The advantage of double entry is that

it is easy to prepare the final account

One of the objective of maintaining the account of a branch at the head office is to

to access the performance of the branches

check the excesses of customers

record charges in shareholdings

The similarities between Receipts and payments and income and expenditure account is

Both accounts follows the principle of double entry

They are summaries of financial statements

Both are prepared by non-profit making concern

A proprietor withdraws cash from the business for private use, he

credits cash account and debits drawing A/C

credits cash account and debits bank account

credits cash account and debits drawing A/C

debits cash account and credits drawings account

debits bank account and credits drawings account

One of the limitations of accounting is that

transactions are recorded in monetary terms

it ascertain financial position

transactions are recorded in monetary terms

it monitor the progress of the enterprise

A rent of ₦50,000 was paid by samson to his landlady by cheque. The double entry in Samson's book is

Debit Rent account, Credit Samson's account

Debit rent account, Credit bank account

Debit Rent account, Credit Samson's account

Debit Bank account, Credit Rent account

Debit Samson's account, Credit Rent account

JAMB UTME - Principles of Accounts - 2019

Question 1 Report

In the preparation of statement of profit, if the opening capital is greater than closing capital, there will be

profit

capital

loss Correct answer

cash

Answer Details

In the preparation of a statement of profit, the opening capital is the amount of money a business had at the beginning of a given period, and the closing capital is the amount of money a business has at the end of that same period. If the opening capital is greater than the closing capital, it means that the business has used more money than it has received during the period, leading to a decrease in its overall capital. This decrease in capital is referred to as a "loss." Therefore, if the opening capital is greater than the closing capital, it indicates that the business has suffered a loss during the period.

Read lesson note on Nature And Significance Of Accounting (JAMB)

		N
Bal b/f		3650	Insurance	900
Subscription	(99)	7500	Rate	11,700
	(2000)	1000	Bal c/d	8,050
Fees		8500
		20,650		20,650

	1/199	31/12/99
Rates owing	3,600	2000
Insurance prepaid	50	1000
Subscription in arrears	700	600

Opening Stock	7,000
Closing Stock	12,000
Purchases	60,000
Expenses	4,500

	1/199	31/12/99
Rates owing	3,600	2000
Insurance prepaid	50	1000
Subscription in arrears	700	600






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