JAMB UTME - Principles of Accounts - 2006

Ibeere 1 Ìròyìn

Accrual accounting differs from cash accounting because it recognizes?

cash and creditors

debtors and creditors Ìdáhùn tó tọ́

cash and debitors

prepayment and cash

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Introduction To Financial Accounting (WAEC)

Ka ìwé ẹ̀kọ́ nípa Principles Of Double Entry (JAMB)

Introduction To Financial Accounting

Principles Of Double Entry

Wo Idahun

Ibeere 2 Ìròyìn

The objective of a trading account is to establish the?

cost of goods sold

gross profit Ìdáhùn tó tọ́

manufacturing profit

net profit

Awọn alaye Idahun

The objective of a trading account is to establish the gross profit earned or loss incurred by a business during a particular accounting period. It shows the direct expenses incurred in relation to the goods sold and the revenue earned from the sale of goods. Gross profit is calculated by subtracting the cost of goods sold from the net sales revenue. By subtracting other indirect expenses like operating expenses, taxes, and interest from gross profit, the net profit or loss of the business can be determined. Therefore, the correct option is "gross profit".

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Ka ìwé ẹ̀kọ́ nípa Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

Wo Idahun

Ibeere 3 Ìròyìn

Use the information below to answer question

Capital.................................₦60 000

Bank....................................₦12 500

General expenses........................₦5 250

Creditors...............................₦17 000

Stock...................................₦98 500

Fixed assets............................₦42 000

Insurance and rates.....................₦18 800

Purchase................................₦63 850

Determine the total of the trial balance?

₦123 325

₦160 050

₦166 525 Ìdáhùn tó tọ́

₦326 575

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Wo Idahun

Ibeere 4 Ìròyìn

Which of the following is a journal as well as a ledger?

Nominal ledger

Sales day book Ìdáhùn tó tọ́

General ledger

cash book

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Cashbook

Wo Idahun

Ibeere 5 Ìròyìn

The use of a three-column cash book is determine by?

cash discounts Ìdáhùn tó tọ́

trade discounts

cash transactions

bank transactions

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Cashbook

Nature And Significance Of Accounting

Wo Idahun

Ibeere 6 Ìròyìn

Determine the opening cash balance of the club?

₦3 070

₦2 220 Ìdáhùn tó tọ́

₦5 710

₦4 320

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Ethics In Accounting (JAMB)

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Ethics In Accounting

Cashbook

Wo Idahun

Ibeere 7 Ìròyìn

Date	Stock	Qty. (units)	Cost/Price (₦)
July	Bal. b/d	2 000	2.00
August	Purchases	10 000	2.50
September	Purchases	20 000	3.00
October	Sales	8 000	3.50
November	Sales	23 000	4.00

Determine the value of closing stock using the LIFO method

₦2 000 Ìdáhùn tó tọ́

₦2500

₦4000

₦35000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Stock Valuation (JAMB)

Stock Valuation

Wo Idahun

Ibeere 8 Ìròyìn

Use the information below to answer questions Turnover...........................?120 000 Net profit before tax..............?40 000 Net profit b/f.....................?68 000 Proposed dividends: Ordinary shares....................?8 000 Preference shares..................?6 000 Corporate tax is 30%...............?10 000

What is the tax charged to profit and loss account?

₦14 000

₦60 000

₦34 000

₦20 000 Ìdáhùn tó tọ́

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Wo Idahun

Ibeere 9 Ìròyìn

Use the information below were to answer questions

...................Stationary Dept.............Video Dept.

Sales ..............₦10,600.....................₦15,175

Cost of goods sold..₦5,247......................₦6704

The expenses incurred were rent ₦4500, motor repairs ₦1200 and telephone ₦900.

The basis of cost apportionment is 1/2 stationary 1/3 video.

Find the total expenses allocated to the stationary department?

₦3600

₦1400

₦4400 Ìdáhùn tó tọ́

₦3800

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Departmental Accounts (JAMB)

Departmental Accounts

Wo Idahun

Ibeere 10 Ìròyìn

Khalifa's Cash Book
Date	Particulars	Cash ₦	Bank ₦	Discount ₦	Date	Particulars	Cash ₦	Bank ₦	Discount ₦
1/1	Bal. b/d	4 000	5 000		1/11	A. Lisco	200
1/3	Khadijah		3 000		1/15	NEPA bill		500
1/10	Sales	1 000	1 500	400	1/28	Purchases	1 500		200
1/29	Sales		800

On Jan. 30 Khalifa withdraw ₦2500 from the bank for office use.

