1994 - JAMB Accounting Past Questions and Answers - page 2

11
The discount column of a three column cashbook is not balanced off but periodically transferred to the discount account because discounts
A
are not important in cashbooks
B
are cash items only
C
do not form part of double entry
D
are used for bank reconciliation
correct option: c
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12
When is a petty cash account debited?
A
When the fund is established and every time money is spent
B
When the fund is established and every time it is replenished
C
When the fund is established and when the size of the float is decreased
D
Every time money is drawn from the petty cash
correct option: b
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13
When preparing a bank reconciliation statement, which of the following is deducted from the balance per bank statement?
A
Bank charges
B
Uncleared cheques
C
Returned cheques
D
unpresented cheques
correct option: d
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14
The financial position of an organization at a particular time can be ascertained from the
A
statement of sources and application of funds
B
statement of retained earnings
C
balance sheet
D
profit and loss account
correct option: c
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15
Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000

What is the cost of goods sold?
A
N30,000
B
N25,000
C
N20,000
D
N15,000
correct option: a
Cost of goods sold:
= Opening stock + purchases + carriage inwards - closing stock
= 10000 + 20000 + 5000 - 5000
= 35000 - 5000
= 30000
: Cost of goods sold = 30000

Thank you

Thanks to Gloria Adah for providing the explanation
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16
The net profit or loss for the year is determined in profit and loss account after
A
deducting purchases from sales
B
deducting cost of goods sold from sales and adding administrative expenses
C
adding commissions received to gross profit
D
eliminating all expenses from gross profit and adding any other income
correct option: d
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17
If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an
A
income in the profit and loss account
B
income in the balance sheet
C
additional cash in the profit and loss account
D
expense in the balance sheet
correct option: a
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18
Beginning and ending accounts receivable balances were N8,000 and N15,000 respectively. If collections from customers during the period were N36,000, then total sales on account would be
A
N23,000
B
N29,000
C
N36,000
D
N43,000
correct option: d
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19
From which of the following sources are creditors control account most likely to be posted?
A
supplier's invoices
B
cash disbursements journal
C
subsidiary debtors ledger
D
purchases journal
correct option: d
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20
Which of the following categories of labour cost will be classified as direct?
A
accountant's salary
B
factory workers' salary
C
managing director's salary
D
cashier's salary
correct option: b
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