# 2018 JAMB Accounts Past Questions & Answers - page 1

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1
What is the amount of capital employed?

A
₦7000
B
₦10000
C
₦22000
D
₦15000

Correct Option: D

Solution

Hint: The amount of Capital Employed basically means the difference between the total assets and current liabilities of the company.

2

Advertising expenses incurred on a product in a business organization should be charged to

A
Sales department
B
Production department
C
Purchase department
D

Correct Option: A

Solution

Because it is an expenses incurred in order to enhance the sales of the company’s product or services.

3
 N N Capital                                         39,000 Land  20,000 Long Term Loan      15, 000 Building 30,000 Creditors                                       9,000 Stock  40,000 Debtors  6,000 Accrued wages                             5,000 Cash  8, 000 68,000 68,000

Use the information above to answer the question

What is the acid test ratio in the company?

A
1:1
B
2:3
C
1:2
D
3:2

Correct Option: A

Solution

Acid test ratio: This is a measure of the liquidity position of a company after deduction stock from current assets

Here is the formula: current assets less inventory/current liabilities.

Hence, 18000 - 4000/14000 = 1 : 1

4

When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________

A
Price above or below the stipulated price
B
Any price but not below the transfer price
C
Cost price
D
A price that is equal to the mark up

Correct Option: A

Solution

In cost plus mark up pricing strategy, the selling price is determined by adding a specific amount of mark up to a product unit cost.

5

The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________

A
Accountant general
B
Finance minister
C
Auditor general
D
Permanent secretory.

Correct Option: C

Solution
The amount of money that government reserves for a particular purpose can also be referred as appropriation. On the other hand, public expenditure refers to the spending made by government of a country on collective needs.

6

Use the information below to answer question

Trading account for the year ended 31st December 2009

 ₦ ₦ Opening Stock                                               32,000 Sales                48,000 Purchases                           40,000 Less Return       2,000 Carriage inwards                   1,000 41,000 Less Return                          2,000                 39,000 Cost of goods available                                     ?? Less closing stock                                            9,000 Cost of goods sold                                            ??

A
#20,500
B
#23,000
C
#28,000
D
#27,000

Correct Option: A

Solution

To calculate the average stock, we calculate the addition of stock at the beginning and at the end of the financial period, them and dividing the resulting value by two.

This also refers to the average value of products kept for sale during an accounting period.

Hence,

Average stock = opening stock + closing stock/2

= 32000 + 9000/2

= 41000/2

=₦ 20500

7

Use the information below to answer question

Trading account for the year ended 31st December 2009

 ₦ ₦ Opening Stock                                               32,000 Sales                48,000 Purchases                           40,000 Less Return       2,000 Carriage inwards                   1,000 41,000 Less Return                          2,000                 39,000 Cost of goods available                                     ?? Less closing stock                                            9,000 Cost of goods sold                                            ??

Calculate the cost of goods sold

A
#61,000
B
#62,000
C
#58,000
D
#57,000

Correct Option: B

Solution
Calculation:

Cost of goods available for sale: (32000 + 39000) = 71000

Less closing stock: 9000

Cost of goods sold: 7100 - 9000

= 62000

Ans. #62000

8

The amount called in respect of a share but not paid before or on the date fixed for payment is referred to as:

A
B
call in arrears
C
forfeiture
D
shares

Correct Option: B

Solution

Call in arrears is the amount called by the company which is not paid by the shareholders before the due date fixed for payment.

9

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

A
Goodwill account and credit partners capital account
B
Cash account and credit goodwill account
C
Goodwill account and credit cash account
D
Partners capital account and credit goodwill account

Correct Option: D

No further explanations yet...

10

Use the information below to answer the question

 Liabilities                     ₦ Assets                                   ₦ Capital                        40,000 Furnishing                               10,000 Ceiling Fan                               1,500 Cash in Hand                         28,500 40,000 40,000

If at 31/1/95 the following information was ascertained

(i). rent for shop #12,000 paid for the year

(ii). Total purchases #15,000

(iii). Total sales #8,200

(iv). Stock of goods left #10,000

(v). paid sales boy #500

A
#40,000
B
#41,500
C
#41,700
D
48,500

Correct Option: C

Solution

For the month ended 31/1/95

For the month ended 31/1/95

₦                             ₦

Sales                                                                                      8200

Cost of sales:

Purchases                                           15000

Closing stock                                      (10000)                (5000)

Gross profit                                                                        8200

Gross profit b/d                                                                8200

Sales commission                             500

Rent                                                    1000                     (1500)

Net profit                                                                            1700

WORKINGS:

Rent paid for 12 months                                                   12000

Rent paid for one month

12000 x 1/12                                                                      (1000)

Prepaid rent                                                                       11000

Balance sheet as at 31/1/95

Noncurrent asset:

Furnishing                                           10000

Ceiling fan                                           1500                      11500

Current asset:

Cash (cash account)                     9200

Inventory                                             10000

Prepaid rent (see above)                    11000                          30200

41700

Capital                                                                                    40000

Net profit                                                           1,700

41700

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