1995 - JAMB Accounting Past Questions and Answers - page 3

21
Given:
Prime cost N220,000
Factory cost N32,000
work in progress at beginning N25,000
work in progress at close N19,000
Administrative expenses N21,000
Determine the production cost
A
N296,000
B
N277,000
C
N258,000
D
N246,000
correct option: c
Users' Answers & Comments
22
The factory cost of producing goods is made up of
A
prime cost and factory overhead
B
prime cost and office overhead
C
raw materials consumed and fixed cost
D
Raw materials and administrative overhead
correct option: a
Users' Answers & Comments
23
The following information is provided for amusa company limited , a manufacturer

Prime cost N999,000

Manufacturing overhead N132,000

Closing work in progress N75,000

values of finished goods transferred to the

trading account N1,116,000

If including in the manufacturing overhead were rents of N5,000 paid in advance, what is the opening work in progress for the period?
A
N85,000
B
N80,000
C
N70,000
D
N65,000
correct option: d
Users' Answers & Comments
24
Subscription in arrears are
A
Credited to the income and expenditure account and shown as a liability in the balance sheet
B
debited to the income and expenditure account and shown as an asset in the balance sheet
C
credited to the income and expenditure account and shown as a liability in the balance sheet
D
debited to the income and expenditure account and shown as a liability in the balance sheet
correct option: b
Users' Answers & Comments
25
Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the
A
appropriation account
B
balance sheet
C
income and expenditure account
D
receipts and payment account
correct option: c
Users' Answers & Comments
26
A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as
A
current asset
B
current liability
C
capital
D
profit
correct option: b
Users' Answers & Comments
27
Which of the following is a strong feature of partnership?
A
The life of the partnership is generally assumed to be indefinite
B
The owners are liable personally for all debts of the business
C
The transfer of ownership interest is frequent and easy to accomplish
D
The partnership is complex to form because of many legal and reporting requirements
correct option: b
Users' Answers & Comments
28
Interest on a partner's drawings is debited to the
A
Partners current account and credited to the profit and loss appropriation account
B
profit and loss appropriation account and credited to the partner's current account
C
profit and loss account and credited to the partner's current account
D
Partner's current account and credited to the profit and loss account
correct option: a
Users' Answers & Comments
29
A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be
A
credited to land and building account
B
debited to asset revaluation account
C
credited to asset revaluation account
D
credited to profit and loss appropriation account
correct option: b
Users' Answers & Comments
30
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Halidu's share of the profit is
A
N7,500
B
N6,000
C
N5,400
D
N4,500
correct option: c
Users' Answers & Comments
Please share this, thanks: