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JAMB - Accounts Principles Of Accounts (2006)

1
Fatima withdraws goods from the business for personal use. the accounting treatment is to debit?
Answer
(B)
drawings account and credit stock account
2
Use the information below to answer questions .

On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.

Calculate the yearly depreciation expense using the straight line method.
Answer
(A)
N11 000
3
Use the information below to answer questions .

On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.

the rate of the yearly depreciation expense would be?
Answer
(D)
20%
4
The objective of the purchase ledger control account is to established the?
Answer
(A)
credit purchases
5
The objective of a trading account is to establish the?
Answer
(B)
gross profit
6
A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the?
Answer
(C)
FIFO method
7
Use the information below to answer question .

Capital.....................N?
Profit and loss.............N3500
Current assets..............N?
Current liabilities.........N2000
fixed assets................N11000

The company maintains a current ratio of 3:1.
The capital balance is?
Answer
(B)
N12 500
8
Use the information below to answer question .

Capital.....................N?
Profit and loss.............N3500
Current assets..............N?
Current liabilities.........N2000
fixed assets................N11000

Determine the current assets?
Answer
(B)
N6 000
9
The difference in the sales ledger control account is transferred to the?
Answer
(D)
trading account
10
Tunde purchased goods from Femi by cash worth N1000 with 10% cash discount. Tunde's ledger control account is to be?
Answer
(A)
deited by N100
11
After receiving the financial statement the Auditor General of the Federation must submit a report to the National Assembly within?
Answer
(B)
30 days
12
Gross earnings........................N950 000
Current liabilities...................N100 000
Operating expenses....................N350 000
10% debentures........................N400 000
Shareholder's fund....................N1300 000
Corporate tax is 30%

From the data above calculate the returns on equity?
Answer
(D)
30%
13
Use the information below to answer questions

Turnover...........................N120 000
Net profit before tax..............N40 000
Net profit b/f.....................N68 000
Proposed dividends:
Ordinary shares....................N8 000
Preference shares..................N6 000
Corporate tax is 30%...............N10 000

The undistributed profit carried forward is?
Answer
(A)
N 68 000
14
Accrual accounting differs from cash accounting because it recognizes?
Answer
(B)
debtors and creditors
15
Use the information below to answer questions Turnover...........................N120 000 Net profit before tax..............N40 000 Net profit b/f.....................N68 000 Proposed dividends: Ordinary shares....................N8 000 Preference shares..................N6 000 Corporate tax is 30%...............N10 000

What is the tax charged to profit and loss account?
Answer
(D)
N 20 000
16
A private company is different from a public company because?
Answer
(B)
it cannot invite members of the public to subscribe for its shares
17
The use of a three-column cash book is determine by?
Answer
(A)
cash discounts
18
A major factor that enhanced the early development of accounting is the?
Answer
(B)
growing of trade and commerce
19
which of the following is source of document for the preparation of debtors' ledger account?
Answer
(D)
Sales invoice
20
Stationary which will be used over a long period of time is usually recorded as an expense instead of an asset.
This concept is called?
Answer
(B)
materiality
21
Adaobi mistakenly entered N7000 as credit sales in Abba's account. This is?
Answer
(C)
an error of commission
22
Use the information below to answer question

Capital.................................N60 000
Bank....................................N12 500
General expenses........................N5 250
Creditors...............................N17 000
Stock...................................N98 500
Fixed assets............................N42 000
Insurance and rates.....................N18 800
Purchase................................N63 850

What is the cash balance on the debit side if it is the only item omitted?
Answer
(C)
N6475
23
Use the information below to answer question

Capital.................................N60 000
Bank....................................N12 500
General expenses........................N5 250
Creditors...............................N17 000
Stock...................................N98 500
Fixed assets............................N42 000
Insurance and rates.....................N18 800
Purchase................................N63 850

Determine the total of the trial balance?
Answer
(C)
N166 525
24
Given:

Stock of raw materials 1/40............N11 150
Purchases of raw materials.............N112 550
Raw material returned..................N31 150
Stock of Raw materials 31/12/04........N27 150

Calculate the cost of raw materials consumed?
Answer
(D)
N66 550
25
Use the information below were to answer questions

...................Stationary Dept.............Video Dept.
Sales ..............N10,600.....................N15,175
Cost of goods sold..N5,247......................N6704

The expenses incurred were rent N4500, motor repairs N1200 and telephone N900.
The basis of cost apportionment is 1/2 stationary 1/3 video.

