2022 - JAMB Accounting Past Questions and Answers - page 1

In a double-entry system, every transaction affects at least two accounts. The basic accounting equation is: Assets = Liabilities + Owner's Equity (Capital).

• Assets: Resources owned by a business. When assets increase, they are debited.
• Capital: The owner's investment in the business. When capital increases, it is credited.

Therefore, an increase in assets and capital will have the following double-entry:

• Debit the asset account (to show the increase).
• Credit the capital account (to show the increase).

The simplest form of single-entry procedure consists of keeping a 'day book' in which transactions are described in chronological order. Therefore, the correct option is 'day book in which transactions are described in chronological order.'

The excess of income over expenditure represents profit (in a business) or surplus (in a non-profit organization). This surplus increases the owner's equity or the organization's net assets.

• Accumulated fund: This is the account where the surplus is transferred to increase the net assets of a non-profit organization.
• Profit and loss account: This is the account used to calculate profit or loss; the balance is then transferred elsewhere.
• Current assets/liabilities in the balance sheet: These represent short-term assets and obligations, not the long-term result of operations.

Net current assets are calculated by subtracting current liabilities from current assets. 

Current assets include cash in hand, cash in bank, stock, and debtors, which sum up to N50 + N1,250 + N4,880 + N1,750 = N7,930.

Current liabilities include creditors, which amount to N2,150.

So, Net Current Assets = Current Assets - Current Liabilities
                         = N7,930 - N2,150
                         = N5,780

However, the question mentions that drawings of N125 were made by shareholders. This amount needs to be deducted from the Net Current Assets.
 
Therefore, Net Current Assets after deducting drawings = N5,780 - N125 = N6,580.

Hence, N6,580 is the correct answer.

Let's recalculate the Net Working Capital:

Net Working Capital = Current Assets - Current Liabilities

Using the information provided:

Net Working Capital = N110m (Current Assets) - N20m (Current Liabilities)  
Net Working Capital = N90m

So, the correct option is N90m.

Standard method is not a method of stock valuation. Therefore, the correct option is 'Standard method.'

In a bank reconciliation statement, Dishonoured cheques are added to 'uncredited cheques.' Therefore, the correct option is 'uncredited cheques.'

The memorandum and articles of association are foundational documents for a company. They outline the company's purpose, internal regulations, and structure. Bank signatories, however, are not typically included in these documents. Bank signatories are related to the internal financial operations of the company and are usually decided by the directors and recorded separately.

In accounting, a sales ledger control account is used to track and summarize transactions related to accounts receivable. Debit and credit entries in this account depend on the nature of the transaction.

- Cheque receipts and Bills receivable are typically credit items as they represent inflows of cash or promises to pay in the future.
- Discount allowed is also a credit item, as it represents a reduction in the amount owed by a customer.

On the other hand, Dishonoured cheques are considered a debit item. When a customer's cheque is dishonoured, it means the payment is not accepted, resulting in a decrease in the amount owed by the customer. Therefore, it is a debit item in the sales ledger control account.

Hence, Dishonoured cheques is the correct answer.

The major point of agreement carried by the partnership deed is the profit and loss sharing ratio of the partners.

The partnership deed is a legal document that outlines the terms and conditions of the partnership, including how profits and losses will be shared among the partners. It specifies the percentage or ratio in which the partners will distribute the financial outcomes of the business. This helps in maintaining transparency and avoiding disputes among the partners regarding the distribution of profits and losses.