JAMB UTME - Principles of Accounts - 2002
Question 1 Report
Upon the dissolution of a partnership, the Partnership Act provides that the amount realized should be?
Answer Details
When a partnership is dissolved, the amount realized from the sale of the partnership's assets is used to pay off any debts and liabilities owed by the partnership to third parties (i.e., persons who are not partners). This is done before any distribution of the remaining proceeds to the partners. Therefore, option D is the correct answer. The remaining proceeds will then be distributed among the partners in accordance with the partnership agreement or, if there is no agreement, equally among them.
Question 2 Report
Use the information below to answer this question Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500........25..........12500
March 7th.......250........28..........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200The closing stock on March 11th by LIFO valuation is
Answer Details
Question 3 Report
In an incomplete record system a trading account cannot be prepared until the?
Answer Details
In an incomplete record system, a trading account cannot be prepared until the amount of sales and purchases has been established. This is because the trading account is a statement of the business's buying and selling activities, which includes the cost of goods sold and the gross profit. Without knowing the amount of sales and purchases, it would be impossible to accurately calculate the cost of goods sold and the gross profit. Therefore, establishing the amount of sales and purchases is a crucial step in preparing the trading account. It is important to note that while balancing the day book and cash book, as well as establishing the amount of personal drawings, are important steps in maintaining accurate accounting records, they are not directly related to the preparation of the trading account.
Question 4 Report
Given:
Balance at 31st December ............₦14,744mTreasury Bills issued Jan-Dec........₦7124mRevenue for the year ................₦6387mExpenditure .........................₦8767m
What is the opening balance on the consolidated revenue fund account?
Question 5 Report
Given an incomplete record without sufficient information to determine profit, the necessary thing to do is to?
Answer Details
When faced with an incomplete record without sufficient information to determine profit, the necessary thing to do is to draw up the statement of affairs. A statement of affairs is a document that shows the assets and liabilities of a business at a particular point in time. It lists all the assets and their corresponding values on one side and all the liabilities and their corresponding amounts on the other side. The difference between the total assets and the total liabilities is the net worth of the business. Drawing up a statement of affairs is necessary because it helps to provide a snapshot of the financial position of the business at a particular point in time, even in the absence of complete records. This statement can then be used to determine the financial health of the business and to identify any areas of concern that need to be addressed. The other options listed in the question (drawing up a T-account to establish the amount, comparing the journal entries with the cash book, and cross-checking the cash book for further information) may be useful in certain circumstances, but they do not provide a comprehensive view of the financial position of the business. Therefore, drawing up a statement of affairs is the necessary thing to do when faced with an incomplete record without sufficient information to determine profit.
Question 6 Report
The concise statement used to explain entries in the general journal is known as?
Answer Details
The concise statement used to explain entries in the general journal is known as "narration". Narration is a brief explanation or description of the transaction that took place, which includes the date, the accounts involved, the amounts, and any additional information that is relevant. It helps to provide a clear and detailed record of the transaction for future reference and auditing purposes. In simpler terms, narration is like a short story that explains what happened in the transaction, so that anyone who reads the journal entry can understand it without any confusion.
Question 7 Report
Given:Cash purchases ..............................₦25000
Trading creditors............................₦45000
Opening balance of trade creditors...........₦35000Calculate the purchases for the period?
Answer Details
Question 8 Report
Costs that vary in proportion to the level of production in a manufacturing environment are known as?
Answer Details
The costs that vary in proportion to the level of production in a manufacturing environment are known as "direct costs." These costs are directly related to the production process, such as the cost of raw materials, labor, and other expenses directly incurred in the manufacturing process. As the level of production increases, the direct costs also increase proportionately. This is because more raw materials are needed, more labor is required, and other expenses directly related to production also increase. In contrast, overhead costs and indirect costs do not directly increase with production levels and are typically fixed or semi-fixed in nature.
Question 9 Report
(i) Fixtures account (ii) Machinery account
(iii) Wages accounts (iv) Rent account.
Which of the above are nominal account?
