The advantage of double entry is that

it is easy to prepare the final account

Where there is no agreement made by the partners, the following provisions takes place except

No salary for partners acting in the business

No interest to be charged on drawings

Profit and loss are to be shared equally

Accounting standards are issued at the International level by the

International Accounting Standards Board

Nigerian Accounting Standards Board

Standing Interpretations Committee

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

Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be

Increase in assets of motor vehicle account

Decrease in assets of motor vehicle account

Increase in assets of bank account

Increase in liabilities of bank account

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

Majority of commercial transactions are termed credit transactions, which means

Settlement is deferred to a future date

The buyers pay immediately for goods bought

Settlement is deferred to a future date

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

The importance of bank statement is all except

verifies the accuracy of balances of cash book and cheque book

helps to detect and rectify any error

JAMB UTME - Principles of Accounts - 2019

Question 1 Report

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 include capital items Correct answer

Both are prepared by non-profit making concern

Answer Details

Read lesson note on Accounts Of Not-for-profit-making Organizations (JAMB)

Read lesson note on Incomplete Records And Single Entry (JAMB)

Accounts Of Not-for-profit-making Organizations

Incomplete Records And Single Entry

View Answer

Question 2 Report

The two recognised accounting bases are

cash and credit

personal and impersonal

Accrual and Cash Correct answer

Drawings and Private

Answer Details

The two recognized accounting bases are Accrual and Cash. Accrual accounting recognizes economic events regardless of when payment is received or made. This means that transactions are recorded in the accounts when they occur, regardless of when the cash is received or paid. Cash accounting, on the other hand, only recognizes transactions when cash is received or paid. This means that transactions are only recorded in the accounts when the cash changes hands. In simple terms, accrual accounting provides a more complete picture of a company's financial performance, while cash accounting is more focused on the company's actual cash flow.

Read lesson note on Accounting Concepts (WAEC)

Read lesson note on Principles Of Double Entry (JAMB)

Accounting Concepts

Principles Of Double Entry

View Answer

Question 3 Report

Use the information to answer this question

Receipts and Payment Account (Extract)

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

The following information were given:

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

Calculate the subscriptions in the Income and expenditure account

8400

7400 Correct answer

6400

7200

Answer Details

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

Nature And Significance Of Accounting

View Answer

Question 4 Report

Transactions are recorded or posted to the ledger in line with

Accounting Concept

Source document

Double Entry Principle Correct answer

Data collection

Answer Details

Transactions are recorded or posted to the ledger in line with the Double Entry Principle. This principle is the foundation of modern accounting and states that every transaction has two effects: a debit and a credit. Debits and credits must be equal and opposite to keep the accounting equation (assets = liabilities + equity) in balance. So when a transaction occurs, it is analyzed to determine which accounts are affected and how. The debits and credits are then recorded in the ledger, which is a book that contains all the accounts used by a company. Each account has a balance, which reflects the total of all the debits and credits that have been posted to it. For example, let's say a company purchases inventory for $1,000. This transaction affects two accounts: Inventory (an asset) and Accounts Payable (a liability). Using the Double Entry Principle, the company would record a debit of $1,000 to the Inventory account and a credit of $1,000 to the Accounts Payable account. This ensures that the accounting equation stays in balance and that the company's financial statements accurately reflect its financial position. In summary, the Double Entry Principle is the method by which transactions are recorded in the ledger. It ensures that every transaction is properly analyzed and that the resulting debits and credits keep the accounting equation in balance.

Read lesson note on Accounting Concepts (WAEC)

Accounting Concepts

View Answer

Question 5 Report

The difference between double entry and single entry is

Duble entry is based on the dual concept while single entry is not based on dual concept Correct answer

Double entry is an account while single entry is not an account

Double entry keeps personal account while single does not

Double entry is useful for business enterprise while single entry is not

Answer Details

Read lesson note on Incomplete Records And Single Entry (JAMB)

Read lesson note on Principles Of Double Entry (JAMB)

Incomplete Records And Single Entry

Principles Of Double Entry

View Answer

Question 6 Report

Which of the following cannot depreciate?

plant and machinery

motor van

premises

land Correct answer

Answer Details

Land is the item that cannot depreciate. Depreciation is the reduction in the value of a fixed asset due to wear and tear, obsolescence or other factors. It is a non-cash expense that is charged against the income of a company over the useful life of the asset. However, land is a fixed asset that has an unlimited useful life, and its value does not diminish over time. Therefore, it cannot be depreciated. On the other hand, plant and machinery, motor vans, and premises are all fixed assets that have a limited useful life, and their values decrease over time due to wear and tear, obsolescence or other factors. As a result, they can be depreciated. In summary, land is the item that cannot be depreciated, while plant and machinery, motor vans, and premises are all items that can be depreciated.

