2022 - JAMB Accounting Past Questions and Answers - page 1

Under inflationary conditions, the FIFO (First-In-First-Out) method is suitable for stock valuation, as it assumes that the oldest stock is sold first, resulting in a higher valuation of the remaining stock.

To find the cost of goods sold (COGS) for the Ede branch, you can use the following formula:

\[ \text{COGS} = (\text{Opening Stock} + \text{Goods Sent}) - \text{Returns} \]

Given the information:

\[ \text{COGS} = (400 + 8000) - 340 \]
\[ \text{COGS} = 8240 - 340 \]
\[ \text{COGS} = 7900 \]

Now, subtract the closing stock from the calculated COGS to find the cost of goods sold:

\[ \text{Cost of Goods Sold} = \text{COGS} - \text{Closing Stock} \]
\[ \text{Cost of Goods Sold} = 7900 - 720 \]
\[ \text{Cost of Goods Sold} = 7180 \]

The cost of goods sold for the Ede branch is #7180.

An evidence of payment issued to a government ministry by a revenue collector is typically a "treasury receipt." A treasury receipt is a document that serves as proof of payment made to the government, usually for taxes, fees, or other obligations. It is an official record of the transaction and is used to track and account for government revenue.

Sule and Ahmed each have 1/2 share, and Khadija takes 1/5. So, the new profit or loss sharing is Sule (1/2 - 1/5), Ahmed (1/2 - 1/5), Khadija (1/5), which simplifies to Sule 3/10, Ahmed 3/10, and Khadija 1/5.

Transfers from the head office to branches are best carried out at Cost plus mark up, which ensures that the branch covers both the cost and makes a profit.

A partnership's internal regulations are typically set out in a deed, which outlines the rights, responsibilities, and terms of the partnership among its members.

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.

The major distinguishing element between the final accounts of a partnership and a sole trader is the Appropriation Account. * **Sole Trader:** A sole trader's final accounts typically include a Profit and Loss Account and a Balance Sheet. The profit is directly transferred to the capital account. * **Partnership:** In addition to the Profit and Loss Account and Balance Sheet, a partnership also includes an Appropriation Account. This account shows how the profit is distributed among the partners (e.g., salaries, interest on capital, and the remaining profit based on the profit-sharing ratio).

To realize an asset means to turn it into cash.