passwella.
Menu

JAMB Commerce 2021 past questions and answers

3 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 13

Business Calculations

Use the information below to answer questions 13 and 14.
A B C Balance Sheet as at 31/12/2004
Share capital ₦200,000 | Fixed assets ₦180,000
Reserves ₦100,000 | Investment ₦100,000
Long term liabilities ₦40,000 | Current assets ₦50,000
Current liabilities ₦30,000 | Fictitious assets ₦40,000
Total ₦370,000 | Total ₦370,000

The total sum for financing short term projects is

  1. A.₦30,000
  2. B.₦200,000
  3. C.₦70,000
  4. D.₦40,000
Show the answer and explanation

Answer: A (₦30,000)

Explanation

Short-term projects are financed with short-term funds, which here are the current liabilities of ₦30,000. Share capital (₦200,000) is long-term finance.

Open this question

Question 14

Business Calculations

Use the information below to answer questions 13 and 14.
A B C Balance Sheet as at 31/12/2004
Share capital ₦200,000 | Fixed assets ₦180,000
Reserves ₦100,000 | Investment ₦100,000
Long term liabilities ₦40,000 | Current assets ₦50,000
Current liabilities ₦30,000 | Fictitious assets ₦40,000
Total ₦370,000 | Total ₦370,000

What is the capital employed?

  1. A.₦340,000
  2. B.₦200,000
  3. C.₦300,000
  4. D.₦170,000
Show the answer and explanation

Answer: C (₦300,000)

Explanation

Capital employed = share capital + reserves = ₦200,000 + ₦100,000 = ₦300,000 (the same as total real assets ₦330,000 less current liabilities ₦30,000).

Open this question

Question 27

Insurance

Use the table below to answer questions 27 and 28.
Name | Insured Amount (₦) | Actual Value (₦) | Actual Loss (₦)
Mr. P | 25,000 | 100,000 | 30,000
Mr. K | 30,000 | 120,000 | 40,000
Mr. R | 40,000 | 150,000 | 50,000

If Mr. P takes a fire insurance policy with average clause, his compensation will be

  1. A.₦7,500
  2. B.₦5,000
  3. C.₦70,000
  4. D.₦7,500
Show the answer and explanation

Answer: A (₦7,500)

Explanation

Under average, compensation = (sum insured ÷ actual value) × loss = 25,000/100,000 × ₦30,000 = ₦7,500.

Open this question