1997 - JAMB Accounting Past Questions and Answers - page 3
21
The principle use of control accounts is to
A
localize error within the ledger
B
prevent fraud
C
increase sales
D
record assets and liabilities
correct option: a
Users' Answers & Comments22
In the absence of a sales day book or sales account the credit for sales can be computed from
A
creditors control account
B
debtors control account
C
opening figures of the balance sheet
D
closing figures of the balance sheet
correct option: a
Users' Answers & Comments23
which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?
A
decrease in the closing balance of sales ledger control accout
B
increase in net profit
C
increase in the value of sales
D
decrease in the value of purchases in the trading account
correct option: a
Users' Answers & Comments24
The total of the creditors at the beginning of the year was N4,600 and at the end of the year N5,250. During the year, N26,500 was paid to suppliers and N130 was received in discounts from these suppliers. The purchases for the year would be
A
N26,630
B
N27,038
C
N27,150
D
N27,280
correct option: a
Users' Answers & Comments25
Given:
Capital at the beginning...............N20 000
Drawings...............................N3 000
Capital................................N30 000
New capital introduced.................N8 000
What is the profit for the period?
Capital at the beginning...............N20 000
Drawings...............................N3 000
Capital................................N30 000
New capital introduced.................N8 000
What is the profit for the period?
A
N4 000
B
N5 000
C
N6 000
D
N8 000
correct option: b
Users' Answers & Comments26
Which of the following stock valuation methods is suitable under inflationary conditions?
A
FIFO
B
LIFO
C
Simple average
D
Weighted average
correct option: a
Users' Answers & Comments27
The understatement of closing value of work-in-process would have the effect of?
A
understating cost of goods manufactured
B
overstating prime cost of manufactured
C
overstating cost of goods manufactured
D
undersating prime cost of goods manufactured
correct option: c
Users' Answers & Comments28
Emeka Manufacturing Company (Extract) Manufacturing Account.
Direct material.....................N5 000
Direct labour.......................N4 500
Direct expenses.....................N3 000
Factory overhead....................N2 500
Selling distribution................N1 500
Calculating the production cost?
Direct material.....................N5 000
Direct labour.......................N4 500
Direct expenses.....................N3 000
Factory overhead....................N2 500
Selling distribution................N1 500
Calculating the production cost?
A
N16 500
B
N15 000
C
N14 000
D
N12 500
correct option: b
Users' Answers & Comments29
Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.
Calculate the profit for Adamu?
Calculate the profit for Adamu?
A
N583
B
N1 000
C
N1 167
D
N1 750
correct option: b
Users' Answers & Comments30
Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?
A
Faruk, (N450); Osawe, (N1 050)
B
Faruk, (N3 150); Osawe, (N7350)
C
Faruk, (2 250); Osawe, (N7 350)
D
Faruk, (N450); Osawe, (N1 050)
correct option: d
Users' Answers & Comments