2017 - JAMB Accounting Past Questions & Answers - page 1

1
Which of these accounts is dissolution expenses credited?
A
partners capital account
B
revaluation account
C
partners current account
D
Realization account
CORRECT OPTION: d
Realization account: the cash realized from sales of asset is credited to it
2
Capital for a profit making organization is generated through
A
Subscription
B
shares
C
donation
D
gift
CORRECT OPTION: b
Share: profit making organizations use different shares such as ordinary and preference shares to source for money from the public
3
The account where the profit are distributed to the partner in their profit sharing ratio in partnership
A
trading account
B
appropriation account
C
balance sheet
D
profit and loss account
CORRECT OPTION: b
Appropriation account is the account into which the net profit found in the profit and loss account of the partner will be carried down to and will be shared according to their sharing ratio
4
In manufacturing account, depreciation of office machine is charged to
A
trading account
B
appropriation account
C
balance street
D
profit and loss account
CORRECT OPTION: d
profit and loss account: the depreciation of the office machine is considered as part of administrative expense which must be charged against the profit of the company
5
Given:
I. Cash refunds
II. Debit note issued
III. Dishonored cheque
IV. Purchases
The item on the credit side of purchases ledger control account includes
A
I,II and III only
B
I and II only
C
III and IV only
D
I, III and IV only
CORRECT OPTION: d
Purchases control account it is also called total creditor control account
I,II & IV : some of the items that appear on the credit side of purchases ledger are cash refund to supplier, dishonored cheque by banks and credit purchases
6
You add the following when starting with the balance as per cash book when preparing the bank reconciliation statement except
A
Unpresented
B
Dividend
C
Uncredited cheque
D
credit transfer
CORRECT OPTION: c
Uncredited cheque: This have to be deducted when starting balance as per cash book
7
Which fund is used to meet unforeseen or urgent expenditure
A
General reserve fund
B
Consolidated Reserve Fund
C
contingencies fund
D
special fund
CORRECT OPTION: b
contingencies fund: if there is an urgent and unforeseen need for expenditure for which no other provision exist, such expenses shall be deducted from the contingencies fund
8
In the period of rising prices, which method of stock valuation is most appropriate?
A
Last in First Out
B
weighted average
C
First in First Out
D
Simple average
CORRECT OPTION: a
Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete
9
Which of these is the subsidiary book for return inwards?
A
Sales day book
B
Sales return journal
C
Purchases day journal
D
Cash book
CORRECT OPTION: b
Sales return journal otherwise called return inward book is meant for recording of all good returned by customer
10
A double entry for a transaction that offsets one amount against another on both sides of the cashbook is a
A
original entry
B
contra entry
C
prime entry
D
contract entry
CORRECT OPTION: b
contra entry is used to offset amount or same transaction against another on both side of the cashbook
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