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JAMB - Accounts Principles Of Accounts (2003)

1
Which of the following is used to update the cash book in bank reconciliation?
Answer
(D)
Interest received and direct credit
2
The two legally recognized professional accounting bodies in Nigeria are the?
Answer
(C)
Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
3
Use the information below to answer question .
Capital ...................N2000
Bank ......................N1200
Purchase ..................N2500
Sales .....................N6700
Stock .....................N1300
Creditors .................N1000
Fixed assets...............N3700
Drawings ..................N?
Drawings are always estimated at 50% of capital.
The trial balance total is?
Answer
(A)
N9700
4
Verifiability in accounting is only possible when there are?
Answer
(C)
source documents
5
Use the information below to answer question.

Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of N19000 from the business tray and banked it.
The credit sales for the period would be?
Answer
(C)
N1000
6
Use the information below to answer question.

Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of N19000 from the business tray and banked it.

The transaction would be recorded in the cash book as debit?
Answer
(B)
bank and credit cash
7
Which accounting concept supports the assertion that economic reality takes precedence over legal issues?
Answer
(B)
Substance over form
8
The transaction that completes its double entry in the same ledger account appears in?
Answer
(D)
cash account and bank accont
9
The recording phase of accounting is known as?
Answer
(A)
bookkeeping
10
Given:

Capital ...........N1000
Liabilities........N500
Assets.............N1500
The accounting equation can be expressed as?
Answer
(C)
N1000 + N500 = N1500
11
Use the information below to answer questions .

Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.

Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?
Answer
(C)
N250,000
12
Use the information below to answer questions .

Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.

What is the actual profit or loss arising from the vehicle disposed of?
Answer
(C)
N450 000 profit
13
Given:
(i) Order of performance
(ii) Order of liquidity
(iii)Vertical order
(iv) Horizontal order
The order in which a balance assets is arranged are?
Answer
(C)
ii and iii
14
Provision for discount allowed can be recorded as debit to?
Answer
(A)
the profit and loss account and a credit to provision for discount allowed
15
In a control account, provision for bad debts is found on the?
Answer
(D)
credit side of the sales ledger control account
16
Advertising expenses incurred on a product in a business organization should be charged to?
Answer
(B)
sales department
17
The stock valuation data is important because it enables management to?
Answer
(B)
determine the cost of stock at the end of business
18
four broad classifications of overheads are?
Answer
(B)
production, selling, distribution and administration
19
Given:
Cost of raw materials issued to production.....N37000
Opening stock of raw material..................N2000
Purchases of raw material......................N3800
Wages .........................................N500
What is the closing stock of raw material?
Answer
(B)
N3000
20
Income and expenditure account is more informative than receipts and payments account because it discloses?
Answer
(C)
debtors
21
A company has two departments X and Y. Y transferred goods to X at a profit margin of 25%. N10,000 worth of goods was not sold at the end of the accounting period.
How much is the unrealized profit?
Answer
(A)
N2000
22
Given:
..............Rich Social Club...........
Cash.........................N100,000
Loan ........................N30,000
Subscription in arrears......N5,000
Subscription in advance......N15,000
What is the accumulation fund?
Answer
(A)
N60,000
23
During the year ended 31st December 2001,
Nuju Enterprises paid rent as follows:
Jan. 20, N24 000 for a period of 4 months.
May. 16, N30 000 for a period of 5 months.
Oct. 15, N36 000 for a period of 6 months.

What is the overpaid portion of the rent?
Answer
(B)
N18 000
24
Use the information below to answer question .

...........PQ Manufacturing Company

Raw materials (1/11/2001)...........N3 500
Raw materials (31/12/2001)..........N4 900
Purchase of raw materials...........N56 000
Salary .............................N63 000
Wages...............................N148 000
Factory lighting ...................N3 080
Plant Depreciation..................N2 800
Factory Insurance ..................N2 170

The overhead cost is?
Answer
(A)
N71 050
25
Use the information below to answer question .

...........PQ Manufacturing Company

Raw materials (1/11/2001)...........N3 500
Raw materials (31/12/2001)..........N4 900
Purchase of raw materials...........N56 000
Salary .............................N63 000
Wages...............................N148 000
Factory lighting ...................N3 080
Plant Depreciation..................N2 800
Factory Insurance ..................N2 170

The company consumed raw materials worth?
Answer
(A)
N54 600
26
A company has departments M and N. The expenses incurred wholly in M is N5000. General expenses incurred amount toN25000. Expenses are apportioned in the ratio 2:3 for departments M and N respectively.
What is N's share of the expense?
Answer
(B)
N15 000
27
The first step in converting as single entry to a double entry system of bookkeeping is to prepare a?
Answer
(B)
statement of affairs
28
Use the information below to answer question

Total sales of ticket.......................N300 000
Amount received from the sales..............N260 000
Cash purchase of club house.................N100 000
Credit purchase of equipment ...............N60 000
Electricity bill paid ......................N5 000
Salaries owed ..............................N2 000

What is the receipts and payment account balance?
Answer
(C)
N155 000
29
Use the information below to answer question

Total sales of ticket.......................N300 000
Amount received from the sales..............N260 000
Cash purchase of club house.................N100 000
Credit purchase of equipment ...............N60 000
Electricity bill paid ......................N5 000
Salaries owed ..............................N2 000

What is the balance of the income and expenditure account?
Answer
(B)
N293 000
30
Receipts and payments accounts is the summary of?
Answer
(B)
cash book
31
Given:

Total debtors b/d 31/12/99...............N25 000
Cheques received from debtors ...........N255 000
Total debtors c/d 31/12/00...............N15 000