Answer Details
Nominal accounts are accounts that are used to record expenses, losses, gains, and revenues. They are temporary accounts that are closed at the end of an accounting period. Out of the given options, the accounts that are nominal accounts are (iii) Wages account and (iv) Rent account. Wages account is used to record the wages and salaries paid to the employees of a company. It is a type of expense, which is a type of nominal account. Rent account is used to record the rent paid by a company for the use of a property. Rent is also an expense, which is a type of nominal account. On the other hand, (i) Fixtures account and (ii) Machinery account are not nominal accounts. They are asset accounts, which are permanent accounts and are not closed at the end of an accounting period. Fixtures account is used to record the cost of fixtures (e.g. light fixtures, shelving, etc.) that are permanently attached to a building. Machinery account is used to record the cost of machinery and equipment used in a business. Therefore, the correct answer is (iii) Wages account and (iv) Rent account.
Question 10 Report
Use the information below to answer questions Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.Stock at branch 1st January at cost............₦400
Goods sent to branch at cost...................₦8000
Returns to head ...............................₦340
Cash sales ....................................₦9160
Stock at branch 31st December at cost..........₦720What is the gross profit carried to the profit and loss account?
Answer Details
To calculate the gross profit carried to the profit and loss account, we need to determine the cost of goods sold (COGS) first. We can calculate COGS by subtracting the cost of the ending inventory from the cost of goods available for sale. Cost of goods available for sale = Cost of stock at branch 1st January + Goods sent to branch at cost - Returns to head Cost of goods available for sale = ₦400 + ₦8000 - ₦340 Cost of goods available for sale = ₦8,060 Cost of ending inventory = Cost of stock at branch 31st December at cost Cost of ending inventory = ₦720 Cost of goods sold = Cost of goods available for sale - Cost of ending inventory Cost of goods sold = ₦8,060 - ₦720 Cost of goods sold = ₦7,340 Now that we have determined the cost of goods sold, we can calculate the gross profit as follows: Gross profit = Sales - Cost of goods sold Gross profit = Cash sales Gross profit = ₦9,160 - ₦7,340 Gross profit = ₦1,820 Therefore, the gross profit carried to the profit and loss account is ₦1,820.
Question 11 Report
A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?
Answer Details
To find the mark-up percentage on selling price, we need to understand how cost and selling price are related. When the company invoices goods to the branches at cost plus a mark-up of 25%, it means that the selling price is equal to the cost plus 25% of the cost. For example, if the cost of a product is $100, the selling price would be $100 + (25% of $100) = $125. Now, to calculate the mark-up percentage on selling price, we need to find out what percentage of the selling price is the mark-up. Let's take the same example above. The selling price of the product is $125, and the cost of the product is $100. Therefore, the mark-up is $25 ($125 - $100). To find out the mark-up percentage on selling price, we divide the mark-up by the selling price and multiply by 100. So, (mark-up ÷ selling price) × 100 = (25 ÷ 125) × 100 = 20% Therefore, the mark-up percentage on selling price is 20%. Option C (20%) is the correct answer.
Question 12 Report
Use the information below to answer questions The Assets and liabilities of Udo Co.ltd. as at 31st December, 2000.Creditors ₦50,000Debtors ₦46,000Loan ₦100,000Stock ₦20,000Motor vehicle ₦120,000Building ₦70,000Accrued wages 30,000Bank ₦25 ,000The value of capital invested by the owners is?
Question 13 Report
Subscriptions received are always put at 125% of the total donations received and refreshment sales.
What is the closing cash balance?
Question 14 Report
In a petty cash book the imprest is ₦1380.
Expenses:
Stationery ₦350
Cleaning material ₦335
General expenses ₦265How much was received to maintain the imprest at the ends of the month?
Answer Details
Question 15 Report
Use the information below to answer questions 9 and 10.The Assets and liabilities of Udo Co.ltd. as at 31st December, 2000.Creditors ₦50,000Debtors ₦46,000Loan ₦100,000Stock ₦20,000Motor vehicle ₦120,000Building ₦70,000Accrued wages 30,000Bank ₦25 ,000The liabilities of Udo Co. Ltd is?
Answer Details
The liabilities of Udo Co. Ltd can be calculated by adding all the amounts owed to external parties, which are the creditors and the loan, to the amount owed to employees as accrued wages. Therefore, liabilities = creditors + loan + accrued wages Liabilities = ₦50,000 + ₦100,000 + ₦30,000 Liabilities = ₦180,000 Hence, the answer is ₦180,000.
