The ledger entries to be made if cash sales is banked is debit
Cash, credit sales
Sales, credit cash
Bank, credit cash
Bank, credit sales
Correct answer is D
Debit Bank Account and Credit sales - this highlights that you have taken the cash “out of your pocket” and put it in to your bank account.
N9, N1740; N120
N90, N990
N90, N870; N120
N80, N750
Correct answer is C
No explanation has been provided for this answer.
Using LIFO method of stock valuation, analyze the issue quantities and their prices
260 units at N1.50
700 units at N1.50
200 units at N1.50 and 500 units at N1.00
350 units at N1.50 and 350 units at N1.00
Correct answer is A
Given that a maximum of 260 units can be taken from the last receipt, the balance of 440 units (700-260) would be issued at N 1.00 which would be taken from the first materials received (100 units)
When the invoice of a customer is overcast, the supplier will send to him a
Debit note
Cheque
Credit note
Payment voucher
Correct answer is C
A credit note is a letter sent by the supplier to the customer notifying the customer that he or she has been credited a certain amount due to an error in the original invoice or other reasons.
Materiality
Accrual
Going concern
Business entity
Correct answer is A
Materiality states that only items of material values are recorded e.g. the cost of a stapler should not be capitalized but expensed just as kitchen cutlery.