📒 1997

JAMB Principles of Accounts 1997 past questions

33 questions from the 1997 JAMB UTME Principles of Accounts paper. Free, with answers where available.

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Principles of Accounts JAMB 1997 Q7 ✓ Answer: A
Books of original entry are use for
A
recording business transactions
B
the adjustment of accounts
C
reminding the bookkeeper to post transactions in the ledger
D
Informing about the state ofaffairs.
Principles of Accounts JAMB 1997 Q8 ✓ Answer: D
The term posting in accounting refers to
A
recording entries in the journal
B
transferring the balances in the ledger to the trial balance
C
tracing amounts from the journal to the ledger to find errors
D
transferring entries to the ledger from the journal.
Principles of Accounts JAMB 1997 Q9 ✓ Answer: A
Erroneous rearrangement of financial figures such as writing N624 as N264 is called
A
transposition
B
principle
C
commission
D
omission
Principles of Accounts JAMB 1997 Q10 ✓ Answer: D
Bank Account N N Capital 50,000 Purchase 20,000 Sales 38,500 Rent 2,590 Motor V 6,500 What is the balance of the bank account shown above?
A
N 88,500 debit
B
N88,500credit
C
N59,410 credit
D
N59,410 debit.
Principles of Accounts JAMB 1997 Q11 ✓ Answer: A
Which of the following demonstrates the imprest system?
A
Float-> expenses paid —>cash in bank--> float.
B
Float --> cash from bank --> expenses paid float
C
Float--> expenses paid--> cash from bank --> float
D
Float--> cash in bank--> expenses paid -> float.
Principles of Accounts JAMB 1997 Q12 ✓ Answer: D
When a sum of money appears on the credit side of the cash book. but not on the debit side of the bank state- ment, the sum is regarded as [PAGE 10]
A
uncredited cheques
B
dishonoured cheques
C
direct remittance to the bank
D
unpresented cheques.
Principles of Accounts JAMB 1997 Q13 ✓ Answer: D
An examination of the cahs book on 3rd August 1993 showed a different balance from the bank statement of 31st July 1993 which read N722. Uncredited cheques were Bimpe N 40: Wale N60 while unpresented cheques were: Usman N 20. Kalu N32 and Musa N 70. What is the cash book balance after the reconciliation?
A
N700
B
N 770
C
N800 .
D
N 822. Use the information to answer questions 14 and 15 On 30/05/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account
Principles of Accounts JAMB 1997 Q14 ✓ Answer: C
At 31/12/93, what portion of that amount was prepaid?
A
N14,583
B
N 25,000
C
N 35,417
D
N 37,415
Principles of Accounts JAMB 1997 Q15 ✓ Answer: C
The adjustment needed as at 31st December, 1993 as?
A
debit rent account and credit adjustment account
B
debit prepayment account and credit rent account prepayment account
D
debit adjustment account and credit prepayment account
Principles of Accounts JAMB 1997 Q16 ✓ Answer: B
The receipt of cash from a customer who bought goods with N800 list price 25% trade discount and 2/10, n/30 term would, If paid within discount period, amount to
A
N576
B
N588
C
N600
D
N624
Principles of Accounts JAMB 1997 Q17 ✓ Answer: C
At the end of a financial period, the trading profit and loss account of a company showed a profit of N120,000. It was however recorded that revenue of N12,000 was recovered as expenses while expenses of N4,000 had been recorded as revenue. What should be the correct profit for the period?
A
N104,000
B
N128,000
C
N136,000
D
N144,000
Principles of Accounts JAMB 1997 Q19 ✓ Answer: B
Given capital, N13,000;office machinery, N9,000; credi- tors, N900; stock of goods, N1,550; debtors, N275; cash at bank, N5,075 and loan from Jumbo, N2,000. What is the balance sheet total?
A
N19,500
B
N18,500
C
N17,900
D
N15,900
Principles of Accounts JAMB 1997 Q20 ✓ Answer: B
The recording of wages due but not yet paid, is an example of an adjustment for
A
apportionment of revenue between two periods
B
recognizing accrued expenses
C
recognizing unaccounted revenue
D
recognizing prepaid expenses.
Principles of Accounts JAMB 1997 Q21 ✓ Answer: D
The process of allocating the cost of an intangible asset over its useful life is known as
A
depreciation
B
extraction
C
depletion
D
amortization
Principles of Accounts JAMB 1997 Q22 ✓ Answer: A
The principal use of control accounts is to
A
Localize errors within the ledgers
B
prevent fraud
C
increase sales
D
record assets and liabilities
Principles of Accounts JAMB 1997 Q23 ✓ Answer: B
In the absence of a sales day book or sales account, the credit for sales can be computed from
A
creditors control account
B
debtors control account
C
opening figures of the balance sheet
D
closing figures of the balance sheet