Question 16 Report
It is the tradition of the club to write off an amount equal to 25% of the subscriptions received as other expenses.
What is the amount to be written off as other expenses?
Answer Details
The amount to be written off as other expenses is dependent on the total subscriptions received by the club. If we know the total subscriptions received, we can calculate the amount to be written off as other expenses by multiplying the total subscriptions by 25%. For example, if the total subscriptions received is ₦20,000, the amount to be written off as other expenses would be: ₦20,000 x 25% = ₦5,000 Therefore, the correct answer is option D, ₦5000.
Question 18 Report
Use the information below to answer questions Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch. Stock at branch 1st January at cost............₦400 Goods sent to branch at cost...................₦8000 Returns to head ...............................₦340 Cash sales ....................................₦9160 Stock at branch 31st December at cost..........₦720
Calculate the cost of goods credited to the head office trading account?
Answer Details
The cost of goods credited to the head office trading account is the sum of the cost of goods sent to the branch and the cost of returns to the head office deducted from the cost of opening stock at the branch and the cost of closing stock at the branch. Using the figures given: Cost of goods sent to branch = ₦8000 Cost of returns to head office = ₦340 Cost of opening stock = ₦400 Cost of closing stock = ₦720 Therefore, cost of goods credited to head office trading account = (₦8000 + ₦340) - (₦400 + ₦720) = ₦7660 Hence, the answer is ₦7660.
Question 19 Report
NAFARA AND SONS Balance Sheet items as at 31st December, 1987.Capital ₦74480Creditors ₦15875Prepaid expenses ₦580Motor vehicles ₦34750Furniture ₦35850Accrued expenses ₦645Stock ₦8100Cash balances ₦9911Debtors ₦1809
Compute the value of current assets?
Answer Details
To compute the value of current assets, we need to identify which items in the balance sheet are considered current assets. Current assets are assets that are expected to be converted to cash within one year or one operating cycle. Examples of current assets include cash, debtors, and stock. From the given balance sheet, the current assets are: - Prepaid expenses: ₦580 - Stock: ₦8100 - Cash balances: ₦9911 - Debtors: ₦1809 To get the total current assets, we add these items: ₦580 + ₦8100 + ₦9911 + ₦1809 = ₦20400 Therefore, the value of current assets is ₦20400.
Question 20 Report
Subscriptions received are always put at 125% of the total donations received and refreshment sales.
Compute the subscriptions received.
Answer Details
Question 21 Report
Use the information below to answer this question The partnership agreement between Abba, Baba and Kaka contains the following provision:
(i) 5% interest to be paid on capital and no interest to be charged on drawings
(ii) Profits and losses to be shared in the ratio 3:2:1 respectively
(iii) net profit as at 31/12/95 ₦2,250.
.................Abba......Baba.......Kake
Capital..........5000......4000......3000
Current account...250......100.......175
Salary............300......300.......---
Drawings..........600......500........250
Current account balance of Kaka at the end of the year will be
Answer Details
To calculate the current account balance of Kaka at the end of the year, we need to consider all the transactions that have affected his current account during the year. Kaka started the year with a current account balance of ₦175. He also had a capital contribution of ₦3000 and received no salary during the year. Kaka made a total of ₦250 in drawings during the year, but no interest is charged on drawings according to the partnership agreement. Kaka's share of the net profit for the year is calculated as follows: Net profit = ₦2,250 Kaka's share = 1/6 x ₦2,250 = ₦375 Finally, we need to take into account the interest paid on capital. Kaka's capital contribution was ₦3000, and the interest rate according to the partnership agreement is 5%. Therefore, Kaka is entitled to receive an interest payment of 5% of ₦3000, which is ₦150. To calculate Kaka's current account balance at the end of the year, we need to add up all the transactions that affected his current account: Starting balance: ₦175 Plus share of net profit: ₦375 Plus interest on capital: ₦150 Minus drawings: ₦250 Therefore, Kaka's current account balance at the end of the year is: ₦175 + ₦375 + ₦150 - ₦250 = ₦450 - ₦250 = ₦200 So, the correct answer is not among the options given. The current account balance of Kaka at the end of the year is ₦200.
