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

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

JAMB UTME - Principles of Accounts - 2019

Question 1 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

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Question 2 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

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Question 3 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

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Question 4 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)

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The Final Accounts Of A Sole Trader

Nature And Significance Of Accounting

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Question 5 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

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Question 6 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.

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Miscellaneous Accounts

Nature And Significance Of Accounting

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Question 7 Report

Use the question to answer this questionThe following information were extracted from the books of Miliki state

Sinking of bore holes

Purchase of Motor car

Stationery

Electricity

Purchase of drugs

Purchase of beds

₦

2,900,000

920,000

300,000

45,000

76,000

425,000

Recurrent expenditure is

₦345,000

₦3,245,000

₦421,000 Correct answer

₦4,245,000

Answer Details

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

Nature And Significance Of Accounting

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Question 8 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.

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Accounting Concepts

The Accounting Equation And Double Entry Principle

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Question 9 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

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Question 10 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

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Question 11 Report

The instrument isued by the Minister who authorized an officer to incure expenditure is a/an

warrant Correct answer

budget

imprest

consolidated fund

Answer Details

The instrument issued by the Minister who authorized an officer to incur expenditure is called a "warrant". A warrant is a legal document that authorizes a government official, usually a financial officer, to spend a specific amount of money from a particular fund or budget. In this context, the Minister issues a warrant to give authority to a specific officer to spend money for a specific purpose. This ensures that government spending is properly authorized and regulated, and helps prevent fraud or misuse of public funds. Therefore, among the options given, the correct answer is "warrant".

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Ethics In Accounting

Partnership Accounts

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Question 12 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

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Question 13 Report

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

No salary for partners acting in the business

There is interest on capital Correct answer

No interest to be charged on drawings

Profit and loss are to be shared equally

Answer Details

In a partnership, when no agreement is made by the partners, the default provisions of the Partnership Act of the relevant country take effect. These provisions dictate the terms of the partnership, including how profits and losses are to be shared, how interest is to be charged on capital and drawings, and whether partners are entitled to receive salaries. In this context, the statement "the following provisions take place except" is not clear as it suggests that there are several provisions, and one of them does not take effect. However, the options given do not constitute provisions that are part of the default provisions of the Partnership Act. Therefore, the statement is incomplete, and we cannot provide a definitive answer. However, we can say that the default provisions of the Partnership Act are in place to provide a framework for partnerships where there is no agreement between the partners. These provisions may vary from country to country and may be different depending on the legal jurisdiction. Overall, it is always recommended for partners to have a partnership agreement in place that outlines the terms and conditions of the partnership, as this can help avoid potential conflicts and ensure that all partners are on the same page.

Read lesson note on Partnership Accounts (JAMB)

Partnership Accounts

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Question 14 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

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Question 15 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)

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Nature And Significance Of Accounting

Principles Of Double Entry

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Question 16 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

Cost of raw materials consumed is

₦53,000

₦150,000

₦152,120 Correct answer

₦148,120

Answer Details

The cost of raw materials consumed is ₦152,120. To determine the cost of raw materials consumed, you need to subtract the stock of raw materials on January 1st from the stock of raw materials on December 31st and add the purchases of raw materials, which is ₦71,380 - ₦50,640 + ₦32,160 = ₦53,000. This amount is then added to the direct expenses, such as factory fuel, carriage inwards on raw materials, and manufacturing wages, which are ₦29,640 + ₦45,000 + ₦16,500 + ₦12,500 + ₦7,000 = ₦100,640. The total of these two amounts is ₦152,120, which is the cost of raw materials consumed.

Read lesson note on Manufacturing Accounts (JAMB)

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

Manufacturing Accounts

Nature And Significance Of Accounting

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Question 17 Report

Accounting standards are issued at the International level by the

Standards Advisory Council

International Accounting Standards Board Correct answer

Nigerian Accounting Standards Board

Standing Interpretations Committee

Answer Details

Accounting standards are issued at the international level by the International Accounting Standards Board (IASB). The IASB is an independent organization that sets accounting standards, known as International Financial Reporting Standards (IFRS), for companies to follow when preparing their financial statements. These standards help ensure that financial information is transparent and comparable across different companies and countries. The IASB operates under the oversight of the IFRS Foundation, which provides funding and governance. The Standards Advisory Council and Standing Interpretations Committee are both bodies that provide advice and guidance to the IASB, but they do not have the authority to issue accounting standards. In summary, the IASB is the organization responsible for setting international accounting standards, which are designed to promote transparency and comparability in financial reporting by companies around the world.

