2017 - JAMB Accounting Past Questions & Answers - page 5

41
What is the effect of transaction when cash is paid into the bank
A
Bank balance decrease and cash balance increase
B
bank balance decrease and cash balance decrease
C
cash balance increase and bank balance increase
D
cash balance decrease and bank balance increase
CORRECT OPTION: d
Cash balance decrease and bank balance increase: The cash as leaving the cash till and will be deposited into the bank
42
The principle of double entry developed from the axioms of accounting equation is given as
A
Assets + Liability = Equity
B
Assets + Equity = Liabilities
C
Liabilities + Equity = Asset
D
Liabilities + Equity = Net assets
CORRECT OPTION: c
Liabilities + Equity = Asset is given as the fundamental equation
43
\(\begin{array}{c|c} & \text{N} \ \hline \text{Stock Jan 1} & 2000 \ \hline \text{Purchases} & 4000 \ \hline \text{Carriage inwards} & 500 \ \hline \text{Sales} & 9000 \ \hline \text{Carriage outwards} & 500\end{array}\)

Carriage outwards
A
₦9,000
B
₦2,500
C
₦3,000
D
₦1,500
CORRECT OPTION: b
\(\begin{array}{c|c} \text{Sales} & & 9000 \ \hline \text{Stock Jan 1} & 2000 & \ \hline \text{Purchases} & 4000 & \ \hline \text{Carriage inwards} & 500 & 6500 \ \hline \text{Gross profit} & & 2500 \end{array}\)
44
The correct expression of accounting equation is
A
Assets = Liabilities + Equity
B
Net assets = Liabilities + Equity
C
Assets + Liabilities = Equity
D
Assets = Equity - liabilities
CORRECT OPTION: a
The fundamental accounting equation is Asset = Capital + Liabilities
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business
45
Subscription in advance is treated in the balance sheet as a
A
current asset
B
current liability
C
fixed asset
D
long term liability
CORRECT OPTION: b
current assets are assets of the company that can be easily converted to cash when needed

current liability: this is the liability owned to outsiders but still enjoying its benefit within a year e.g creditors, wages in arrears
46
Which of these is a content of a master file?
A
All records relevant to the organisation.
B
Records of assets of the organisation
C
A collection of data items
D
All records relating to employees
CORRECT OPTION: a
All record relevant to the organization: the records which are only relevant to the organization such as the name and address as well as summary information such as amount due and year to date sales will be in master file
47
An evidence of payment issued to a government ministry by a revenue collector is
A
treasury receipt
B
receipt voucher
C
payment voucher
D
treasury card
CORRECT OPTION: b
Receipt voucher is raised as evidence by revenue collector when government funds and property or received

Receipt voucher: these are vouchers raised as evidence for the receipt of government funds and property. The revenue collected is prepared for the government ministry as a means that revenue has been collected
48
A part of public company's profits belonging to the shareholders is
A
public issue
B
bonus
C
right issue
D
dividends
CORRECT OPTION: d
Dividend is known as the kind of benefit enjoyed by the shareholder for investing their fund in a particular organisation
49
When expenses are paid on behalf of the venture, the accounting entries is to debit
A
bank account and credit joint venture account
B
expenses account and credit bank account
C
joint venture account and credit expenses account
D
joint venture account and credit bank account
CORRECT OPTION: d
Joint venture account is an account that all expenditure incurred for the venture is debited and all income is credited to.
Debit joint venture and credit bank account because expenses incurred on behalf of the venture has to be debited to the joint venture account and since the money is joint out the bank must be credited to balance the account
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