Question 22 Report
Use the information below to answer question . Statement of assets and liabilities as at 31st December, 2001. Shareholders' interest ₦240 Current liabilities ₦20 Current assets ₦110 Fixed assets ₦140 Determine the value of the trade investment?
Question 23 Report
Given:Capital at start.......................₦3250Capital at close ......................₦6250Additional capital during the period...₦1000
Calculate the profit or loss?
Answer Details
To calculate the profit or loss, we need to subtract the total capital invested from the final capital at close. Total capital invested = Capital at start + Additional capital during the period Total capital invested = ₦3250 + ₦1000 = ₦4250 Profit or loss = Capital at close - Total capital invested Profit or loss = ₦6250 - ₦4250 = ₦2000 Since the result is a positive value, the answer is ₦2000 profit.
Question 24 Report
In an incomplete record, the preparation of the bank reconciliation ensures that?
Question 25 Report
In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover?
Answer Details
Question 26 Report
Use the information below to answer this question..............Total......... Dept.P.............Dept.Q
...............N...............N.................N
Sales.........10000............6000..............4000
Purchases......4000............1000..............3000
Discount received.1000..........?..................
Discounts allowed..2000...........................?.
Discount (allowed and received) are apportioned to the two departments on the basis of departmental sales and purchases.What is department Q's share of discount allowed?
Answer Details
Question 27 Report
Given:
Stock (1/4/94) ₦800Purchases of flour ₦2450Sales ₦4745Wages of bakery staff ₦675Carriage outwards ₦50Salary of administrative staff ₦225Stock (31/3/95) ₦940Capital ₦1540
Determine the cost of goods sold?
Answer Details
Question 28 Report
The normal accounting entry to record the dishonor of a businessman is to?
Answer Details
Question 29 Report
(i)Orientation (ii) Entity (iii)Legal status
(iv)Finance.
Which of the characteristics above distinguishes a profit-making from a not-for-profit-making organizations?
Answer Details
Question 30 Report
Given that 1/3 of the ₦6000 stock held by a branch is purchased from outsiders. If goods are invoiced to branch at 25% on cost, the provision for unrealized profit is?
Answer Details
Question 31 Report
Use the information below to answer question Stock of raw materials (1st January) ₦3000Direct wages ₦2500Direct expenses ₦1000Factory overheads ₦2000Cost of raw materials used ₦5500Stock of finished goods (31st December) ₦2000Determine the prime cost?
Answer Details
Question 33 Report
In a petty cash book the imprest is ₦1380.
Expenses:
Stationery ₦350
Cleaning material ₦335
General expenses ₦265How much was received to maintain the imprest at the ends of the month?
Answer Details
In a petty cash system, a fixed amount of money (imprest) is given to a custodian to cover small expenses. The custodian is responsible for maintaining a record of all petty cash transactions in a petty cash book. In this case, the imprest amount is ₦1380, and the total expenses incurred during the month are ₦950 (₦350 for stationery + ₦335 for cleaning material + ₦265 for general expenses). To maintain the imprest, the custodian should receive an amount equal to the total expenses incurred during the month. Therefore, the amount received to maintain the imprest at the end of the month should be ₦950. Thus, the answer is ₦950.
Question 34 Report
Which method of pricing can be used satisfactorily in either a rising or falling price situation?
Answer Details
The method of pricing that can be used satisfactorily in either a rising or falling price situation is the average method. The average method of pricing involves taking the total cost of goods purchased over a period of time and dividing it by the total number of goods purchased during that same period. This calculation provides the average cost per unit of the goods purchased. Using this average cost per unit as the basis for pricing allows businesses to adjust their prices in response to changes in the market without incurring significant losses. For example, if the market price for a product increases, the business can raise its selling price while still maintaining a reasonable profit margin because the average cost per unit has remained relatively stable. Similarly, if the market price for a product decreases, the business can lower its selling price while still covering its costs because the average cost per unit has also decreased. Therefore, the average method of pricing is a flexible and effective pricing strategy that can be used in both rising and falling price situations, making it a good choice for businesses that want to stay competitive in any market.