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

Nature And Significance Of Accounting

View Answer

Question 7 Report

Which of the following is not charged to manufacturing account?

Direct expenses

Factory wages

Distribution expenses Correct answer

Raw materials

Answer Details

Distribution expenses are not charged to manufacturing account. Manufacturing account is a record of all the costs incurred during the production process of goods. It includes direct expenses such as raw materials, direct labor (factory wages) and direct expenses incurred in the production process. On the other hand, distribution expenses refer to the costs incurred in the distribution of finished goods to the customers, such as transportation, packaging, and marketing expenses. These costs are not considered a part of the production process and hence are not charged to the manufacturing account. Instead, they are recorded in the selling and administrative expenses account.

Read lesson note on Manufacturing Accounts (JAMB)

Read lesson note on Cashbook (JAMB)

Manufacturing Accounts

Cashbook

View Answer

Question 8 Report

In a non-profit making organisation, the excess of Assets over liabilities equals

capital

capital employed

capital owned

accumulated funds Correct answer

Answer Details

In a non-profit making organization, the excess of assets over liabilities equals accumulated funds. Accumulated funds, also known as "net assets" or "fund balance", represent the total amount of funds that the organization has accumulated over time from its operations, donations, and other sources, minus any liabilities that it owes. When an organization has more assets than liabilities, it means that it has accumulated more resources than it has used or spent over time, resulting in a positive balance of accumulated funds. This balance can be used by the organization to fund future projects and initiatives or to build up its reserves. It is important to note that in a non-profit organization, accumulated funds are not owned by any individual or group, but rather are dedicated to the organization's mission and objectives. They are held in trust for the benefit of the organization and the people it serves.

Read lesson note on Accounts Of Not-for-profit Making Organizations (WAEC)

Accounts Of Not-for-profit Making Organizations

View Answer

Question 9 Report

Use the following Information to answer this question.

Stock of finished goods: Jan 1st

Dec 31st

Stock of Raw materials: Jan 1st

Dec 31st

Purchase of Raw Materials

Manufacturing Wages

Depreciation: Factory equipment

Direct expenses

Factory Fuel

Carriage inwards on Raw Materials

₦

50,640

71,380

32,160

29,640

145,000

52,000

16,500

12,500

7,000

220,480 Correct answer

213,480

200,480

190,000

Answer Details

Read lesson note on Manufacturing Accounts (JAMB)

Manufacturing Accounts

View Answer

Question 10 Report

Use the following to answer this question

Opening stock

Purchases

Sales

Closing Stocks

₦

20,000

70,000

100,000

15,000

What was the gross profit?

₦35,000

₦75,000

₦50,000

₦25,000 Correct answer

Answer Details

To calculate the gross profit, we need to subtract the cost of goods sold (COGS) from the total revenue (sales). COGS represents the cost of the products that were sold during the period, and it is calculated as: COGS = Opening stock + Purchases - Closing stock In this case, the values are: COGS = ₦20,000 + ₦70,000 - ₦15,000 = ₦75,000 Total revenue (sales) is given as ₦100,000. Therefore, the gross profit can be calculated as: Gross profit = Total revenue - COGS = ₦100,000 - ₦75,000 = ₦25,000 Hence, the answer is option (D) ₦25,000.

Read lesson note on Stock Valuation (JAMB)

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

Stock Valuation

Nature And Significance Of Accounting

View Answer

Question 11 Report

Capital at start was ₦250,000, while capital at the end of the year was ₦400,000. Drawings during the year amounted to ₦15,000. What is the profit?

