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JAMB Principles of Accounts 2023 past questions and answers

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

Question 27

Incomplete Records

Use the information below to answer questions 27 and 28.
Magodo Enterprises Trading Account (Extract)
Opening stock ₦5,000 | Sales ₦100,000
Purchases ?
?
Less closing stock ₦5,600
Cost of goods sold ?
Gross profit ?
Total ₦100,000 | Total ₦100,000
If the gross profit margin is 10%, what is the value of the cost of goods sold?

  1. A.₦110,000
  2. B.₦10,000
  3. C.₦90,000
  4. D.₦105,600
Show the answer and explanation

Answer: C (₦90,000)

Explanation

Gross profit = 10% of sales ₦100,000 = ₦10,000, so cost of goods sold = 100,000 − 10,000 = ₦90,000.

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Question 28

Final Accounts of a Sole Trader

Use the information below to answer questions 27 and 28.
Magodo Enterprises Trading Account (Extract)
Opening stock ₦5,000 | Sales ₦100,000
Purchases ?
?
Less closing stock ₦5,600
Cost of goods sold ?
Gross profit ?
Total ₦100,000 | Total ₦100,000
If opening stock is 5% of sales, calculate the purchases.

  1. A.₦90,600
  2. B.₦95,600
  3. C.₦95,000
  4. D.₦85,000
Show the answer and explanation

Answer: A (₦90,600)

Explanation

Opening stock = 5% × 100,000 = ₦5,000. Purchases = cost of goods sold + closing stock − opening stock = 90,000 + 5,600 − 5,000 = ₦90,600.

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Question 31

Incomplete Records

Use the information below to answer questions 31 and 32.
(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.₦14,900
  2. B.₦5,700
  3. C.₦9,800
  4. D.₦7,700
Show the answer and explanation

Answer: D (₦7,700)

Explanation

Opening assets = 2,000 + 8,000 + 10,500 = ₦20,500; liabilities = 9,000 + 3,800 = ₦12,800. Capital = 20,500 − 12,800 = ₦7,700.

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Question 32

Incomplete Records

Use the information below to answer questions 31 and 32.
(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.₦9,700
  3. C.₦10,700
  4. D.₦9,500
Show the answer and explanation

Answer: B (₦9,700)

Explanation

Closing assets = 3,500 + 8,000 + 10,500 = ₦22,000; liabilities = 9,800 + 2,500 = ₦12,300. Capital = 22,000 − 12,300 = ₦9,700.

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Question 34

Double Entry and the Ledger

Use the information below to answer questions 34 and 35.
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of ₦12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit:

  1. A.Jide ₦12,000 and credit sales account ₦12,000
  2. B.sugar account ₦12,000 and credit Jide ₦12,000
  3. C.Ibrahim ₦12,000 and credit Jide ₦12,000
  4. D.Sugar account ₦12,000 and credit Ibrahim ₦12,000
Show the answer and explanation

Answer: A (Jide ₦12,000 and credit sales account ₦12,000)

Explanation

Ibrahim sold on credit: Jide becomes his debtor (debit Jide) and sales account is credited.

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Question 35

Double Entry and the Ledger

Use the information below to answer questions 34 and 35.
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of ₦12,000.
The record in Jide's book would be to debit

  1. A.purchases ₦12000 and credit sugar account ₦12,000
  2. B.purchases ₦12,000 and credit Ibrahim ₦12,000
  3. C.Jide ₦12,000 and credit purchases ₦12,000
  4. D.Ibrahim ₦12,000 and sugar account ₦12,000
Show the answer and explanation

Answer: B (purchases ₦12,000 and credit Ibrahim ₦12,000)

Explanation

Jide bought on credit: debit purchases and credit Ibrahim, who is now his creditor.

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