2019 - JAMB Accounting Past Questions and Answers - page 1
Transactions are recorded or posted to the ledger in line with...
Accounting Concept
Source document
Data collection
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.
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.
Dr Rent A/c; Dr Bank A/c
Dr Bank A/c; Cr Rent A/c
Dr Rent A/c; Cr Bank A/c
Dr Rent A/c; Cr Mr. Roi
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)...
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
Double entry system
Ledger
Cash Book
Petty Cash Book
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
The advantage of double entry is that
it is easy to prepare the final account
it increase assets
has cash and bank column
It disburses cash
Accounts can be classified into
cash and credit transactions
cash and credit accounts
personal and private account
personal and impersonal account
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
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
Tosanwumi International, credit purchase Account
Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
Credit Account ₦150,000, Credit Tosanwumi International ₦150,000
Tosanwumi International ₦150,000, credit credit Account ₦150,000
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.
If only wages is shown on the trial balance, it should be charged to the
profit and loss account
trading account
balance sheet
wages account
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
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?
2.7%
0.27%
27.0%
29.8%
Gross profit percentage on sales = gross profit ÷ sales x 100
= \(\frac{63,000}{233,000}\) x 100 = 27%
And. 27%
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.
60%
25%
13%
65.7%
Net profit on percentage of expenses =
Net profit x 100
Expenses
= \(\frac{25000}{38000}\) x 100
= 65.7%
Ans = 65.7%
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
#55,000
#82,500
#27,500
#50,000
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