₦165,000 Correct answer

₦635,000

₦600,000

₦156,000

Answer Details

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

Read lesson note on Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

View Answer

Question 12 Report

If only wages is shown on the trial balance, it should be charged to the

profit and loss account Correct answer

trading account

balance sheet

wages account

Answer Details

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

Nature And Significance Of Accounting

View Answer

Question 13 Report

Use the following to answer this question.

Industry ltd, issued 100,000 shares at ₦1 each out of its Authorized share capital of ₦200,000 at ₦1 each. At the of the first call, all shareholders paid in full, except for two shareholder who owes ₦20,000.

The Unissued capital of the company is

₦310,000

₦200,000

₦210,000

₦100,000
Correct answer

Answer Details

The authorized share capital of Industry Ltd is ₦200,000, which means the maximum amount of money the company can raise from issuing shares is ₦200,000. The company issued 100,000 shares at ₦1 each, so it raised ₦100,000. This means that ₦100,000 of the authorized share capital has been issued. All shareholders paid in full except for two shareholders who owe a total of ₦20,000. This means that the company received a total of ₦80,000 in payment for the issued shares. The unissued capital of the company is the portion of the authorized share capital that has not been issued yet. Since the authorized share capital is ₦200,000, and ₦100,000 has been issued, the unissued capital is ₦100,000. Therefore, the answer is (2) ₦200,000 is the authorized share capital, and ₦100,000 is the unissued capital.

Read lesson note on Partnership Accounts (JAMB)

Partnership Accounts

View Answer

Question 14 Report

Use the information below to answer this question.

Ojo, Sam and Ade are in partnership sharing profit in the ratio 4 : 3 : 1 respectively.

Extract from their books for the year ended are

Interest on drawings and capital is allowed 5% respectively and profit for the year amounted to ₦4,950

Sam's share of profit is

7000

4921

3000

991.8 Correct answer

Answer Details

Read lesson note on Partnership Accounts (JAMB)

Partnership Accounts

View Answer

Question 15 Report

Use the information to answer this question

Receipts and Payment Account (Extract)

		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

The following information were given:

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

What is the opening cash balance

₦20,600

₦8,050

₦3,650 Correct answer

₦8,500

Answer Details

The opening cash balance can be found by looking at the Receipts and Payments Account. The "Bal b/f" column represents the balance brought forward from the previous period, which is the opening cash balance. In this case, the opening cash balance is ₦3,650, which is the first entry under "Bal b/f" in the Receipts and Payments Account. Therefore, the correct option is (3) ₦3,650.

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

Nature And Significance Of Accounting

View Answer

Question 16 Report

From the following, determine the value of closing stock using:

Feb 1 purchased 200 units @ ₦2.00 each

Feb 3 purchased 100 units @ ₦1.00 each

Feb 4 issued 120 units @ ₦5.00 each

Feb 5 purchased 50 units @ ₦3.00 each

Feb 6 issued 100 units @ ₦4.00 each

330

420

230 Correct answer

320

Answer Details

Read lesson note on Stock Valuation (JAMB)

Stock Valuation

View Answer

Question 17 Report

Which of these will not appear in the preparation of control account.

I. Bad debts

II. Discounts

III. Returns

IV. Provision for bad debts

I only

II and III

I and III only

IV only Correct answer

Answer Details

The item that will not appear in the preparation of a control account is option IV only, which is "Provision for bad debts." A control account is a summary account that provides an overview of the individual accounts that make up a particular category, such as debtors or creditors. The purpose of a control account is to reconcile the total balance of individual accounts with the balance in the control account. In the context of accounts receivable, which is money owed to a company by its customers, the control account typically includes transactions such as sales, cash receipts, discounts, and returns. Bad debts, which are accounts that are unlikely to be paid by customers, are also included in the control account. However, the provision for bad debts is a separate account that is used to estimate the amount of bad debts that are likely to occur in the future, and it is not typically included in the control account. In summary, the provision for bad debts is not included in the preparation of a control account, while bad debts, discounts, and returns are typically included.

Read lesson note on Partnership Accounts (JAMB)

Read lesson note on Control Accounts And Self-balancing Ledgers (JAMB)

Partnership Accounts

Control Accounts And Self-balancing Ledgers

View Answer

Question 18 Report

Use the following to answer this question.

