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JAMB Principles of Accounts 2022 past questions and answers

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

Question 2

Depreciation

Use the information below to answer questions 1 and 2.
On January 1, 2005 a machine was bought for ₦56,000 to last for 5 years with a residual value of ₦1000.

The rate of the yearly depreciation expense would be

  1. A.50%
  2. B.20%
  3. C.30%
  4. D.40%
Show the answer and explanation

Answer: B (20%)

Explanation

Spreading the cost equally over 5 years means 1/5 of it each year, which is 20%.

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Question 15

Incomplete Records

In dealing with incomplete records, fixed assets are posted to

  1. A.opening profit and loss as brought forward figures
  2. B.closing balance sheet as carried forward figures
  3. C.closing profit and loss as brought forward figures
  4. D.closing balance sheet as brought forward figures
Show the answer and explanation

Answer: D (closing balance sheet as brought forward figures)

Explanation

Fixed assets are not income or expense; they appear in the balance sheet, brought forward from the records.

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