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JAMB - Accounts Principles Of Accounts (2018)

1

What is the amount of capital employed?

Answer
(D)
₦15000
2
Advertising expenses incurred on a product in a business organization should be charged to
Answer
(A)
Sales department
3
  N  N
Capital  39,000  Land  20,000
Long Term Loan  15, 000  Building 30,000
Creditors 9,000 Stock  40,000
  Debtors  6,000
Accrued wages 5,000 Cash  8, 000
 68,000  68,000

 

 

 

Use the information above to answer the question

 : The acid test ratio in the company is___________

 

 

 

 

Answer
(A)
1:1
4
When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________
Answer
(A)
Price above or below the stipulated price
5
The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________
Answer
(C)
Auditor general
6

Use the information below to answer question

 
Trading account for the year ended 31st December 2009

 

₦ ₦
Opening Stock 32,000 Sales  48,000 
Purchases 40,000 Less Return 2,000
Carriage inwards 1,000  
  41,000  
Less Return  2,000 39,000  
   
Cost of goods available ??  
Less closing stock    9,000  
Cost of goods sold  ??  

 

Answer
(A)
#20,500
7

Use the information below to answer question

 
Trading account for the year ended 31st December 2009

₦ ₦
Opening Stock 32,000 Sales  48,000 
Purchases 40,000 Less Return 2,000
Carriage inwards 1,000  
  41,000  
Less Return  2,000 39,000  
   
Cost of goods available ??  
Less closing stock    9,000  
Cost of goods sold  ??  

 

Calculate the cost of goods sold

Answer
(B)
#62,000
8
The amount called in respect of a share but not paid before or on the date fixed for payment is referred to as:
Answer
(B)
call in arrears
9
When goodwill is not retained in the business, the entries in the new partners books will be to debit______________
Answer
(D)
Partners capital account and credit goodwill account
10

Use the information below to answer the question

 

Liabilities ₦ Assets ₦
Capital  40,000  Furnishing 10,000
  Ceiling Fan 1,500
  Cash in Hand 28,500
  40,000  40,000

 

If at 31/1/95 the following information was ascertained

 

  (i). rent for shop #12,000 paid for the year

  (ii). Total purchases #15,000

  (iii). Total sales #8,200

  (iv). Stock of goods left #10,000

  (v). paid sales boy #500

What is the new balance sheet total as at 31/1/95?

Answer
(C)
#41,700
11
In the head office ledger, the value of goods sent to the branch are____________
Answer
(B)
Debited to the head office current account
12
If the purchase price exceeds the net assets of a company, the excess amount is debited to________________
Answer
(C)
goodwill account
13
Gross profit in the branch adjustment account is transferred to the branch____________
Answer
(B)
profit and loss account
14
Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?
Answer
(C)
2 : 1
15
Calls in advance are treated in the balance sheet as_______
Answer
(C)
Current liability
16
Why are adjustments in the profit and loss account necessary?
Answer
(D)
To ascertain the actual expenses incurred and income earned during the year
17
Which of the following is not a type of branch?
Answer
(D)
single branch
18
In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________
Answer
(A)
Debit entry
19
Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________
Answer
(C)
Interest on loans
20

Use the information below to answer the question

 

Liabilities ₦ Assets ₦
Capital  40,000  Furnishing 10,000
  Ceiling Fan 1,500
  Cash in Hand 28,500
  40,000  40,000

 

If at 31/1/95 the following information was ascertained;

  (i). rent for shop #12,000 paid for the year

  (ii). Total purchases #15,000

  (iii). Total sales #8,200

  (iv). Stock of goods left #10,000

  (v). paid sales boy #500

 

If at 31/1/95 the following information was ascertained;

  (i). rent for shop #12,000 paid for the year

  (ii). Total purchases #15,000

  (iii). Total sales #8,200

  (iv). Stock of goods left #10,000

  (v). paid sales boy #500

 

  What is the balance on its cash account as at 31/1/95

Answer
(B)
#9,200
21
The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a
Answer
(B)
Good will
22
   N

Stock at branch 1st January at cost 

 400

Goods sent to branch at cost

  8000

Returns to head office

   340 

Cash sales

 9160

Stock at branch 31st December at cost

 720

 

Use the information below to answer the question.

