2017 - JAMB Accounting Past Questions and Answers - page 5

Cash balance decrease and bank balance increase: The cash as leaving the cash till and will be deposited into the bank

Liabilities + Equity = Asset is given as the fundamental equation

\(\begin{array}{c|c} \text{Sales} & & 9000 \ \hline \text{Stock Jan 1} & 2000 & \ \hline \text{Purchases} & 4000 & \ \hline \text{Carriage inwards} & 500 & 6500 \ \hline \text{Gross profit} & & 2500 \end{array}\)

The fundamental accounting equation is Asset = Capital + Liabilities
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business

Subscription in advance represents money received for services or goods that will be provided in the future. Since the organization has an obligation to provide those services or goods, this is a liability. Because it is usually satisfied within a year, it is categorized as a current liability.

All record relevant to the organization: the records which are only relevant to the organization such as the name and address as well as summary information such as amount due and year to date sales will be in master file

Receipt voucher is raised as evidence by revenue collector when government funds and property or received

Receipt voucher: these are vouchers raised as evidence for the receipt of government funds and property. The revenue collected is prepared for the government ministry as a means that revenue has been collected

Dividend is known as the kind of benefit enjoyed by the shareholder for investing their fund in a particular organisation

Joint venture account is an account that all expenditure incurred for the venture is debited and all income is credited to.
Debit joint venture and credit bank account because expenses incurred on behalf of the venture has to be debited to the joint venture account and since the money is joint out the bank must be credited to balance the account