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Accounts - Principles of Accounts Past Questions

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871

When shares are issued above their nominal value, the excess above the nominal value is

  • A. credited to profit and loss account
  • B. debited to share premium account
  • C. credited to share capital account
  • D. credited to share premium account
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872

Shares issued below nominal value are referred to as shares at

  • A. premium
  • B. discount
  • C. face value
  • D. cumulative value
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873
Use the following information to answer the question given.

\(\begin{array}{c|c} Capital & Le \\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\)
Profit sharing is in the ratio of capital. The divisible profit is
  • A. Le 14,000
  • B. Le 12,000
  • C. Le 10,000
  • D. Le 8,000
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874
Use the following information to answer the question given.

\(\begin{array}{c|c} Capital & Le\\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\).
Profit sharing is in the ratio of capital. Aye;s share of profit is
  • A. Le 6,000
  • B. Le 4,800
  • C. Le 4000
  • D. Le 3,200
View Answer & Discuss WAEC 2014
875
Use the following information to answer the question given.

\(\begin{array}{c|c} Capital & Le\\ Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \{text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\)
Profit sharing is in the ratio of capital. Bee's share of profit is
  • A. Le 8,000
  • B. Le 6,000
  • C. Le 4,800
  • D. Le 3,200
View Answer & Discuss WAEC 2014
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