📒 2003

JAMB Principles of Accounts 2003 past questions

50 questions from the 2003 JAMB UTME Principles of Accounts paper. Free, with answers where available.

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Principles of Accounts JAMB 2003 Q1 ✓ Answer: D
Which of the following is used to update the cash book in bank reconciliation?
A
Interest received and unpresented cheques
B
Commission and debit note
C
Unpresented cheques and direct credit
D
Interest received and direct credit
Principles of Accounts JAMB 2003 Q1 ✓ Answer: C
The accounting principle that is applied to check arbitrary actions on the part of accountants is
A
Consistency
B
Materiality
C
Objectivity
D
Realization 2 The loss of equipment in a fire disaster results in
Principles of Accounts JAMB 2003 Q2 ✓ Answer: C
The two legally recognized professional accounting bodies in Nigeria are the
A
Institute of Certified Public Accountants of Nigeria and the Institute of Cost and Management Accountants of Nigeria.
B
Association of Accountants of Nigeria and the Institute of Management Accountants of Nigeria
C
Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
D
Nigeria Accounting Association and the Executive Cost and Management Accountants of Nigeria.
Principles of Accounts JAMB 2003 Q3 ✓ Answer: C
Verifiability in accounting is only possible when there are
A
minutes of meetings
B
payment vouchers
C
source documents
D
audit certificates Use the information below to answer questions 4 and 5 N Capital 2 000 Bank 1 200 Purchases 2 500 Sales 6 700 Stock 1 300 Creditors 1 000 Fixed assets 3 700 Drawings ? Drawings are always estimated at 50% of capital
Principles of Accounts JAMB 2003 Q4 ✓ Answer: A
The trial balance total is
A
N 9 700
B
N 8 700
C
N 7 900
D
N 7 800
Principles of Accounts JAMB 2003 Q4 ✓ Answer: A
The rule of accounting equation requires that account payable should be placed under
A
Liabilities,
B
Equities
C
Assets
D
Capital Use the information below to answer questions 5 and 6 Cash Book N N Capital 6 600 Purchases 3.500 Sales 3 000 Stationery Debtors 2 500 Wages 2 700 The owner wishes to maintain an amount equal to 1/3 of capital as drawings
Principles of Accounts JAMB 2003 Q5 ✓ Answer: C
Compute the amount withdrawn
A
N 2 000
B
N 1 500
C
N 1 200
D
N1 000 Use the information below to answer questions 6 and 7. Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of N19 000 from the business tray and banked it.
Principles of Accounts JAMB 2003 Q5 ✓ Answer: C
The amount withdrawn is
A
N2,100,
B
N2, 200,
C
N4,400, D.N6,400
Principles of Accounts JAMB 2003 Q6 ✓ Answer: B
The credit sales for the period would be
A
N5 000
B
N1 900
C
N1 000
D
N950
Principles of Accounts JAMB 2003 Q6 ✓ Answer: B
The cash book closing balance will be
A
N900,
B
N2,400,
C
N4,200, D.N4,600
Principles of Accounts JAMB 2003 Q7 ✓ Answer: A
The transaction would be recorded in the cash book as debit
A
cash and credit bank
B
bank and credit cash
C
cash and credit cash
D
bank and credit bank
Principles of Accounts JAMB 2003 Q8 ✓ Answer: B
Which accounting concept supports the assertion that economic reality takes precedence over legal issues?
A
Realization concept
B
Substance over form
C
Conservatism
D
Measurement concept
Principles of Accounts JAMB 2003 Q8 ✓ Answer: D
The recipient whose name appears on cheque is called a
A
Payer
B
Drawer
C
Drawee
D
Payee
Principles of Accounts JAMB 2003 Q9 ✓ Answer: C
The transaction that completes its double entry in the same ledger account appears in.
A
cash account and personal account
B
bank account and general ledger
C
discount received and discount allowed
D
cash account and bank account
Principles of Accounts JAMB 2003 Q9 ✓ Answer: C
The imprest account is subsidiary to the
A
ledger account,
B
Bank account
C
Cash book
D
Petty cash
Principles of Accounts JAMB 2003 Q10 ✓ Answer: C
Given: N Capital 1 000 Liabilities 500 Assets 1 500 The accounting equation can be expressed as
A
N1 000 + N500 + N1 500 = N3 000
B
N1 000 – N500 + N1 500 = N2 000
C
N1 000 + N500 = N1 500
D
N1 500 + N500 = N2 000
Principles of Accounts JAMB 2003 Q10 ✓ Answer: B
The three-column cash book differs from the two-column cash book in
A
Cash column,
B
Discount column
D
Folio column Principles of Accounts 2004
Principles of Accounts JAMB 2003 Q12 ✓ Answer: C
Assuming that depreciation is charged on theaddition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?
