2012 JAMB ACCOUNTING PAST QUESTIONS AND ANSWER Leave a Comment / Jamb Accounting / By Jamb Tutor Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 0% 0 votes, 0 avg Created by Jamb TutorJamb Accounting 2012 JAMB ACCOUNTING PAST QUESTIONS AND ANSWER 1 / 39 Category: Jamb Account 2012 1. The basis upon which assets of an organization is valued is the a) Historical concept b) Business entity concept c) Periodicity concept d) Materiality concept The correct answer is “historical concept,” which states that assets should be recorded at their original cost. This ensures consistency and objectivity in accounting records. Other options, like “business entity concept” (which separates owner transactions from business) and “materiality concept” (focuses on relevance), do not apply. 2 / 39 Category: Jamb Account 2012 2. An accountant must not only be interested in record keeping but also in a) The application of professional competency b) The accuracy of postings c) The casting of financial figures d) Effective preparation of balance sheet The correct answer, “the application of professional competency,” highlights the accountant’s role beyond record-keeping, emphasizing decision-making and applying knowledge effectively. The other options focus on specific, less comprehensive tasks, like accuracy of postings and casting figures. 3 / 39 Category: Jamb Account 2012 3. The correct posting in a double-entry system of account when there is an increase in double assets, expenses, capital, or liabilities is to debit a) Capital and debit liabilities b) Liabilities and credit assets c) Assets and credit capital d) Capital and credit assets The correct answer is “assets and credit capital.” Increases in assets are recorded as debits, and increases in capital or liabilities are recorded as credits. This aligns with the double-entry principle, where every transaction affects two accounts. Other options do not accurately reflect this accounting principle. 4 / 39 Category: Jamb Account 2012 4. The capital of a sole trader can be increased by a) Debiting the capital account b) Crediting the capital account c) Debiting the cash account d) Crediting the cash account The correct answer is “crediting the capital account.” This entry reflects additional investments or retained earnings increasing capital. “Debiting the capital account” would reduce capital, and other options refer to unrelated transactions like cash management. 5 / 39 Category: Jamb Account 2012 5. Akirika bought a motor van for his business by cash. The entries are to debit a) Motor van and credit Akirika b) Sales and credit Akirika c) Motor van and credit cash d) Cash and credit motor van The correct answer is “motor van and credit cash.” This follows the double-entry principle: a debit increases the asset account (motor van), and a credit decreases the cash account. Options referencing Akirika or sales are irrelevant as they don’t align with the transaction. 6 / 39 Category: Jamb Account 2012 6. Ibrahim, a micro-business operator, sold 10 bags of sugar to Jide at a total cost of ₦12,000. In Ibrahim’s book, the entry would be to debit a) Sugar account ₦12,000 and credit Jide b) Jide ₦12,000 and credit sales account c) Ibrahim ₦12,000 and credit Jide d) Sugar account ₦12,000 and credit Ibrahim The correct answer is “Jide ₦12,000 and credit sales account ₦12,000.” Ibrahim recognizes Jide as a debtor (asset) and records the sale in the revenue account. Other options misinterpret the accounts affected by the transaction. 7 / 39 Category: Jamb Account 2012 7. Ibrahim, a micro-business operator, sold 10 bags of sugar to Jide at a total cost of ₦12,000. The record in Jide’s book would be to debit a) Purchases ₦12,000 and credit Ibrahim b) Purchases ₦12,000 and credit sugar account c) Jide ₦12,000 and credit purchases d) Ibrahim ₦12,000 and sugar account The correct answer is “purchases ₦12,000 and credit Ibrahim ₦12,000.” Jide recognizes the purchase (expense) and records the liability to Ibrahim. Other options fail to correctly reflect the transaction from Jide’s perspective. 8 / 39 Category: Jamb Account 2012 8. In a three-column cash book, dishonored cheques will be shown on the a) Bank column (debit) b) Bank column (credit) c) Cash column (debit) d) Cash column (credit) The correct answer is “bank column (credit).” A dishonored cheque reduces the bank balance and must be recorded on the credit side. Other options, such as the cash column, are incorrect because dishonored cheques specifically affect the bank account. 9 / 39 Category: Jamb Account 2012 9. Cash can be drawn from the bank using a) A bank teller b) A credit card c) A recharge card d) ATM card The correct answer is “ATM card.” This reflects modern banking practices where cash withdrawal is most commonly performed via ATMs. Other options like “recharge card” are irrelevant, and “bank teller” refers to a person, not a tool for withdrawal. 