Accounting 2014

Welcome to your JAMB Accounting 2014 quiz.
You have 60minutes for this test

Name

One of the differences between bookkeeping and accounting is that the former __.

records data while the latter interprets

is regarded as the language of the business while the latter ascertains its strength

interprets data while the latter records it

summarises information while the latter communicates it

The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is

matching

consistency

realization

going concern

A cheque of ₦5,000 paid to Sulieman had been correctly entered in the cash book but had not been entered in Sulieman's account. To correct this error, debit Sulieman's account and credit

cash account

bank account

purchases account

Suspense account

Aduke Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the

sales day book

purchases day book

sales subsidiary book

cash book

Which of the following affects the accuracy and authenticity of the trial balance?

Error of omission

Error of commission

Error of transposition

Error of original entry

A ledger is classified into

private, sales and purchases

personal, general and private

general, private and sales

sales, purchases and general

The book of account in which information from the source documents are recorded consists of __.

debit and credit notes

ledger and subsidiary books

prepayments and accruals

profit and loss and balance sheet

The accounting entries to record a cheque issued by a business is to

debit cash book and credit drawer

credit cash book and debit drawer

debit cash book and credit suspense account

credit cash book and debit suspense account

Given: If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming ₦22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company's cash book?

₦25,650

₦22,800

₦19,950

₦18,240

The major advantage of an imprest system is that it __.

ensures a proper accountability for every expenditure

trains the young accountants in preparation for greater responsibilities

relieves the chief cashier of the numerous petty cash payments

serves as an analysis column for every expense

Petty cash book records transactions on

the debit side only

the credit side only

both credit and debit

reversed entry

Which of the following are recorded on the debit side of the cashbook?

I. Cash sales II. Cash purchases III. Cash discount allowed IV. Cash payment V. Cash receipts

I and II

I and III

I and V

I and IV

An item credited in the bank statement but yet to be recorded in the firm's cash book is

bank loan

contract payment

standing order

direct deposit

The major focus of the trading account is to show

net profit

gross margin

total purchases

total sales

The account of government into which all monies are received and from which all expenditures are disbursed is the

Federation account

Petroleum Technology Development Fund

Development fund

Central Bank Account

The book value of issued share capital is

₦675,000

₦975,000

₦1,350,000

₦1,950,000

In the absence of a partnership deed, the act stipulates that __.

an amount should be fixed as salary for partners

interest on partners loan should be 25%

profits and losses should not be shared equally

interest should not be allowed on partners drawings

The profit of a branch is usually credited to the __ .

adjustment account

head office sales

head office goods account

head office current account

Where partnership is converted into a limited liability company, current account balances of partners are transferred to a

realization account

savings account

share capital account

capital account

The expenses incurred in purchasing a vehicle is a

revenue expenditure

capital expenditure

recurrent expenditure

concurrent expenditure

Payment for shares in excess of amount offered gives rise to

subscription in advance

revenue reserves

calls-in-advance

capital reserves

The details of the share capital which a company is authorized to issue is contained in the

Articles of Association

Companies and Allied Matters Act

Memorandum of Association

Share capital certificate

If goods were bought from Tanko at a cost price of ₦9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?

₦4,500

₦8,550

₦9,000

₦9,450

If machine X cost ₦600,000 with anticipated life span of five years and estimated scrap value of ₦50,000, using straight line method; depreciation charged for two years will be

₦700,000

₦240,000

₦220,000

₦202,000

The value of the current assets will be

Balance sheet (Extract) ₦ Creditors 7,940 Prepaid expenses 290 Accrual expenses 323 Stock 4,500 Cash balance 4,956 Debtors 905

₦10,361

₦10,651

₦17,396

₦17,848

Determine the current liabilities

₦8,553

₦8,263

₦7,940

₦1,228

The excess of sales over cost of goods sold is

gross sales

gross profit

net profit

net sales

The control account is used in facilitating

the location of errors in the various accounts

up to date bank transactions

assets distribution with respect to income

the payment of debts and liabilities of the firm

A book of account that possesses the features of both daybook and ledger is

sales day book

cash book

purchases day bookreturns day book

The value of the sales ledger control account is derived from the summation of

the total debtors’ account

the total creditors’ account

all day books

both the debtors’ and creditors’ accounts

Subscription in arrears is treated in the balance sheet of a club as

current asset

current liability

fixed asset

intangible asset

Determine the closing stock

Maina Merchants Trading and Profit and Loss Account (Extract)
₦
Stock (1/1/2010) 80,000
Sale 300,000
Purchases 90,000
Less returns Cost of goods available for sale 170,000 Inwards 30,000 Stock ?

₦

(31/12/2010) —— —— —— 270,000 Cost of goods sold ?

Gross profit 150,000 270,000 270,000

₦30,000

₦40,000

₦50,000

₦60,000

Determine the amount of subscription for the year

Social Club Subscription (Extract) ₦ 31/12/2009

Subscription Accrued 18,900 Subscription received in advance 16,400 Subscription received during the year 2009 38,570

₦57,470

₦41,070

₦40,210

₦35,300

What is the amount of subscription to be shown as liability in the balance sheet as at December 2009 ?

₦14,200

₦16,400

₦18,900

₦20,500

What is the total income for the period?

Income and Expenditure (Extract) ₦ ₦ Bal. b/d 390 Expenses on cleaning 300 Sales of tickets 4000 New tool 510 Donations 3,000 Repairs 400 Subscriptions 6,500 Electricity 350

₦13,890

₦13,500

₦10,500

₦9,500

What is the balance carried down?

₦11,680

₦11,930

₦12,330

₦13,430

Determine the value of stock as at 31st December

Given:

₦
Sales 180,000
Stock 1/1 25,000
Purchases 110,000
Sales returns 1,000
Purchases returns 1,500
Gross profit 58,000

₦9,500

₦8000

₦15,500

₦12,500

In a departmental account, where no basis of apportionment exist, apportionment is

on profit basis

according to employee decision

according to material available

on equal basis

In a departmental account, the expenses to be apportioned on the basis of turnover is

carriage inwards

returns outwards

discount received

carriage outwards

If goods are sent to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of ₦100,000?

₦130,000

₦125,000

₦80,000

₦75,000

What is the cost price of the goods sent to the branch?

Hussaina Enterprises sent goods worth ₦800,000 at cost plus mark-up of 20% to its branch

₦600,000

₦620,000

₦640,000