Determine the net profit of the business?
Answer
(B)
N6271
26
Use the information below were to answer questions

...................Stationary Dept.............Video Dept.
Sales ..............N10,600.....................N15,175
Cost of goods sold..N5,247......................N6704

The expenses incurred were rent N4500, motor repairs N1200 and telephone N900.
The basis of cost apportionment is 1/2 stationary 1/3 video.

Find the total expenses allocated to the stationary department?
Answer
(C)
N4400
27
Stock 1/1/2002..................................N40 000
Goods received from head office.................N800 000
Goods returned to head office...................N34 000
Sales...........................................N916000
Stock 31/12/2000................................N72 000

From the data above determine the cost of goods credited to the head office trading account.
Answer
(C)
N734 000
28
Use the information below to answer question .

Prime cost..................N12 100
lighting....................N10 000
Heating.....................N15 000
Factory overhead............?

The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.

The factory overhead is?
Answer
(D)
N5500
29
Use the information below to answer question .

Prime cost..................N12 100
lighting....................N10 000
Heating.....................N15 000
Factory overhead............?

The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.


Interest on the drawings of partners is treated in the?
Answer
(A)
profit and loss appropriation account
30
Departmentalization of accounts is useful because it shows the?
Answer
(D)
overall performance of a division
31
When goodwill is not retained in the business, the entries in the new partners' book will be to debit?
Answer
(B)
partners' capital account and credit goodwill account
32
Given:
....................January.............December
Assets................N28,320.............N25,320
Creditors.............N5,620..............N10,320

The proprietor made drawings of N755 per month for personal use.

The profit for the period is?
Answer
(B)
N1,360
33
Given:

Subscriptions received.........N200 000
Subscriptions owed.............N10 000
Subscriptions in advance.......N25 000

Calculate the subscription in the income and expenditure account?
Answer
(C)
N185 000
34
Boro Limited apportion 1/6 of its rent for factory and 10% of the balance for warehouse. If rent paid is N48 600, how much is paid for warehouse?
Answer
(D)
N8000
35
MPOBA Club's annual donations from members amount to 112% of its internally generated revenue from the following.

Sales of drinks...................N212 500
Annual dues.......................N112 000

How much is the total receipt of the club?
Answer
(C)
N363 440
36
In converting a to a partnership company, the loss on asset revaluation is?
Answer
(B)
debited to the profit and loss account
37
Determine the opening cash balance of the club?
Answer
(B)
N2 220
38
The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections.

What is the closing cash balance?
Answer
(C)
N5 000
39
The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections.

The subscriptions received would be
Answer
(B)
N240 000
40
LOAN IS 30% OF CREDITORS.

What is the capital balance?
Answer
(B)
N2 100
41
LOAN IS 30% OF CREDITORS.

A company has departments S,T and U. The sales are N20 000,20 000, N40 000 AND N60 000 respectively if the sales commission paid is N12 000, how much is T's share?
Answer
(C)
N4000
42
Head office sends goods to its branch at cost plus mark-up of of 25%. A debit of N40,000 to the branch stock account in the head office books will indicate that the head office has sent goods with a profit of
Answer
(D)
N8000
43
Which of the following is a journal as well as a ledger?
Answer
(B)
Sales day book
44
On Jan. 30 Khalifa withdraw N2500 from the bank for office use.

The cash balance at end of the month was
Answer
(B)
N4 100
45
What was the bank balance at the end of the month?
Answer
(B)
N6 500