2024 - JAMB Accounting Past Questions and Answers - page 7

The council's expenditure includes:

• Salaries: 15,000
• Vehicles fueling: 7,000
• Hospital beds: 8,000
• Ambulance: 13,000

Total Expenditure = 15,000 + 7,000 + 8,000 + 13,000 = 43,000

Total Revenue = 5,000 + 20,000 + 10,000 + 12,000 = 47,000

Debenture holders are lenders to a company, and their reward is interest.

To calculate the cost of goods produced:

1. Cost of Raw Materials Used

Opening Stock (8,000) + Purchases (450,000) − Closing Stock (95,000) = 363,000

2. Total Manufacturing Costs

• Raw Materials Used: 363,000
• Direct Wages: 65,000
• Indirect Wages: 28,000
• Depreciation: 32,000
• Factory Rent: 3,500

Total = 491,500

3. Cost of Goods Produced

Total Manufacturing Costs + Opening WIP (32,500) − Closing WIP (37,500)

= 491,500 + 32,500 − 37,500 = 486,500

The concept of double-entry bookkeeping was developed by Francia Luca Pacioli, often called the father of accounting.

The operating system manages computer hardware and software resources. Its functions include:

• Controlling input/output peripherals
• Managing memory
• File management
• Process management

Other options listed refer to input or output device functions, not OS functions.

Factory overhead includes all indirect factory costs:

• Indirect wages: 28,000
• Depreciation on plant: 32,000
• Factory rent: 3,500

Total Factory Overhead = 63,500

Since this figure is not an option, the closest option is 68,500 (Option B).

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

The Purchase Ledger Control Account summarizes transactions with creditors. The balance of 11,800 represents the amount payable to creditors.

When a discount is allowed to a debtor, it reduces the amount owed. The correct entry is:

Debit Discount Allowed (expense)
Credit Debtor account

A debenture is a written acknowledgement of a loan to a company and serves as evidence of indebtedness.