# Principles of Accounting | Study Mode

Question 41
A
Over all performance of a division
B
Cost per unit of a profit
C
Price per unit of a product
D
Over all performance of a firm
##### Explanation

Departmental accounting is prepared to ensure that the results of each individual department is known

Question 42
A
It is a norm
B
to ensure new partner also have a stake in the business
C
the firm into which he is entering already has some goodwill in the market
D
to purchase the business
##### Explanation

Goodwill is being paid by a new partner because the partnership he is entering into already has goodwill in the market as well as to pay for the portion sacrificed by existing partners in form to their profit to admit the new partner.

Question 43
A
?700
B
?1050
C
?1750
D
?3500
##### Explanation

Jewelry 3/10 x 3500 = 1050

Hairdressing 2/10 x 3500 = 700

Clothing 5/10 x 3500 = 1750

Question 44
A
No of employees
B
stock value
C
space occupied
D
wages
##### Explanation

Indirect expenses are allocated among departments in order to ascertain the profits or loss made by each department

Question 45
A

#511.25 debit

B

#500.00 credit

C

#349.75 debit

D

#340.00 credit

##### Explanation

The amount withdrawn by the partners for their personal use out of the firm is known as drawings. Interest are charged on this drawings

Question 46
A
B
purchases
C
material cost
D
wages
##### Explanation

Conversion costs are costs required to convert raw materials into finished goods

Formula for conversion cost= direct labor+ factory overheads

Question 47
A
36,925Cr
B
40,000Cr
C
50,000Dr
D
36,295Dr
##### Explanation

Drawings: 3000 + 2000 + 4000 + 1500 + 2500 = 13000

Question 48
A
Debit profit and loss account and credit head office account
B
Debit head office account and credit cash
C
Credit cash and debit profit and loss account
D
Credit profit and loss account and debit head office account
##### Explanation

The head office maintains a book, (branch account) more or less like other personal accounts, so that any expenses incurred on behalf of the branch will also be debited to the branch account. Similarly, in the branch books, there will be head office accounts

Question 49
A
N10,740
B
N11,860
C
N16,380
D
N17,500
##### Explanation

BANK RECONCILIATION STATEMENT

 ? ? Balance as per cashbook 13560 Unpresented cheques 5120 Dividend received 2000 7120 Uncredited cheque 2300 Bank charges 280 Standing order 600 3180 Balance as per bank statement 17500

Question 50
A
FIFO
B
LIFO
C
Average cost method
D
LILA
##### Explanation

Explanation not provided, please join discuss, your contributions are welcomed

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