passwella.
Menu

JAMB Principles of Accounts 2007 Question 1

Question 1

Departmental Accounts

A company has departments X, Y and Z. Department X occupies a space twice that of Y while Z occupies half the space of Y. If the company pays ₦70 000 on rent, what is the amount of rent that should be allocated to Y?

  1. A.₦30 000
  2. B.₦40 000
  3. C.₦20 000
  4. D.₦10 000.
Show the answer and explanation

Answer: C (₦20 000)

Explanation

Space ratio X : Y : Z = 2 : 1 : ½ = 4 : 2 : 1. Y's share = 2/7 × 70 000 = ₦20 000.