The following was extracted from the books of MEGA COMPANY NIG. LTD
|
₦ |
|
|
Trade debtors |
350,000 |
|
Fixtures and fittings |
600,000 |
|
Cash at bank |
25,000 |
|
Cash in hand |
5,500 |
|
Trade creditors |
116,500 |
|
Bank overdraft |
7,500 |
|
Building |
950,000 |
|
Motor van |
35,000 |
The working capital of the company is
₦156,000
₦280,000
₦565,000
₦256,500
Correct answer is D
Working capital = Current Assets - Current Liabilites
= (350,000 + 25,000 + 5,500) - ( 116,500 + 7,500)
= 380,500 - 124, 000
= ₦256,500
In company account, dividend payments are effected in which of the following accounts?
Realization
Current
Appropriation
Capital
Correct answer is C
In company accounting, dividend payments are effected in the appropriation account. The appropriation account is a part of the profit and loss account where the net profit is appropriated or distributed among various heads like dividends, general reserve, etc.
Income and Expenditure account is the same as the --------- of a sole trader
balance sheet
trading account
profit and loss account
cash book
Correct answer is C
The income and expenditure account shows the summary of revenue and running cost of a non-profit making organization. It follows the same principles as the profit and loss account of a trading concern.
Amortization
Revaluation
Realization
Dissolution
Correct answer is D
Dissolution of partnership is the process whereby a partnership is automatically dissolved or brought to an end by the happenings of any event which makes it unlawful to carry on the business.
The purchases ledger control account is also known as
bill payable control account
credit purchase control account
creditors control account
total purchase
Correct answer is C
The purchases ledger control account is also known as the creditors control account. This account is used in a business's accounting to record the total amount owed to suppliers for purchases made on credit. It is a summary account that reflects the total amount payable to all suppliers.