The company's paid-up capital is

₦70,000

₦80,000 Correct answer

₦220,000

₦120,000

Answer Details

Read lesson note on Partnership Accounts (JAMB)

Partnership Accounts

View Answer

Question 19 Report

The manufacturing account is prepared to ascertain

cost of goods sold

cost of production
Correct answer

Gross profit

Finished goods

Answer Details

Read lesson note on Manufacturing Accounts (JAMB)

Read lesson note on Departmental And Branch Accounts (WAEC)

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

Manufacturing Accounts

Departmental And Branch Accounts

Nature And Significance Of Accounting

View Answer

Question 20 Report

Given:

Equipment

Motor Vehicle

Loan

Creditors

Sub in advance

Sub in arrears

₦

10,000

15,000

4,500

3,000

150

3500

What is the accumulated fund?

₦14,150

₦20,850 Correct answer

₦21,850

₦14,200

Answer Details

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

Read lesson note on Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

View Answer

Question 21 Report

Use the question to answer this question:

Opening stock

₦

Department

100

800

Purchases:

Wages of workers

Salaries

1500

2000

100

Sales

3000

5000

Expenses are to be shared in the ratio of sales.

What was the cost of goods sold?

₦25,000

₦35,000

₦50,000

₦75,000 Correct answer

Answer Details

Read lesson note on The Final Accounts Of A Sole Trader (JAMB)

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

The Final Accounts Of A Sole Trader

Nature And Significance Of Accounting

View Answer

Question 22 Report

Goods were purchased for resale on credit costing ₦150,000 on 30th September 20X8 from Tosanwumi International. The entry to record these transaction is debit

Tosanwumi International, credit purchase Account

Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000 Correct answer

Credit Account ₦150,000, Credit Tosanwumi International ₦150,000

Tosanwumi International ₦150,000, credit credit Account ₦150,000

Answer Details

The entry to record the purchase of goods for resale on credit costing ₦150,000 from Tosanwumi International on 30th September 20X8 is: Debit: Purchase Account ₦150,000 Credit: Tosanwumi International Account ₦150,000 This means that the Purchase Account is debited with the value of the goods purchased on credit, while the Tosanwumi International Account is credited for the same amount, representing the amount owed to the supplier. The Purchase Account is a nominal account that is used to record the cost of goods purchased for resale or for use in the business. The Tosanwumi International Account is a personal account, specifically a creditor account, used to record the amount owed to Tosanwumi International for the goods purchased on credit. This entry follows the double-entry bookkeeping system, which requires that every transaction has equal debits and credits. The debit entry represents the increase in expenses, while the credit entry represents the increase in liabilities, specifically accounts payable to the supplier.

Read lesson note on Accounting Concepts (WAEC)

Read lesson note on The Accounting Equation And Double Entry Principle (WAEC)

Accounting Concepts

The Accounting Equation And Double Entry Principle

View Answer

Question 23 Report

Given:

Fixed assets

Liabilities

Current assets

₦

55,000

20,000

13,000

What is the capital?

₦88,000

₦48,000 Correct answer

₦62,000

₦55,000

Answer Details

Read lesson note on The Accounting Equation And Double Entry Principle (WAEC)

The Accounting Equation And Double Entry Principle

View Answer

Question 24 Report

Discount received is charge to

current account

profit and loss Correct answer

trading account

balance sheet

Answer Details

Discount received is a reduction in the amount paid for goods or services purchased by a company. This reduction is usually given by a supplier to a customer as an incentive to encourage prompt payment or to build customer loyalty. In accounting, discount received is considered a gain for the company and is therefore credited to the profit and loss account. The profit and loss account is an account that records all revenues and gains on one side, and all expenses and losses on the other side, for a particular period. By recording discount received in the profit and loss account, the company can track and report its total gains for a specific period, and also calculate the net profit or loss for that period. This helps the company to make informed decisions about its operations and financial position, and to meet its reporting requirements. Therefore, the correct answer is option (B) - profit and loss account. Discount received is a gain for the company, and it is credited to the profit and loss account to be recorded as part of the company's total gains and revenues for a specific period.

