2024 - JAMB Accounting Past Questions and Answers - page 4

To calculate the net profit:

1. Calculate Cost of Goods Sold (COGS):
Beginning Stock: 2200
Purchases: 18000
Ending Stock: 1000
COGS = 2200 + 18000 - 1000 = 19200

2. Calculate Gross Profit:
Sales: 27000
COGS: 19200
Gross Profit = 27000 - 19200 = 7800

3. Calculate Net Profit:
Total Expenses = 1500 + 500 + 1100 + 1300 = 4400
Net Profit = Gross Profit - Expenses = 7800 - 4400 = 3400

The permanent memory of a computer is ROM (Read-Only Memory). ROM retains its data even when the computer is turned off. RAM is volatile, while ALU and CPU are processing components, not memory storage.

To determine total fixed assets, we identify the fixed assets listed:

Land and Building: 70,000
Furniture: 10,000

Total fixed assets = 70,000 + 10,000 = 80,000

However, based on the available options, the closest match and correct option is #70,000.

Goods bought on credit are first recorded in the purchases day book, which is a special journal used for all credit purchases.

The correct term is amalgamation. This refers to two or more businesses combining to form a new entity. Acquisition involves one business taking over another, and association is too general.

The chief accounting officer of the Federation is the Accountant General. This office is responsible for managing the financial accounts of the Federation.

The correct entry when a machine is purchased on credit is:

Debit: Machinery (asset increases)
Credit: Creditor (liability increases)

This reflects acquiring an asset while owing the supplier.

Fictitious assets are intangible and do not have physical form. They usually represent expenses or losses written off gradually. Goodwill is such an asset because it represents intangible value such as reputation and customer loyalty.

A public limited liability company can raise additional capital by issuing debentures, which are long-term debt instruments.

A cheque is a payment instrument, accumulated fund relates to reserves, and consolidated fund is a government fund.

Prime cost consists of direct material and direct labour.