Determine the sales figure?
Answer
(C)
N245 000
32
Which of these is a capital expenditure warrant?
Answer
(B)
Development fund general warrant
33
For the purpose of conversion of a partnership to a company, a total purchase consideration of N3.6m was paid. If 30% of the purchase consideration was in cash and the rest by 50k shares, how many shares issued?
Answer
(D)
N5 040 000
34
Given:
(i) the consolidation revenue fund balance b/d..N650 000
(ii) issue from contingency fund amount to......N240 000
(iii) amount transferred to contingency fund is.N210 000
What is the consolidation revenue fund balance?
Answer
(B)
N680 000
35
Use the information below to answer question

Goods from head office................N13,400
Returns to head office ...............N118
Rates and insurance paid .............N188
Wages paid ...........................N913
Cash remitted to head office..........N16,625
Stock at 1/1/2000.....................N1,875
Rents paid ...........................N325
Stock at 31/12/2000 ..................N1,975
Sundry expenses ......................N200

The profit realized from the trade is?
Answer
(A)
N4 069
36
Use the information below to answer question

Goods from head office................N13,400
Returns to head office ...............N118
Rates and insurance paid .............N188
Wages paid ...........................N913
Cash remitted to head office..........N16,625
Stock at 1/1/2000.....................N1,875
Rents paid ...........................N325
Stock at 31/12/2000 ..................N1,975
Sundry expenses ......................N200

What is the total expenses?
Answer
(C)
N1 626
37
The necessary accounts to be opened on the issue of ordinary share capital are?
Answer
(B)
bank and ordinary share capital accounts
38
The amount of each invoiced goods sent to the branch is debited to?
Answer
(B)
branch stock account account and credited to the goods sent to branch account
39
Gross profit in the branch adjustment account is transferred to the branch?
Answer
(C)
profit and loss account
40
Mamsa Nigeria Limited issued 20 000 ordinary shares of N1.50 per share on 2nd July 2002.
1500 ordinary shares were fully subscribed for and their monies received as below:

On application .........................N0.40
On allotment ...........................N0.20
First call (including premium ofN0.50)..N0.70

What is the balance of the ordinary share capital account after the first call was received?
Answer
(C)
N1200
41
Use the information below to answer question .
Capital ...................N2000
Bank ......................N1200
Purchase ..................N2500
Sales .....................N6700
Stock .....................N1300
Creditors .................N1000
Fixed assets...............N3700
Drawings ..................N?
Drawings are always estimated at 50% of capital.

Compute the amount withdrawn
Answer
(D)
N1000
42
Use the information to answer this question.

..............ZEBRA PLC..............
.............Balance sheet as at 31st March, 2002
...............N...............N............N......
Capital......100,000...Fixed assets:
Current................Land &..................
Liabilities...........buildings..50,000......
Creditors........30000..Furniture..10,000....60,000
.......................Current..................
.......................Assets: .......
..................Stock .........30,000...........
..................Debtors.......30,000.............
..................Cash..........10,000......70,000..
.............130,000.........................130,000
The business was acquired on 1st April, 2002 at a purchase consideration of N120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional N20,000 was paid into the bank.

The goodwill on purchase is
Answer
(B)
N30,000
43
Use the information to answer this question.

..............ZEBRA PLC..............
.............Balance sheet as at 31st March, 2002
...............N...............N............N......
Capital......100,000...Fixed assets:
Current................Land &..................
Liabilities...........buildings..50,000......
Creditors........30000..Furniture..10,000....60,000
.......................Current..................
.......................Assets: .......
..................Stock .........30,000...........
..................Debtors.......30,000.............
..................Cash..........10,000......70,000..
.............130,000.........................130,000
The business was acquired on 1st April, 2002 at a purchase consideration of N120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional N20,000 was paid into the bank.

Calculate the network of the business
Answer
(B)
N90,000
44
What is the consolidated revenue fund balance?
Answer
(A)
N1100,000
45
Use the information below to answer this questions

Capital..................N............N........
Land and building.......18470........24000....
Mortgage on premises...................11090...
Drawings...............3000...................
Profit and loss........................3600...
Furniture and fittings...5120.................
Motor Vehicles...........3462................
Closing Stock............3000................
Debtors..................11474...............
Creditors..............................7354.
Cash.....................1518................
..........................46044.........46044

What is the capital employed?
Answer
(C)
N43 044
46
Use the information below to answer this questions

Capital..................N............N........
Land and building.......18470........24000....
Mortgage on premises...................11090...
Drawings...............3000...................
Profit and loss........................3600...
Furniture and fittings...5120.................
Motor Vehicles...........3462................
Closing Stock............3000................
Debtors..................11474...............
Creditors..............................7354.
Cash.....................1518................
..........................46044.........46044

Calculate the value of fixed assets
Answer
(D)
N27 052
47
Use the information to answer this question

Date.............Details........................
Feb........1 Purchased 400 units at N1.00 each
,, ........5 Purchased 200 units at N2.00 each
,,.........10 Purchased 200 units at N300 each
,, .........15 Issued 320 units
,,..........20 Issued 200 units at N4,00 each
,,..........25 Issued 120 units

Calculate the price per unit of closing stock using the periodic weighted average method.
Answer
(D)
N2.00
48
Use the information to answer this question

Date.............Details........................
Feb........1 Purchased 400 units at N1.00 each
,, ........5 Purchased 200 units at N2.00 each
,,.........10 Purchased 200 units at N300 each
,, .........15 Issued 320 units
,,..........20 Issued 200 units at N4,00 each
,,..........25 Issued 120 units

Using the periodic simple average method, the cost per unit is
Answer
(C)
N2.25
49
Credit purchases are always put at 150% of the total cash paid to suppliers

Calculate the closing balance of the ledger account
Answer
(C)
N5000
50
Credit purchases are always put at 150% of the total cash paid to suppliers

Determine the credit purchases
Answer
(D)
N12 000