JAMB Principles of Accounts 2002

B: ₦2,985

Cost of goods sold includes opening stock, flour purchases and bakery production wages, less closing stock: ₦800 + ₦2,450 + ₦675 − ₦940 = ₦2,985. Distribution and administration are excluded.

A: ₦950

Under the imprest system, reimbursement equals the supported expenses. Adding stationery ₦350, cleaning materials ₦335 and general expenses ₦265 gives ₦950.

A: ₦583,000

Miscellaneous expenses are 10% of ₦820,000, or ₦82,000. Total expenses are ₦237,000, leaving net income ₦820,000 − ₦237,000 = ₦583,000.

D: Memorandum entry.

A memorandum entry records information without creating a debit-and-credit posting in the double-entry ledger. It differs from a journal entry that forms part of that system.

A: III and IV

Wages and rent are nominal accounts measuring expenses for a period. Fixtures and machinery are asset accounts, carried forward rather than closed as expenses.

A: ₦20,400

Current assets are prepaid expenses ₦580, stock ₦8,100, cash ₦9,911 and debtors ₦1,809. Adding them gives ₦20,400; vehicles and furniture are non-current.

D: Credit cash book; debit drawer

A customer’s dishonoured cheque reverses a bank receipt. Credit the cash-book bank column and debit the drawer’s account to restore the debt owed by the customer.

A: ₦90 million

Net working capital equals current assets less current liabilities. The calculation is ₦110 million − ₦20 million = ₦90 million.

B: ₦10 million

Total assets must equal ₦240 million equity plus ₦20 million liabilities, or ₦260 million. Listed assets total ₦250 million, leaving a ₦10 million trade investment.

D: ₦18,405

Net sales are ₦157,000, giving gross profit of ₦39,250 at 25%. Subtract total expenses ₦20,845 to obtain net profit ₦18,405.

D: ₦31,250

Goods available cost ₦45,000 + ₦110,000 − ₦6,000 = ₦149,000. Cost of sales is 75% of ₦157,000, or ₦117,750, leaving closing stock ₦31,250.

A: Carriage outwards

Carriage outwards is a selling and distribution cost, so departmental turnover is a reasonable allocation basis. Inward carriage and discounts received relate more closely to purchases.

C: ₦9,000

Prime cost uses materials actually consumed plus direct wages and direct expenses: ₦5,500 + ₦2,500 + ₦1,000 = ₦9,000. Do not add opening materials again.

A: ₦11,000

Production cost is prime cost ₦9,000 plus factory overhead ₦2,000 = ₦11,000. Closing finished goods adjusts cost of sales, not the cost of goods manufactured.

A: ₦1,820

Branch cost of sales is ₦400 + ₦8,000 − ₦340 − ₦720 = ₦7,340. Deduct that from sales ₦9,160 to obtain gross profit ₦1,820.

A: ₦7,660

Net goods sent to the branch are goods dispatched less returns to head office: ₦8,000 − ₦340 = ₦7,660. That cost is credited out of head-office trading.

D: ₦20,000

The stipulated subscriptions equal 125% of donations plus refreshment sales. Their sum is ₦16,000; multiplying by 1.25 gives subscriptions of ₦20,000.

C: ₦250

Discount received follows purchases. Department P made ₦1,000 of total purchases ₦4,000, so it receives one-quarter of the ₦1,000 discount, or ₦250.

D: ₦5,000

Other expenses are stipulated as 25% of subscriptions received. Applying the rate to ₦20,000 gives ₦5,000; donations and investment profits do not enter this base.

A: ₦12,000

Income is ₦35,000. Other expenses are 25% of ₦20,000 subscriptions, or ₦5,000. Deduct wages ₦12,000, electricity ₦5,000 and depreciation ₦1,000 to get surplus ₦12,000.

D: ₦800.00

Two-thirds of the ₦6,000 stock came from head office, giving ₦4,000 at invoice value. The loading is 25/125 of invoice value, so unrealised profit is ₦800.

C: ₦3,000

Current assets total stock ₦3,500, subscriptions due ₦1,000 and bank ₦1,500 = ₦6,000. Deduct creditors ₦1,000 and advance subscriptions ₦2,000 to get ₦3,000.

C: ₦2,000 profit

The capital increase is ₦6,250 − ₦3,250 = ₦3,000. Removing the ₦1,000 additional investment leaves profit of ₦2,000 from the stated capital movements.

A: Debit side of the purchases ledger control account

Discount received reduces what is owed to suppliers. It is debited to the purchases ledger control account, reducing the usual credit balance of trade payables.

D: Sales and purchases

A trading account needs sales and purchase information to determine gross profit, alongside stock adjustments. Establishing these missing amounts is therefore necessary when reconstructing incomplete records.

D: ₦3,900

The first two issues leave 100 units at ₦25. March adds 250 at ₦28; LIFO issues 200 of them. Closing value is 100 × ₦25 + 50 × ₦28 = ₦3,900.

B: ₦2,500

By 14 February only the January purchase has occurred. Its unit price is ₦25, so the 100 units left after issuing 400 have a value of ₦2,500 under simple average.

D: Simplicity in terms of operation

Single-entry records are comparatively simple to operate because fewer accounts and complete paired postings are maintained. That simplicity does not guarantee completeness or accuracy.

A: ₦30,000

Net sales are ₦194,000. With gross profit ₦66,000, cost of sales is ₦128,000. Available goods cost ₦158,000, leaving closing stock ₦30,000.

D: ₦5,000

Separate current accounts record salaries, interest, profit shares and drawings. With no new capital introduced or withdrawn, Abba’s fixed capital remains ₦5,000.

A: ₦250

Capital interest totals ₦600 and salaries ₦600, leaving ₦1,050 residual profit. Kaka gets ₦175 of that plus ₦150 interest: ₦175 + ₦175 + ₦150 − ₦250 = ₦250.

D: Used in paying the debts and liabilities of the firm to persons who are not partners.

The dissolution settlement rules first apply firm assets to debts owed to outsiders, before partners’ advances, capital and residue. Assets are not automatically shared equally.

C: Cash accounting

Cash accounting recognises receipts and payments when cash moves. Accrual accounting instead allocates income and expenses to the period earned or incurred.