2000 - JAMB Accounting Past Questions & Answers - page 5

41
In a manufacturing company, the total cost of goods produced is equivalent to?
A
purchases
B
sales
C
cost of goods sold
D
cost of materials used
CORRECT OPTION: a
42
Given:
Sales Ledger Control Account (Extracts)

Balance b/f N10,600
Total cash payments by debtors N32,275
Total credit sales N59,193
Discount received N9,700
Balance c/f N20,751
Discount allowed N2,890

Determine the sales returns?
A
N24,577
B
N13,877
C
N7,067
D
N2,890
CORRECT OPTION: b
43
The simplest form of single entry procedure consists fo keeping a?
A
day book or general journal
B
cash book and ledger accounts showing debtors and creditors balances
C
cash journal, sales journal and purchases journal
D
day book in which transactions are described in chronological order
CORRECT OPTION: b
44
A fixed cost is fixed only in relation to?
A
the quality of goods produced
B
the quantity of goods sold
C
a given period of time and a range of activities
D
a given period of time and the nature of activity
CORRECT OPTION: d
45
One of the advantage of the shortcomings of single entry procedures is that?
A
a trial balance is not available
B
profits are overestimated
C
there are no subsidiary books
D
there are no control accounts
CORRECT OPTION: a
46
When a customer's cheque is returned unpaid in a debtor's control accounting system, the treatment will be?
A
debit bank, credit custmer and credit conyrol account
B
credit bank, debit customer, and credit control account
C
debit customer, debit control accountand credit bank
D
credit control account, debit bank and debit customer
CORRECT OPTION: b
47
Didi Ltd offered 10,000 ordinary shares of N1.50 each at a discount of 2% which were fully subscribed. With regard to the offer above?
A
shares are never offered at a discount; the offer is invalid
B
the value of shares in the capital account will be lowered by 2%
C
the company incurs a loss to the tune of 2% of the offer
D
each of the subscribers loses 2% of investment
CORRECT OPTION: c
48
Use the information below to answer questions

Maro Merchant Bank plc is to issue N500,000 ordinary shares of 50k each at N 3.00 per share.
Applications were received for N1,550,000 shares fully paid, N1,250,000 shares are to be issued on a pro rata basis and excess subscriptions were dishonored and refunds made?
The refund due to an application for N25,000 shares is?
A
N45,000
B
N30,000
C
7,500
D
N5,000
CORRECT OPTION: b
49
Use the information below to answer questions Maro Merchant Bank plc is to issue N500,000 ordinary shares of 50k each at N 3.00 per share. Applications were received for N1,550,000 shares fully paid, N1,250,000 shares are to be issued on a pro rata basis and excess subscriptions were dishonored and refunds made?

What will be the number of shares to be issued to a subscriber who applied for N30,000 shares?
A
N20,000
B
N18,000
C
N15,000
D
N12,000
CORRECT OPTION: a
50
Which of the following items does not feature in the balance sheet of a club?
A
Arrears of current year's subscription
B
Salary arrears paid in the current year
C
Rental income received in advance
D
Advances subscription in respect of a coming year
CORRECT OPTION: b
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