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JAMB - Accounts Principles Of Accounts (2008)

1
One of the major features of bookkeeping is that it?
Answer
(A)
provides permanent records for all financial transactions
2
Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than over-states results?
Answer
(A)
Conservatism
3
A financial analyst needs accounting information to?
Answer
(C)
advise on how to manage the business
4
One basic assumption of the double entry theory is that it allows?
Answer
(D)
debit and credit two credit entries in corresponding account
5
Given:

Sales.....................N4000
Light expenses............N2900
Rent......................N1500
Purchases.................N7500
Debtors...................N6000
Creditors.................N29000
Drawings..................N25
Bank......................N400
General expenses..........N1500

Calculate the total of trial balance?
Answer
(D)
N33 325
6
Bariga, a stock broker bought stationery for N 12000 by cash. To record this transaction, debit?
Answer
(C)
stationery and credit cash
7
Use the information below to answer questions .

(i) Cash at bank (ii) Cash in hand (iii) Premises
(iv) Land (v)Creditors (vi)loan from friends/bank.

Determine the fixed assets?
Answer
(D)
iii and iv
8
Use the information below to answer questions .

(i) Cash at bank (ii) Cash in hand (iii) Premises
(iv) Land (v)Creditors (vi)loan from friends/bank.
What are the current assets?
Answer
(A)
i and ii
9
Given:

................Cash Book........................

Capital..........N6 500........purchases.....N12 250
Sales............N30 000........Rent..........N9 100
................................Motor vehicle.N2 400

Find the bank balance?
Answer
(A)
N71 250 credit
10
An entry made in bank column of cash book to record movement of cash between the office and the bank is the?
Answer
(D)
contra entry
11
Abba offers 5% cash discount on goods worth N10 000, The discount allowed account is to be?
Answer
(C)
debited with N500
12
Commission-on-turnover is charged on?
Answer
(A)
current accounts only
13
The medium that enables the ATM to read the account details and process transaction directly with the account held in the bank is the?
Answer
(A)
smart card
14
Use the information below to answer question .

Capital.......N12 700........Purchases......N7 100
Debtors.......N4 000........Stationery.....N1 900
Sales.........N2 400........Wages..........N1 230

The owners wishes to maintain an account equal to of capital as drawings.

What is the amount withdrawn?
Answer
(A)
N9525
15
\(\begin{array}{c|c}
\text{Capital} & 12,700 & \text{Purchases} & 7,100 \\
\hline
\text{Debtors} & 4,000 & \text{Stationery} & 1,900 \\
\hline
\text{Sales} & 2,400 & \text{Wages} & 1,230 \\
\end{array}\)

Determine the closing balance of the cash book?
Answer
(B)
N655 debit
16
The factor that determine the periodic depreciation charge are?
Answer
(D)
asset cost, salvage and useful life
17
Use the information below to answer questions .

Aug. 1 Received 20 units at N60 each
Aug. 6 Received 20 units at N68 each
Aug. 10 Issued 16 units
Aug. 20 Received 40 units at N80 each
Aug. 31 Issued 48 units

Using the simple average method, what is the cost per unit of the closing stock?
Answer
(A)
N80
18
Use the information below to answer questions .

Aug. 1 Received 20 units at N60 each
Aug. 6 Received 20 units at N68 each
Aug. 10 Issued 16 units
Aug. 20 Received 40 units at N80 each
Aug. 31 Issued 48 units

Using the FIFO method, what is the value of the closing stock?
Answer
(A)
N1280
19
In a period of inflation, which of the following method normally gives a closing closing stock?
Answer
(A)
FIFO
20
The main purpose of control account is to?
Answer
(A)
detect errors and irregularities
21
Which of the following is a credit item in creditors ledger control account?
Answer
(C)
Purchases
22
Discount allowed as represented in the control account appears on the?
Answer
(C)
credit side of the sales control account
23
Use the information below to answer question .

.........................31 Dec. 05........31 Dec. 06

Total fixed assets.........N7 800............N6 600
Total current assets.......N12 100............N17800
Total current liabilities..N4 700............N3 800

Drawings for 2006 is N5 200.
Determine the capital balance as at Dec. 31,2005?
Answer
(B)
N15 200
24
Use the information below to answer question .

