If stationery bought for N200 has been entered as N2000. To correct this error?
Debit stationery with N2,200
Credit stationery with N1,800
Debit stationery with N1,800
Credit stationery with N2,200
Correct answer is C
To correct the error, we have to debit the amount in excess so as when it is being calculated, the debit side would balance with the credit side.
Remember income in recorded on the debit side while expenses are recorded on the credit side. Since stationary was bought, (expense) it is assumed that it was recorded on the credit side. hence we will debit the amount in excess.
If salary account is debited instead of stationary account, the error committed is that of?
Commission
Omission
Principle
Compensation
Correct answer is A
An error of principle is an accounting mistake in which an entry is recorded in the incorrect account.
Ledger account is mainly classified into?
Nominal, real and personal accounts
Fixed and current accounts
Management, financial and public sector accounting
Bank and cash accounts
Correct answer is A
General Ledger is divided into two types – Nominal Ledger and Private Ledger.
The major function of accounting bodies in Nigeria is to?
Provide proper financial management of businesses
Provide good remuneration to the members
Promote the ethics of the profession
Show the dynamic nature of the profession
Correct answer is C
No explanation has been provided for this answer.
One of the reasons for the existence of the public sector is to?
Take adequate care of the needy
Supplement the commercial sector
Provide cheap services to all citizens
Correct perceived inequalities
Correct answer is C
Purpose of public sector is to provide public services. This include public goods and governmental services such as the military, police, public education along with health care and those working for the government itself. These services are provided at a cheap and affordable rate to the citizens.