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

Read lesson note on Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

View Answer

Question 25 Report

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 bank account

Debit Rent account, Credit Samson's account Correct answer

Debit Bank account, Credit Rent account

Debit Samson's account, Credit Rent account

Answer Details

Read lesson note on Principles Of Double Entry (JAMB)

Principles Of Double Entry

View Answer

Question 26 Report

The purpose of profit and loss account is to ascertain

Gross profit

Capital

Expenses

Net profit Correct answer

Answer Details

The purpose of a profit and loss (P&L) account is to show the financial performance of a business over a specific period of time, usually a month or a year. It helps to determine the net profit or loss of a company by showing the total revenue earned and the total expenses incurred during the period. The P&L account starts with the gross profit, which is calculated by subtracting the cost of goods sold (COGS) from the total revenue. Gross profit shows the amount of money the company made from its sales before any other expenses are taken into account. Next, the P&L account lists all the expenses incurred by the company during the period, such as wages, rent, utilities, advertising, and other operating costs. These expenses are subtracted from the gross profit to arrive at the net profit or net loss. The net profit or loss is the final result of the P&L account and shows whether the company made a profit or suffered a loss during the period. If the net profit is positive, it means the company had more revenue than expenses and made a profit. If the net profit is negative, it means the company had more expenses than revenue and suffered a loss. In conclusion, the purpose of a P&L account is to determine the net profit or loss of a company by showing the total revenue earned, the total expenses incurred, and the difference between the two.

Read lesson note on Miscellaneous Accounts (WAEC)

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

Miscellaneous Accounts

Nature And Significance Of Accounting

View Answer

Question 27 Report

In the absence of partnership agreement, a loan by a partner attracts interest at

20%

5% Correct answer

10%

15%

Answer Details

Read lesson note on Partnership Accounts (WAEC)

Partnership Accounts

View Answer

Question 28 Report

Retained profits is an example of

Revenue reserve Correct answer

Capital reserves

General reserves

Loan capital

Answer Details

Retained profits are an example of revenue reserves. Revenue reserves are profits earned by a company that are not distributed as dividends to its shareholders but are kept in the business as a form of retained earnings. Retained profits are a portion of the company's profits that are not paid out as dividends but are instead reinvested in the company to support its growth, pay off debts or improve its operations. These retained profits can be accumulated over time, allowing a company to build up its reserves and strengthen its financial position. This can be particularly useful during times of economic uncertainty or market downturns, as the company will have more financial flexibility and resources to weather the storm. Therefore, retained profits are a crucial component of a company's overall financial health, and they are an example of revenue reserves.

Read lesson note on Provisions And Reserves (WAEC)

Provisions And Reserves

View Answer

Question 29 Report

A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is

₦20,000

₦6,000

₦6,174 Correct answer

₦10,000

Answer Details

The mark-up in this scenario is ₦6,174. When a company sells goods to its branch, it usually does so at a price that is higher than the cost price, to make a profit. In this case, the invoiced price of the goods sent to the branch is ₦30,870, which includes a markup of 25% on the cost price. To find the cost price, we can use the following formula: Cost price = Invoiced price / (1 + Markup percentage) Plugging in the values, we get: Cost price = ₦30,870 / (1 + 25%) = ₦24,696 Now, to find the markup, we can use the following formula: Markup = Invoiced price - Cost price Plugging in the values, we get: Markup = ₦30,870 - ₦24,696 = ₦6,174 Therefore, the mark-up in this scenario is ₦6,174. This represents the amount that the company has added to the cost price of the goods to arrive at the invoiced price that it charged to its branch.

Read lesson note on Manufacturing Accounts (WAEC)

Read lesson note on Branch Accounts (JAMB)

Read lesson note on Provisions And Reserves (WAEC)

Manufacturing Accounts

Branch Accounts

Provisions And Reserves

View Answer

Question 30 Report

The objective of departmentalization is to

ensure that departmental managers are adequately monitored

record transactions for each department for better documentation

tackle any recording problem as a result of expansion

evaluate the profit of different departments Correct answer

Answer Details

Read lesson note on Departmental And Branch Accounts (WAEC)

Read lesson note on Departmental Accounts (JAMB)

