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?
A
N280,000
B
N289,000
C
N250,000
D
N340,000
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?
A
N250 000 loss
B
N50 000 loss
C
N450 000 profit
D
N575 000 profit
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?
A
i and ii
B
i and iv
C
ii and iii
D
iii and iv
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
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
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
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
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
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?
A
N4000
B
N3000
C
N2000
D
N1000
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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