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JAMB - Accounts Principles Of Accounts (2002)

1
Given:
Stock (1/4/94) N800

Purchases of flour N2450

Sales N4745

Wages of bakery staff N675

Carriage outwards N50

Salary of administrative staff N225

Stock (31/3/95) N940

Capital N1540
Determine the cost of goods sold?
Answer
(B)
N2985
2
In preparing the final accounts, the bad debt account is closed by a transfer to the?
Answer
(C)
profit and loss account
3
In a petty cash book the imprest is N1380.
Expenses:
Stationery N350
Cleaning material N335
General expenses N265

How much was received to maintain the imprest at the ends of the month?
Answer
(A)
N950
4
An entry in a subsidiary book which does not form part of the double entry system is a?
Answer
(D)
memorandum entry
5
In an incomplete record, the preparation of the bank reconciliation ensures that?
Answer
(A)
all cash taking are banked
6
In a petty cash book the imprest is N1380.
Expenses:
Stationery N350
Cleaning material N335
General expenses N265

How much was received to maintain the imprest at the ends of the month?
Answer
(A)
N950
7
(i) Fixtures account (ii) Machinery account
(iii) Wages accounts (iv) Rent account.
Which of the above are nominal account?
Answer
(A)
iii and iv
8
NAFARA AND SONS Balance Sheet items as at 31st December, 1987.

Capital N74480

Creditors N15875

Prepaid expenses N580

Motor vehicles N34750

Furniture N35850

Accrued expenses N645

Stock N8100

Cash balances N9911

Debtors N1809
Compute the value of current assets?
Answer
(A)
N20400
9
Use the information below to answer questions

The Assets and liabilities of Udo Co.ltd. as at 31st December, 2000.

Creditors N50,000

Debtors N46,000

Loan N100,000

Stock N20,000

Motor vehicle N120,000

Building N70,000

Accrued wages 30,000

Bank N25 ,000

The value of capital invested by the owners is?
Answer
(C)
N101,000
10
Use the information below to answer questions 9 and 10.

The Assets and liabilities of Udo Co.ltd. as at 31st December, 2000.

Creditors N50,000

Debtors N46,000

Loan N100,000

Stock N20,000

Motor vehicle N120,000

Building N70,000

Accrued wages 30,000

Bank N25 ,000

The liabilities of Udo Co. Ltd is?
Answer
(A)
N180,000
11
The normal accounting entry to record the dishonor of a businessman is to?
Answer
(D)
credit cash book and debit drawer
12
Use the information below to answer question . Statement of assets and liabilities as at 31st December, 2001. Shareholders' interest N240 Current liabilities N20 Current assets N110 Fixed assets N140

Determine the value of the trade investment?
Answer
(B)
N10m
13
Use the information below to answer question .

Statement of assets and liabilities as at 31st December, 2001.

Shareholders' interest N240

Current liabilities N20

Current assets N110

Fixed assets N140
What is the networking capital?
Answer
(A)
N90m
14
The concise statement used to explain entries in the general journal is known as?
Answer
(A)
narration
15
In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover?
Answer
(A)
carriage outwards
16
The gross profit on manufactured goods is the difference between the cost of goods manufactured and the?
Answer
(A)
market value of goods produced
17
Use the information below to answer question

Stock of raw materials (1st January) N3000

Direct wages N2500

Direct expenses N1000

Factory overheads N2000

Cost of raw materials used N5500

Stock of finished goods (31st December) N2000

Determine the prime cost?
Answer
(C)
N9000
18
Stock or raw materials(1st January) 3000
Direct wages 2500
Direct expenses 1000
Factory overheads 2000
Cost of raw materials used 5500
Stock of finished goods (31st December) 2000
The cost of goods manufactured is?
Answer
(A)
N11000
19
(i)Orientation (ii) Entity (iii)Legal status
(iv)Finance.
Which of the characteristics above distinguishes a profit-making from a not-for-profit-making organizations?
Answer
(C)
ii, and iii
20
Use the information below to answer questions

Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.