Principles of Accounts JAMB 1997 Q24 ✓ Answer: A
Which of the following conditions best represents the net effect of discount allowed on credit sales on the account of a business?
A
Decrease in the closing balance of sales ledger control account
B
increase in net profit
C
increase in the values of sales.
D
decrease in the value of purchases in the trading account.
Principles of Accounts JAMB 1997 Q25 ✓ Answer: C
The total of the creditors at the beginning of the year was N4,600 and at the end of the year N5,250. During the year, N26,500 was paid to suppliers and N130 was received in discounts from these suppliers. The purchases for the year would be
A
N26,630
B
N27,038
C
N27,150
D
N27,280
Principles of Accounts JAMB 1997 Q26 ✓ Answer: B
Given N Capital at the beginning 20,000 Drawings 3,000 Capital at end 30,000 New capital introduced 8,000 What is the profit for the period?
A
N4,000
B
N5,000
C
N6,000
D
N8,000
Principles of Accounts JAMB 1997 Q27 ✓ Answer: C
In analyzing incomplete records, which of the following should be investigated?
A
The general ledger.
B
The purchases daybook and sales day book
C
The nature trading activities and the basis on which goods are sold.
D
The asset register together with the depreciation schedule
Principles of Accounts JAMB 1997 Q28 ✓ Answer: B
Which of the following stock valuation methods is suitable under inflationary conditions?
A
FIFO
B
LIFO
C
Simple average
D
Weighed average [PAGE 11]
Principles of Accounts JAMB 1997 Q29 ✓ Answer: C
Given N Direct material 10,000 Director labour 5,000 Director expenses 2,000 Factory overhead 4,000 What is the prime cost?
A
N21,000
B
N17,000
C
N15,000
D
N6,000
Principles of Accounts JAMB 1997 Q30 ✓ Answer: C
The understatement of closing value of work-in- process would have the effect of
A
understating cost of goods manufactured
B
overstating prime cost of goods manufactured
C
overstating cost of goods manufactured
D
understating prime cost of goods manufactured.
Principles of Accounts JAMB 1997 Q31 ✓ Answer: C
Emeka Manufacturing Company (Extract) Manufacturing Account. Direct material N5,000 Direct labour N4,000 Direct expenses N3,000 Factory overhead N2,500 Selling and distribution N1,500 Calculate the production cost.
A
N16,500
B
N15,000
C
N14,000
D
N12,500
Principles of Accounts JAMB 1997 Q32 ✓ Answer: C
The difference between a trading account and a manufacturing account is that while the manufacturing account
A
has no particular period, the trading account has
B
does not consider the cost of goods involved, the trading account does
C
is concerned with the cost of production the trading account is not
D
is not concerned with the stock of raw materials, the trading account is.
Principles of Accounts JAMB 1997 Q34 ✓ Answer: C
Subscription relating to the accounting year 1993 in the income and expenditure account is
A
N15,050
B
N14,550
C
N14,300
D
N13,400
Principles of Accounts JAMB 1997 Q35 ✓ Answer: A
Accumulated fund on 1st January 1993 is
A
N8,570
B
N8,470
C
N7,850
D
N7,520
Principles of Accounts JAMB 1997 Q37 ✓ Answer: C
The correct closing balance for Musa’s current account is
A
N36,200 credit
B
N16,600credit
C
N16,600debit
D
N1,800 credit
Principles of Accounts JAMB 1997 Q38 ✓ Answer: B
The correct closing balance of Lawal’s current account is
A
N21,100 debit
B
N14,740 debit
C
N14,740 credit
D
N540 credit
Principles of Accounts JAMB 1997 Q39 ✓ Answer: D
Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a [PAGE 12] salary of N9,000. In one accounting period, the business recorded a loss of N1,500 (before deduction of Faruk’s salary). The appropriate distribution of the net loss would be
A
Faruk,(N450);Osawe,(N1,050)
B
Faruk,(N3,150); Osawe (N7,350),
C
Faruk,(N2,250);Osawe,(N5,250),
D
Faruk, (N8,550);Osawe,(N1,050)
Principles of Accounts JAMB 1997 Q40 ✓ Answer: D
On partnership dissolution, if partner’s capital account has a debit balance and the partner is insolvent, the deficiency will in accordance with the decision of the case of Garner v Murry, be
A
Borne by all the partners
B
Borne by the insolvent partner,
C
Written off,
D
Borne by the solvent partners
Principles of Accounts JAMB 1997 Q41 ✓ Answer: A
Share premium can be used to i. Write off discount on shares ii. Give loans to direc- tors, iii. Pay dividends, iv. Pay company’s formation expenses
A
i and iv only
B
i and iii
C
ii and iii only
D
iii and iv only
Principles of Accounts JAMB 1997 Q43 ✓ Answer: C
Alabede (Nig.) limited issued 50,000 ordinary shares of N1 each at market value of N2.50 each. The share pre- mium is
A
N125,000
B
N100,000
C
N75,000
D
N50,000