Accounting

To correct an error, the purchases account was debited while Suspense account was credited. Which of the following was the cause of the error?

A. undercasting of purchase B. overcasting of purchases C. original entry D. transportation of returns outwards E. omission of creditor's…

5 years ago

Which of the following is true in Public sector accounting? Cost of assets is

A. depreciated on straight line method B. depreciated on reducing balance method C. expenses in the year of purchase D.…

5 years ago

The loss made by a non-trading organization is called?

A. surplus B. drawing C. deficit D. shortage E. discount Correct Answer: Option C - deficit

5 years ago

Discount allowed is charged to?

A. profit and loss appropriation account B. manufacturing account C. trading account D. profit and loss account E. current account…

5 years ago

Carriage outwards is the amount spent on transporting?

A. goods sold B. goods purchased C. goods returned to stock D. excess stock E. goods for manufacture Correct Answer:…

5 years ago

Interest on Partner’s drawing is credited to?

A. capital account B. drawings account C. current account D. profit and loss account E. appropriate account Correct Answer: Option…

5 years ago

When a share is sold for less than its nominal value, the difference is debited to?

A. share premium account B. share discount account C. profit and loss account D. capital reserve account E. general reserve…

5 years ago

Which of the following is an example of production overhead?

A. discount allowed B. carried inwards C. factory rent D. carriage outwards E. depreciation of office equipment Correct Answer: Option…

5 years ago

The double entries for refund of unsuccessful application monies are, debit?

A. application for shares account, credit bank account B. bank account, credit application for shares account C. allotment account, credit…

5 years ago

Which of the following is a recurrent expenditure to a Local Government Council?

A. building classroom B. sinking of wells C. purchase of drugs D. construction of markets E. purchase of hospital beds…

5 years ago