📒 1995

JAMB Principles of Accounts 1995 past questions

42 questions from the 1995 JAMB UTME Principles of Accounts paper. Free, with answers where available.

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Principles of Accounts JAMB 1995 Q1 ✓ Answer: A
The most important reason for studying accounting is that
A
the information provided by accounting is useful in making decisions
B
accounting plays an important role in a society
C
the study of accounting leads to a challenging career
D
accounting provides gross profit information.
Principles of Accounts JAMB 1995 Q2 ✓ Answer: C
In preparing accounting records, the owners of a business and the business are treated as
A
the same person
B
having business relation- ship
C
separate legal entities
D
partners
Principles of Accounts JAMB 1995 Q3 ✓ Answer: D
Creditors use accounting information for the purpose of
A
planning sales to a company
B
controlling a company’s affairs
C
investing in a company
D
assessing a company liquidity.
Principles of Accounts JAMB 1995 Q4 ✓ Answer: C
The instruments that are generated when firms enter into business transactions with others are called
A
purchases documents
B
journals
C
source documents
D
invoices.
Principles of Accounts JAMB 1995 Q5 ✓ Answer: B
Given: Motor van, N3,600, Premises, N5,000: Loan from R. Nwaeke, N1,000: Cash at bank, N1,650: Stock of goods, N4,800: Creditors, N2,560: Cash in hand, N250 and Debt- ors, N6,910. Calculate the capital figure.
A
N19,650
B
N18,650
C
N 17,850
D
N 19,850.
Principles of Accounts JAMB 1995 Q5 ✓ Answer: A
The document that is used to acknowledge the accep- tance of the return of goods by the seller from the buyer is known as
A
credit note
B
debit note
C
invoice
D
voucher.
Principles of Accounts JAMB 1995 Q6 ✓ Answer: D
Which of the following transactions is BEST recorded in the general journal?
A
Payment of rent with a cheque.
B
Payment of stock with cash
C
Purchase of an asset on credit terms
D
Transfer of cash from head office to branch.
Principles of Accounts JAMB 1995 Q6 ✓ Answer: D
The effects of the payment of a liability is that it
A
increases both assets and liabilities
B
increases assets and decreases liabilities
C
decreases assets and increases liabilities
D
decrease both assets and liabilities. Doctors’ and nurses’ Salaries 120,000 Administrative expenses 50,000
Principles of Accounts JAMB 1995 Q7 ✓ Answer: B
Diamon Ringo business was started when Mr. Diamon brought in a Cheque of N 500,000 which was paid into the bank account. Which of the following entries prop- erly records the transaction?
A
Cash account was credited with N 500,000 and the capital account was debited with N 500,000
B
Bank account was debited with N 500,000 and capital account was credited with N 500,000 [PAGE 6]
C
Bank account was credited with N 500,000 and capital account was debited with N 500,000.
D
Mr. Diamon’s’account was debited with N500,000 and the cheque account was credited with N 500,000.
Principles of Accounts JAMB 1995 Q8 ✓ Answer: D
One major advantage of a ledger is that it
A
is a book of original entry
B
is only accessible to shareholders during liquidation
C
removes the need for preparing a balance sheet after each transaction
D
can be used by any type of business.
Principles of Accounts JAMB 1995 Q10 ✓ Answer: D
What are the advantages of an imprest petty cash book? (i.) Cheque can be drawn easily (ii.) A check on the use of cash (iii.) Liability of the petty cashier is limited to the value of petty cash. (iv.) Loses through the petty cashier can be minimized.
A
I, II, and III and III only
B
I, II and IV only
C
I, III and IV only
D
II, III and IV only.
Principles of Accounts JAMB 1995 Q11 ✓ Answer: A
Bola, UTC’s regular customer, owed N 1,000 on account of radio brought. If he sent in a cheque for N 1,500, UTC would send him a
A
credit note
B
debit note
C
journal voucher
D
way bill.
Principles of Accounts JAMB 1995 Q13 ✓ Answer: C
The following represents extracts from the trading ac- count of a retail outlet for a given month: N Opening Stock 2,400 Closing Stock 6, 400 Other expenses 2,000 Sales 11,000 Profit What is the purchase figure for the month?
