2001 - JAMB Accounting Past Questions & Answers - page 3

21
Given:
Direct material N2,500
Direct labour N5,000
Direct expenses N1,000
Overhead expenses N1,500

From the data above, compute the prime cost?
A
N8,500
B
N7,500
C
N6,500
D
6,000
CORRECT OPTION: a
22
Use the information below to answer question 25 and 26.
Bar opening stock N10,000
Amount owed to bar suppliers at
the end the beginning of the year N10,000
Bar sales N50,000
Bar credit purchases N40,000
Payment to suppliers N30,000
Bar expenses N1,000
Bar closing stock N15,000

What is the bar profits?
A
N20,000
B
N15,000
C
N14,000
D
N10,000
CORRECT OPTION: b
23
Use the information below to answer question 25 and 26.
Bar opening stock N10,000
Amount owed to bar suppliers at
the end the beginning of the year N10,000
Bar sales N50,000
Bar credit purchases N40,000
Payment to suppliers N30,000
Bar expenses N1,000
Bar closing stock N15,000

How much is owed to suppliers?
A
N50,000
B
N40,000
C
N30,000
D
20,000
CORRECT OPTION: d
24
Lubricating oil and spare parts of machinery are examples of?
A
direct materials
B
indirect materials
C
indirect expenses
D
direct expenses
CORRECT OPTION: c
25
Use the information below to answer questions

Subscription received during the year N30,000
Subscription owed last year N4,000
Subscription received for next year N6,000

The N6,000 subscription received is?
A
current asset
B
current liability
C
fixed asset
D
capital
CORRECT OPTION: b
26
Use the information below to answer questions Subscription received during the year N30,000 Subscription owed last year N4,000 Subscription received for next year N6,000

What is the subscription to be charged to income and expenditure account?
A
N36,000
B
N34,000
C
N30,000
D
N20,000
CORRECT OPTION: d
27
A club received rent N10,000 and donation N30,000. It paid N6,000 for entertainment and is still owing N16,000.
The balance of the payments account is?
A
N24,000
B
N22,000
C
N14,000
D
8,000
CORRECT OPTION: e
Correct Answer: Option E
28
Given:

Club trading profit N12,000



Members'' subscription N15,000



Profit on sale of fixed assets N2,500



Loss on sale of investments N1,000



Wages N16,500



Other expenses N10,000



Determine the club''s excess of income over expenditure?
A
N500
B
N1,500
C
N2,000
D
N2,500
CORRECT OPTION: c
29
The excess of income over expenditure is usually transferred to the?
A
accumulated fund
B
profit and loss account
C
current assets in the balance sheet
D
current liabilities in the balance sheet
CORRECT OPTION: a
30
Partners' salaries and drawings are usually posted to the?
A
trading account
B
current account
C
capital account
D
partners' account
CORRECT OPTION: b
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