2019 - JAMB Accounting Past Questions and Answers - page 1

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. 

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)...

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

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

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.

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

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

And. 27%

Net profit on percentage of expenses =

Net profit    x 100
Expenses

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

= 65.7%

Ans = 65.7%

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