JAMB Principles of Accounts 1998 past questions

The Act establishing the Institute of Chartered Accountants of Nigeria (ICAN) came into force on

Cost reports for attention of management should reflect

Responsibility accounting is particularly concerned with

An advantage of the use of the voucher system is that it

When a transaction causes an asset account to increase, there is

N Bank account 59,410 Capital account 50,000 Purchases account 20,000 Rent 2,500 Stationery Typewriter 6,500 Sales 38,000 In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?

The purchase of two generators by Hassan Electronics Enterprises should be recorded as

If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to

What was the actual cash in the till as at 15th July?

The amount required to replenish the payments made from the imprest was

State Bank collected a note for Al-Makura Company. This collection, not yet recorded in Al-Makura’s books, appears on the bank reconciliation as

Mayana Corporation uses special journals to record its transactions. If one of Mayana’s customers returns merchandize purchased with cash (for a refund), it makes an entry in the

Sobande Incorporation acquire a machine that involved the following expenditures and related factors N Gross invoice price 15,000 Sales tax Purchases discount taken Freight Assembly of machine Installation of machine Assorted spare parts for future use 1,200 Turning and adjusting machine [PAGE 14] What is the initial accounting cost of the machine?

What is the new balance sheet total as at 31/1/95?

What is the balance on its cash account as at 31/1/95?

On 1st January, 1993, Lobo Company purchased equipment for N18,000. It uses straight-line depreciation and estimates an eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8,000. In recording this sale, it should reflect

The balance on a purchases ledger control account represents the

Mini Enterprises sales Ledgers as at 31/12/94 read: N Balance b/f 12750 Total credit sales 28185 Payments by debtors 12112 Discount allowed Sales returns Prepare the sales ledger control account and deter mine the balance due from debtors.

Determine the year’s purchases from the following information relating to a firm N Total creditor’s b/f Total cash payments to suppliers 98800 Total creditors c/f

Derive the total sales figure from the following information extracted from a firm’s cash book and other relevant records. N Total debtors b/f 5,600 Total cash receipts from debtors and cash sales 153,000 Total debtors c/f 6,800

The statement of affairs prepared from incomplete records can be described as

The contribution margin on a job is the

What was the total purchases made during the period?

What is the cost of materials available for use during the period?

The limitations of the receipts and payments account arise mainly because of the reliance

The trading account is to a sole trader what income and expenditure account is to a

Which of the following indicate that a partnership business is in place? (i) there is a business (ii) it is run commonly by partners (iii) it has profit-making in view (iv) partners’ liability is limited.

When forming a partnership, new partners should record non-monetary assets on the new partnership’s books at

Umar and Ahmed share profits and losses equally and have capital balances of N40,000 and N60,000 respectively. If Abdullahi purchases a one-third interest with no bonus, how much will he have to contribute to the partnership?

What is the interest on the drawings by Baker?

Determine the total interest on capital due to the partners.

The ordinary shareholders enjoy the following rights except the right to

Granada Corporation has net assets of N600,000 and contributed capital of N180,000. The corporation has 30,000 shares of common stock outstanding with no preferred stock. This suggests that the corporation has

Under which of these conditions can a company issue shares at discount? (i) a resolution must be passed at a general meeting (ii) the amount of discount must be stated in the resolution (iii) the share must have existed for at least six years. (iv) on the order of a court.

The part of equity which is payable on winding up is called

To compute gearing ratio, divide

What is the working capital?

Which of the following entries is effected by a department when goods are charged to it at selling prices?

The acid test ratio in the company is

The difference between the closure of the books of a branch and those of a separate company is that

If goods are invoiced to the branch at cost and the in- voice par value is N2,000 with 5% discount rate, cash remitted to the head office is

The term fiscal compliance means

Which of the following are advantages of departmental accounts? (i) The department making the highest profit can be easily determined (ii) The capital of the business can be calculated easily (iii) Easy knowledge of the sources of funding (iv) Encouragement of healthy rivalry among the various departments.

Public sector accounting is based on

The end result of governmental accounting procedure is to