Post Utme Accounts - Principles of Accounts Past Questions and Answers

Question 56:

Which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of a business?

A. Decrease in the closing balance of sales ledger control account
B. Increase in net profit.
C. Increase in the value of sales.
D. Decrease in the value of purchases in the trading account.

Question 57:

Given: N - Capital at the beginning − ₦20,000, Drawings − ₦3,000, Capital at end − ₦30,000, New capital introduced − ₦8,000.
What is the profit for the period?

A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦8,000

Question 58:

Sundry debtors in the balance sheet of Onoja Bakery and Sons totalled ₦800,000. A provision of 2%was made for discount and 5% provision for bad and doubtful debts. Find the amount for sundry debtors after provision.

A. ₦ 760,000
B. ₦ ₦744,800
C. ₦ 744,000
D. ₦ 784,000

Question 59:

The starting point for the production of accounts from incomplete records is to ____

A. Ascertain the total sales.
B. Compute the opening stock of goods sold.
C. Verify the total purchases
D. Prepare an opening statement of affairs.

Question 60:

A factory cost excluding prime cost is ____

A. Overhead
B. Material cost
C. Fixed cost
D. Administration cost