Post Utme Accounts - Principles of Accounts Past Questions and Answers

Question 126:

Which of the following is not a capital reserve?

A. Share premium
B. Revaluation reserve
C. Sinking fund redemption reserve
D. Retained profit

Question 127:

$$\underline{\begin{array}{lr}Dr.& \text{(}\mathrm{Cr}.\text{)}\\ \text{(}\mathrm{N}\text{)}& \text{(}\mathrm{A}\text{)}\\ Goodwill& 100,000\\ PlantandMachinery& 320,000\\ Freeholdpremises& 500,000\\ Stocks& 150,000\\ Debtors& 125,000\\ Cashinbank& 75,000\\ Cashinhand& 20,000\\ Profitandlossaccount& 340,000\\ Accruedrent& 5,000\\ Sundrycreditors& 95,000\\ Capital& \text{(}1.290,000\text{)}\end{array}}$$

What is the value of current liabilities?
\(\begin{array}{llll}\text {

A. N } 100.000 & \text {
B. N } 440,000 & \text {
C. } N 95,000 & \text {
D. } N 345,000\end{array}\)

Question 128:

$$\underline{\begin{array}{lr}Dr.& \text{(}\mathrm{Cr}.\text{)}\\ \text{(}\mathrm{N}\text{)}& \text{(}\mathrm{A}\text{)}\\ Goodwill& 100,000\\ PlantandMachinery& 320,000\\ Freeholdpremises& 500,000\\ Stocks& 150,000\\ Debtors& 125,000\\ Cashinbank& 75,000\\ Cashinhand& 20,000\\ Profitandlossaccount& 340,000\\ Accruedrent& 5,000\\ Sundrycreditors& 95,000\\ Capital& \text{(}1.290,000\text{)}\end{array}}$$

The value of working capital is ____________

A. N $250.000$
B. $N30.000$
C. $\mathrm{N}70,000$
D. $\mathrm{N}270,000$

Question 129:

On partnership dissolution, if a partner's capital account has a debit balance and the partner is insolvent, the deficiency will. in accordance with the decision of the case of the Garner V Murray. be ____________

A. Borne by all the partners
B. Borne by the insolvent partner
C. Written off
D. Borne by the solvent

Question 130:

Oleku (Nig.) Limited issued 100,000 ordinary shares of N1 each at a market value of $N250$ each. The share premium is ____________

A. N 250,000
B. N $200.000$
C. N100.000
D. N $150.000$