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:

\begin{array}{lr}
Dr. & \(\mathrm{Cr} .\) \\
\(\mathrm{N}\) & \(\mathrm{A}\) \\
Goodwill & 100,000 \\
Plant and Machinery & 320,000 \\
Freehold premises & 500,000 \\
Stocks & 150,000 \\
Debtors & 125,000 \\
Cash in bank & 75,000 \\
Cash in hand & 20,000 \\
Profit and loss account & 340,000 \\
Accrued rent & 5,000 \\
Sundry creditors & 95,000 \\
Capital & \(1.290,000\) \\
\hline
\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:

\begin{array}{lr}
Dr. & \(\mathrm{Cr} .\) \\
\(\mathrm{N}\) & \(\mathrm{A}\) \\
Goodwill & 100,000 \\
Plant and Machinery & 320,000 \\
Freehold premises & 500,000 \\
Stocks & 150,000 \\
Debtors & 125,000 \\
Cash in bank & 75,000 \\
Cash in hand & 20,000 \\
Profit and loss account & 340,000 \\
Accrued rent & 5,000 \\
Sundry creditors & 95,000 \\
Capital & \(1.290,000\) \\
\hline
\end{array}

The value of working capital is ____________

A. N \(250.000\)
B. \(N 30.000\)
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 \(N 250\) each. The share premium is ____________

A. N 250,000
B. N \(200.000\)
C. N100.000
D. N \(150.000\)