A
N111 000
B
N280 000
C
N289 000
D
N340 000 [PAGE 32]
Principles of Accounts JAMB 2003 Q13 ✓ Answer: B
What is the actual profit or loss arising from the vehicle disposed of?
A
N250 000 loss
B
N50 000 loss
C
N450 000 profit
D
N575 000 profit
Principles of Accounts JAMB 2003 Q14 ✓ Answer: C
Given: I. Order of performance II. Order of liquidity III. Vertical order IV. Horizontal order The orders in which a balance asset is arranged are
A
I and 11
B
I and IV
C
II and III
D
III and IV Use the information below to answer questions 15 and 16 N N Capital 24 000 Land and building 8,470 Mortgage on premises 11 090 Drawings 3,000 Profit and loss 3 600 Furniture and fittings 5,120 Motor Vehicles 3,462 Closing Stock 3,000 Debtors 11,474 Creditors 7 354 Cash 1,518 46,044 46 044
Principles of Accounts JAMB 2003 Q15 ✓ Answer: C
What is the capital employed?
A
N44 600
B
N43 052
C
N43 044
D
N38 600
Principles of Accounts JAMB 2003 Q16 ✓ Answer: D
Calculate the value of fixed assets
A
N15 992
B
N18 470
C
N27 000
D
N27 052
Principles of Accounts JAMB 2003 Q17 ✓ Answer: A
Provision for discount allowed can be recorded as a debit to
A
the profit and loss account and a credit to provision for discount allowed
B
provision for discount allowed and a credit to the profit and loss account
C
discount allowed and a credit to the profit and loss account
D
expenses and a credit to customers’ account Use the information below to answer questions 18 and 19 Date Details Feb. 1 Purchased 400 units at N1.00 each “ 5 Purchased 200 units at N2.00 each “ 10 Purchased 200 units at N3.00 each “ 15 Issued 320 units “ 20 Purchased 200 units at N4.00 each “ 25 Issued 120 units
Principles of Accounts JAMB 2003 Q18 ✓ Answer: C
Calculate the price per unit of closing stock using the periodic weighted average method.
A
N3. 20
B
N3. 00
C
N2. 20
D
N2. 00
Principles of Accounts JAMB 2003 Q20 ✓ Answer: B
Calculate the closing balance of the ledgeraccount
A
N6 900
B
N6 400
C
N5 000
D
N4 000
Principles of Accounts JAMB 2003 Q21 ✓ Answer: B
Determine the credit purchases
A
N15 500
B
N13 500
C
N13 400
D
N12 000
Principles of Accounts JAMB 2003 Q22 ✓ Answer: D
In a control account, provision for bad debts is found on the
A
debit side of the purchases ledger control account
B
debit side of the sales ledger control account
C
credit side of the purchases ledger control account
D
credit side of the sales ledger control account
Principles of Accounts JAMB 2003 Q23 ✓ Answer: B
The stock valuation data is important because it enables management to
A
separate debtors from creditors
B
determine the cost of stock at the end of business
C
determine the cost of stock at the beginning of business
D
determine the total cost of goods purchased
Principles of Accounts JAMB 2003 Q24 ✓ Answer: D
During the year ended 31st December 2001, Nuju Enterprises paid rent as follows: Jan. 20 N24 000 for a period of 4 months May 16 N30 000 for a period of 5 months Oct. 15 N36 000 for a period of 6 months What is the overpaid portion of the rent?
A
N36 000
B
N18 000
C
N12 000
D
N6 000
Principles of Accounts JAMB 2003 Q25 ✓ Answer: B
Advertising expenses incurred on a product in a business organization should be charged to [PAGE 33]
A
production department
B
sales department
C
administration department
D
purchases department
Principles of Accounts JAMB 2003 Q26 ✓ Answer: B
Four broad classifications of overheads are
A
production, selling, distribution and material
B
production, selling, distribution and administration
C
selling, distribution, production and wages
D
distribution, selling, administration and material
Principles of Accounts JAMB 2003 Q27 ✓ Answer: B
Given: N Cost of raw material issue to production 37,000 Opening stock of raw material 2,000 Purchases of raw material 38,000 Wages 5,000 What is the closing stock of raw material?
A
N4 000
B
N3 000
C
N2 000
D
N 1 000 Use the information below to answer questions 28 and 29 PQ Manufacturing Company N Raw materials (1/1/2001) 3,500 Raw materials (31/12/2001) 4,900 Purchase of raw materials 56,000 Salary 63,000 Wages 148,050 Factory lighting 3, 080 Plant Depreciation 2,800 Factory Insurance 2,170
Principles of Accounts JAMB 2003 Q28 ✓ Answer: D
The overhead cost is
A
N71 050
B
N68 250
C
N67 970
D
N66 080
Principles of Accounts JAMB 2003 Q29 ✓ Answer: A
The company consumed raw materials worth
A
=N=54 600
B
=N=56 000
C
=N=57 400
D
=N=59 500
Principles of Accounts JAMB 2003 Q30 ✓ Answer: D
Income and expenditure account is more informative than receipts and payments account because it discloses
A
Cash
B
Cheques
C
Debtors
D
stocks
Principles of Accounts JAMB 2003 Q34 ✓ Answer: B
What is the receipts and payment account balance?