The cash balance at end of the month was

₦1 600

₦4 100 Ìdáhùn tó tọ́

₦6 600

₦6 100

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Cashbook

Wo Idahun

Ibeere 11 Ìròyìn

MPOBA Club's annual donations from members amount to 112% of its internally generated revenue from the following.Sales of drinks...................₦212 500

Annual dues.......................₦112 000How much is the total receipt of the club?

₦563 440

₦687 940

₦363 440 Ìdáhùn tó tọ́

₦524 500

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Ka ìwé ẹ̀kọ́ nípa Principles Of Double Entry (JAMB)

Cashbook

Nature And Significance Of Accounting

Principles Of Double Entry

Wo Idahun

Ibeere 12 Ìròyìn

The objective of the purchase ledger control account is to established the?

credit purchases Ìdáhùn tó tọ́

net profit

total purchases

gross profit

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Control Accounts And Self-balancing Ledgers (JAMB)

Control Accounts And Self-balancing Ledgers

Wo Idahun

Ibeere 13 Ìròyìn

A major factor that enhanced the early development of accounting is the?

Industrial Revolution

growing of trade and commerce Ìdáhùn tó tọ́

development of arithmetic

invention of writing

Awọn alaye Idahun

The growing of trade and commerce was a major factor that enhanced the early development of accounting. As trade and commerce expanded, the need to keep track of financial transactions became essential. Merchants needed to keep accurate records of their transactions to monitor their financial positions, profits and losses, and tax liabilities. This led to the development of accounting principles and practices. Accounting enabled merchants to keep track of their transactions and provided the necessary information for decision-making. Therefore, the growing of trade and commerce was a catalyst for the development of accounting as a profession.

Ka ìwé ẹ̀kọ́ nípa Introduction To Financial Accounting (WAEC)

Ka ìwé ẹ̀kọ́ nípa Principles Of Double Entry (JAMB)

Introduction To Financial Accounting

Principles Of Double Entry

Wo Idahun

Ibeere 14 Ìròyìn

Gross earnings........................?950 000

Current liabilities...................?100 000

Operating expenses....................?350 000

10% debentures........................?400 000

Shareholder's fund....................?1300 000

Corporate tax is 30%

From the data above calculate the returns on equity?

33%

35%

20%

30% Ìdáhùn tó tọ́

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Wo Idahun

Ibeere 15 Ìròyìn

After receiving the financial statement the Auditor General of the Federation must submit a report to the National Assembly within?

60 days

30 days Ìdáhùn tó tọ́

120 days

90 days

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Public Sector Accounting (JAMB)

Public Sector Accounting

Wo Idahun

Ibeere 16 Ìròyìn

Khalifa's Cash Book
Date	Particulars	Cash ₦	Bank ₦	Discount ₦	Date	Particulars	Cash ₦	Bank ₦	Discount ₦
1/1	Bal. b/d	4 000	5 000		1/11	A. Lisco	200
1/3	Khadijah		3 000		1/15	NEPA bill		500
1/10	Sales	1 000	1 500	400	1/28	Purchases	1 500		200
1/29	Sales		800

What was the bank balance at the end of the month?

₦7 000

₦6 500 Ìdáhùn tó tọ́

₦7 500

₦9 000

Awọn alaye Idahun

To determine the bank balance at the end of the month, we need to calculate the total amount of cash and cheques deposited in the bank, and the total amount of cash and cheques that have been issued or withdrawn from the bank. From the given cash book, we can see that: - The opening bank balance was ₦5,000. - There were no bank deposits during the month. - Cheques amounting to ₦800 were issued during the month. - There were no withdrawals from the bank during the month. - The closing bank balance was recorded as ₦6,500. Therefore, the bank balance at the end of the month is ₦6,500. The correct answer to the question is option B: ₦6,500.