.........................31 Dec. 05........31 Dec. 06

Total fixed assets.........N7 800............N6 600
Total current assets.......N12 100............N17800
Total current liabilities..N4 700............N3 800

Drawings for 2006 is N5 200.

What is the net profit for 2006?
Answer
(D)
N10 600
25
The floor space occupied by manufacturing and administration departments in a company is 200 sqm and 300 sqm respectively. N20 000 rent incurred is shared using floor space occupied. How much is the rent chargeable to manufacturing?
Answer
(A)
N8 000
26
Use the information below to answer questions .

Stock of material 1/1..............N10 000
Purchase of raw material...........N160 000
Manufacturing wages................N420 000
Royalties..........................N3 000
Stock of raw materials 31/12.......N14 000

What is the cost of raw materials consumed?
Answer
(D)
N156 000
27
Use the information below to answer questions .

Stock of material 1/1..............N10 000
Purchase of raw material...........N160 000
Manufacturing wages................N420 000
Royalties..........................N3 000
Stock of raw materials 31/12.......N14 000

Calculate the prime cost?
Answer
(B)
N579000
28
Receipt and payment account discloses?
Answer
(C)
prepayment
29
Given:

Subscription in arrears 01/10/06...........N2 000
Subscription in advance 01/10/06...........N1 500
Subscription paid during the year..........N7 000
Subscription in arrears 31/12/06...........N3 000

Determine the amount of subscription included in the income and expenditure account for the year?
Answer
(C)
N9500
30
The main reason for adopting a departmental account is to?
Answer
(C)
continuously evaluate the profitability of different departments
31
Given:
(i) Cost price (ii) Selling price (iii) Cost plus fixed percentage (iv) Price above cost and selling price

From the information above, the prices used in charging goods to the branches are?
Answer
(B)
i, ii and iii
32
If a GSM operator based in Lagos supplies recharge cards to its branch in Akure, the head office can charge the goods at?
Answer
(C)
company price
33
Given:

Capital:..G...........N5 000
..........T...........N8 000

Drawings: G...........N2 000
..........T..........N1 000

Interest on capital..10%
Interest on Drawings..5%

Find the interest on drawings of G?
Answer
(B)
N100
34
The entry in the partnership books of accounts for interest on drawings is to?
Answer
(B)
debit partners capital account
35
In partnership dissolution, an asset taken over by a partner is debited to?
Answer
(A)
partners capital account and credited to realization account
36
Goodwill can be in the balance sheet as?
Answer
(C)
fictitious asset
37
Cash received from the subscribed shares is recorded by debting?
Answer
(D)
cash, crediting application and allotment account
38
Ordinary shareholders received dividend before?
Answer
(D)
deferred shareholders
39
A source of revenue that is compulsory payment without any derived benefit is?
Answer
(C)
fines
40
The salary of the chief Justice of the Federation is paid from the?
Answer
(A)
consolidated revenue fund
41
Which of the following is among the categories of government cash book?
Answer
(D)
Treasury cash book
42
The Auditor General of the Federation can be removed by the?
Answer
(C)
The president
43
Given that the balance as per cash book after adjustment was N6315, nu-presented cheques N1000 and the bank statement balance N3240. What was the balance of the nu-credited cheques?
Answer
(A)
N4075
44
Use this information below to answer this question.

Trading Account (Extract)

.................N.............................N......
Opening stock...19500........Sales............96 000..
Add purchases...68700.................................
................88200.................................
Less closing stock..?.................................
Cost of goods sold..?.................................
Gross profit C/D....?.................................
....................?..........................?......
The gross profit margin is 20%

What is the gross profit?
Answer
(A)
N88 200
45
Use this information below to answer this question.

Trading Account (Extract)

.................N.............................N......
Opening stock...19500........Sales............96 000..
Add purchases...68700.................................
................88200.................................
Less closing stock..?.................................
Cost of goods sold..?.................................
Gross profit C/D....?.................................
....................?..........................?......
The gross profit margin is 20%
Determine the closing stock
Answer
(C)
N14 100