A
=N=260 000
B
=N=233 000
C
=N=155 000
D
=N=100 000
Principles of Accounts JAMB 2003 Q35 ✓ Answer: C
What is the balance of the income and expenditure account?
A
=N=300 000
B
=N=293 000
C
=N=193 000
D
=N=133 000
Principles of Accounts JAMB 2003 Q37 ✓ Answer: D
Emeka Enterprises Statement of Affairs at start Assets Liabilities =N= =N= Cash 70 000 Creditors 85 000 Inventory 58 000 Bank Loan 60 000 Machines 100 000 What is the capital at start?
A
=N=53 000
B
=N=63 000
C
=N=73 000
D
=N=83 000
Principles of Accounts JAMB 2003 Q38 ✓ Answer: B
Receipts and payments account is the summary of
A
Income and expenditure
B
Cash book
C
Balance sheet
D
Profit and loss
Principles of Accounts JAMB 2003 Q39 ✓ Answer: D
Given: =N= Total debtors b/d 31/12/99 25 000 Cheques received from debtors 225 000 Total debtors c/d 31/12/00 15 000 Determine the sales figure.
A
=N=295 000
B
=N=265 000
C
=N=245 000
D
=N=215 000
Principles of Accounts JAMB 2003 Q40 ✓ Answer: B
Which of these is a capital expenditure warrant?
A
Provisional general warrant
B
Development fund general warrant
C
Reserved expenditure general warrant
D
Supplementary warrant
Principles of Accounts JAMB 2003 Q41 ✓ Answer: D
For the purpose of conversion of a partnership to a company, a total purchase consideration of =N=3.6m was paid. I f 30% of the purchase consideration was in cash and the rest by 50k shares, how many shares were issued? [PAGE 34]
A
1 080 000
B
2 160 000
C
3 600 000
D
5 040 000
Principles of Accounts JAMB 2003 Q42 ✓ Answer: B
Given: I. The consolidated revenue fund balance b/d =N=650 000 II. Issues from contingency fund amounted to =N=240 000 III. Amount transferred to contingency fund is =N=210 000 What is the consolidated revenue fund balance?
A
=N=1 100 000
B
=N=680 000
C
=N=440 000
D
=N=410 000 Use the information below to answer questions 43 and 44 =N= Goods from head office 13,400 Returns to head office Rates and insurance paid Wages paid Cash remitted to head office 16,625 Stocks at 1/1/2000 1,875 Rent paid Stock at 31/12/2000 1,975 Sundry expenses
Principles of Accounts JAMB 2003 Q43 ✓ Answer: C
The profit realized from the trade is
A
N4 069
B
N1 817
C
N1 440
D
N1 328
Principles of Accounts JAMB 2003 Q44 ✓ Answer: D
What is the total expenses?
A
N1 875
B
N1 764
C
N1 626
D
N1 426
Principles of Accounts JAMB 2003 Q45 ✓ Answer: C
The necessary accounts to be opened on the issue of ordinary share capital are
A
preference share capital, cash and allotment accounts
B
bank and ordinary share capital accounts
C
cash and ordinary share capital accounts
D
nominal value and ordinary share capital accounts
Principles of Accounts JAMB 2003 Q47 ✓ Answer: B
The goodwill on purchase is
A
N90 000
B
N30 000
C
N19 000
D
N18 000
Principles of Accounts JAMB 2003 Q48 ✓ Answer: B
Calculate the networth of the business
A
N120 000
B
N90 000
C
N80 000
D
N30 000
Principles of Accounts JAMB 2003 Q49 ✓ Answer: C
Gross profit in the branch adjustment account is transferred to the branch
A
trading account
B
receipts and payments account
C
profit and loss account
D
income and expenditure account
Principles of Accounts JAMB 2003 Q50 ✓ Answer: D
Mamza Nigeria Limited issued 20 000 ordinary shares of N1.50 per share On 2 nd July 2002. 1 500 ordinary shares were fully subscribed for and their monies received as below: N On application 0.40 On allotment 0.20 First call (including premium of N 0.50) 0 70 The last and final call was yet to be made. What is the balance of the ordinary share capital account after the first call was received?
A
N300
B
N1050
C
N1200
D
N1950s [PAGE 35]