passwella.
Menu

JAMB Principles of Accounts 2004 Question 21

Question 21

Accruals and Prepayments

Given:
General expenses account (₦)
Paid by cheque 671
Paid by cash 70
Accrued b/f 65
Accrued c/f 115
Determine how much to be charged to profit and loss account.

  1. A.₦606
  2. B.₦786
  3. C.₦791
  4. D.₦856
Show the answer and explanation

Answer: C (₦791)

Explanation

Charge = payments (671 + 70) − accrued b/f 65 + accrued c/f 115 = ₦791.