2024 - JAMB Accounting Past Questions and Answers - page 2

The sales ledger amount of #1,200 represents the amount due from customers (debtors). It is not money owed to suppliers. The sales ledger records credit sales made to customers, and this balance reflects amounts customers still owe the business.

The correct document is the paying-in slip. It is used to deposit cash or cheques into a bank account and provides the bank with the details needed to credit the account.

The term “set off” in control accounts is also called a contra entry. This occurs when debit and credit balances are offset against each other between related accounts.

Discrepancies arise mainly from timing differences and errors:

Errors: Mistakes by the bank or business cause differences.

Bank charges: Often appear first on the bank statement before being recorded in the cash book.

Standing order: The bank may process these before the business updates its records.

Bank deposit: Deposits should appear in both the cash book and bank statement and therefore should not cause a discrepancy.

Thus, the correct answer is bank deposit.

The Association of National Accountants of Nigeria (ANAN) regulates accounting practices in Nigeria.

Goodwill represents the intangible value of a business. In partnerships, goodwill is recognized mainly when a new partner is admitted, as the new partner may compensate existing partners for the established value of the business.

It may also be valued during dissolution, but the most direct and common reason is admission of a new partner.

The amount paid by the buyer of a business sold as a going concern is called the purchase consideration.

Peripherals are external devices connected to a computer. They include input devices (like a keyboard), output devices (like a monitor), and storage devices (like a USB drive).

This is an error of principle because the commission expense should have been debited to the correct expense account, not to the debtors account.

Peripherals are external devices connected to a computer. They include:

Input devices: keyboard, mouse.

Output devices: monitor, printer.

Storage devices: hard drive, USB drive.

Thus, peripherals cover input, output, and storage devices.