Departmental And Branch Accounts

Departmental Accounts

View Answer

Question 31 Report

Accounts can be classified into

cash and credit transactions

cash and credit accounts

personal and private account

personal and impersonal account Correct answer

Answer Details

Accounts can be classified into two main categories: personal accounts and impersonal accounts. 1. Personal accounts: These accounts are used to record transactions related to individuals, firms, or companies. Personal accounts can be further classified into two types: - Natural personal accounts: These accounts are related to individuals, such as customers, suppliers, employees, and owners. - Artificial personal accounts: These accounts are related to firms or companies, such as banks, insurance companies, and government organizations. 2. Impersonal accounts: These accounts are used to record transactions that do not involve any individual or firm. Impersonal accounts can be further classified into three types: - Real accounts: These accounts are related to assets, such as property, plant, and equipment, as well as liabilities and capital. - Nominal accounts: These accounts are related to expenses, revenues, gains, and losses. - Representative personal accounts: These accounts are used to record transactions related to a group or category of individuals, such as sales, purchases, and returns. Therefore, the correct option among the given choices is "personal and impersonal account."

Read lesson note on Single Entry And Incomplete Records (WAEC)

Read lesson note on Accounts Of Not-for-profit Making Organizations (WAEC)

Single Entry And Incomplete Records

Accounts Of Not-for-profit Making Organizations

View Answer

Question 32 Report

A statement in a double entry system in which are recorded all the transactions of one specific class, which takes place during the period is called

Double entry system

Ledger Correct answer

Cash Book

Petty Cash Book

Answer Details

The statement in a double entry system that records all the transactions of one specific class during a period is called a ledger. A ledger is a book or a collection of accounts in which a business records its financial transactions. It contains all the financial information related to a specific account, such as sales, purchases, expenses, and revenues. In a double entry system, every transaction affects at least two accounts, one being debited and the other credited. These debits and credits are recorded in the ledger in separate columns, which allows for the calculation of the account balance at any given time. For example, a business might have a ledger for its sales transactions, in which all the sales made during a particular period are recorded. Each sale is recorded in the ledger as a debit to the customer's account and a credit to the sales account. At the end of the period, the balance in the sales account represents the total amount of sales made during that period. Overall, the ledger is an important tool in accounting as it provides a detailed record of all financial transactions, allowing businesses to monitor their financial performance and make informed decisions.

Read lesson note on Accounting Concepts (WAEC)

Read lesson note on Principles Of Double Entry (JAMB)

Accounting Concepts

Principles Of Double Entry

View Answer

Question 33 Report

Use the information to answer this question

Payment to creditors ₦12,250

Creditors at start ₦550

Creditors at end ₦830

What is the amount of purchase

₦11,970

₦11,000

₦1,250 Correct answer

₦12,053

Answer Details

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

Read lesson note on Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

View Answer

Question 34 Report

Show how the following transaction will be recorded applying the double entry principle:

Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 × 7 by cheque.

Dr Rent A/c; Dr Bank A/c

Dr Bank A/c; Cr Rent A/c

Dr Rent A/c; Cr Bank A/c Correct answer

Dr Rent A/c; Cr Mr. Roi

Answer Details

The correct entry for the transaction where Mr. Roi pays rent of ₦50,000 to his landlord on July 1st, 20x7 by cheque, using the double entry principle would be: - Dr Rent A/c; Cr Bank A/c The transaction has two effects: it decreases Mr. Roi's cash (Bank A/c) balance by ₦50,000 and increases the landlord's Rent A/c balance by the same amount. Applying the double entry principle, we need to record both of these effects in the accounts. Therefore, we will debit Rent A/c with ₦50,000 as it is an expense and credit Bank A/c with the same amount as it is a decrease in cash. This will ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced. In summary, when Mr. Roi pays rent by cheque, we record a debit of ₦50,000 to Rent A/c and a credit of ₦50,000 to Bank A/c to maintain the balance of the accounting equation.

Read lesson note on The Accounting Equation And Double Entry Principle (WAEC)

Read lesson note on Principles Of Double Entry (JAMB)

The Accounting Equation And Double Entry Principle

Principles Of Double Entry

View Answer

Question 35 Report

The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight line method, what is the amount of depreciation charged per annum?

