The advantage of double entry is that

it is easy to prepare the final account

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

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

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

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)

	₦		₦
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

	₦	₦
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






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