2015 - JAMB Accounting Past Questions and Answers - page 7
61
Which of the following accounts is debited when a delivery van is sold for cash?
A
sales account
B
delivery van account
C
cash account
D
profit and loss accounts
correct option: c
Cash is received and expected to be debited going by the principles of double entry.
Users' Answers & Comments62
When shares are sold at more than the per value, they are said to have been issued at
A
A premium
B
Normal value
C
A discount
D
A profit
correct option: a
Users' Answers & Comments63
Calculate the total purchase of a business from the given information, cash purchases 3000; payments to creditors 54,000; creditors at the beginning 4000; creditors at the end 2,000
A
N52,000
B
N51,000
C
N55,000
D
N50,000
correct option: c
Total purchases = credit purchases plus cash purchases i.e. N52000 + N3000 = N55,000
Users' Answers & Comments64
Which of the following is shown in the profit and loss appropriation account of a company
A
interest charges
B
depreciation
C
directors emoluments
D
dividends
correct option: d
Users' Answers & Comments65
Use the information below to answer this question.
Dangote acquired Dantata’s business for N350,000. The total asset work were N820,000 and liabilities amounted to N 640,000
The double entry to record the goodwill in the books is debt
Dangote acquired Dantata’s business for N350,000. The total asset work were N820,000 and liabilities amounted to N 640,000
The double entry to record the goodwill in the books is debt
A
purchase of business account and credit cash account
B
goodwill account and credit purchase of business account
C
cash account and credit goodwill account
D
goodwill account and credit cash account
correct option: b
when there is excess of purchase consideration over net assets, the accounting entries is to debit goodwill account as the receiving account and credit purchase of business account as the giving account.
Users' Answers & Comments66
The income and expenditure account of a club is the same as
A
single entry account
B
a profit and loss account
C
a trading account
D
a cash book
correct option: b
this is because the income and expenditure account just like the profit and loss account shows the income to ascertain surplus or deficit.
Users' Answers & Comments67
Goods stolen at the branch is debited to
A
branch stock account
B
defalcations account
C
branch debtors account
D
branch adjustment account
correct option: d
Users' Answers & Comments68
Specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements are known as ---------------------
A
financial accounting
B
accounting policies
C
cost accounting
D
accounting conventions
correct option: b
Users' Answers & Comments69
Which of the following cannot be realized?
A
creditors
B
debtors
C
motor vehicles
D
goodwill
correct option: d
Good will being an intangible asset cannot be seen or touched and are just believed to exist goodwill can only be valued to be a certain amount, the realizable value becomes a difficult task.
Users' Answers & Comments70
If a trail balance is in agreement, one of the statement is untrue
A
the accounting system is error free
B
equal debit entries and credit entries were recorded for each transaction
C
the debit and credit from the journal were posted to the accounts
D
account balances were correctly computed
correct option: a
agreement of trial balance does mean it is error free. Some errors might not be disclosed by mere agreement
Users' Answers & Comments