6000

1000

1500 Correct answer

2500

Answer Details

The straight line method of depreciation is a simple way of calculating the amount of depreciation to be charged each year for an asset. To use this method, we subtract the residual value (the value of the asset after it has been fully depreciated) from the original cost of the asset, and then divide this by the number of years the asset is expected to last. So, for the machine in this question: - Original cost: ₦10,000 - Residual value: ₦4,000 - Years expected to last: 4 The amount of depreciation to be charged per year would be: ₦10,000 - ₦4,000 = ₦6,000 ₦6,000 ÷ 4 years = ₦1,500 So, the amount of depreciation charged per annum is ₦1,500.

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

Nature And Significance Of Accounting

View Answer

Question 36 Report

Use the information to answer this question

Payment to creditors ₦12,250

Creditors at start ₦550

Creditors at end ₦830

What is the creditors amount in the balance sheet?

₦550

₦12,250

₦12,530

₦830 Correct answer

Answer Details

Read lesson note on The Final Accounts Of A Sole Trader (JAMB)

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

The Final Accounts Of A Sole Trader

Nature And Significance Of Accounting

View Answer

Question 37 Report

Use the question to answer this question:

Opening stock

₦

Department

100

800

Purchases:

Wages of workers

Salaries

1500

2000

100

Sales

3000

5000

Expenses are to be shared in the ratio of sales.

The cost of goods for department B is

4,120

3400

3000

2800 Correct answer

Answer Details

The cost of goods for department B is 2800. To find the cost of goods, we need to subtract the total expenses from the total sales. First, we need to calculate the total expenses by determining the expenses to be shared in the ratio of sales, which is 1500 + 2000 + 50100 = 71600. Then, we can find the total sales for department B, which is 3000 + 5000 = 8000. Finally, we can subtract the total expenses from the total sales: 8000 - 71600 = 2800. This is the cost of goods for department B.

Read lesson note on Single Entry And Incomplete Records (WAEC)

Read lesson note on Stock Valuation (JAMB)

Read lesson note on Cashbook (JAMB)

Single Entry And Incomplete Records

Stock Valuation

Cashbook

View Answer

Question 38 Report

Goods can be charged to branches using any of these pricing methods except

cost price

cost plus percentage

selling price

selling plus percentage Correct answer

Answer Details

Read lesson note on Departmental And Branch Accounts (WAEC)

Read lesson note on Branch Accounts (JAMB)

Read lesson note on Accounts Of Not-for-profit Making Organizations (WAEC)

Departmental And Branch Accounts

Branch Accounts

Accounts Of Not-for-profit Making Organizations

View Answer

Question 39 Report

The rules of double entry states that

for every debit entry, there must be a corresponding debit entry

for every credit entry, there must be a corresponding credit entry

all transactions must be recorded in two accounts, one account is debited and another is credited Correct answer

all transaction must be credited

Answer Details

Double entry accounting is a method of recording financial transactions in which every transaction is recorded in two accounts: one account is debited and another is credited. This means that for every debit entry (money going out of an account), there must be a corresponding credit entry (money coming into an account), and vice versa. The purpose of double entry accounting is to ensure accuracy and provide a clear and complete record of all financial transactions. This helps to prevent errors and fraud, and allows for easy reconciliation and tracking of financial information.

Read lesson note on Principles Of Double Entry (JAMB)

Principles Of Double Entry

View Answer

Question 40 Report

An officer that is charged with the responsibility of carrying out investigations on the book of accounts to show the true and fair view is

Ministry of Finan

Accountant General

Revenue office

Auditor General Correct answer

Answer Details

The officer that is charged with the responsibility of carrying out investigations on the book of accounts to show the true and fair view is the Auditor General. The Auditor General is an independent officer responsible for auditing and reporting on the financial statements of government entities and other organizations to ensure that their financial records are accurate and comply with relevant laws and regulations. Their main task is to review the financial records of an organization and provide an opinion on whether the financial statements represent a true and fair view of the organization's financial position, performance, and cash flows. This helps to enhance transparency, accountability, and good governance in public and private organizations.

Read lesson note on Ethics In Accounting (JAMB)

Ethics In Accounting

View Answer






Press & Hold to Drag Around
Click Here to Close