2018 - JAMB Accounting Past Questions and Answers - page 2
In the head office ledger, the value of goods sent to the branch are____________
If the purchase price exceeds the net assets of a company, the excess amount is debited to________________
Goodwill refers to the excess of purchase consideration over the total value of the business.
Gross profit in the branch adjustment account is transferred to the branch____________
Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?
Ratio between Tony and Rose: 2/6 and 1/6
Ade’s ratio: 3/6
Ade’s share to be taken by Tony and Rose in the ratio 2 : 1
Tony gets: 3/6 x 2/6
= 6/18
Rose gets: 3/6 x 1/3
= 3/18
New ratio between Tony & Rose = 6 : 3
= 2 : 1
Ans. 2 : 1Calls in advance are treated in the balance sheet as_______
Calls in advance is treated as a current liability. When the calls are eventually made the amount becomes payable by the shareholders of the company.
Why are adjustments in the profit and loss account necessary?
When preparing profit and loss account, expenses and income relating to only the trading period are taken to the trading profit and loss account.
Which of the following is not a type of branch?
In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________
Contra entries are recorded to reverse or offset an entry on the other side of an account.
Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________
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
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
What is the balance on its cash account as at 31/1/95