A
N 13,000
B
N 12,100
C
N 12,000
D
N 11,200.
Principles of Accounts JAMB 1995 Q14 ✓ Answer: D
Adama’s bank account showed on overdraft of N600 on 31st March. On going through the account. It was discovered that the N 1,080 paid into the account on 29th March had not been a credited. What should be the balance in Adama’s cash accounts?
A
N 1.680 Dr.
B
N 1,080 Cr.
C
N 600 Dr.
D
N 480 Cr.
Principles of Accounts JAMB 1995 Q15 ✓ Answer: B
Why are adjustments in the profit and loss account nec- essary?
A
to cover some expenses of the following year. B to ascertain the actual expenses incurred and income earned during the year.
C
To show the provisions made during the year
D
To show the total expenses paid and income received during the year. Use the information below to answer questions 16 and
Principles of Accounts JAMB 1995 Q16 ✓ Answer: B
Accumulated depreciation on the asset as at 31/12/81 was
A
N 2,487,500.00
B
N2,736,250.00
C
N 4,511,192.00
D
N 4,975,000.00.
Principles of Accounts JAMB 1995 Q18 ✓ Answer: C
What was the balance in the trade creditors account as at 31/12/92?
A
N 29,800
B
N 29,500
C
N 29,400
D
N 29,000.
Principles of Accounts JAMB 1995 Q19 ✓ Answer: C
What was the balance in the capital account as at 31/12/ 92?
A
N76,000
B
N83,000
C
N117,600 D.N117,650. [PAGE 7]
Principles of Accounts JAMB 1995 Q20 ✓ Answer: A
The trial balance showed wages N 2,500 and a note stated that N500 wages were due but unpaid. When preparing final accounts and balance sheet, it is required to debit profit and loss account with
A
N3,000 and show wages accrued N500 in the balance sheet
B
N2,000 and show wages accrued N 500 in the balance sheet
C
N3,000 and show wages prepaid N500 in the balance sheet.
D
N2,000 and show wages paid in advance N500 in the balance sheet.
Principles of Accounts JAMB 1995 Q21 ✓ Answer: B
Sales ledger control account contains the total amount in respect of
A
creditors
B
debtors
C
investors
D
shareholders.
Principles of Accounts JAMB 1995 Q22 ✓ Answer: B
The purchases ledger account control of a company had an opening balance of N45,600 credit and closing bal- ance of N72,600 credit. The made company payments of N437,000 to credit suppliers during the period; and had discount received of N18,600 on this account. What were the credit purchases for the period?
A
N509, 600
B
N482,600
C
N428, 600
D
N18, 400.
Principles of Accounts JAMB 1995 Q23 ✓ Answer: D
The starting point for the production of accounts from incomplete records is to
A
ascertain the total sales
B
compute the opening stock of goods sold
C
verify the total purchases
D
prepare an opening statement of affairs. Use the information below to answer questions 24 and 25. I. A retailer when fixing his selling price adds one-quar- ter: to the cost of the article. II. The expense of the re- tailer is 10% of his sales. III. The total sales is N23,000 IV. He turned over his stock five times in the year
Principles of Accounts JAMB 1995 Q24 ✓ Answer: C
Compute the average amount of stock in hand at cost price.
A
N3,860
B
N3,806
C
N3,680
D
N3,086.
Principles of Accounts JAMB 1995 Q25 ✓ Answer: A
The net profit for the year is
A
N5,750
B
N5,650
C
N3,200 D.N2, 300.
Principles of Accounts JAMB 1995 Q26 ✓ Answer: B
Given: N Prime cost 320,000 Factory cost 32,000 Working in progress at beginning 25,000 Working in progress at close 19,000 Administrative expenses 21,000 Determine the production cost.
A
N296,000
B
N277,000
C
N258,000
D
N246,000.
Principles of Accounts JAMB 1995 Q27 ✓ Answer: A
The factory cost of goods produced is made up of
A
prime Cost and factory overhead
B
prime cost and office overhead
C
raw materials consumed and fixed cost
D
Raw materials and Administrative overhead.
