2010 JAMB ACCOUNTING PAST QUESTIONS AND ANSWER

1. The major function of accounting bodies in Nigeria is to provide proper financial management of businesses provide good remuneration to the members promote the ethics of the profession show the dynamic nature of the profession.

2. Ledger account is mainly classified into nominal, real and personal accounts fixed and current accounts management, financial and public sector accounting bank and cash accounts.

3. If salary account is debited instead of stationary account, the error committed is that of commission omission principle compensation.

4. If stationery bought for N200 has been entered as N2000. To correct this error debit stationery with N2,200 credit stationery with N1,800 debit stationery with N1,800 credit stationery with N2,200.

5. The account which refers to the tangible assets of a company that is of permanent nature is the personal account real account nominal account cash account.

6. The major feature of an invoice is that, it passes information through the sales day book has cash and bank column specifies the particulars of goods bought indicates only the cash sales.

7. The source documents include cash book petty cash book general ledger credit notes.

8. A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the commission paid interest received direct payment direct withdrawal.

9. The bank charges levied on a current account holder is the charge on transaction turnover transfer cash received.

10. The course of discrepancies between the bank statement and the cash book that overstates the cash book is the dividend received uncredited expenses uncredited cheques interest on lodgement.

11. Use the information below to answer question Sales N10,900 Stock 1/1 N1,000 Stock 31/12 N2,000 Purchases N4,000 Returns outwards N800 Returns inwards N600 Carriage outwards N300 Carriage inwards N200. Find the gross profit.

12. Use the information below to answer question Sales N10,900 Stock 1/1 N1,000 Stock 31/12 N2,000 Purchases N4,000 Returns outwards N800 Returns inwards N600 Carriage outwards N300 Carriage inwards N200. The cost of goods available for sale is?

13. Benefit enjoyed for which payments have not been made are accruals prepayments acquisitions provisions.

14. Use the information below to answer questions Sundry debtor N20,000 Provision for bad debts N500 Provision for bad debt at 4% of sundry debtors. Determine the provision for bad debts to profit and loss account?

15. Use the information below to answer questions Sundry debtor N20,000 Provision for bad debts N500 Provision for bad debt at 4% of sundry debtors. Calculate the provision to be taken to the balance sheet?

16. If an organization maintains a periodic stock system, the stock quantities are updated at the end of the accounting year not considered in the updating process updated continuously updated at the beginning of the accounting year.

17. If an organization maintains a periodic stock system, the stock quantities are updated at the end of the accounting year not considered in the updating process updated continuously updated at the beginning of the accounting year.

18. If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to have a higher cost of goods sold have a higher gross profit pay higher gross profit have a higher value for closing stock.

19. Use the information below to answer questions 23 and 24. Stocks 31/12/07 N4,200 31/12/08 N3,900 Rates in advance 31/12/07 N1,000 31/12/08 N1,500 Accrued wages 31/12/07 N1,150 31/12/08 N1,350. Cost of goods sold was valued at N6,000. Cash paid for rates and wages during the year was N1,300 and N2,200 respectively. What is the value of purchases for the year 2008?

20. Determine the total expenses to be charged to profit and loss account? N2,350 N1,600 N800 N3,150.

21. Use the information below to answer questions Furniture and fittings 31/12/08 N21,000 31/12/09 N28,000 Office equipment 31/12/08 N9,800 31/12/09 N13,200 Debtors 31/12/08 N6,800 31/12/09 N5,200 Creditors 31/12/08 N4,900 31/12/09 N5,100 Cash at bank 31/12/08 N7,000 31/12/09 N4,600 Accrued electricity bills 31/12/08 N1,200 Monthly drawings average N330. Find the opening capital?

22. Use the information below to answer questions Furniture and fittings 31/12/08 N21,000 31/12/09 N28,000 Office equipment 31/12/08 N9,800 31/12/09 N13,200 Debtors 31/12/08 N6,800 31/12/09 N5,200 Creditors 31/12/08 N4,900 31/12/09 N5,100 Cash at bank 31/12/08 N7,000 31/12/09 N4,600 Accrued electricity bills 31/12/09 N1,200 Monthly drawings average N330. Determine the net profit?

23. The gross loss on manufacturing is always transferred to the credit side of balance sheet debit side of profit and loss account credit side of profit and loss account debit side of balance sheet.

24. The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the debit side of manufacturing and profit and loss account debit side of profit and loss account only credit side of profit and loss account only debit side of manufacturing and balance sheet.