10 / 39 Category: Jamb Account 2012 10. In a modern-day banking system, cash transfer cannot be made where the transferor a) Has no sufficient cash with the bank b) Has no account with the bank c) Does not reside in the bank’s country d) Does not possess the domestic currency The correct answer is “has no account with the bank.” An account is a prerequisite for cash transfers, even in modern systems. Insufficient cash or residing in another country doesn’t automatically prohibit transfers; these are logistical issues rather than strict prohibitions. 11 / 39 Category: Jamb Account 2012 11. Given: Cash book balance- #5000 Dishonored cheque- #1000 Direct credit – #800 Direct debit – #500 The adjusted cash book balance is a) #6,300 b) #4,300 c) #3,700 d) #2,700 The adjusted cash book balance is calculated as: Opening balance (#5,000) – dishonored cheque (#1,000) + direct credit (#800) – direct debit (#500) = #4,300. 12 / 39 Category: Jamb Account 2012 12. At the end of a financial period, the trading profit and loss account of a sole trader shows a profit of #180,000. It is discovered that revenue of #15,000 is recorded as expenses while expenses of #4,000 as revenue. a) #210,000 b) #202,000 c) #195,000 d) #184,000 The adjusted net profit is calculated by correcting the misclassifications. Add back #15,000 misclassified as expenses and subtract #4,000 misclassified as revenue: #180,000 + #15,000 – #4,000 = #195,000. 13 / 39 Category: Jamb Account 2012 13. The revenue to be added as an adjustment is a) #34,000 b) #30,000 c) #15,000 d) #4,000 Revenue misclassified as expenses is #15,000. This amount needs to be added to calculate the correct adjusted net profit. 14 / 39 Category: Jamb Account 2012 14. Which of the following is an item of special assets? a) Fixed assets b) Current assets c) Trademark d) Gratuity Special assets refer to intangible assets or those with unique value to an organization. Trademarks are classified under intangible assets, making it the correct answer. 15 / 39 Category: Jamb Account 2012 15. Using FIFO method, what would be the value of stock as at 9/5/07? a) #862.50 b) #840.00 c) #806.25 d) #750.00 FIFO assumes that the oldest stock is sold first. The stock remaining on 9/5/07 is from the purchase on 3/5/07. 60 bags × #11.50 = #690. 16 / 39 Category: Jamb Account 2012 16. Using the simple average method, calculate the value of stock after 22/5/07. a) #1,198.00 b) #1,218.38 c) #1,257.67 d) #1,408.00 Simple average calculates the cost by dividing the total cost by total units. After 22/5/07, total value = (#10 × 100) + (#11.50 × 60) + (#12.80 × 180). 17 / 39 Category: Jamb Account 2012 17. The LIFO method has an advantage over FIFO in that stocks are valued at a) Previous prices b) Current prices c) Average rates d) Flat rates LIFO (Last-In, First-Out) values closing stock at the most recent costs, reflecting current market prices. 18 / 39 Category: Jamb Account 2012 18. In sales ledger control account, returns inwards is usually a) Debited and debtors credited b) Credited and sales returns debited c) Debited and cash credited d) Credited and bank credited Returns inwards represent goods returned by customers. They reduce sales revenue, so they are credited to the sales ledger and debited to the sales returns account. 19 / 39 Category: Jamb Account 2012 19. Purchasers ledger control account can also be referred to as a) Sales day book b) Purchasers day book c) Creditors ledger d) Debtors ledger The purchaser’s ledger control account monitors transactions with creditors. It is also known as the creditor’s ledger. 20 / 39 Category: Jamb Account 2012 20. Which of the following is a debit item in the sales ledger control account? a) Cheque receipts b) Dishonored cheques c) Discount allowed d) Bills receivable Dishonored cheques appear as debit items in the sales ledger control account because they reverse previous credits for customer payments that were invalidated. 21 / 39 Category: Jamb Account 2012 21. In manufacturing accounts, finance expenses are charged to the a) Departmental account b) Trading account c) Profit and loss account d) Balance sheet Finance expenses like interest are non-operational costs charged to the profit and loss account. 22 / 39 Category: Jamb Account 2012 22. What is the total manufacturing profit? a) #64,000 b) #120,000 c) #360,000 d) #480,000 Total manufacturing profit = (Selling price per unit × production volume) – total production cost = (#120 × 4,000) – #360,000 = #120,000. 23 / 39 Category: Jamb Account 2012 23. Determine the value of prime cost. a) #416,000 b) #304,000 c) #240,000 d) #184,000 Prime cost = Total production cost – factory overhead = #360,000 – #56,000 = #304,000. 