Sign In

JAMB - Accounts Principles Of Accounts (2009)

1
Which of the following branches of accounting was first developed?
Answer
(B)
Financial acounting
2
The accounting convention which states that the performance of a business should be determined by matching all expenses against revenues is?
Answer
(A)
accruals
3
The process of bookkeeping includes records produced from?
Answer
(A)
ledgers
4
Musa, a prepaid customer of XYZ and KLM, bought N1500 recharge card from XYZ, and N2000 recharge recharge card from KLM, for business calls. The entry to record these transaction is debit?
Answer
(B)
telephone N3,500, credit cash N3,500
5
Given:

Capital...............................N2375 000
Debtors...............................N495 000
Motor vehicle.........................N870 000
Creditors.............................N245 000
Prepayment............................N500 000
Bills receivable......................N505 000
Furniture.............................N150 000

What is the total debit for the trial balance?
Answer
(C)
N2 520 000
6
If Odukoya takes money out of business bank account for his own private use, the effect of the transaction is?
Answer
(C)
decrease in capital and increase in assets
7
Use the information to answer below to answer questions 

i Operating machines
ii Furniture
iii Fixtures and fitting
iv Loan from friends
V Creditors

What are the current liabilities?
Answer
(B)
iv and v
8

Use the information to answer below to answer questions 

i Operating machines
ii Furniture
iii Fixtures and fitting
iv Loan from friends
V Creditors

Find the fixed assets?

Answer
(C)
i, ii and iii
9
Use the information above to answer question

Period 1:
........Cash to petty cashier.............N1000
........Petty cashier pays out............N780

Period 2:
........Petty cashier pays out............N840

If the float is increased to N1200, how much should the petty cashier receive after period 2?
Answer
(D)
1040
10
What is the balance of cash with the petty cashier at the end of period 1?
Answer
(A)
220
11
Cash discount is often recorded on?
Answer
(D)
both credit and debit side of the cash book
12
The standing order is a payment instruction given by a?
Answer
(A)
customer to the bank
13
Which of the should not be added or subtracted from the bank statement balance to determine the adjust cash balance?
Answer
(A)
Error by the bank
14
Given:

Balance as per cash book...................N20,000
Unpresented cheques........................N5, 200
Direct credit to the bank..................N1, 000
Direct debit from the bank.................N1, 000
Credit in the cash book....................N500

Calculate the balance as per bank statement at the end of the year?
Answer
(A)
N24,700
15
Use the information below to answer questions

Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000

Determine the capital of the business?
Answer
(D)
N3,000
16

Use the information below to answer questions

Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000

What is the net working capital?

Answer
(C)
N800
17
Which of the following items are current assets?
Answer
(A)
Stock, bills receivable, cash and debtors
18
Use the information below to answer questions 

Jan. 1 Received 1,000 units at N10 each
Jan. 2 Received 2,000 units at N12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at N11 each
Jan. 5 Issued 1,000 units

Using FIFO method, what is the value of the closing stock?
Answer
(C)
N17,000
19

Use the information below to answer questions

Jan. 1 Received 1,000 units at N10 each
Jan. 2 Received 2,000 units at N12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at N11 each
Jan. 5 Issued 1,000 units

What is the value of closing stock using simple average?

Answer
(C)
N16,500
20
Which of the following methods gives a conservative closing stock value during a period of rising prices?
Answer
(A)
LIFO
21
Apart from the common control accounts, a control account can also be opened for?
Answer
(C)
cash account
22
Which of the following is a debit item in the purchases ledger control account.
Answer
(D)
Balance c/d
23
Which of the following is an item in the debit side of the sales ledger control account?
Answer
(A)
Interest charged by suppliers
24
The cost incurred by departments that support the production departments with such activities as maintenance, production control and storage are called?
Answer
(B)
service costs
25
Use the information below to answer questions below

Work-in-progress 1/1........................N1,000
Work-in-progress 31/12......................N2,000
Production cost of goods manufactured.......N20,000
Sales.......................................N50,000
Stock of finished goods 1/1.................N4,000
Stock of finished goods 31/12...............N5,000
Selling and distribution expenses...........N2,000
Administrative expenses.....................N1,000

Determine the gross profit?
Answer
(C)
31,000
26

Use the information below to answer questions below

Work-in-progress 1/1........................N1,000
Work-in-progress 31/12......................N2,000
Production cost of goods manufactured.......N20,000
Sales.......................................N50,000
Stock of finished goods 1/1.................N4,000
Stock of finished goods 31/12...............N5,000
Selling and distribution expenses...........N2,000
Administrative expenses.....................N1,000

What is the net profit?

