2019 - JAMB Accounting Past Questions and Answers - page 8
One of the limitations of accounting is that
it ascertain financial position
it prevent fraud
transactions are recorded in monetary terms
it monitor the progress of the enterprise
In financial accounting, every transaction is recorded in monetary terms.
Capital at start was ₦250,000, while capital at the end of the year was ₦400,000. Drawings during the year amounted to ₦15,000. What is the profit?
₦165,000
₦635,000
₦600,000
₦156,000
Let:
OC = Opening Capital
AC = Additional capital
NP = Net profit
D = Drawing
CC = Closing Capital
then,
AC + DC + NP - D = CC
250,000 + P - 15,000 = 400,000
P = 400,000 - 250,000 + 15,000
P = ₦165,000
In the preparation of account, the owners of the business and the business concerned are treated as:
partners
joint venture
the same person
separate legal entities
From the following, determine the value of closing stock using:
Feb 1 purchased 200 units at ₦2.00 each
Feb 3 purchased 100 units at ₦1.00 each
Feb 4 issued 120 units at ₦5.00 each
Feb 5 purchased 50 units at ₦3.00 each
Feb 6 issued 100 units at ₦4.00 each
330
420
230
320
| ₦ | |
| Feb1, 200 × 2 = Feb 3, 100 × 1 = |
400 100 |
Feb 4, 120 × 2 = |
500 (240) |
Feb 5, 50 × 3 |
260 150 |
Feb 6, 80 × 2 = |
410 (160) |
20 × 1 |
250 20 |
| 100 | 230 |
Hence, the value of the closing stock is ₦230
A sent B a cheque for ₦2000 to provide him with friends. They agreed to share profits in ratio 3 : 2 and settlement is by cheque.
Sales Advert Wages Purchases |
A ₦ 3200 327 85 1600 |
B ₦ 2100 463 70 1100 |
The profit and loss in joint venture with B account in the ledger of A.