Stock at branch 1st January at cost............N400
Goods sent to branch at cost...................N8000
Returns to head ...............................N340
Cash sales ....................................N9160
Stock at branch 31st December at cost..........N720

What is the gross profit carried to the profit and loss account?
Answer
(A)
N1820
21
Use the information below to answer questions Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch. Stock at branch 1st January at cost............N400 Goods sent to branch at cost...................N8000 Returns to head ...............................N340 Cash sales ....................................N9160 Stock at branch 31st December at cost..........N720

Calculate the cost of goods credited to the head office trading account?
Answer
(A)
N7660
22
Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of N60,000 is distributed on the basis of direct labour hours.
Compute the overhead rate?
Answer
(C)
N10 per hour
23
Given that 1/3 of the N6000 stock held by a branch is purchased from outsiders. If goods are invoiced to branch at 25% on cost, the provision for unrealized profit is?
Answer
(D)
N800.00
24
Costs that vary in proportion to the level of production in a manufacturing environment are known as?
Answer
(C)
direct costs
25
A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?
Answer
(C)
20%
26
Given:

Cash purchases ..............................N25000
Trading creditors............................N45000
Opening balance of trade creditors...........N35000

Calculate the purchases for the period?
Answer
(D)
N70,000
27
Which method of pricing can be used satisfactorily in either a rising or falling price situation?
Answer
(D)
Average method
28
Given:

Capital at start.......................N3250

Capital at close ......................N6250

Additional capital during the period...N1000



Calculate the profit or loss?
Answer
(C)
N2000 profit
29
In a control account, discount received is found on the?
Answer
(A)
debit side of the purchase ledger control account
30
In an incomplete record system a trading account cannot be prepared until the?
Answer
(D)
amount os sales and purchases has been established
31
Given an incomplete record without sufficient information to determine profit, the necessary thing to do is to?
Answer
(A)
draw up the statement of affairs
32
keeping records under the single entry system has the advantage of?
Answer
(D)
simplicity in terms of operation
33
Control accounts help to verify the arithmetic accuracy of the postings from the?
Answer
(D)
subsidiary books into the ledgers
34
Given:

Sales ............................N195,200
Stock 1st January.................N34,000
Purchases ........................N126,000
Sales returns ....................N1,200
Purchases returns ................N2,000
If the gross profit is N66,000, what is the value of stock at 31st December?
Answer
(A)
N30,000
35
Given:



Balance at 31st December ............N14,744m

Treasury Bills issued Jan-Dec........N7124m

Revenue for the year ................N6387m

Expenditure .........................N8767m



What is the opening balance on the consolidated revenue fund account?
Answer
(A)
N10,000m
36
Upon the dissolution of a partnership, the Partnership Act provides that the amount realized should be?
Answer
(D)
used in paying the debts and liabilities of the firm to persons who are not partners
37
In the public sector, the method of accounting that reports revenues and expenditures in the period in which they are received and paid is called?
Answer
(C)
cash accounting
38
Use the information below to answer this question

Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500........25..........12500
March 7th.......250........28..........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200

The closing stock on March 11th by LIFO valuation is
Answer
(A)
N4200
39
Use the information below to answer this question

Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500........25..........12500
March 7th.......250........28..........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200

The value of closing stock as at February 14th by simple average method is
Answer
(A)
N3900
40
Use the information below to answer this question

The partnership agreement between Abba, Baba and Kaka contains the following provision:
(i) 5% interest to be paid on capital and no interest to be charged on drawings
(ii) Profits and losses to be shared in the ratio 3:2:1 respectively
(iii) net profit as at 31/12/95 N 2,250.
.................Abba......Baba.......Kake
Capital..........5000......4000......3000
Current account...250......100.......175
Salary............300......300.......---
Drawings..........600......500........250


Abba's capital balance at the end of the year will be
Answer
(D)
N5000
41
Use the information below to answer this question

The partnership agreement between Abba, Baba and Kaka contains the following provision:
(i) 5% interest to be paid on capital and no interest to be charged on drawings
(ii) Profits and losses to be shared in the ratio 3:2:1 respectively
(iii) net profit as at 31/12/95 N 2,250.
.................Abba......Baba.......Kake
Capital..........5000......4000......3000
Current account...250......100.......175
Salary............300......300.......---
Drawings..........600......500........250


Current account balance of Kaka at the end of the year will be
Answer
(A)
N250
42
The gross profit on manufactured goods is the difference between the cost of goods manufactured and the
Answer
(A)
market value of goods produced
43
Use the information below to answer this question.

.............Total......... Dept.P.............Dept.Q
...............N...............N.................N
Sales.........10000............6000..............4000
Purchases......4000............1000..............3000
Discount received.1000..........?..................
Discounts allowed..2000...........................?.
Discount (allowed and received) are apportioned to the two departments on the basis of departmental sales and purchases.

Department P's share of discount received is
Answer
(C)
N250
44
Use the information below to answer this question.

.............Total......... Dept.P.............Dept.Q
...............N...............N.................N
Sales.........10000............6000..............4000
Purchases......4000............1000..............3000
Discount received.1000..........?..................
Discounts allowed..2000...........................?.
Discount (allowed and received) are apportioned to the two departments on the basis of departmental sales and purchases.

What is department Q's share of discount allowed?
Answer
(C)
N800
45
The working capital of the club is
Answer
(C)
N3000