2018 - JAMB Accounting Past Questions & Answers - page 2

11

In the head office ledger, the value of goods sent to the branch are____________

A
Debited to the branch current account
B
Debited to the head office current account
C
Credited to the head office current account
D
Credited to the branch current account
CORRECT OPTION: b
Debited to the head office current account. The head office books maintains branch current account, It record all transactions between the head office and the branch.
12

If the purchase price exceeds the net assets of a company, the excess amount is debited to________________

A
Cash account
B
purchase account
C
goodwill account
D
sales account
CORRECT OPTION: c

Goodwill refers to the excess of purchase consideration over the total value of the business.

13

Gross profit in the branch adjustment account is transferred to the branch____________

A
Income and expenditure account
B
profit and loss account
C
receipt and payment account
D
trading account
CORRECT OPTION: b
14

Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?

A
1 : 1
B
3 : 6
C
2 : 1
D
2 : 6
CORRECT OPTION: c

Ratio between Tony and Rose: 2/6 and 1/6

  Ade’s ratio: 3/6

  Ade’s share to be taken by Tony and Rose in the ratio 2 : 1

  Tony gets: 3/6 x 2/6

  = 6/18

  Rose gets: 3/6 x 1/3

  = 3/18

  New ratio between Tony & Rose = 6 : 3

  = 2 : 1

Ans. 2 : 1
15

Calls in advance are treated in the balance sheet as_______

A
Current asset
B
Fixed asset
C
Current liability
D
Fixed liability
CORRECT OPTION: c

Calls in advance is treated as a current liability. When the calls are eventually made the amount becomes payable by the shareholders of the company.

16

Why are adjustments in the profit and loss account necessary?

A
To cover some expenses of the following year
B
To show the provisions made during the year
C
To show the total expenses paid and income received during the year
D
To ascertain the actual expenses incurred and income earned during the year
CORRECT OPTION: d

When preparing profit and loss account, expenses and income relating to only the trading period are taken to the trading profit and loss account.

17

Which of the following is not a type of branch?

A
Dependent branch
B
foreign branch
C
independent branch
D
single branch
CORRECT OPTION: d
18

In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

A
Debit entry
B
Contra entry
C
Credit entry
D
Reversal entry
CORRECT OPTION: b

Contra entries are recorded to reverse or offset an entry on the other side of an account.

19

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

A
Partners salaries
B
Interest on capital
C
Interest on loans
D
Partners drawings
CORRECT OPTION: c
20

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

 

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

 

  What is the balance on its cash account as at 31/1/95

A
#22,800
B
#9,200
C
#800
D
#21,200
CORRECT OPTION: b
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