(i)                 Which of the following should be charged in the Profit and Loss Account?

1.  Royalty.     
2. Work in progress. 
3. Direct materials.
4. Office rent. 
5. Carriage on raw materials.

(ii)               Manufacturing account is used to calculate

1.  production costs paid in the year
2. total cost of goods produced     
3.   production costs of goods completed 
4.  gross profit cost of goods sold 
5.  prime cost of goods manufactured.

(iii)             When there is no partnership agreement then profits and losses must be shared

1.  in the same proportion as capitals
2. equally to all partners
3.  equally after adjusting for interest on capital
4. equally after adjusting for interest on drawings
5.   equal proportion minus interest on drawings.

(iii)             When there is no partnership agreement then profits and losses must be shared

1.  in the same proportion as capitals
2. equally to all partners
3.  equally after adjusting for interest on capital
4. equally after adjusting for interest on drawings
5.   equal proportion minus interest on drawings.

(v)                Customers’ personal accounts are found in

1. the private ledger 
2.  general ledger
3. purchase ledger
4.  nominal ledger
5. sales ledger.

(vi)              Which of the following should be entered in the Journal?

1. Payment for cash purchases. 
2.  Fixtures bought on credit.        
3. Credit sale of goods.
4. Sales of surplus machinery.
5. Credit purchase of goods.

(vii)            If drawing account is not maintained, interest on drawing must be

1.  credit to drawing account 
2. debited to drawing account
3. debited to capital account 
4.  credited to current account
5. debited to current account.

(viii)          An allowance for doubtful debts is created

1. when debtors become bankrupt 
2. when there is a need to do so
3. when debtors cease to be in business 
4.  to provide possible bad debts 
5. to write­off bad debts during the period.

(ix)              Depreciation can be described as the 

1. A  amount spent to buy a non­current asset
2. salvage value of a non­current asset
3. cost of the non­current asset consumed during its period
4. amount of money spent replacing non­current asset
5. cost of old assets plus new assets purchased.

(x)                If it is required to maintain fluctuating capitals then the partners’ share of profits must be

1. debited to partners’ capital account
2. credited to partners’ capital account
3.  debited to partners’ current account
4. credited to partners’ current account
5. credited to partners’ appropriation account.