2019 - JAMB Accounting Past Questions and Answers - page 7

Distribution costs (also known as “Distribution Expenses”) are defined as the costs incurred to deliver the product from the production unit to the end-user. It is a broad terminology and it includes several costs such as the cost of warehousing, transport, material handling, 

Land cannot depreciate because it does not wear and tear over time.

One of the key roles of an Auditor-General is to ensure that all money collected is properly accounted for and that the records comply with the rules and regulations of the federation

A warrant is a legal authority through which money is expended in government.

We have to convert the mark-up to margin

\(\frac{25}{100}={1}{4}={1}{1+4}={1}{5}\)

profit = \(\frac{1}{5}\) x 30,870 = 6,174

Departmental accounts will help an organization determine which departments are most profitable. This can help in the decision-making process of the company. 

Capital = Total Assets - Total liabilities
= 55,000 + 13,000 - 20,000
= 68,000 - 20,000
= ₦48,000