2018 - JAMB Accounting Past Questions and Answers - page 1
Hint: The amount of Capital Employed basically means the difference between the total assets and current liabilities of the company.
Advertising expenses incurred on a product in a business organization should be charged to
Because it is an expenses incurred in order to enhance the sales of the company’s product or services.
| N | N |
| Capital 39,000 | Land 20,000 |
| Long Term Loan 15, 000 | Building 30,000 |
| Creditors 9,000 | Stock 40,000 |
| Debtors 6,000 | |
| Accrued wages 5,000 | Cash 8, 000 |
| 68,000 | 68,000 |
Use the information above to answer the question
What is the acid test ratio in the company?
Acid test ratio: This is a measure of the liquidity position of a company after deduction stock from current assets
Here is the formula: current assets less inventory/current liabilities.
Hence, 18000 - 4000/14000 = 1 : 1
When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________
In cost plus mark up pricing strategy, the selling price is determined by adding a specific amount of mark up to a product unit cost.
The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________
Use the information below to answer question
Trading account for the year ended 31st December 2009
| ₦ | ₦ |
| Opening Stock 32,000 | Sales 48,000 |
| Purchases 40,000 | Less Return 2,000 |
| Carriage inwards 1,000 | |
| 41,000 | |
| Less Return 2,000 39,000 | |
| Cost of goods available ?? | |
| Less closing stock 9,000 | |
| Cost of goods sold ?? |
To calculate the average stock, we calculate the addition of stock at the beginning and at the end of the financial period, them and dividing the resulting value by two.
This also refers to the average value of products kept for sale during an accounting period.
Hence,
Average stock = opening stock + closing stock/2
= 32000 + 9000/2
= 41000/2
=₦ 20500
Use the information below to answer question
Trading account for the year ended 31st December 2009
| ₦ | ₦ |
| Opening Stock 32,000 | Sales 48,000 |
| Purchases 40,000 | Less Return 2,000 |
| Carriage inwards 1,000 | |
| 41,000 | |
| Less Return 2,000 39,000 | |
| Cost of goods available ?? | |
| Less closing stock 9,000 | |
| Cost of goods sold ?? |
Calculate the cost of goods sold
Cost of goods available for sale: (32000 + 39000) = 71000
Less closing stock: 9000
Cost of goods sold: 7100 - 9000
= 62000
Ans. #62000The amount called in respect of a share but not paid before or on the date fixed for payment is referred to as:
Call in arrears is the amount called by the company which is not paid by the shareholders before the due date fixed for payment.
When goodwill is not retained in the business, the entries in the new partners books will be to debit______________
Use the information below to answer the question
| Liabilities ₦ | Assets ₦ |
| Capital 40,000 | Furnishing 10,000 |
| Ceiling Fan 1,500 | |
| Cash in Hand 28,500 | |
| 40,000 | 40,000 |
If at 31/1/95 the following information was ascertained
(i). rent for shop #12,000 paid for the year
(ii). Total purchases #15,000
(iii). Total sales #8,200
(iv). Stock of goods left #10,000
(v). paid sales boy #500
For the month ended 31/1/95
For the month ended 31/1/95
₦ ₦
Sales 8200
Cost of sales:
Purchases 15000
Closing stock (10000) (5000)
Gross profit 8200
Gross profit b/d 8200
Sales commission 500
Rent 1000 (1500)
Net profit 1700
WORKINGS:
Rent paid for 12 months 12000
Rent paid for one month
12000 x 1/12 (1000)
Prepaid rent 11000
Balance sheet as at 31/1/95
Noncurrent asset:
Furnishing 10000
Ceiling fan 1500 11500
Current asset:
Cash (cash account) 9200
Inventory 10000
Prepaid rent (see above) 11000 30200
41700
Capital 40000
Net profit 1,700
41700