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Cashbook

Wo Idahun

Ibeere 17 Ìròyìn

Use the information below to answer questions

Turnover...........................₦120 000

Net profit before tax..............₦40 000

Net profit b/f.....................₦68 000

Proposed dividends:

Ordinary shares....................₦8 000

Preference shares..................₦6 000

Corporate tax is 30%...............₦10 000

The undistributed profit carried forward is?

₦68 000 Ìdáhùn tó tọ́

₦20 000

₦74 000

₦34 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Provisions And Reserves (WAEC)

Provisions And Reserves

Wo Idahun

Ibeere 18 Ìròyìn

Use the information below to answer questions .

On January 1/2005, a machine was bought for ₦56,000 to last for five years with a residual value of ₦1000.

the rate of the yearly depreciation expense would be?

50%

40%

30%

20% Ìdáhùn tó tọ́

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Incomplete Records And Single Entry (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Incomplete Records And Single Entry

Nature And Significance Of Accounting

Wo Idahun

Ibeere 19 Ìròyìn

Use the information below to answer question .

Prime cost..................₦12 100

Lighting....................₦10 000

Heating.....................₦15 000

Factory overhead............?

The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.

The factory overhead is?

₦5050

₦7250

₦2750

₦5500 Ìdáhùn tó tọ́

Awọn alaye Idahun

To find the factory overhead, we need to first determine the production department's share of the lighting and heating costs. The lighting cost is ₦10,000, and the production department's share is 1/4, so their portion of the lighting cost is: 1/4 x ₦10,000 = ₦2,500 The heating cost is ₦15,000, and the production department's share is 1/2, so their portion of the heating cost is: 1/2 x ₦15,000 = ₦7,500 Therefore, the total production department's share of the overhead cost is: ₦2,500 + ₦7,500 = ₦10,000 We can now find the factory overhead by subtracting the prime cost and the production department's share of the overhead from the total cost of lighting and heating: Total cost of lighting and heating = ₦10,000 + ₦15,000 = ₦25,000 Factory overhead = ₦25,000 - ₦12,100 - ₦10,000 = ₦2,900 Therefore, the factory overhead is ₦2,900. Answer option (iv) is the closest to this value.

Ka ìwé ẹ̀kọ́ nípa Manufacturing Accounts (WAEC)

Manufacturing Accounts

Wo Idahun

Ibeere 20 Ìròyìn

Fatima withdraws goods from the business for personal use. the accounting treatment is to debit?

stock account and credit profit and loss account

drawings account and credit stock account Ìdáhùn tó tọ́

profit and loss account and credit drawing account

stock account and credit drawings account

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Wo Idahun

Ibeere 21 Ìròyìn

A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the?

weighted average method

simple average method

FIFO method Ìdáhùn tó tọ́

LIFO method

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Stock Valuation (JAMB)

Stock Valuation

Wo Idahun

Ibeere 22 Ìròyìn

A.S. Danduzu's Bank Statement
Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan. 1	Opening balance			10 000
Jan. 3	Bashir A.K.	1 000		9 000
Jan. 10	Usman A.D.	1 500		7 500
Jan. 12	Sule A.S.	500		7 000
Jan. 20	Aliyu A.K.		3 000	10 000
Jan. 30	X	1 500		Y

X represents

bank charges Ìdáhùn tó tọ́

an unpresented cheque

dividends

an uncredited cheque

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Ka ìwé ẹ̀kọ́ nípa Incomplete Records And Single Entry (JAMB)

Cashbook

Incomplete Records And Single Entry

Wo Idahun

Ibeere 23 Ìròyìn

Head office sends goods to its branch at cost plus mark-up of of 25%. A debit of ₦40,000 to the branch stock account in the head office books will indicate that the head office has sent goods with a profit of

₦4000

₦6000

₦10000

₦8000 Ìdáhùn tó tọ́

Awọn alaye Idahun

If the head office sent goods to its branch at cost plus a mark-up of 25%, it means that the selling price to the branch is 125% of the cost price. To find the cost price of the goods, we need to divide the debit of ₦40,000 by 1.25, which is the same as multiplying it by 0.8 (since 1/1.25 = 0.8). Therefore, Cost Price = ₦40,000/1.25 = ₦32,000. The profit made by the head office on this transaction is the difference between the cost price and the selling price. Selling Price = Cost Price + Mark-up = ₦32,000 + (25% x ₦32,000) = ₦40,000. Profit = Selling Price - Cost Price = ₦40,000 - ₦32,000 = ₦8,000. Therefore, the answer is ₦8,000.