Answer
(C)
N28,000
27
Receipt and payments account is a summary of the?
Answer
(C)
cash book
28
Given:

Furniture and fittings..................N20,000
Equipment...............................N15,000
Bank overdrafts.........................N6, 500
Bar creditors...........................N4,800
Subscription in arrears.................N4,700
Subscription in advance.................N650

What is the accumulated fund?
Answer
(B)
27,750
29
i Space occupied by each department.
ii Average value of stock held by each department.
iii Departmental turnover.
iv Number of articles sold by each department .

From the information above, the two most logical bases for apportioning expenses that are common to departments are?
Answer
(B)
i and iii
30
Use the information to answer question below

......................... Departments
...........................  P  Q  R
Sales value............... N23,400
Selling expenses..........  1,100 N1,400 N1,280
Administrative expenses...N1,400 N1,000  N1,020
Cost of sales.............  N6,900....  N6,700 N5,500

Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.

What is the sales value of department R?
Answer
(D)
N35,100
31

Use the information to answer questions

......................... Departments
...........................  P  Q  R
Sales value............... N23,400
Selling expenses..........  1,100 N1,400 N1,280
Administrative expenses...N1,400 N1,000  N1,020
Cost of sales.............  N6,900....  N6,700 N5,500

Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.

Determine the total expenses of department P?

Answer
(C)
2,860
32
One of the purposes of maintaining the account of a branch at the head office is to?
Answer
(D)
check and monitor the growth of individual branches
33
Which of the following is a common cause of a discrepancy between head office and branch trial balance?
Answer
(A)
Debtors and cash in transit
34
Sule and Ahmad are in partnership sharing profits and losses equally. If Khadija is admitted as new partner to take \(\frac{1}{5}\) as her share,  what is the new profit or loss sharing ratio?
Answer
(C)
Sule 2/5, Ahmad 2/5 and Khadija 1/5
35
Given:

Net profit b/d.....................N10,000
Interest on capital:...M...........N2, 000
.......................K...........N1, 000
Partners' on salary....K...........N800
Interest on drawings...M...........N500
Profit sharing ratio M and K 3:2

Determine M's share of profit?
Answer
(B)
4,020
36
Use the information to answer question below

Capital balances b/d:.....P.............N20,000
..........................K.............N10,000
Drawings:.................P.............N2, 000
..........................K.............N1, 000
Share of profits:.........K.............N4, 000
..........................K.............N2, 000
Salary....................P.............N1, 000
Interest on drawings:.....K.............N100
..........................K.............N20


Assuming that the partnership maintains a fixed capital, what is P's closing capital?
Answer
(D)
N20,000
37

Use the information to answer question below

Capital balances b/d:.....P.............N20,000
..........................K.............N10,000
Drawings:.................P.............N2, 000
..........................K.............N1, 000
Share of profits:.........K.............N4, 000
..........................K.............N2, 000
Salary....................P.............N1, 000
Interest on drawings:.....K.............N100
..........................K.............N20

If the capital of the partnership is unfixed, what is K's current accounts?

Answer
(E)
NO OPTION
38
In a partnership account, conversation of non-cash assets into cash is referred to as?
Answer
(A)
realization
39
Use the information below to answer questions below;

A company advertised and issued N750,000, 12% preference shares of N1 each to be issued at N1.50 per share. Applications for N1,370,000 were received at 30k per share. 70k per share (including premium) was due om allotment while 25k per share was due on each of the remaining two calls. All amounts due were received . Application money for 120,000 shares was refunded to unsuccessful applicants were allotment shares on pro-rata basis.

The share premium account would be?
Answer
(C)
credited with application and allotment N375, 000
40

Use the information below to answer questions below;

A company advertised and issued N750,000, 12% preference shares of N1 each to be issued at N1.50 per share. Applications for N1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received . Application money for 120,000 shares was refunded to unsuccessful applicants were allotment shares on pro-rata basis.

The second and final call account was debited with?

Answer
(D)
12% preference share capital account N187,500
41
Provision for bad and double debts in companies final accounts is treated in?
Answer
(B)
profit and loss account
42
The book value per share is obtained by dividing?
Answer
(A)
shareholders equity by outstanding shares
43
Expenditure incurred on consumables and goods for resale is?
Answer
(A)
revenue expenditure
44
Replacement and renewal of fixed assets are?
Answer
(C)
capital expenditure
45
Which of the following is credited to the consolidated revenue fund?
Answer
(A)
Recurrent expenditure