(i)                 If opening capital is 412,500/=, closing capital is 283,750/= and drawings is 82,500/=, then:

1.    loss for the year is 46,250/=  
2.  profit for the year is 46,250/=
3. loss for the year is 211,250/=
4. profit for the year is 211,250/=
5. profit for the year is 128,750/=.

(ii)               A receipt and payment account is used to 

1. calculate the gross profit
2.  calculate the net profit 
3.     show the opening and closing cash balances
4.   show the surplus of income over expenditure
5.    show accrued and pre­paid expenses.

(iii)             The correct method of calculating cost of goods sold is

1.  closing stock  + purchases ­ opening stock
2.       opening stock + closing stock ­ purchases
3.   closing stock + purchases + opening stock
4. opening stock ­ purchases + closing stock
5.  opening stock + purchases ­ closing stock.

(iv)              If we take goods for personal use we should debit 

1.  drawings account, credit purchases account
2. purchases account, credit drawings account
3.  drawings account, credit stock account
4.  sales account, credit stock account
5.  supplier, credit owners.

(v)                A cheque paid by the business owner that is in possession of payee but not yet deposited with the bank is called

1. standing order 
2.   dishonoured cheque
3.  unpaid cheque
4.   unpresented cheque
5.  drawer’s cheque.

(vi)              Given a cash float of 200,000/=, if 146,000/= is spent in the period, how much will be reimbursed at the end of that period?

1.  200,000/=   
2. 52,000/=  
3.  54,000/=
4. 346,000/= 
5. 146,000/=.

(vii)            If trial balance totals do not agree, the difference must be entered in

1.  the profit and loss account   
2. a suspense account
3. nominal account
4. the capital account
5. the cash account.

(viii)          Given the cost of goods sold is 320,000/= and margin of 20%, then the sales figure is

1.   413,280/= 
2. 256,000/= 
3. 430,500/=
4. 400,000/= 
5. 328,000/=.

(ix)              Discount received is

1. deducted when we receive cash
2. given by us when we sell goods on credit
3. deducted by us when we pay our account
4. not recorded at all
5. given by us to customers.

(x)                When Mussa makes out a cheque for 50,000/= and sends it to Joseph, then Mussa is known as

1. the payee   
2.  the banker 
3. the drawee
4.  the creditor
5.  the drawer.