Ka ìwé ẹ̀kọ́ nípa Branch Accounts (JAMB)

Branch Accounts

Wo Idahun

Ibeere 24 Ìròyìn

A.S. Danduzu's Bank Statement
Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan. 1	Opening balance			10 000
Jan. 3	Bashir A.K.	1 000		9 000
Jan. 10	Usman A.D.	1 500		7 500
Jan. 12	Sule A.S.	500		7 000
Jan. 20	Aliyu A.K.		3 000	10 000
Jan. 30	X	1 500		Y

The value of Y is

₦11 500

₦8 500 Ìdáhùn tó tọ́

₦13 000

₦10 000

Awọn alaye Idahun

To find the value of Y, we need to calculate the total credits and debits up to Jan. 30, and then subtract the total debits from the total credits to get the final balance, which is equal to Y. Total Credits = Opening Balance + Aliyu A.K.'s payment = ₦10,000 + ₦3,000 = ₦13,000 Total Debits = Bashir A.K.'s payment + Usman A.D.'s payment + Sule A.S.'s payment + X's payment = ₦1,000 + ₦1,500 + ₦500 + ₦1,500 = ₦4,500 Final balance = Total Credits - Total Debits = ₦13,000 - ₦4,500 = ₦8,500 Therefore, the value of Y is ₦8,500.

Wo Idahun

Ibeere 25 Ìròyìn

The difference in the sales ledger control account is transferred to the?

profit and loss account

sales account

balance sheet

trading account Ìdáhùn tó tọ́

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Partnership Accounts (JAMB)

Ka ìwé ẹ̀kọ́ nípa Control Accounts And Self-balancing Ledgers (JAMB)

Partnership Accounts

Control Accounts And Self-balancing Ledgers

Wo Idahun

Ibeere 26 Ìròyìn

Assuming the closing stock was valued at N19 000 at the end of November, what was the gross profit?

₦30 000

₦50 000 Ìdáhùn tó tọ́

₦70 000

₦100 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Stock Valuation (JAMB)

Stock Valuation

Wo Idahun

Ibeere 27 Ìròyìn

Given:

....................January.............December

Assets................₦28,320.............₦25,320

Creditors.............₦5,620..............₦10,320

The proprietor made drawings of ₦755 per month for personal use.

The profit for the period is?

₦3000

₦1,360 Ìdáhùn tó tọ́

₦9060

₦7700

Awọn alaye Idahun

To find the profit for the period, we need to calculate the difference between the January and December assets, and then adjust for any drawings made by the proprietor during the year. The change in assets over the period is: December assets - January assets = ₦25,320 - ₦28,320 = -₦3,000 A negative change in assets means that assets decreased over the period, which could be due to losses or drawings made by the proprietor. To adjust for the proprietor's drawings, we need to add them back to the decrease in assets: -₦3,000 + (₦755 x 12) = ₦6,060 Now we can calculate the profit for the period by subtracting the increase in liabilities from the adjusted change in assets: ₦6,060 - (₦10,320 - ₦5,620) = ₦1,360 Therefore, the profit for the period is ₦1,360. Answer: ₦1,360

Ka ìwé ẹ̀kọ́ nípa The Final Accounts Of A Sole Trader (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

The Final Accounts Of A Sole Trader

Nature And Significance Of Accounting

Wo Idahun

Ibeere 28 Ìròyìn

which of the following is source of document for the preparation of debtors' ledger account?

Debit note

General journal

Purchases invoice

Sales invoice Ìdáhùn tó tọ́

Awọn alaye Idahun

The source document for the preparation of the debtors' ledger account is the sales invoice. When a business sells goods or services on credit to a customer, a sales invoice is created as a source document to record the transaction. The sales invoice contains information such as the date of the sale, the amount of the sale, the name of the customer, and the terms of the credit sale. This information is then used to update the debtor's ledger account. The debtor's ledger account is a record of all the transactions between the business and the customer, and it shows the customer's outstanding balance at any given time. By using the sales invoice as the source document, the business can accurately record and track the amount owed by the customer, as well as any payments received and adjustments made. In contrast, a debit note is a document used to request payment from a customer who has an outstanding balance, a purchases invoice is used as a source document for the preparation of the creditors' ledger account, and a general journal is used for recording transactions that do not have a specific source document.