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Nature And Significance Of Accounting

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Question 18 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)

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Accounts Of Not-for-profit-making Organizations

Incomplete Records And Single Entry

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Question 19 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

What is the Gross Profit on percentage of sale?

2.7%

0.27%

27.0% Correct answer

29.8%

Answer Details

To calculate the Gross Profit on percentage of sale, we need to use the following formula: Gross Profit Percentage = (Gross Profit / Sales) x 100 First, we need to calculate the Gross Profit, which is the difference between the Sales and Cost of Goods Sold: Gross Profit = Sales - Cost of Goods Sold Gross Profit = 233,000 - 170,000 Gross Profit = 63,000 Next, we can calculate the Gross Profit Percentage using the formula above: Gross Profit Percentage = (Gross Profit / Sales) x 100 Gross Profit Percentage = (63,000 / 233,000) x 100 Gross Profit Percentage = 0.2701 x 100 Gross Profit Percentage = 27.01% Therefore, the Gross Profit on percentage of sale is 27.01%, which means that for every ₦1 of sales, Wazobi Ventures earns a Gross Profit of ₦0.27. The closest option to this answer is 27.0%.

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Nature And Significance Of Accounting

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Question 20 Report

A machine cost ₦12,500 it will be kept for 4 years and then sold at a scrap value of ₦5,120. Using the diminishing balance method, what is the amount of depreciation for second year?

₦5,120

₦6,400

₦8,000 Correct answer

₦12,500

Answer Details

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Provisions And Reserves

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Question 21 Report

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

helps to debit an account Correct answer

helps to update the cash book

Answer Details

Read lesson note on Bank Transactions And Reconciliation Statements (JAMB)

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Bank Transactions And Reconciliation Statements

Cashbook

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Question 22 Report

The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is

FIFO

LIFO

SAP

WAP Correct answer

Answer Details

The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is called Weighted Average Price (WAP). WAP is a method of determining the average cost of a stock that a company holds in its inventory. It takes into account the cost of each unit of stock and the number of units held. The total cost of the stock is then divided by the total number of units to determine the average cost per unit. This average cost per unit is then used as the value of the stock for accounting purposes. The WAP method is useful for companies that purchase stocks at different times and different prices, as it provides a more accurate reflection of the value of the stock. It is also useful for companies that sell stock frequently, as it provides a more accurate reflection of the cost of the stock and helps to ensure that the company is not overcharging or undercharging for the stock.

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Stock Valuation

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Question 23 Report

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

credits cash account and debits bank account

credits cash account and debits drawing A/C Correct answer

debits cash account and credits drawings account

debits bank account and credits drawings account

Answer Details

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Read lesson note on Partnership Accounts (JAMB)

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

The Final Accounts Of A Sole Trader/proprietorship

Partnership Accounts

Nature And Significance Of Accounting

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Question 24 Report

The rate of interest on capital for Ade is

250

200

300 Correct answer

400

Answer Details

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

Nature And Significance Of Accounting

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Question 25 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

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Question 26 Report

Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having economic interest is

realisation concept

entity concept Correct answer

going concern concept

matching concept

Answer Details

The entity concept is a fundamental principle of accounting that assumes that every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having an economic interest. This means that a business is viewed as a distinct entity separate from its owners, shareholders, creditors, or any other parties with an economic interest in the business. Under the entity concept, the financial transactions of the business are recorded separately from those of the owner or other parties. This enables the business to track its financial performance and position accurately, and to prepare financial statements that are useful for decision-making. For example, if a business owner invests $10,000 of personal funds into the business, the entity concept requires that the transaction be recorded as a liability owed to the owner by the business. Similarly, if the business borrows $5,000 from a bank, the loan is recorded as a liability owed to the bank by the business. By treating the business as a separate entity, the entity concept enables stakeholders to evaluate the financial performance of the business without confusion or distortion caused by mixing personal transactions with business transactions.

