2019 - JAMB Accounting Past Questions and Answers - page 6
Use the following information to answer this question
| Year | ₦ |
| 1991 1992 1993 1994 |
14,000 24,000 10,000 16,000 |
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
32,000
16000
30000
64,000
| Average profit = | 14,000 + 24,000 + 10,000 + 16,000
4 |
||
| = | 64,000
4 |
= | ₦16,000 |
Where there is no agreement made by the partners, the following provisions takes place except
No salary for partners acting in the business
There is interest on capital
No interest to be charged on drawings
Profit and loss are to be shared equally
In the absence of partnership agreement, a loan by a partner attracts interest at
20%
5%
10%
15%
In the absence of no specific agreement, a loan by a partner attracts interest at 5% interest
In a non-profit making organisation, the excess of Assets over liabilities equals
capital
capital employed
capital owned
accumulated funds
An accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus.
The similarities between Receipts and payments and income and expenditure account is
Both accounts follows the principle of double entry
They are summaries of financial statements
Both include capital items
Both are prepared by non-profit making concern
The receipts and payments account summarizes receipts and payments made by a non-trading concern during a particular period of time (usually one year). Its is used to prepare income and expenditure account of non-trading concerns.
Given:
Equipment Motor Vehicle Loan Creditors Sub in advance Sub in arrears |
₦ 10,000 15,000 4,500 3,000 150 3500 |
What is the accumulated fund?
₦14,150
₦20,850
₦21,850
₦14,200
Accumulated fund = Assets - liabilities
= 10,000 + 15,000 + 3500 - 4500 + 3000 + 150
= 28,500 - 7650
= ₦20,850
Use the information to answer this question
Payment to creditors ₦12,250
Creditors at start ₦550
Creditors at end ₦830
What us the amount of purchase
₦11,970
₦11,000
₦1,250
₦12,053
Payment to creditors + Creditors at end - Creditors at start
= 12,250 + 830 - 550
= 13,080 - 550
= ₦12,530
Use the information to answer this question
Payment to creditors ₦12,250
Creditors at start ₦550
Creditors at end ₦830
What is the creditors amount in the balance sheet?
₦550
₦12,250
₦12,530
₦830
In the preparation of statement of profit, if the opening capital is greater than closing capital, there will be
profit
capital
loss
cash
Profit or loss is determined from the difference between the opening and closing capital.
It is a profit if the opening capital is less than closing capital, and a loss if it is the other way round
The manufacturing account is prepared to ascertain
cost of goods sold
cost of production
Gross profit
Finished goods
The manufacturing account is a part of the revenue account of a manufacturing company. The manufacturing account is prepared to determine the cost of the goods manufactured or the amount of profit on the manufacturing processes when the cost of production is taken into consideration