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Cashbook

Wo Idahun

Ibeere 29 Ìròyìn

Use the information below to answer question .

Capital.....................N?

Profit and loss.............₦3500

Current assets..............N?

Current liabilities.........₦2000

Fixed assets................₦11000

Determine the current assets?

₦7 000

₦6 000 Ìdáhùn tó tọ́

₦8 000

₦9 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa The Accounting Equation And Double Entry Principle (WAEC)

The Accounting Equation And Double Entry Principle

Wo Idahun

Ibeere 30 Ìròyìn

Use the information below to answer question .

Capital.....................N?

Profit and loss.............?3500

Current assets..............N?

Current liabilities.........?2000

Fixed assets................?11000

The company maintains a current ratio of 3:1.

The capital balance is?

?95 00

?12 500 Ìdáhùn tó tọ́

₦11 500

₦10 00

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Ka ìwé ẹ̀kọ́ nípa Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

Wo Idahun

Ibeere 31 Ìròyìn

Receipts and Payments Account
	₦		₦
Balance b/d	?	Rent and rates	30 000
Subscriptions received	?	General expenses	10 000
Gate-fee collections	50 000	Electricity	20 000
		Insurance	150 000
	?	Balance c/d	?

The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections.

The subscriptions received would be

₦200 000

₦240 000 Ìdáhùn tó tọ́

₦300 000

₦24 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Cashbook

Nature And Significance Of Accounting

Wo Idahun

Ibeere 32 Ìròyìn

In converting a to a partnership company, the loss on asset revaluation is?

debited to the revaluation account

debited to the profit and loss account Ìdáhùn tó tọ́

credited to the revaluation account

credited to the profit and loss account

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Partnership Accounts (JAMB)

Partnership Accounts

Wo Idahun

Ibeere 33 Ìròyìn

Given:

Subscriptions received.........₦200 000

Subscriptions owed.............₦10 000

Subscriptions in advance.......₦25 000

Calculate the subscription in the income and expenditure account?

₦200 000

₦235 000

₦185 000 Ìdáhùn tó tọ́

₦225 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Stock Valuation (JAMB)

Stock Valuation

Wo Idahun

Ibeere 34 Ìròyìn

Stock 1/1/2002..................................₦40 000

Goods received from head office.................₦800 000

Goods returned to head office...................₦34 000

Sales...........................................₦916000

Stock 31/12/2000................................₦72 000

From the data above determine the cost of goods credited to the head office trading account.

₦766 000

₦840 000

₦734 000 Ìdáhùn tó tọ́

₦806 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Stock Valuation (JAMB)

Stock Valuation

Wo Idahun

Ibeere 35 Ìròyìn

Motor: ₦10 000
Fixtures: ₦5 000
Cash: ₦2 500
Creditors: ₦7 000
Loan: ?

LOAN IS 30% OF CREDITORS.

What is the capital balance?

₦1000

₦2 100 Ìdáhùn tó tọ́

₦900

₦1200

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa The Accounting Equation And Double Entry Principle (WAEC)

The Accounting Equation And Double Entry Principle

Wo Idahun

Ibeere 36 Ìròyìn

Use the information below were to answer questions

...................Stationary Dept.............Video Dept.

Sales ..............₦10,600.....................₦15,175

Cost of goods sold..₦5,247......................₦6704

The expenses incurred were rent ₦4500, motor repairs ₦1200 and telephone ₦900.

The basis of cost apportionment is 1/2 stationary 1/3 video.

Determine the net profit of the business?

