2003 - JAMB Accounting Past Questions and Answers - page 2
11
Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?
A
N280,000
B
N289,000
C
N250,000
D
N340,000
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12
Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
What is the actual profit or loss arising from the vehicle disposed of?
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
What is the actual profit or loss arising from the vehicle disposed of?
A
N250 000 loss
B
N50 000 loss
C
N450 000 profit
D
N575 000 profit
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13
Given:
(i) Order of performance
(ii) Order of liquidity
(iii)Vertical order
(iv) Horizontal order
The order in which a balance assets is arranged are?
(i) Order of performance
(ii) Order of liquidity
(iii)Vertical order
(iv) Horizontal order
The order in which a balance assets is arranged are?
A
i and ii
B
i and iv
C
ii and iii
D
iii and iv
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14
Provision for discount allowed can be recorded as debit to?
A
the profit and loss account and a credit to provision for discount allowed
B
provision for discount allowed and a credit to the profit and loss account
C
discount allowed and a credit to the profit and loss account
D
expenses and a credit to customers' account
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15
In a control account, provision for bad debts is found on the?
A
debit side of the purchases ledger control account
B
debit side of the sales ledger control account
C
credit side of the purchases ledger control account
D
credit side of the sales ledger control account
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16
Advertising expenses incurred on a product in a business organization should be charged to?
A
production department
B
sales department
C
administration department
D
purchases department
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17
The stock valuation data is important because it enables management to?
A
separate debtors from creditors
B
determine the cost of stock at the end of business
C
determine the cost of stock at the beginning of business
D
determine the total cost of goods purchased
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18
four broad classifications of overheads are?
A
production, selling, distribution and material
B
production, selling, distribution and administration
C
selling, distribution and production and wages
D
distribution, selling, administration and material
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19
Given:
Cost of raw materials issued to production.....N37000
Opening stock of raw material..................N2000
Purchases of raw material......................N3800
Wages .........................................N500
What is the closing stock of raw material?
Cost of raw materials issued to production.....N37000
Opening stock of raw material..................N2000
Purchases of raw material......................N3800
Wages .........................................N500
What is the closing stock of raw material?
A
N4000
B
N3000
C
N2000
D
N1000
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20
Income and expenditure account is more informative than receipts and payments account because it discloses?
A
cash
B
cheques
C
debtors
D
stocks
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