www.prep.ng: JAMB/UTME 2017 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

Monday, 25 February 2019

JAMB/UTME 2017 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

PRINCIPLES OF ACCOUNT QUESTIONS

1. The major distinguishing element between the final account of a partnership and a sole trader is the __.
A. drawing
B. creditors account
C. appropriation account
D. capital account

2. Goodwill appears in the books of a business only if it has been __.
A. raised in connection with the admission of a new partner
B. purchased at a certain price if it has been raised
C. raised to account for the true value of a business on the death of a partner
D. raised in other to prevent the balance sheet showing that the business is insolent


3. Payment of cash of ₦20 to john was entered on the receipts side of the cash book in error and credited to john’s account. which of the following journal entries can be used to correct the error __.
A. John ₦40 Dr, cash ₦40 Cr 
B. cash ₦40 Dr, John ₦40 Cr
C. cash ₦20 Dr, John ₦20 Cr
D. John ₦20 Dr, cash ₦20 Cr

4. The following represents extracts from the trading account of a retail outlet for a retail outlet for a given month:

                                
Opening stock         2 400   
Closing stock          6 400
Other expenses      2 000
Sales                    11 000
Profit                         900

What is the purchase figure for the month?
A. ₦13 000
B. ₦11 000
C. ₦12 000
D. ₦12 000

5. Subscription relating to the accounting to the accounting year 1993 in the income and expenditure account is __.
A. ₦14,300
B. ₦13,400
C. ₦15,050
D. ₦14, 550

6. Accumulated fund on 1st January 1993 is __.
A. ₦8,570
B. ₦7, 520
C. ₦8, 470
D. ₦7,850

7. Sobande incorporation acquired a machine that involved the following expenditures and related factors.
PRINCIPLES OF ACCOUNT QUESTIONS

What is the initial accounting cost of the machine?
A. ₦17,500 
B. ₦18,350
C. ₦19,550
D. ₦18,950

8. A pottery company had sales of ₦176,000 during the current period and a gross profit rate of 40% the company cost of merchandise for sale during the period was ₦128 000. The company’s ending inventory is __.
A. ₦76,800
B. ₦51,300
C. ₦32,000
D.₦22,400

Use the information below to answer question 9 and 10.

Zoom Plc balance sheet [extract] as at 31st December, 1997
PRINCIPLES OF ACCOUNT QUESTIONS

9. The quick ratio is __.
A. 0.95:1
B. 0.82:1
C. 1:53:1
D. 0.91:1

10. Determine the owners’ equity.
A. ₦275,000
B. ₦755,000
C. ₦200,000
D. ₦215,000

Use the information below to answer question 11 and 12.PRINCIPLES OF ACCOUNT QUESTIONS
Lighting, power, insurance and rent relating to the factory are apportioned 1/3 , 2/5 , 1/6 , and 1/with totals ₦30,000; ₦75,000; ₦36,000 and ₦56,000 respectively.

11. What is the cost of the opening raw materials?
A.  ₦400,250
B.  ₦398,250
C.  ₦404,950
D.  ₦418,350

12. The production cost of finished goods is __.
A. ₦408,600
B. ₦381,000
C. ₦327,600
D. ₦54,600

Use the information below to answer question 13 and 14.PRINCIPLES OF ACCOUNT QUESTIONS

13.The ₦6,000 subscription received is __.
A.  capital
B.  fixed asset
C.  current asset
D.  current liability

14. What is the subscription to be charged to income and expenditure account?
A. ₦20,000
B. ₦30,000
C. ₦34,000
D. ₦36,000

Use the information below to answer question 15 and 16.PRINCIPLES OF ACCOUNT QUESTIONS

 The gross profit ratio for the company is 25%.

15. If the total expenses is ₦20 845, what will be the net profit for the company during the month?
A. ₦18,405
B. ₦21,655
C. ₦19,149
D. ₦16,168

16. The closing stock for this company is __.
A. ₦72,000
B. ₦42,500
C. ₦31,250
D. ₦45,000

Use the information below to answer question 17 and 18.PRINCIPLES OF ACCOUNT QUESTIONS

17. What is the capital employed?
A. ₦44,600
B. ₦43,052
C. ₦38,600
D. ₦43,044

18. Calculate the value of fixed assets.
A. ₦15,992
B. ₦18,470
C. ₦27,052
D. ₦27,000

Use the information below to answer question 19 and 20.PRINCIPLES OF ACCOUNT QUESTIONS

      It is the tradition of the organization to apportion expenses in the proportion 60%: 40% for S and T respectively.

