[ACC204] The owner of a business invests cash of N250,000 into his business, the usual postings in the ledger would be to debit Cash Account with N100,000 and credit Capital Account with N100,000
Debit Cash Account with N250,000 and credit Capital Account N250,000
[ACC204] __________________could be associated with the different activities, but the common target in these activities is to “employ†the money (funds) during the time period seeking to enhance the investor’s wealth
Investing
[ACC204] The following are the errors that would make the totals on the debit side and credit side of the trial balance to be unequal except____________
Error of Comission
[ACC204] The general journal entry might involve only two accounts.where more than two accounts are involve such a journal entry is called a compound journal entry
compound journal entry
[ACC204] Given that a business venture bought machinery for N450,000 with payment of N300,000 and the balance on account due in one year, the general journal would record this transaction as
Machinery account debit of N450,000 and credit cash account with N300,000, account payable with N150,000.
[ACC204] When the owner of a business invests cash into his business, the usual postings in the ledger would be to debit an Account and credit anpther Account. This means that two separate accounts would be___________
Opened
[ACC204] A general journal records transactions according to the manner in which they will be posted to the respective______________
Account
[ACC204] Drawings are basically found in the books of sole proprietorship as a result of owners’________________
All of the above
[ACC204] All of these are errors that do not affect the trial balance except
Transposition error
[ACC204] __________is designed in a tabular form to record one type of transaction involving sales and purchases.
Special journal
[ACC204] Adamu Baike Dairy uses sophisticated machines to produce evaporated milk. In June 2019, it sold one of its dairy machines that cost N150,000 for N30,000 cash. The accumulated depreciation on the machine is N110,000.Determine the gain or loss. What would be the gain or loss if the accumulated depreciation were N132,000?
-10000
[ACC204] The following were obtained from the books of Alonge& Sons Nig. for half-year 2020:nNnSales ledger balances, 1 January 2020: – Debit N20,040n- Credit N56nPurchases ledger balances, 1 January 2020: – Debit N12n- Credit N14,860nActivities during the half-year to 30 June 2020:nPayments to trade accounts payable N93,685nCheque from credit customers N119,930nTotal purchases (credit purchases N95,580) N186,000nTotal sales (credit sales N124,600) N350,070nBad debts written off N204nDiscounts allowed N3,480nDiscounts received N2,850nReturns inwards N1,063nReturns outwards N240nSales ledger credit balances at 30 June 2020 N37nPurchases ledger credit balances at 30 June 2020 N26nProvision for bad debts N230nCash refund to credit sales customers N5,120 Cash refund cash sales customers N1,240nCash refund from credit suppliers N850nCash refund from cash purchases suppliers N910nBalances in the sales ledger set off against purchases ledger N438nDishonoured cheque N2,300. The balance of purchase ledger control account is……………..
N26,926
[ACC204] The cash book and bank statement of XYZ Consults revealed the following balances at the end of its financial year 31 December 2018: Cash book N96,800 DR, Bank statement N107,000 DR.nFurther discoveries made were:ni. Unpresented cheques at the year-end amounted to N74,200nii. Uncredited cheques amounted to N258,000niii. A cheque payment to a creditor with a value of N55,100 was recorded in the cash book as N51,500niv. Standing order payment of N17,000 for trade association subscription captured in the bank statement has not been recorded in the cash book.nv. A customer of the firm makes a direct payment to the bank through wire transfer for the sum of N25,000 and the credit advice was received before the cash book was balanced. However, this amount was entered on the reversed side of the cash book.nvi. A supplier made a cheque payment directly into the bank account as a refund for excess billing and this amount is in the bank statement but not yet recorded in the cash book. The amount involved is N8,500.nvii. The following amounts in the bank statement are not yet recorded in the cash book: bank charges N35,600 and overdraft interest N22,300.nviii. A third party cheque of N18,000 lodged with the bank was dishonoured but this has not been reflected in the cash book. the balance of adjusted cash book of XYZ Consults will be……………….
N2,353
[ACC204] Given that a motor van is acquired for N55,000 with an estimated useful life of 5 years and the residual value of N5,000, the annual depreciation charge will be………………..using straight line method
N10,000
[ACC204] Look-and-See Ventures acquired a machinery with a list price of N50,000 for N40,000. Other costs incurred with respect to the asset are: installation cost N2,000, incidental legal fees N1,000, freight and freight insurance N500. The cost of the machinery will be equal to ……………….
N43,500
[ACC204] The following were obtained from the books of Maryam & Sons Nig. for half-year 2018:nNnSales ledger balances, 1 January 2018: – Debit N20,040n- Credit N56nPurchases ledger balances, 1 January 2018: – Debit N12n- Credit N14,860nActivities during the half-year to 30 June 2018:nPayments to trade accounts payable N93,685nCheque from credit customers N119,930nTotal purchases (credit purchases N95,580) N186,000nTotal sales (credit sales N124,600) N350,070nBad debts written off N204nDiscounts allowed N3,480nDiscounts received N2,850nReturns inwards N1,063nReturns outwards N240nSales ledger credit balances at 30 June 2018 N37nPurchases ledger credit balances at 30 June 2018 N26nProvision for bad debts N230nCash refund to credit sales customers N5,120 Cash refund cash sales customers N1,240nCash refund from credit suppliers N850nCash refund from cash purchases suppliers N910nBalances in the sales ledger set off against purchases ledger N438nDishonoured cheque N2,300. The balance of sale ledger control account is……………..
N14,091
[ACC204] The following data of accruals and prepayments relate to APC for Change, a trading entity located in PDP State of INEC Republic:nBalances as at 30th June 2019:nRent prepaid N58,000nSalaries accrued N45.300nCommission received in advance N14,500nElectricity prepaidN24,000nBalances as at 30th June 2020:nOutstanding rent N36,200nPrepaid salaries N38,750 Commission in arrears N26,300nElectricity prepaidN12,000nDuring the accounting year, APC for Change recorded the following transactions:nPaid rent of N254,000 by chequenPaid Salaries of N578,000 through bank transfernCommission receivedN98,760 by CashnElectricity paid by cash N87,000. The total value of accrued rent is……………..
N36,200
[ACC204] Usman Cottage Farm acquired a tractor on 1st January 2019 at the cost of N5 million and paid the vendor N3 million cash on same day with the balance payable in two equal annual instalments on the anniversary of the purchase.Which account should be debited?
Tractor Account
[ACC204] On 1st July 2020, Makela had accounts receivable of N50,000 on which he had made an allowance of 2%. During the financial year, the following information emerged:n(i) Debt N2,000 owed by Ian only realised N700 and the balance declared badn(ii) Other bad debts written off during the year amounted to N4,300n(iii)Bad debts written off in 2019 now recovered N800n(iv) Accounts receivable balance as at 30th June 2021 is N58,500 before adjusting for:na. Trade debt of N1,800 owed by Morgan is certified uncollectiblenb. A number of cheques for N3,200 received from debtors were dishonoured by the banksnc. Allowance of doubtful debts at 4%. What is the value of bad debt recovered?
N1,881
[ACC204] The following list of balances was extracted from the books of Mummy Is Good as at 31 December 2019:nN NnPurchases N150,000 and sales N272,000nInventory (1/1/2015) 4,000nRent and rates 4,500nMotor running expenses N3,000nSalaries and wages N54,000nInsurance N2,600nCash and bank N13,000nAccounts receivable N34,000 and payable N12,000nAllowance for doubtful debts N1,000. The total of the trial balance will be
N297,320
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