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

Answer
(D)
#1820
23
Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?
Answer
(C)
Cost price
24
When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________
Answer
(A)
Price above or below the stipulated price
25
In departmental accounting, which is not a transfer pricing_________
Answer
(D)
peak pricing
26
What act generally includes completing unfinished partnership business, collecting and paying debts, collecting partnership assets to be turned into cash and taking inventory?
Answer
(B)
dissolution
27

Using the following:

  Balance as par overdraft of the cashbook is ₦4000 ,uncredited cheque is ₦2300, bank charges ₦300, unpresented cheque ₦5000.

  what is the adjusted cashbook balance?

Answer
(C)
4300
28
Branch stock adjustment account is prepared at?
Answer
(C)
invoice price
29
A partnership deed is used to____________
Answer
(A)
Promote mutual understanding
30
The cost price method is applicable when_____
Answer
(B)
goods are perishable
31
   N

Stock at branch 1st January at cost 

 400

Goods sent to branch at cost

 8000

Returns to head office

 340

Cash sales

 9160

Stock at branch 31st December at cost

 720

 

Use the information below to answer the question.

  Adex Ltd. Issues stock to its retail branches at cost price.

 Calculate the cost of goods credited to the head office trading account

 

Answer
(D)
#7660
32
In dealing with incomplete record, fixed assets are posted to___________-
Answer
(C)
Closing balance sheet as brought forward figure
33
Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January ,2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?
Answer
(A)
₦705
34
Which of the following should not be adjusted for in the profit and loss account?
Answer
(C)
subscription
35

Use the information below to answer the question .

 

  Total P Q   Total P Q
  ₦ ₦ ₦   ₦ ₦ ₦
Stock 3,000 2,000 1,000 Sales 10,000 6,000 4,000
Purchase 4,000 2,500 1,500 Closing Stock   2,000 1,500  500

 

Goods worth #300 was transferred from department Q to P. Similarly, P’s total expenses for the period was #200.

  Department P’s net profit was

Answer
(A)
#2,500
36
In the absence of a partnership deed, the act stipulates that____________
Answer
(D)
Interest should not be allowed on partners drawings
37
A partnership’s internal regulation are set out by________---
Answer
(C)
A deed
38
Sule and Ahmed are in partnership sharing profit and losses equally. If Khadija is admitted as a new partner to take 1/5 th as her share. What is the new profit or loss sharing?
Answer
(B)
Sule1/3, Ahmed1/3, Khadija 1/3
39
Transfers from the head office to branches are best carried out at__________
Answer
(B)
Cost plus mark up
40
Which of the following is a common cause of a discrepancy between head office and branch trial office________
Answer
(C)
Stock and cash in transit
41
Departmentalization of accounts is useful because it shows the____________
Answer
(A)
Over all performance of a division
42
Why should a new partner contribute towards goodwill on his admission?
Answer
(C)
the firm into which he is entering already has some goodwill in the market
43
The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?
Answer
(C)
₦1750
44
Cost of rent as an expense can be apportioned to all department on the basis of:
Answer
(C)
space occupied
45

Use the information to answer the questions

  Rakiya and joy are in a partnership and agreed that 5% interest per annum is to be charged on drawings. The drawing made by both partners in one year were:

  Rakiya, #200 on March 31 and #300 on September 30.

  Joy, #100 on April 1 and #240 on July 1.

  The interest on Joy’s drawing is___________

Answer
(C)
#349.75 debit
46
Which of the following is a conversion cost?
Answer
(A)
Factory overhead
47
Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January , 2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. what is the closing balance in Tea’s current account
Answer
(A)
36,925Cr
48
To account for expenses paid by head office on behalf of the branch, the branch should___________
Answer
(A)
Debit profit and loss account and credit head office account
49

Use the information below to answer the question.

