2023 - JAMB Accounting Past Questions and Answers - page 1

Interest on capital @ 5%
- Dairo = 5% x 120,000
= ₦6,000
- Segun = 5% x 60,000
=₦3,000

Interest on drawings @ 10%
- Dairo = 10% x 12,0000
= ₦1200
- Segun = 10% x 18,000
= ₦1800

Segun's Salary = ₦10,000

Segun's share of profit = (Net profit + int on drawings) - ( int on capital + segun salary )
= (36000 + 1200 + 1800) - ( 6000 + 3000 + 10000)
= 39000 - 19000
= 20,000

Total ratio = 2 + 3 = 5

Hence, Segun's share of profit = 3/5 x 20000 = ₦12,000

The option 'income and expenditure account' has the same features as the profit and loss account in a non-profit organization. Both accounts are used to calculate the surplus or deficit of income over expenditure in non-profit organizations.

Salaries in arrears represent unpaid salaries owed to employees for work already performed but not yet paid. Since these are amounts that the company owes to its employees and is expected to pay in the near future, they are categorized as a current liability on the balance sheet.

An advantage of FIFO (First-In-First-Out) method of stock valuation is that its flow of cost is in sequence with the flow of stock. This means that the cost of the items sold closely matches the

The main source document for recording cash paid into the bank is the 'pay-in-slip.' It is used to deposit money into a bank account and serves as proof of the transaction.

Capital is the difference between total assets and total liabilities.

A provisional general warrant is an authority issued before the approval of the appropriate bill at the beginning of the year. It allows for spending until the formal approval of the budget or bill, typically in situations where there might be a delay in passing the budget for the year. This provisional warrant enables essential expenditures to continue until the budget is officially approved.

The amount of sales for the year is ₦6,850. To calculate this, we need to add the cash received from debtors, bad debts written off, discount allowed, and discount received: ₦8,500 - ₦350 - ₦500 + ₦1,000 = ₦6,850.

The authority to transfer funds from one head to another within the same organization is called 'virement.'

Goodwill can be introduced when a new member is admitted to a partnership. This is because the admission of a new partner can result in changes in the partnership's assets, earning capacity, and overall value. The excess value or premium paid by the new partner when joining the partnership can be recognized as goodwill on the partnership's balance sheet.