2019 - JAMB Accounting Past Questions & Answers - page 1

1

Transactions are recorded or posted to the ledger in line with...

A

Accounting Concept

B

Source document

C
Double Entry Principle
D

Data collection

CORRECT OPTION: c

Based on the principle of double-entry system, for every debit there is a corresponding credit for an equal amount of money and for every credit there is a corresponding debit for an equal amount of money. That is, for every transaction one account is debited for, the amount of transaction and the other account is also credited. 

2

Show how the following transaction will be recorded applying the double entry principle:
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 × 7 by cheque.

A

Dr Rent A/c; Dr Bank A/c

B

Dr Bank A/c; Cr Rent A/c

C

Dr Rent A/c; Cr Bank A/c

D

Dr Rent A/c; Cr Mr. Roi

CORRECT OPTION: c

In the double entry principle, income and credit expenses are debited. In the question, rent account will be debited with the sum of #500,000 (money has come in as rent, e.i income),and credit bank account. (money has gone out of mr Rio bank account via the cheque that was issued)...

3

A statement in a double entry system in which are recorded all the transactions of one specific class, which takes place during the period is called

A

Double entry system

B

Ledger

C

Cash Book

D

Petty Cash Book

CORRECT OPTION: b

Ledger also refers to a separate record within the general ledger that is assigned to a specific asset, liability, equity item, revenue type, or expense type. Here are examples of ledger accounts are: Cash, Accounts receivable, etc

4

The advantage of double entry is that

A

it is easy to prepare the final account

B

it increase assets

C

has cash and bank column

D

It disburses cash

CORRECT OPTION: a

 

 

 

5

Accounts can be classified into

A

cash and credit transactions

B

cash and credit accounts

C

personal and private account

D

personal and impersonal account

CORRECT OPTION: d

A personal account refers to thee type of account for use by an individual abd for that person's own needs. 

Herr are soms examples of personal accounts: debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.

On the other hand, impersonal accounts are accounts which are not held in the name of the persons or are directly related to the customers or suppliers of a business

6

Goods were purchased for resale on credit costing ₦150,000 on 30th September 20X8 from Tosanwumi International. The entry to record these transaction is debit

A

Tosanwumi International, credit purchase Account

B

Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000

C

Credit Account ₦150,000, Credit Tosanwumi International ₦150,000

D

Tosanwumi International ₦150,000, credit credit Account ₦150,000

CORRECT OPTION: b

We can assume that a credit purchase invoice was issued by the supplier, Tosanwumi International, which would be signed by Mr. Roi as evidence of his acceptance of liability to pay for the goods.

Hence, the two accounts needed to record this transaction are purchase account and Tosanwumi Account. This involves having the purchase account debited while the Tosanwumi International Account credited.

7

If only wages is shown on the trial balance, it should be charged to the

A

profit and loss account

B

trading account

C

balance sheet

D

wages account

CORRECT OPTION: a

It is dafe to assume (ubless otherwise told) that wages should be charged in the trading account only if shown separately on the trial balance from salaries.

The wage is a direct trading expense to be included in the trading account while salary is an Indirect/overhead expense to be included in the P & L account

8

Use the following information to answer this question
The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19x8

 
Sales
less: cost of goods sold
  233,000
170,000
    63,000
less: Overhead Expenses
Admin expenses
Selling expenses
Other overhead expenses

16,800
15,000
6,200



 
Net profit   25,000

What is the Gross Profit on percentage of sale?

A

2.7%

B

0.27%

C

27.0%

D

29.8%

CORRECT OPTION: c

Gross profit percentage on sales = gross profit ÷ sales x 100

= \(\frac{63,000}{233,000}\) x 100 = 27%

 

And. 27%

9

Use the following information to answer this question
The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19x8

 
Sales
less: cost of goods sold
  233,000
170,000
    63,000
less: Overhead Expenses
Admin expenses
Selling expenses
Other overhead expenses

16,800
15,000
6,200



 
Net profit   25,000

Calculate the net profit on percentage of expenses.

A

60%

B

25%

C

13%

D

65.7%

CORRECT OPTION: d

Net profit on percentage of expenses =

Net profit    x 100
Expenses

= \(\frac{25000}{38000}\) x 100

= 65.7%

Ans = 65.7%

10

Mr Ojo gives you the following information on 31st July 2017
Opening Stock         7,000
Closing Stock         12,000
Purchases         60,000
Expenses         4,500
Uniform margin of 33 \(\frac{1}{3}\) %
You are required to calculate the sales

A

#55,000

B

#82,500

C

#27,500

D

#50,000

CORRECT OPTION: b

Step 1: Convert the margin to mark-up:
33 \(\frac{1}{3}\)%

= \(\frac{100}{300}={1}{3-1}={1}{2}\) or 50%

Step 2: cost of goods sold = opening stock + purchases - closing stock
C.p = 7,000 + 60,000 - 12,000
C.p = ₦55,000

Step 3: prrofit = 50% × 55,000 = ₦27,500

Hence,
Sales = Cp + P
= 55,000 + 27,500

= ₦82,500

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