Question 35 Report
Use the information below to answer this question Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500........25..........12500
March 7th.......250........28..........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200The value of closing stock as at February 14th by simple average method is
Answer Details
Question 36 Report
An entry in a subsidiary book which does not form part of the double entry system is a?
Answer Details
An entry in a subsidiary book which does not form part of the double entry system is called a memorandum entry. It is a temporary record that serves as a reminder to make a formal entry later in the books of original entry or ledger. These entries provide additional information that is necessary for financial analysis, budgeting, and decision-making. Memorandum entries may include transactions such as loans, bank deposits, and withdrawals, as well as other business activities that need to be tracked for future reference. However, they do not affect the accounts and are not part of the formal accounting records.
Question 37 Report
In the public sector, the method of accounting that reports revenues and expenditures in the period in which they are received and paid is called?
Answer Details
In the public sector, the method of accounting that reports revenues and expenditures in the period in which they are received and paid is called cash accounting. Cash accounting is a method of accounting that records revenues and expenses when they are actually received and paid, respectively. This means that revenue is recorded when cash is received, and expenses are recorded when cash is paid out. The cash accounting method is commonly used by small businesses and in the public sector, especially for managing the cash flow and budgeting. It is straightforward and easy to understand, as it only tracks cash movements. However, it may not provide an accurate picture of a government's financial performance because it doesn't account for transactions that have been committed but not yet paid for, or those that have been earned but not yet received. Therefore, the answer is cash accounting.
Question 38 Report
Given:Sales ............................₦195,200
Stock 1st January.................₦34,000
Purchases ........................₦126,000
Sales returns ....................₦1,200
Purchases returns ................₦2,000
If the gross profit is ₦66,000, what is the value of stock at 31st December?
Answer Details
Question 39 Report
Use the information below to answer the question that follows:
Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.
| Stock at branch 1st January at cost | ₦400 |
| Goods sent to branch at cost | ₦8000 |
| Returns to head | ₦340 |
| Cash sales | ₦9160 |
| Stock at branch 31st December at cost | ₦720 |
What is the gross profit carried to the profit and loss account?
Answer Details
Question 40 Report
Use the information below to answer the question that follows:
| Debtors | ₦20 |
| Provision for bad debts | 10% |
| Provision for discount on debtors | 5% |
The provision for bad debt is?
Answer Details
The provision for bad debt is ₦2000. Explanation: A provision for bad debt is an estimated amount set aside by a business to cover potential losses that may arise from customers who fail to pay their debts. In this case, the debtors owe ₦20, and the provision for bad debts is given as 10%. Therefore, to calculate the provision for bad debt, we multiply the debtors by the percentage provision for bad debt: 10% of ₦20 = (10/100) x ₦20 = ₦2 Hence, the provision for bad debt is ₦2,000 (since the debtors owe ₦20). Note: The provision for discount on debtors is not used in the calculation of the provision for bad debts. It is a provision set aside for potential discounts that may be offered to customers for early payment.
Question 41 Report
It is the tradition of the club to write off an amount equal to 25% of the subscriptions received as other expenses.
Determine the club's excess of income over expenditure
Answer Details
Question 42 Report
In preparing the final accounts, the bad debt account is closed by a transfer to the?
Answer Details
In preparing the final accounts, the bad debt account is closed by a transfer to the profit and loss account. A bad debt is an amount owed by a customer that is unlikely to be paid, and therefore, it is written off as a loss by the business. The bad debt account is used to record such losses. At the end of the accounting period, the balance in the bad debt account needs to be closed and transferred to the appropriate account. Since the bad debt is a loss, it is transferred to the profit and loss account. The profit and loss account summarizes the revenues and expenses of the business and calculates the net profit or loss for the accounting period. By transferring the bad debt to the profit and loss account, the amount of the loss is accounted for in the calculation of the net profit or loss. The balance sheet, on the other hand, is a statement that shows the financial position of the business at a specific point in time, and it does not directly account for losses or gains. The provision for bad debt account is a contra asset account used to reduce the value of accounts receivable to their estimated realizable value. It is not used to close the bad debt account. The trading account is an account that shows the gross profit or loss of a business for the accounting period. It does not account for bad debts or any other expenses or losses. Therefore, in preparing the final accounts, the bad debt account is closed by a transfer to the profit and loss account.
