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

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

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

Accounts can be classified into

personal and impersonal account

JAMB UTME - Principles of Accounts - 2019

Question 1 Report

Use the following information to answer this question

The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19x8

	₦	₦
Sales Less: cost of goods sold		233,000 170,000
		63,000
less: Overhead Expenses Admin expenses Selling expenses Other overhead expenses	16,800 15,000 6,200
Net profit		25,000

Calculate the net profit on percentage of expenses.

60%

25%

13%

65.7% Correct answer

Answer Details

To calculate the net profit as a percentage of expenses, we need to first determine the total expenses of the company for the year. We can do this by adding up all of the overhead expenses: admin expenses + selling expenses + other overhead expenses. Total expenses = ₦16,800 + ₦15,000 + ₦6,200 = ₦38,000 Next, we can calculate the net profit as a percentage of expenses by dividing the net profit by the total expenses and multiplying by 100. Net profit as a percentage of expenses = (Net profit / Total expenses) x 100 = (₦25,000 / ₦38,000) x 100 = 65.79% Therefore, the correct answer is 65.79%, which is option (D). This means that for every ₦1 spent on expenses, the company earned a net profit of approximately ₦0.66. It's important to note that this percentage does not take into account the cost of goods sold, which is a separate expense and is already deducted from the sales figure.

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






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