would be ;

2/5:25:15

2/5+25+15 = 5/5 = 1

 

2,449.

Which of the following is a common cause of a discrepancy between head office and branch trial balance?

A.

Debtors and cash in transit

B.

Creditors and cash in transit

C.

Stock and cash in transit

D.

Stock and prepayments

Correct answer is A

No explanation has been provided for this answer.

2,450.

One of the purposes of maintaining the account of a branch at the head office is to?

A.

Record charges in shareholdings

B.

Record charges in liabilities

C.

Check the excesses of customers

D.

Check and monitor the growth of individual branches

Correct answer is D

The primary objectives of branch accounting are better accountability and control since profitability and efficiency can be closely tracked for individual locations.