19. What is the net profit made by department S?
A. ₦2,000
B. ₦3,000
C. ₦3,600
D. ₦2,400

20. The depreciation to be charged to department T is __.
A. ₦400
B. ₦300
C. ₦500
D. ₦600

21.   Given: 
PRINCIPLES OF ACCOUNT QUESTIONS
                                                           

The provision for bad debt stands at 10% of debtors. How much is to be charged to profit and loss account as provision for bad debt?
A. ₦800
B. ₦2 000
C. ₦1 000
D. ₦1 800

22.  Goods withdrawn from for private use are credited to __.
A. Purchases
B. Drawing
C. Sales
D. Capital 

23. Stationery which will be used for a long period of time is usually recorded as an expense instead of an asset. This concept is called __.
A. Entity
B. Realisation
C. Accrual
D. Materiality

24. Adaobi mistakenly entered ₦7 000 as credit in Abba’s account instead of Baba’s account this is __.
A. An error of principles
B. An error of commission
C. A compensating error
D. An error of omission

25. The gross profit disclosed in the branch stock adjustment account represents __.
A. Branch profit
B. Estimated profit
C. Unrealized profit
D. Head office profit

26. Partner’s share of profit is credited to __.
A. The profit and loss appropriation account
B. The profit and loss account
C. A partner’s current account
D. A partner’s capital account

Use the information below to answer question 27 and 28.PRINCIPLES OF ACCOUNT QUESTIONS

27. What is the cost of raw materials consumed?
A. ₦156 000
B. ₦173 000
C. ₦170 000
D. ₦160 000

28. Calculate the prime cost.
A. ₦597 000
B. ₦567 000
C. ₦579 000
D. ₦576 000

Use the information below to answer question 29 and 30.PRINCIPLES OF ACCOUNT QUESTIONS

29. Using FIFO method, what is the value of the closing stock?
A. ₦17 000
B. ₦29 000
C. ₦34 000
D. ₦12 000

30. What is the value of closing stock using simple average?
A. ₦11 500
B. ₦17 000
C. ₦28 500
D. ₦17 500

31. The gross loss on manufacturing is always transferred to the __.
A. credit side of the balance sheet
B. credit side of the profit and loss account
C. debit side of the balance sheet 
D. debit side of the profit and loss account

32. The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the __.
A. Debit side of the manufacturing and profit and loss account
B. Credit side of profit and loss account only
C. Debit side of manufacturing and balance sheet
D. Debit side of the profit and loss account only

33. In bank reconciliation process, discrepancies caused by timing arises as a result of __.
A. bank statement only
B. cash book and bank statement
C. cash book, bank statements and incidental records
D. cash book only

34. The process of reconciling cheque between banks termed cheque __.
A. truncation
B. clearing
C. holding
D. confirmation                       
PRINCIPLES OF ACCOUNT QUESTIONS


35. Debtors opening and closing balances amount to ₦6 500 and ₦7 600 respectively. What is the sales value?
A. ₦17 500
B. ₦29 400
C. ₦31 600
D. ₦15 300

36.   Given:
PRINCIPLES OF ACCOUNT QUESTIONS

Determine the capital
A. ₦10,000
B. ₦42,000
C. ₦52,000
D. ₦15,300

Use the information below to answer question 37 and 38.PRINCIPLES OF ACCOUNT QUESTIONS

37. Calculate the gross profit.
A. ₦100 000
B. ₦86 000
C. ₦76 000
D. ₦82 000

38. Calculate the expenses debited to the profit and loss account.
A. ₦17 000
B. ₦23 000
C. ₦30 000
D. ₦26 000

Use the information below to answer question 39 and 40.
PRINCIPLES OF ACCOUNT QUESTIONS

39. What is the total income for the period?
A. ₦13 500
B. ₦13 890
C. ₦9 500
D. ₦10 500

40. What is the balance carried down?
A. ₦12 330
B. ₦13 430
C. ₦11 680
D. ₦11 930

ANSWERS

1.  B

2.  A

3.  D

4.  C

5.  A

6.  B

7.  B

8.  D

9.  A

10. C

11. C

12. B

13. D

14. A

15. A

16. C

17. D

18. C

19. D

20. A

21. B

22. A

23. D

24. B 

25. A

26. C

27. A

28. C

29. A

30. C

31. D

32. D

33. B

34. B

35. A

36. C

37. D

38. D

39. B

40. A



                        



                                                                       



                                                        







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