2017 - JAMB Accounting Past Questions and Answers - page 2

The main purpose of a transaction file is to update the master files. * **Transaction files** contain records of individual transactions (e.g., sales, purchases, payments). * These transactions are used to update the information in the **master files**, which hold the main data of the business (e.g., customer information, inventory details, account balances).

Processed data is most useful if it is relevant. Relevance means that the information is pertinent to the user's needs and helps them make informed decisions. * **A. complex:** While data can be complex, complexity doesn't necessarily make it useful. It could even hinder understanding. * **B. quantitative:** Data can be quantitative, but usefulness depends on its relevance to the user's task. * **C. relevant:** This is the correct answer. Relevant data directly addresses the user's needs and helps in decision-making. * **D. qualitative:** Qualitative data can be useful, but again, usefulness depends on the context and its relevance to the user.

Changes in a partnership can occur in the following situations: * **i. Partnership is dissolved:** When a partnership is dissolved, it signifies a major change, often requiring a new agreement or the winding up of the business. * **ii. There is amalgamation of partnership:** Amalgamation involves merging two or more partnerships, leading to significant changes in the structure and operations. * **iii. There is a change in the profit or loss sharing ratio:** Altering the ratio in which profits and losses are divided among partners directly impacts their financial interests and the distribution of earnings. * **iv. Intangible asset increase:** An increase in an intangible asset doesn't necessarily lead to changes in the partnership's structure or operations. It may affect the valuation of the company, but not the partnership'

The authority warrant issued prior to the approval of the appropriate bill at the beginning of the year is the provisional general warrant. This warrant allows government spending to commence before the budget is fully approved, ensuring essential services continue without interruption.

Ordinary shares: This type of source of income is only used in profit oriented organization to generate fund the pubic so as to enable the organization make more profit at the end of a specified period

Here's how to calculate the net profit, considering the provided information: 1. **Calculate Cost of Goods Sold (COGS):** * Opening Stock: ₦2600 * Purchases: ₦4000 * Carriage Inwards: ₦500 * COGS = Opening Stock + Purchases + Carriage Inwards = ₦2600 + ₦4000 + ₦500 = ₦7100 2. **Calculate Gross Profit:** * Sales: ₦9000 * Gross Profit = Sales - COGS = ₦9000 - ₦7100 = ₦1900 3.

\(\begin{array}{c|c} \text{Assets} & N \ \hline \text{Plant and Machinery} & 190 000 \ \hline \text{Motor Vehicle} & 170 000 \ \hline \text{Stock} & 60 000 \ \hline & 420,000 \ \hline \text{Less Liabilities} & 50 000 \ \hline \text{Value / Net worth of the business} & 370,000\end{array}\)

Purchase Consideration less worth of the business
400,000 - N 370,000

= N30,000

Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.

Uncredited cheque have to be less when starting with balance as per cashbook not add because the cheque are yet to be credited by the bank

Pay-in-slip:this is in form of a slip designed with the name of the bank on top that has dates amounts in figure and word, column for the denomination of money paid in signature bank teller, stamp to prove the money is deposited into the bank