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Accounts - Principles of Accounts Past Questions

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2641

Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be

  • A. Increase in assets of motor vehicle account
  • B. Decrease in assets of motor vehicle account
  • C. Increase in assets of bank account
  • D. Increase in liabilities of bank account
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2642

A proprietor withdraws cash from the business for private use, he

  • A. credits cash account and debits bank account
  • B. credits cash account and debits drawing A/C
  • C. debits cash account and credits drawings account
  • D. debits bank account and credits drawings account
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2643

The rules of double entry states that

  • A. for every debit entry, there must be a corresponding debit entry
  • B. for every credit entry, there must be a corresponding credit entry
  • C. all transactions must be recorded in two accounts, one account is debited and another is credited
  • D. all transaction must be credited
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2644

The difference between double entry and single entry is

  • A. double entry is based on the dual concept while single entry is not based on dual concept
  • B. double entry is an account while single entry is not an account
  • C. double entry keeps personal account while single does not
  • D. double entry is useful for business enterprise while single entry is not
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2645

A rent of ₦50,000 was paid by samson to his landlady by cheque. The double entry in Samson's book is

  • A. Debit rent account, Credit bank account
  • B. Debit Rent account, Credit Samson's account
  • C. Debit Bank account, Credit Rent account
  • D. Debit Samson's account, Credit Rent account
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