Question 43 Report
Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of ₦60,000 is distributed on the basis of direct labour hours.
Compute the overhead rate?
Answer Details
To compute the overhead rate, we need to first determine the total number of direct labour hours worked by the three employees in a year. Direct labour hours = number of employees x number of hours worked per week x number of weeks in a year Direct labour hours = 3 x 40 x 50 = 6,000 hours Next, we divide the total factory overhead costs by the total direct labour hours to get the overhead rate per hour. Overhead rate = Factory overhead costs / Direct labour hours Overhead rate = ₦60,000 / 6,000 hours = ₦10 per hour Therefore, the overhead rate for Nasara Manufacturing Plc is ₦10 per hour. Option (C) is the correct answer.
Question 44 Report
Stock or raw materials(1st January) 3000
Direct wages 2500
Direct expenses 1000
Factory overheads 2000
Cost of raw materials used 5500
Stock of finished goods (31st December) 2000
The cost of goods manufactured is?
Question 45 Report
Use the information below to answer question .Statement of assets and liabilities as at 31st December, 2001.Shareholders' interest ₦240 Current liabilities ₦20 Current assets ₦110Fixed assets ₦140
What is the networking capital?
Answer Details
The networking capital of a business is the difference between its current assets and current liabilities. In this case, the current assets are ₦110 and the current liabilities are ₦20. Therefore, the networking capital is ₦90m (₦110m - ₦20m). The networking capital is an important measure of a company's liquidity and ability to pay its short-term obligations.
Question 46 Report
The gross profit on manufactured goods is the difference between the cost of goods manufactured and the?
Answer Details
The gross profit on manufactured goods is the difference between the cost of goods manufactured and the market value of goods produced. This means that the gross profit is calculated by subtracting the cost of producing the goods from the revenue earned from selling the goods. The market value of goods produced represents the revenue earned from selling the goods at their market price. The cost of goods manufactured includes direct costs, such as raw materials and labor, as well as indirect costs, such as factory overheads.
Question 47 Report
keeping records under the single entry system has the advantage of?
Answer Details
Keeping records under the single entry system has the advantage of simplicity in terms of operation. Single entry system is a simple and straightforward way of recording financial transactions, as it only requires recording one entry for each transaction. This system is commonly used by small businesses and individuals who have a limited number of transactions to record. Unlike the double entry system, single entry does not require an extensive knowledge of accounting principles and is relatively easy to understand and use. However, it does not provide completeness or accuracy of records as the double entry system.
Question 48 Report
Miscellaneous expense is 10% of revenue.
Calculate the net income.
Answer Details
To calculate the net income, we need to subtract the total expenses from the revenue. Given that miscellaneous expenses are 10% of revenue, we can calculate it as follows: Miscellaneous expenses = 10% of revenue = 0.1 x revenue Total expenses = miscellaneous expenses Net income = revenue - total expenses Substituting the value of total expenses, we get: Net income = revenue - (0.1 x revenue) Simplifying this expression, we get: Net income = 0.9 x revenue Therefore, the net income can be calculated by multiplying the revenue by 0.9. Without knowing the revenue, we cannot provide a specific answer. However, based on the given options, we can conclude that the correct answer is either option A (₦583,000) or option D (₦583,000).
Question 49 Report
Control accounts help to verify the arithmetic accuracy of the postings from the?
Answer Details
Control accounts are used to verify the accuracy of the postings made in the accounting system. They are called control accounts because they help to control the accuracy of the transactions recorded in the subsidiary books and ledgers. Control accounts are maintained in the general ledger and are used to summarize the transactions related to a particular type of account, such as accounts receivable or accounts payable. These accounts are reconciled with the corresponding subsidiary ledgers to ensure that the information is accurate and complete. In the case of verifying the arithmetic accuracy of postings, control accounts are particularly useful for reconciling the subsidiary books with the ledgers. By comparing the balances in the subsidiary ledger with the balance in the control account, any errors or omissions can be identified and corrected. Therefore, the correct option is "subsidiary books into the ledgers".
