JAMB Principles of Accounts 2013 past questions and answers

Accounting information seeks to provide

1. A.permanent records for all transactions.
2. B.analysis of accounts to trade debtors.
3. C.audited reports on the accounts of a company.
4. D.data about the employees of a company.

When the debit side total of an account exceeds the credit side total while balancing an account, it means that the account has

1. A.been overdrawn.
2. B.been understated.
3. C.debit balance.
4. D.credit balance.

July 1 – Started business with ₦10,500
July 31 – Paid Agromachinex ₦6,000 owing them
The double entry for July 1 would be

1. A.debit capital and credit cash.
2. B.credit cash and debit bank.
3. C.debit cash and credit capital.
4. D.debit purchases and credit cash.

July 1 – Started business with ₦10,500
July 31 – Paid Agromachinex ₦6,000 owing them
The double entry for July 31 would be

1. A.debit Agromachinex and credit cash.
2. B.debit equipment and credit Agromachinex.
3. C.credit capital and debit cash.
4. D.credit cash and debit purchases.

The total credit sales for a period can be extracted from the

1. A.cash book.
2. B.sales day book.
3. C.petty cash book.
4. D.returns inwards.

The major source document which enables an employer to calculate the employee wages is the

1. A.nominal roll of employees.
2. B.record of numbers of hours worked.
3. C.effort of the employee.
4. D.record of number of dependants per employee.

Which of the following items is a capital expenditure?

1. A.Maintenance of office machine.
2. B.Purchase of office stationery.
3. C.Carriage inwards.
4. D.Purchase of office machinery.

The corresponding entry of personal accounts found in the debit side of the cash book is to

1. A.credit real accounts.
2. B.debit real accounts.
3. C.credit the ledger.
4. D.debit the ledger.

Alaka who owed Saka ₦15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka, debit

1. A.discount received account and credit Alaka's account.
2. B.Alaka's account and credit discount received account.
3. C.Saka's account and credit discount received account.
4. D.discount allowed account and credit Alaka's account.

I. The amount of the imprest is the same from one organization to another.
II. At the end of a fixed period, the petty cashier received a fixed sum of money.
III. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
IV. The system is a method by which a measure of control is kept on petty cash expenses.
Which of the above is correct about the imprest system?

1. A.I, II and III.
2. B.I, III and IV.
3. C.II and IV.
4. D.III and IV.

A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9,000.
The yearly depreciation using the straight line method would be

1. A.₦8,800.
2. B.₦6,500
3. C.₦5,200.
4. D.₦4,400.

A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9,000.
If the scrap value is presently ₦15,000 what will be the yearly depreciation using straight line method?

1. A.₦4,000.
2. B.₦7,000.
3. C.₦11,000.
4. D.₦24,000.

The purchase of mattresses from Freehold enterprises by cheque amounted to ₦305,150. The correct entries for this transaction in the book of the buyer is to debit

1. A.sales account and credit bank account.
2. B.purchases and credit bank account.
3. C.cash and credit freehold.
4. D.bank and credit freehold.

Sales ₦232,000
Opening stock ₦28,000
Purchases ₦128,000
Carriage inwards ₦4,000
Carriage outwards ₦6,000
Closing stock ₦10,000
Discount received ₦18,000
Expenses ₦20,000
Calculate the gross profit.

1. A.₦100,000.
2. B.₦86, 000.
3. C.₦82,000.
4. D.₦76,000.

Sales ₦232,000
Opening stock ₦28,000
Purchases ₦128,000
Carriage inwards ₦4,000
Carriage outwards ₦6,000
Closing stock ₦10,000
Discount received ₦18,000
Expenses ₦20,000
Calculate the expenses debited to the profit and loss account.

1. A.₦17,000.
2. B.₦23,000.
3. C.₦26,000.
4. D.₦30,000.

Given:
Opening capital ₦1,500
Capital introduced ₦500
Profit for the year ₦800
Cash drawings ₦250
Calculate the closing capital.

