JAMB Accounts - Principles of Accounts 1997 Past Questions

The most important reason for studying accounting is that

In preparing accounting records, the owner of a business and the business are treated as

Creditors use Accounting information for the purpose of

The instrument that are generated when firms enter into business transactions with others are called

The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as

The effect of the payment of liability is that it

Books of original entry are used for

The term 'posting' in Accounting refers to

Erroneous rearrangement of financial figures such as writing N624 as N 264 is called

Which of the following demonstrates the imprest system?

When the sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as

An examination of the cash book on 3rd August 1993 showed a different balance from the bank statement of 31st July, 1993 which read N722. Uncredited cheques were Bimpe N40; Wale N60 while unpresented cheques were; Usman N20, Kalu N32 and Musa N70. What is the cash book balance after the reconciliation?

On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
At 31/12/93, what portion of that amount was prepaid?

On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?

The receipt of cash from a customer who bought goods with N800 list price, 25% trade discount and 2/10, n/30 terms would, if paid within the discount period, amount to

At the end of a financial period, the trading profit and loss account of a company showed a profit of N120,000. It was however discovered that revenue of N12,000 was recorded as expenses while expenses of N4,000 had been recorded as revenue. What should be the correct profit for the period?

Given:
Net profit-----------------------N25,000
Cost of sale---------------------N25,000
Sales----------------------------N85,000
Determine the total expenses.

Given: capital N13,000; office machinery, N9,000; creditors N900, stock of goods N1,550; debtors, N275; cash at bank, N5,075 and loan from Jumbo, N2,000. What is the balance sheet total?

The records of wages due but not yet paid is an example of an adjustment for

The process of allocating the cost of an intangible assets over its useful life is known as

The principle use of control accounts is to

In the absence of a sales day book or sales account the credit for sales can be computed from

which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?

The total of the creditors at the beginning of the year was N4,600 and at the end of the year N5,250. During the year, N26,500 was paid to suppliers and N130 was received in discounts from these suppliers. The purchases for the year would be

Given:
Capital at the beginning...............N20 000
Drawings...............................N3 000
Capital................................N30 000
New capital introduced.................N8 000

What is the profit for the period?

Which of the following stock valuation methods is suitable under inflationary conditions?

The understatement of closing value of work-in-process would have the effect of?

Emeka Manufacturing Company (Extract) Manufacturing Account.
Direct material.....................N5 000
Direct labour.......................N4 500
Direct expenses.....................N3 000
Factory overhead....................N2 500
Selling distribution................N1 500

Calculating the production cost?

Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.

Calculate the profit for Adamu?

Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?

Share premium can be used to?
i. write off discount on shares
ii. give loans to directors
iii.pay dividends
iv. pay company's formation expenses.

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

What is the balance of the bank account shown above?

In analyzing incomplete records, which of the following should be investigated?

Given: N
Direct material - 10 000
Direct labour - 5000
Direct expenses - 2000
Factory overhead - 4000
What is the prime cost?

The difference between a trading account and a manufacturing account is that while the manufacturing account

An income and expenditure account is a summary of

Additional information :
1: 1: 93 31 : 12 : 93
N N
Subscription in arrears 300 450
Furniture 7000
Subscription received
in advance 500 400
Rate owing 50 60

Subscription relating to the accounting year 1993 in the income and expenditure account is

Accumulated fund on 1st January 1993 is

On partnership dissolution, if a partner's capital account has a debit balance and the partnr is insolvent, the deficiency will, in accordance with the decision of the case of Garner v Murray, be

A company has 5% debentures worth N500 000 ordinary share capital N 2 000 000, and preference shares N1500 000. if the company made a profit of N 1 000 000, the debenture interest would amount to

A dividend of 10% in a company on 500 000 ordinary shares of N 1 nominal value has been declared, How much will a shareholder receive if he has 200 shares?

What is the working capital?

The acid test ratio in the company is

If goods are invoiced to the branch at cost and the invoice par value is N 2 000 with 5%discount rate, can remitted to the head office is

Which of the following are advantages of departmental accounts?
I. The department making the highest profit can be easily determined

II. The capital of the business can be calculated easily

III. Easy knowledge of the sources of funding

IV. Encouragement of healthy rivalry among the various departments

Public sector accounting is based on

The end result of governmental accounting procedure is to

The Current account above had some errors in the arrangement of the accounts for Musa, Kalu and Lawal

The Correct closing balance for Musa's current account is

The Current account above had some errors in the arrangement of the accounts for Musa, Kalu and Lawal]

The correct closing balance for lawal's current account is