₦6600

₦6271 Ìdáhùn tó tọ́

₦5353

₦7224

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Departmental Accounts (JAMB)

Departmental Accounts

Wo Idahun

Ibeere 37 Ìròyìn

Adaobi mistakenly entered ₦7000 as credit sales in Abba's account. This is?

an error of principles

a compensating error

an error of commission Ìdáhùn tó tọ́

an error omission

Awọn alaye Idahun

The entry of ₦7000 as credit sales in Abba's account is an error of commission. An error of commission is an error that occurs when a transaction is recorded in the wrong account, but the debit and credit amounts are still equal. In this case, Adaobi entered the ₦7000 in the wrong account, as credit sales instead of another account, but the total debits and credits still balance. In contrast, an error of omission occurs when a transaction is not recorded at all, while an error of principle occurs when a transaction is recorded in the wrong category of account (e.g. as an asset instead of a liability). Finally, a compensating error occurs when two errors are made that cancel each other out, such as an overstatement of an asset and an overstatement of a liability by the same amount.

Ka ìwé ẹ̀kọ́ nípa Accounting Concepts (WAEC)

Ka ìwé ẹ̀kọ́ nípa Principles Of Double Entry (JAMB)

Accounting Concepts

Principles Of Double Entry

Wo Idahun

Ibeere 38 Ìròyìn

Use the information below to answer question

Capital.................................₦60 000

Bank....................................₦12 500

General expenses........................₦5 250

Creditors...............................₦17 000

Stock...................................₦98 500

Fixed assets............................₦42 000

Insurance and rates.....................₦18 800

Purchase................................₦63 850

What is the cash balance on the debit side if it is the only item omitted?

₦6745

₦6754

₦6475 Ìdáhùn tó tọ́

₦6574

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Cashbook

Wo Idahun

Ibeere 39 Ìròyìn

Motor: ₦10 000
Fixtures: ₦5 000
Cash: ₦2 500
Creditors: ₦7 000
Loan: ?

LOAN IS 30% OF CREDITORS.

A company has departments S,T and U. The sales are ₦20 000,20 000, ₦40 000 AND ₦60 000 respectively if the sales commission paid is ₦12 000, how much is T's share?

₦8000

₦2000

₦4000 Ìdáhùn tó tọ́

₦6000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Control Accounts And Self-balancing Ledgers (JAMB)

Control Accounts And Self-balancing Ledgers

Wo Idahun

Ibeere 40 Ìròyìn

Stationary which will be used over a long period of time is usually recorded as an expense instead of an asset.

This concept is called?

entity

materiality Ìdáhùn tó tọ́

realization

accrual

Awọn alaye Idahun

The concept referred to in the question is materiality. Materiality is an accounting principle that states that an item or transaction should be recorded and reported in the financial statements if it is material or significant enough to affect the financial statements' users' decision-making process. In the case of stationary that will be used over a long period of time, it is not material enough to be recorded as an asset because it will not have a significant impact on the financial statements. Therefore, it is recorded as an expense when it is used.

Ka ìwé ẹ̀kọ́ nípa Accounting Concepts (WAEC)

Accounting Concepts

Wo Idahun

Ibeere 41 Ìròyìn

Given:

Stock of raw materials 1/40............₦11 150

Purchases of raw materials.............₦112 550

Raw material returned..................₦31 150

Stock of Raw materials 31/12/04........₦27 150

Calculate the cost of raw materials consumed?

₦156 000

₦38 300

₦183 150

₦66 550 Ìdáhùn tó tọ́

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Stock Valuation (JAMB)

Stock Valuation

Wo Idahun

Ibeere 42 Ìròyìn

Tunde purchased goods from Femi by cash worth ₦1000 with 10% cash discount. Tunde's ledger control account is to be?

deited by ₦100 Ìdáhùn tó tọ́

credited by ₦100

credited by ₦1000

deited by ₦1000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Control Accounts And Self-balancing Ledgers (JAMB)

Control Accounts And Self-balancing Ledgers

Wo Idahun

Ibeere 43 Ìròyìn

Boro Limited apportion 1/6 of its rent for factory and 10% of the balance for warehouse. If rent paid is ₦48 600, how much is paid for warehouse?

₦4000

₦6000

₦10000

₦8000 Ìdáhùn tó tọ́

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Accounts Of Not-for-profit-making Organizations (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Accounts Of Not-for-profit-making Organizations

Nature And Significance Of Accounting

Wo Idahun

Ibeere 44 Ìròyìn

Receipts and Payments Account
	₦		₦
Balance b/d	?	Rent and rates	30 000
Subscriptions received	?	General expenses	10 000
Gate-fee collections	50 000	Electricity	20 000
		Insurance	150 000
	?	Balance c/d	?