1. A.₦2,550.
2. B.₦2,500.
3. C.₦2,350.
4. D.₦2,250.

What type of stock valuation method would a vegetable seller adopt in valuing it's product?

1. A.LIFO.
2. B.FIFO.
3. C.Simple average.
4. D.Weighted average.

The total cash and cheques received from customers in a control account is derived from the

1. A.purchases day book.
2. B.cash book.
3. C.income and expenditure account.
4. D.sales journal.

Item | 1/1/2010 (₦) | 31/12/2010 (₦)
Creditors | 9,000 | 9,800
Rent owing | 3,800 | 2,500
Rates prepaid | 2,000 | 3,500
Motor van | 8,000 | 8,000
Premises | 10,500 | 10,500
Find the opening capital.

1. A.₦5,700.
2. B.₦7,700.
3. C.₦9,800.
4. D.₦14,900.

Item | 1/1/2010 (₦) | 31/12/2010 (₦)
Creditors | 9,000 | 9,800
Rent owing | 3,800 | 2,500
Rates prepaid | 2,000 | 3,500
Motor van | 8,000 | 8,000
Premises | 10,500 | 10,500
Calculate the value of closing capital.

1. A.₦8,700.
2. B.₦9,500.
3. C.₦9,700
4. D.₦10,700.

Given:
Opening Capital ₦50,000
Closing Capital ₦64,000
Drawings ₦16,000
Determine the net profit.

1. A.₦2,000.
2. B.₦14,000.
3. C.₦20,000.
4. D.₦30,000.

The estimated profit or loss for a period is calculated by

1. A.closing capital less opening capital add drawings.
2. B.opening capital less closing capital add drawings.
3. C.opening capital less drawings add closing capital.
4. D.opening capital add closing capital add drawings.

Given:
Drawings ₦3,500
Net loss ₦2,500
Capital 1/1/2007 ₦35,000
Additional capital ₦10,000
The adjusted capital as at 31/1/2007 is

1. A.₦35,000.
2. B.₦39,000.
3. C.₦45,000.
4. D.₦46,000.

When goods produced are transferred at cost plus mark-up before sale, the difference between the cost and the transferred price is a

1. A.discount.
2. B.sales commission.
3. C.manufacturing profit.
4. D.factory reserves.

The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of

1. A.goods available for sale.
2. B.goods sold.
3. C.goods manufactured.
4. D.materials put into production.

Opening stock of raw materials ₦75,000
Purchase of raw materials ₦330,000
Closing stock of raw materials ₦80,000
Direct wages ₦30,000
Carriages of raw materials ₦10,000
Calculate the cost of raw materials used.

1. A.₦495,000.
2. B.₦415,000.
3. C.₦335,000.
4. D.₦305,000.

Opening stock of raw materials ₦75,000
Purchase of raw materials ₦330,000
Closing stock of raw materials ₦80,000
Direct wages ₦30,000
Carriages of raw materials ₦10,000
Determine the prime cost.

1. A.₦525,000.
2. B.₦515,000.
3. C.₦465,000.
4. D.₦365,000.

In a manufacturing account, the work-in-progress at the end of the year is

1. A.deducted from the cost of goods completed during the year.
2. B.added to the cost of goods completed.
3. C.stated in the profit and loss account.
4. D.stated in the prime cost section.

Which of the following is accounted for in receipts and payment account?

1. A.Subscriptions received in advance.
2. B.Subscriptions due not yet received.
3. C.Accrued expenses on annual dances.
4. D.Depreciation of the club house.

Which of the following expenses relates to the profit and loss account of a manufacturing firm?