Principles of Accounts JAMB 1995 Q29 ✓ Answer: C
Subscription in arrears are
A
credited to the income and expenditure account and shown as
B
debited to the income and expenditure account and shown as an asset in the balance sheet
C
credited to the income and expenditure account and shown as a asset in the balance sheet
D
debited to the income and expenditure account and shown as a liability in the balance sheet.
Principles of Accounts JAMB 1995 Q30 ✓ Answer: C
Where a non-profit making organization prepares the account using accruals basis of reporting the statement showing how well the organization is doing is the
A
appropriation account
B
balance sheet
C
income and expenditure account
D
receipts and payment account.
Principles of Accounts JAMB 1995 Q33 ✓ Answer: B
Which of the following is a strong feature of partnership?
A
The life of the partnership is generally as- sumed to be indefinite [PAGE 8]
B
The owners are liable personally for all debts of the business.
C
The transfer of ownership is frequent an easy to accomplish
D
The partnership is complex to form because of many legal and reporting requirements.
Principles of Accounts JAMB 1995 Q34 ✓ Answer: A
Interest on a partner’s drawing is debited to the
A
partner’s current account and credited to the profit and loss appropriation account
B
profit and loss appropriation account
C
profit and loss account and credited to the partner’s current account.
D
partner’s current account and credited to the profit and loss account.
Principles of Accounts JAMB 1995 Q36 ✓ Answer: B
Halidu’s share of the profit is
A
N7,500
B
N6,000
C
N5,400
D
N4,500.
Principles of Accounts JAMB 1995 Q37 ✓ Answer: B
Hamed’s share of the profit should be
A
credited to partners’ capital account
B
credited to partners’ current account
C
credited to appropriation account
D
debited to partners’ drawings account.
Principles of Accounts JAMB 1995 Q39 ✓ Answer: A
Equity shareholder fund is
A
N130,000
B
N120,000
C
N113,000
D
N100,000
Principles of Accounts JAMB 1995 Q40 ✓ Answer: A
If a 10% dividend is approved, what is the dividend payable to ordinary shareholders?
A
N13,000
B
N 11,300
C
N10,000
D
N8,000
Principles of Accounts JAMB 1995 Q41 ✓ Answer: B
Which of the following ratios gives an idea of the liquidity of a firm?
A
Turnover ratio
B
Quick ratio
C
Debt ratio
D
Divided yield.
Principles of Accounts JAMB 1995 Q43 ✓ Answer: C
The measure of a company’s ability to pay its debts. quickly is called
A
current ratio
B
turnover ratio
C
acid test ratio
D
return on investment.
Principles of Accounts JAMB 1995 Q44 ✓ Answer: B
Department accounts are maintained to ascertain the
A
profits of the entire organization
B
contribution of each department
C
expenses of each department
D
sales of each department.
Principles of Accounts JAMB 1995 Q45 ✓ Answer: B
The Asa branch of Emene Company Ltd. Made a sale of N 549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the net profit of the branch for the period?
A
N6,500
B
N64,600
C
N85,380
D
N514,600
Principles of Accounts JAMB 1995 Q46 ✓ Answer: C
Which of the following statement is current about the head office current account and the branch current account?
A
Both always have debit balances
B
Both always have credit balances
C
The head office current account has a credit balance while the branch current account has a debit balance.
D
The head office current account has a debit [PAGE 9] balance while the branch current account has a credit balance.
Principles of Accounts JAMB 1995 Q47 ✓ Answer: C
Which of the following are sources of revenue to share governments in Nigeria? I Statutory allocation, II Fines from customary courts, III Petroleum tax IV Income tax.
A
I and II only
B
II and III only
C
I and IV only
D
III and IV only. Use the information to answer questions 48 and 49 Eko Local Government Expenditure N Hospital building 200,000 Drugs 180,000 Hospital beds and Mattresses 40,000
Principles of Accounts JAMB 1995 Q48 ✓ Answer: C
Capital expenditure is
A
N420,000
B
N380,000
C
N240,000
D
N200,000
Principles of Accounts JAMB 1995 Q49 ✓ Answer: B
Recurrent expenditure is
A
N390,000
B
N360,000
C
N 350,000
D
N 170,000