  Calculate the balance in the bank statement.

  ₦

Balance as per cashbook

13560

Unpresented cheques

5120

Dividend received

 2000

Uncredited cheque

 2300

Bank charges

 280

Standing order

 600

Balance as per bank statement

 ?
Answer
(D)
₦17,500
50
Which of the following is not an inventory costing method?
Answer
(D)
LILA
51
The major source of document which enables employer to calculate  the employee wages  is the?
Answer
(B)
records of number of hours worked
52
The total credit sales for a period can be extracted from the?
Answer
(B)
Sales day book
53
If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?
Answer
(A)
N4,000
54
Mrs. Okoro who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation is? 
Answer
(A)
commercial
55
The yearly depreciation using the straight line method would be
Answer
(C)
N5,200
56
The accounting entries used to record a cheque issued by a business is to?
Answer
(A)
debit cash book and credit drawer
57
In government accounting , the method used which records on the basis of financial entity with self balancing books instead of entity of propietorship is?
Answer
(B)
fund accounting
58
which of the following  affects the accuracy and authenticity of trial balance? 
Answer
(C)
error of transposition
59
The major advantages of an imprest system is that it ?
Answer
(A)
ensures a proper accountability for every expenditure
60
The value of the current assets will be?
Answer
(B)
N10,651
61
Determine the current liabilities.
Answer
(B)
N8,263
62
The excess of sales over cost of goods sold is?
Answer
(B)
gross profit
63
The control account is used in facilitating?
Answer
(A)
the various location of errors in the various accounts
64
The main objective of accounting report is to provide information about?
Answer
(C)
company's economic resources
65
from the data above, compute the prime cost. 
Answer
(B)
N 8,500
66
calculate the sales ledger balance
Answer
(A)
N13,000
67
what is the purchase ledger balance?
Answer
(D)
N23,000
68
lubricating oil and spare parts of machines are example of?
Answer
(B)
direct expense
69
for an incomplete record to provide necessary information, it must be converted to?
Answer
(B)
single entry
70
The main difference between the ordinary and preference shareholders is that?
Answer
(A)
the former have voting rights while the latter do not
71
A club received rent N10,000 and donation of N30,000. it paid N6,000 for entertainment and is still owing N16,000 . The balance of the receipts and payments account is?
Answer
(A)
N14,000
72
The N6,000 subscription received is?
Answer
(C)
current liability
73
what is the subscription to be charged to income and expenditure account?
Answer
(D)
N36,000
74
A cash book had a opening balance of N15,200, closing balance of N18,400 and total cash received during the period of N36,000. What was the amount of cash paid out during the same period?
Answer
(C)
N32,800
75
The current growth in the volume of trading and financial dealings in nigerian is helped by?
Answer
(C)
increased financial activities
76
when a bill is negotiated to a bank , it is said to be?
Answer
(B)
discounted
77
Bala ltd acquired the business of bello ltd and caused the separate existence of the latter company to terminate. 
Answer
(C)
merger
78
In order to make the cash book balance equal to the bank statement, it is usually to add?
Answer
(D)
unpresented cheques
79
The company's earnings yield is?
Answer
(C)
N31.33%
80
what will be the price earnings ratio of the company?
Answer
(B)
N3.19
81
The partnership deed normally specifies?
Answer
(A)
how profits or losses are to be shared
82
The accumulated fund of a non-trading concern can equally be referred to as?
Answer
(C)
general fund
83
calculate the net profit. 
Answer
(D)
N7,500
84
what is the gross profit margin?
Answer
(B)
50%
85
Kakaku limited with three departments has a total of N7,200,000 as net debtors for the year ended 31/12/2106. The company's policy, provides for 15%bad debt annually. Which of the following represents the total balance of debtors before adjustment?
Answer
(A)
N6,120,000