1. A.Direct materials.
2. B.Direct labour.
3. C.Administrative overhead
4. D.Work-in-progress.

I. Direct materials
II. Direct labour
III. Direct expenses
IV. Factory expenses
Prime cost consist of

1. A.I, II and III.
2. B.I, II and IV.
3. C.I, III and IV.
4. D.II, III and IV.

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

1. A.bonus.
2. B.commission.
3. C.premium.
4. D.goodwill.

A partnership's internal regulations are set out by

1. A.a deed.
2. B.a law.
3. C.a constitution
4. D.an article.

In a partnership account, interest on drawings is

1. A.debited to appropriation account.
2. B.credited to appropriation account.
3. C.treated as an expense in profit and loss account.
4. D.recorded in the balance sheet as current assets.

When a share valued at 50k is issued at ₦1.50, it is said to be issued at

1. A.par.
2. B.premium.
3. C.discount.
4. D.interest.

The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of

1. A.net income.
2. B.revenue reserve.
3. C.capital reserve
4. D.net loss.

When there is no basis of apportionment in an organization, the expenses should be apportioned based on

1. A.sales.
2. B.purchases.
3. C.equality.
4. D.floor space.

Department | K (₦) | Y (₦)
Opening stock | 2,500 | 800
Purchases | 120,000 | 100,000
Sales | 180,000 | 200,000
Salaries | 8,000 | 30,000
Closing stock | 3,000 | 1,500
Rate expenses of N1,500 are apportioned in the ratio 1:2.
The gross profit for K is

1. A.₦23,500.
2. B.₦60,500.
3. C.₦60,700.
4. D.₦82,500.

Department | K (₦) | Y (₦)
Opening stock | 2,500 | 800
Purchases | 120,000 | 100,000
Sales | 180,000 | 200,000
Salaries | 8,000 | 30,000
Closing stock | 3,000 | 1,500
Rate expenses of N1,500 are apportioned in the ratio 1:2.
What is the net profit for Y?

1. A.₦52,000.
2. B.₦68,300.
3. C.₦68,800.
4. D.₦69,700.

The objective of departmental account is to

1. A.ascertain the cost of running the organization.
2. B.ascertain the amount of profit or loss for each department.
3. C.ascertain the amount of profits or losses for the enterprise.
4. D.offset the loss of each department.

Which of the following is the capital reserve of a company?

1. A.Share premium.
2. B.Retained profit.
3. C.Accumulated depreciation.
4. D.Loss on forfeited shares.

Given:
Applications were invited by the directors of Abiodun PLC for 500,000 ordinary shares of ₦1:00 each at ₦1: 10 per share payable as follows.
On application 46k
On allotment 20k
1st Call 15k
2nd Call 29k
How much is to be paid for application?

1. A.₦230,000.
2. B.₦280,000.
3. C.₦500,000.
4. D.₦550,000.

The issued share capital is the number of shares that are

1. A.authorized by the shareholders.
2. B.shared among the directors.
3. C.fully subscribed.
4. D.in the share certificate.

The distributable profit available to shareholders at the end of each year is the

1. A.total profit and debtors balance.
2. B.general reserve and retained profit.
3. C.retained profit and fictitious assets.
4. D.total profit less creditors balance.

The debenture issued at par above the nominal value is said to be issued at a

1. A.cost price.
2. B.mark-up.
3. C.premium.
4. D.margin.

Accountant-General of the federation is responsible for

1. A.the general supervision of all auditing personnel in all the ministries.
2. B.the compilation of annual financial statement.
3. C.the interpretation of rules and regulations affecting the private sectors.
4. D.ensuring the efficient operation of the ministries.

Given:
Assets and Liabilities of a Local Government
Bank balance ₦6,484,000
Cash ₦900,000
General revenue balances ₦9,774,500
Accrued salaries ₦1,220,000
Investments in shares ₦1,480,000
Vehicles ₦7,620,000
Calculate the liabilities of the local government.

1. A.₦10,994,500.
2. B.₦17,394,500.
3. C.₦18,774,500.
4. D.₦18,874,500.

An instrument which allows public officers to increase expenditure within a year is

1. A.statutory allocation.
2. B.supplementary budget.
3. C.virement.
4. D.warrant.