25. The prime cost is the total of the production cost + selling expenses direct material + direct labour + direct expenses direct material + work overhead expenses administrative expenses + selling + distribution expenses.

26. In the not-for-profit-making organization, the excess of income over expenditure is deducted from the capital added to the accumulated fund added to the capital deducted from the accumulated fund.

27. The equivalent of a club’s receipts and payment account is the trading account revenue account cash account suspense account.

28. The summary of receipts and payments account represent cash at hand journal proper general journal ledger accounts.

29. The Akachala Limited has four departments W, X Y and Z. The profits or loss of the departments were N20 000 loss, X N25 profit, Y were N30 000 loss and Z N1800 profit. How much is the net profit or loss of the company? N7 000 loss N5 000 loss N5 000 profit N7 000 profit.

30. If goods were returned to branch by the customers, the correct posting for this transaction is to debit branch debtor’s account and credit head office account head office account and credit branch stock account branch stock account and credit branch debtors’ account branch cash account and credit branch stock account.

31. The branch expenses paid by the head office is recorded in the books by debiting branch bad debt account and crediting branch debtor’s account expenses account and crediting bank account profit and loss account and crediting branch stock account discount allowed account and crediting branch debtors’ account.

32. Goods returned to branch by customers is recorded in the head office books be debiting bank account and crediting branch stock account goods sent to branch account and crediting branch debtors’ account branch stock account and crediting branch debtors account branch debtors’ and crediting cash account.

33. Which of the following is mostly used in treating partners’ current earnings? Savings account Current account Capital account Share capital account.

34. The salary of a partner is usually debited to the sundry debtors’ account appropriation account profit and loss account sundry current account.

35. The rules which govern the internal management of a firm and its financial affairs in a partnership business is a memorandum bye-law deed financial regulation.

36. The interest on partners’ loans is debited in current account credited in profit and loss account debited in profit and loss account credited in current account.

37. The capital contribution by the partners is treated in the current account capital account trading account balance sheet.

38. Given: N6 000 10% preference shares of N0.50 each N6 000 ordinary shares of N1 each Capital reserves N2 700 000 Long-term liabilities N4 000 000. Find the value of authorized share capital? N13 000 000 N12 000 000 N9 000 000 N15 700 000.

39. The directors’ salaries paid are items of current liabilities profit and loss account trading account current account.

40. Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled N800. A provision of 2% was made for discount and 5% provision for bad and doubtful debts. Find the amount for sundry debtors after provision? N760 000 N744800 N744 000 N784 000.

41. The financial plan of the government for a year is contained in the budget cash analysis book vote book gazette.

42. An ordinary share of N80 was issued at N96. The share was issued at premium par discount loss.

43. An increase in government expenditure within a year is taken care of by means of financial regulations virement warrant supplementary estimate.

44. As evidence of payments to a government ministry, the revenue collectors will issue treasury receipt receipts voucher card treasury card stores receipts voucher.

45. Abingo Limited has three departments K, L, and M. (i) Rent for the year: ₦3,000 (ii) Selling and distribution expenses: ₦1,800 Department Turnover (₦) Floor Space (square meters) K 40,000 120 L 60,000 80 M 89,000 100. How much rent is apportioned to department K? N1,200 N1,800 N2,000 N750.

46. How much selling and distribution expenses is apportioned to department M? N800 N600 N400 N1,800.

47. Sales Ledger Control Account Debit Side Amount Credit Side Amount Balance b/d 87,000 Discount allowed 40,000 Credit sales ? Bills receivable 50,000 Bills receivable dishonoured 58,000 Cash receivable 280,000 Dishonoured cheques 50,000 Returns inwards 30,000. Credit sales is given at 160% of cash received. What is the balance c/d? debit 64,300 N333,000 N234,000 N343,000 N243,000.

48. When Your Silence Is Loud..& Your Eyes Speaking Volumes.. Calculate the value of credit sales N484,000 N448,000 N584,000 N558,000.

49. Three Column Cash Book (Extract) Date Particulars Cash (₦) Bank (₦) Particulars Date Cash (₦) Bank (₦) 1 Bal b/d 3,000 4,000 Electricity 5 200 300 2 Cash Sales 1,000 Purchases 6 3,000 3 Fatima 2,000 Ahmad 7 500 4 Baffa 200 300 Khadija 8 200. If Fatima was granted a discount of 2% what will be discount allowed? N20 N40 N60 N4.

50. Calculate the cash balance after the discount N2,760 N4,300 N6,200 N2,400.

51. Which of the following is used to adjust the balance in a suspense account? Bank account Petty cash account Credit notes Correcting entries.