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Accounting Concepts

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Question 27 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.

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Ethics In Accounting

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Question 28 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)

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Manufacturing Accounts

Cashbook

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Question 29 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 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

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Question 30 Report

The advantage of double entry is that

it is easy to prepare the final account Correct answer

it increase assets

has cash and bank column

It disburses cash

Answer Details

The advantage of double-entry bookkeeping is that it ensures the accuracy of financial records and provides a complete picture of a company's financial transactions. Double-entry bookkeeping is a method of recording financial transactions that involves recording every transaction in at least two accounts, with one account debited and the other credited. This ensures that the total debits always equal the total credits, which means that the books are always in balance. By using double-entry bookkeeping, companies can ensure that their financial records are accurate and complete. They can also quickly identify errors and discrepancies in their records, which can help them to make better financial decisions. In addition, double-entry bookkeeping provides a complete picture of a company's financial transactions. It shows how every transaction affects both sides of the accounting equation (i.e., assets = liabilities + equity), which helps companies to understand the impact of their transactions on their financial position. In summary, the advantage of double-entry bookkeeping is that it ensures the accuracy and completeness of financial records, helps companies to quickly identify errors and discrepancies, and provides a complete picture of a company's financial transactions. It is not related to options such as increasing assets or disbursing cash.

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Read lesson note on Principles Of Double Entry (JAMB)

Accounting Concepts

The Accounting Equation And Double Entry Principle

Principles Of Double Entry

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Question 31 Report

Abelawo ltd operates a retail branch at Aba. All purchases are made by the head office in Onitsha and goods are charged to the branch at cost plus 50%. During the year ended. Goods sent to branch at invoiced price is ₦30,870, cash sales ₦13,020 and Bad debt amounted to 129. From the following, what is the profit?

20,580

10,290 Correct answer

7980

30,870

Answer Details

Read lesson note on Branch Accounts (JAMB)

Branch Accounts

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Question 32 Report

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

Increase in assets of motor vehicle account Correct answer

Decrease in assets of motor vehicle account

Increase in assets of bank account

Increase in liabilities of bank account

Answer Details

The effect of the transaction will be an increase in the assets of the motor vehicle account and a decrease in the assets of the bank account. When you bought the motor vehicle and paid for it by cheque, you transferred ₦60 from your bank account to the account of the seller. This means that the assets of your bank account decreased by ₦60, while the assets of the motor vehicle account increased by ₦60. In other words, the transaction resulted in the transfer of ₦60 worth of value from your bank account to the motor vehicle account. Therefore, there is no increase in liabilities of the bank account because you did not borrow any money to make the purchase. To summarize, the transaction of buying a motor vehicle and paying for it by cheque resulted in an increase in the assets of the motor vehicle account and a decrease in the assets of the bank account.

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

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Nature And Significance Of Accounting

The Accounting Equation And Double Entry Principle

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Question 33 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)

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Nature And Significance Of Accounting

Principles Of Double Entry

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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.

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The Accounting Equation And Double Entry Principle

Principles Of Double Entry

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Question 35 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."

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Single Entry And Incomplete Records

Accounts Of Not-for-profit Making Organizations

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Question 36 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

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Question 37 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

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Question 38 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

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Question 39 Report

A fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence is referred to as

Estimate

Depreciation Correct answer

Asset

Useful Life

Answer Details

Depreciation is the fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence. Think of an asset as something you own, like a car, a computer, or a building. Over time, these assets lose value because they get older, wear out, or become outdated. This loss of value is called depreciation. It's an estimate of how much an asset has lost in value over a certain period of time. In simple terms, depreciation is like getting older - the more time goes by, the less useful you become. The same thing happens to assets. The longer they're in use, the less valuable they become, and that decrease in value is called depreciation.

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

Nature And Significance Of Accounting

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Question 40 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

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