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JAMB Principles of Accounts 2020 past questions and answers

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

Question 17

Accounting Equation

Use the information below to answer questions 17 and 18
(₦)
Total current assets 2000
Total fixed assets 4000
Current liabilities 1200
Drawings 200
Long term loan 2000
Calculate the capital of the business.

  1. A.₦3000
  2. B.₦9400
  3. C.₦3400
  4. D.₦6000
Show the answer and explanation

Answer: A (₦3000)

Explanation

Total assets 6,000 = (capital − drawings) + current liabilities 1,200 + long-term loan 2,000. So capital − 200 = 2,800, giving capital of ₦3,000 before drawings are deducted.

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Question 18

Interpretation of Accounts

Use the information below to answer questions 17 and 18
(₦)
Total current assets 2000
Total fixed assets 4000
Current liabilities 1200
Drawings 200
Long term loan 2000
What is the net working capital?

  1. A.₦1800
  2. B.₦800
  3. C.₦2600
  4. D.₦600
Show the answer and explanation

Answer: B (₦800)

Explanation

Working capital = current assets − current liabilities = 2,000 − 1,200 = ₦800.

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Question 22

Depreciation

Use the information below to answer questions 22 and 23
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000
The yearly depreciation using the straight line method would be

  1. A.₦5200
  2. B.₦800
  3. C.₦6500
  4. D.₦4400
Show the answer and explanation

Answer: A (₦5200)

Explanation

Straight line = (cost − scrap value) ÷ life = (35,000 − 9,000) ÷ 5 = ₦5,200.

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Question 38

Partnership Admission, Retirement and Dissolution

Kola and Sunday are in partnership sharing profits and losses equally. If Kemi is admitted as a new partner to take 1/5 as her share, what is the new profit or loss sharing ratio?

  1. A.Kola 1/3, Sunday 1/3 and Kemi 1/3
  2. B.Kola 1/5, Sunday 1/5 and Kemi 3/5
  3. C.Kola 2/5, Sunday 1/5 and Kemi 2/5
  4. D.Kola 2/5, Sunday 2/5 and Kemi 1/5
Show the answer and explanation

Answer: D (Kola 2/5, Sunday 2/5 and Kemi 1/5)

Explanation

Kemi takes 1/5, leaving 4/5 to be shared equally: 2/5 each for Kola and Sunday.

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