2020 - JAMB Accounting Past Questions & Answers - page 3

21
The market value of goods produced is?
A
N30,500
B
N30,600
C
N31,600
D
N31,620
CORRECT OPTION: b
22
The expenses incurred in promoting a company are?
A
promoters' expenses
B
floating expenses
C
preliminary expenses
D
the borad's expenses
CORRECT OPTION: c
23
After receiving the financial statement the Auditor General of the Federation must submit a report to the National Assembly within?
A
60 days
B
30 days
C
120 days
D
90 days
CORRECT OPTION: b
24
Use the information below to answer questions .

On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.

the rate of the yearly depreciation expense would be?
A
50%
B
40%
C
30%
D
20%
CORRECT OPTION: d
25
Given:
I. Settlement of debts
II. Cessation of business
III. Introduction of assets
IV. Disposal of assets
Which of these constitutes dissolution of partnership?
A
II and IV only
B
I,II and IV only
C
I,II and III only
D
II,III and IV only
CORRECT OPTION: b
Dissolution of partnership business simply means the break up of partnership business and which are caused by many factors
II,III and IV: disposal of asset does not constitute dissolution
26
The accounting entries for goods stolen in branch will be to debit
A
The accounting entries for goods stolen in branch will be to debit
B
branch stock account and credit branch adjustment account
C
branch adjustment account and credit profit and loss account
D
branch adjustment account and credit branch stock account
CORRECT OPTION: a
A branch account is a small part of business account operating with some degree of independence . It maintains its own personal/self accounting entries to determine the profit/loss made by a specific period of time

The accounting entries is to debit profit and loss account and credit branch stock. The profit and loss is debited because the cost of the stolen goods must be charged against the profit for the period to balance the account and the branch stock account is credited because the cost of the goods is out of the branch already.
27
The two legally recognized professional accounting bodies in Nigeria are the?
A
Institute of Certified Public Accountants of Nigeria and the Institute of cost and Management Accountants of Nigeria
B
Association of Accountants of Nigeria and the Institute of Management Accountants of Nigeria
C
Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
D
Nigeria Accounting Association and the Excutive Cost and Management Accounts of Nigeria
CORRECT OPTION: c
28
Use the information to answer this question.

..............ZEBRA PLC..............
.............Balance sheet as at 31st March, 2002
...............N...............N............N......
Capital......100,000...Fixed assets:
Current................Land &..................
Liabilities...........buildings..50,000......
Creditors........30000..Furniture..10,000....60,000
.......................Current..................
.......................Assets: .......
..................Stock .........30,000...........
..................Debtors.......30,000.............
..................Cash..........10,000......70,000..
.............130,000.........................130,000
The business was acquired on 1st April, 2002 at a purchase consideration of N120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional N20,000 was paid into the bank.

The goodwill on purchase is
A
N90,000
B
N30,000
C
N19,000
D
N18,000
CORRECT OPTION: b
29

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.

30

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

A
Call in advance
B
call in arrears
C
forfeiture
D
shares
CORRECT OPTION: b

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

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