24 / 39 Category: Jamb Account 2012 24. The main advantage of a departmental account is that a) Expenses are shared b) Gross profit is computed c) Net profit is computed d) Balance sheet is obtained Departmental accounts enable the computation of gross profit for individual departments, aiding performance evaluation and comparison. 25 / 39 Category: Jamb Account 2012 25. Given: Fixtures-#30,000, Debtors-#7,000, Stock-#8,000, Creditors-#3,000, Goodwill-#10,000. Determine the capital. a) #10,000 b) #42,000 c) #45,000 d) #52,000 Capital = Assets – Liabilities = (#30,000 + #7,000 + #8,000 + #10,000) – #3,000 = #52,000. 26 / 39 Category: Jamb Account 2012 26. In the head office ledger, the value of goods sent to the branch are a) Debited to head office b) Debited to branch account c) Credited to head office d) Credited to branch The value of goods sent to the branch is debited to the branch current account, which tracks transactions with branches. 27 / 39 Category: Jamb Account 2012 27. Which of the following methods of invoicing goods to branches facilitates easy checks on the activities of branches? a) Cost price b) Fixed percentage on cost c) Selling price d) Invoice price Using invoice price (selling price) allows easy verification of branch activities and ensures consistency in reporting. 28 / 39 Category: Jamb Account 2012 28. The partners’ capital: Modibbo #60,000, Jakata #90,000, profit share based on capital ratio, net profit #12,000. Find Modibbo’s share. a) #62,000 b) #48,000 c) #44,000 d) #43,000 Profit share = Capital ratio × Total profit = (#60,000 / #150,000) × #12,000 = #4,800. 29 / 39 Category: Jamb Account 2012 29. What is Jakata’s sharing profit ratio given his capital is #90,000 out of a total #150,000? a) 3:05 b) 1:02 c) 2:05 d) 1:05 The profit-sharing ratio is proportional to capital contributions: #90,000:#150,000 simplifies to 3:5. 30 / 39 Category: Jamb Account 2012 30. In what way can goodwill be written off in a partnership business? a) Partners' ratio b) Neglect ratio c) Share unequally d) Active partners only Goodwill is shared among partners according to their profit and loss sharing ratio, unless otherwise agreed. 31 / 39 Category: Jamb Account 2012 31. Ngozi and Musa (capital #30,000 each) admit Mary (#20,000 capital + #15,000 goodwill). Journal entries to record goodwill are a) Debit goodwill #15k b) Credit goodwill #15k c) Debit goodwill & cash d) Debit partners' capital Debit goodwill #15,000, cash #20,000, credit Mary’s capital #35,000 to reflect her contributions. 32 / 39 Category: Jamb Account 2012 32. Necessary accounts to be opened in converting a partnership to a limited liability company a) Business purchase only b) Business & vendor c) Vendor only d) Vendor & unpaid shares Business purchase account records the takeover, vendor account for settling, and ordinary share capital for new ownership. 33 / 39 Category: Jamb Account 2012 33. Delivered to the Registrar of Companies for incorporation: Memorandum, Articles, Incorporation documents a) 1 and 2 b) 1, 2, and 3 c) 1 and 3 d) 2 and 3 Incorporation requires all foundational documents: Memorandum, Articles, and Incorporation forms. 34 / 39 Category: Jamb Account 2012 34. When shares are oversubscribed and money is returned to unsuccessful applicants, the entry is to debit a) Debit app/allotment b) Debit app/allotment c) Debit oversubscribed d) Debit oversubscribed Debit application and allotment account to reduce it and credit cash to show the refund of money. 35 / 39 Category: Jamb Account 2012 35. Investment at cost of a company is to be disclosed under a) Trading accounts b) Profit and loss c) Balance sheet d) Fund application Investments appear in the balance sheet under non-current assets to show their long-term value. 36 / 39 Category: Jamb Account 2012 36. Given data, calculate the acid-test ratio a) 0.10695601851852 b) 0.10834490740741 c) 0.043449074074074 d) 0.043472222222222 Acid-test = (Debtors + Prepaid Expenses – Stock) / Current Liabilities = (#24,000 + #700 – #27,840) / (#12,250 + #350) = 1.96:1. 37 / 39 Category: Jamb Account 2012 37. Calculate the stock turnover ratio given sales and stock values. a) 1 b) 2 c) 3 d) 4 Stock turnover = Cost of Goods Sold / Average Stock. COGS = #85,850 – #44,880; Avg. stock = (#25,120 + #27,840) / 2. 38 / 39 Category: Jamb Account 2012 38. A source of revenue to the Federation Account a) Market fees b) Bicycle licenses c) Tariffs d) Property rates Tariffs are a significant source of revenue for the Federation Account, collected on imported goods. 39 / 39 Category: Jamb Account 2012 39. The book into which a ministry’s expenditure is recorded a) Ledger book b) Payment book c) Vote book d) Expenditure book The vote book records all authorized and actual expenditures for monitoring and controlling spending. Your score is The average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Anonymous feedback Send feedback