The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections.

What is the closing cash balance?

₦35 000

₦211 000

₦5 000 Ìdáhùn tó tọ́

₦10 000

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Cashbook (JAMB)

Ka ìwé ẹ̀kọ́ nípa Incomplete Records And Single Entry (JAMB)

Cashbook

Incomplete Records And Single Entry

Wo Idahun

Ibeere 45 Ìròyìn

Departmentalization of accounts is useful because it shows the?

overall performance of a firm

price per unit of a product

cost per unit of a product

overall performance of a division Ìdáhùn tó tọ́

Awọn alaye Idahun

Departmentalization of accounts is useful because it shows the overall performance of a division. By dividing the company into departments, each department's performance can be tracked and analyzed separately. This can help in identifying the strengths and weaknesses of each department and finding ways to improve their performance. Departmentalization also allows for better cost control and helps in determining the profitability of each department. Overall, departmentalization of accounts provides useful insights into the performance of different segments of the company, which can be used to make informed decisions and improve overall company performance.

Ka ìwé ẹ̀kọ́ nípa Departmental Accounts (JAMB)

Departmental Accounts

Wo Idahun

Ibeere 46 Ìròyìn

Use the information below to answer questions .On January 1/2005, a machine was bought for ₦56,000 to last for five years with a residual value of ₦1000.Calculate the yearly depreciation expense using the straight line method.

₦11 000 Ìdáhùn tó tọ́

₦11 200

₦11 400

₦11 300

Awọn alaye Idahun

The yearly depreciation expense using the straight-line method is ₦11,000. To calculate this, you would start by subtracting the residual value (₦1000) from the initial cost (₦56,000) to get the total depreciation (₦55,000). Then, you divide the total depreciation by the useful life of the machine (5 years) to get the yearly depreciation expense, which is ₦11,000. This means that each year for the next five years, the value of the machine will decrease by ₦11,000 until it reaches its residual value of ₦1,000 at the end of its useful life.

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Wo Idahun

Ibeere 47 Ìròyìn

When goodwill is not retained in the business, the entries in the new partners' book will be to debit?

good account and credit partners' capital account

partners' capital account and credit goodwill account Ìdáhùn tó tọ́

cash account and credit goodwill account

goodwill account and credit cash account

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Partnership Accounts (JAMB)

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Partnership Accounts

Nature And Significance Of Accounting

Wo Idahun

Ibeere 48 Ìròyìn

Use the information below to answer question .Prime cost..................₦12 100

Lighting....................₦10 000

Heating.....................₦15 000

Factory overhead............?The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.

Interest on the drawings of partners is treated in the?

profit and loss appropriation account Ìdáhùn tó tọ́

goodwill account

profit and loss account

trading account

Awọn alaye Idahun

Ka ìwé ẹ̀kọ́ nípa Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Wo Idahun

Ibeere 49 Ìròyìn

A private company is different from a public company because?

it does not restrict the right to transferits shares

it cannot invite members of the public to subscribe for its shares Ìdáhùn tó tọ́

its shares are owned by one person

it can only offer its shares to members of the publicfor subscription

Awọn alaye Idahun

A private company is different from a public company because it cannot invite members of the public to subscribe for its shares. A private company is usually owned by a small group of individuals or family members who typically have a personal connection to the company. In contrast, a public company is owned by a larger number of shareholders who may or may not have a personal connection to the company. One of the key differences between a private and public company is the way they raise funds. A public company can issue shares to members of the public and can raise a significant amount of capital in this way. In contrast, a private company cannot offer its shares to members of the public for subscription. Instead, it must rely on its existing shareholders or other private sources of funding to raise capital. Another key difference is the level of disclosure required. Public companies are subject to more stringent reporting and disclosure requirements, including the requirement to file periodic financial reports with regulatory authorities. Private companies are generally subject to less regulation and have more flexibility in terms of their reporting requirements. In summary, a private company is a business that is owned by a small group of individuals and cannot invite members of the public to subscribe for its shares.

Ka ìwé ẹ̀kọ́ nípa Company Accounts (WAEC)

Ka ìwé ẹ̀kọ́ nípa Introduction To Company Accounts (JAMB)

Company Accounts

Introduction To Company Accounts

Wo Idahun






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