Monday, 25 February 2019

JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

PRINCIPLE OF ACCOUNTS 2018

1. Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: ₦40 000, ₦50 000 and ₦70 000. The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for ₦50 000 cash . Wamo’s equity in the resulting partnership is __.

A. ₦40 000
B. ₦50 000
C. ₦40 000
D. ₦42 000

2. Under which of the following conditions is a partnership dissolved?
A. Admission of a new partner
B. Change of the partnership's head office
C. Purchase of a large quantity of fixed assets
D. Retirement of a manager who is not a partner

3. Adama's bank account showed an overdraft of ₦600 on 31st March. Ongoing through the account, it was discovered that the ₦1 080 paid into the account on 29th March has not been credited. What should be the balance is Adama’s cash accounts?
A. ₦1,680 Dr.
B. ₦1,080 Cr.
C. ₦480 Cr.
D. ₦600 Dr.

4. Why are adjustments in the profit and loss account necessary?
A. To cover some expenses of the following year
B. To show the provisions made during the year
C. To show the total expenses paid and income received during the year
D. To ascertain the actual expenses incurred and income earned during the year.

Use the information below to answer question 5 and 6.

Udoh Trading Company
Balance Sheet as at 31st December,1992
JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)
5. What is the working capital?
A. ₦11 000
B. ₦8 000
C. ₦4 000
D. ₦12 000

6. The acid test ratio in the company is __.
A. 1:1
B. 2:3
C. 1:2
D. 3:2

Use the information below to answer question 7 and 8.
JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

If at 31/1/95 the following information was ascertained
(i) Rent for shop ₦12000 paid for that year
(ii) Total purchases ₦15000
(iii) Total sales ₦8200
(iv) Stock of goods left ₦10 000
(V) Paid Sales boy ₦500

7. What is the new balance sheet total as at 31/1/95?
A. ₦40,000
B. ₦41,500
C. ₦41,700
D. ₦48,500

8. What is the balance on its cash account as at 31/1/95?
A. ₦22,800
B. ₦9,200
C. ₦800
D. ₦21,120

9. Calls in advance are treated in the balance sheet as __.
A. current asset
B. fixed asset
C. current liability  
D. fixed liability

10. Shares issued to a vendor in payment of business purchased would require a debit to __.
A. cash account and credit to share capital account
B. share capital account and credit to vendors
C. share capital account and credit to cash account
D. vendor's account and credit to share capital account

Use the information below to answer question 11 and 12

Rakiya and Joy are in partnership and agreed that 5% interest per annum is to be charged on drawings. The drawing made by both partners in one year were: Rakiya, ₦200 on March 31st and ₦300 on September 30th. Joy, ₦100 on April 1st and ₦240 on July 1st .

11. The interest Joy’s drawing is__.
A. ₦511.25 debit
B. ₦500.00 credit
C. ₦349.75 credit
D. ₦340.00 credit

12. Assuming that Rakiya was not credited with any income during the period. what is her closing current account balance?
A. ₦340.00 credit
B. ₦500.00 credit
C. ₦340.75 debit
D. ₦511.25 debit

13. To account for expenses paid by head office on behalf of the branch, the branch should__.
A. debit profit and loss account and credit head office account
B. debit head office account and credit cash
C. credit cash and debit profit and loss account
D. credit profit and loss account and debit head office account

14. The officer responsible for ascertaining whether all public expenditure and appropriation are in line with approved guidelines is the __.
A. Accountant general
B. Finance Minster
C. Auditor General
D. Permanent Secretary

Use the information below to answer questions 15 and 16.

Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.
JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

15. What is the gross profit carried to the profit and loss account?
A.  ₦1870
B.  ₦1530
C.  ₦1640
D.  ₦1820

16. Calculate the cost of goods credited to the head office trading account.
A.  ₦7200
B.  ₦7460
C.  ₦7500
D.  ₦7660

17. Advertising expenses incurred on a product in a business organization should be charged to __.
A. sales department
B.  production department
C.  purchases department 
D.  administration department

18. Four broad classifications of overheads are __.
A.  production, selling, distribution and material
B.  selling, distribution, production and wages production
C.  selling, distribution and administration
D.  distribution, selling, administration and materials

19. Transfers from the head office to branches are best carried out at __.
A. cost price
B. cost plus mark-up
C. selling price
D. market price

20. On dissolution, the final distribution of cash to partners is based on __.
A. partnership agreement
B. capital, balances
C. goodwill
D. Articles of Association

21. In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a __.
A. debit entry
B. contra entry
C.  credit entry
D. reversal entry

22.   Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including __.
A. partners' salaries
B. interest on capital
C. interest on loans
D. partners’ drawings.

23. Departmentalization of accounts is useful because it shows the __.
A. overall performance of a division
B. cost per unit of a profit
C. price per unit of a product
D. overall performance of a firm

24.   When goodwill is not retained in the business. the entries in the new partners' books will be to debit __.
A. good account and credit partners’ capital account
B. cash account and credit partners’ capital account
C. goodwill account and credit cash account
D. partners' capital account and credit goodwill account.

Use the information below to answer questions 25 and 26.JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)
25.   Calculate the balance in the bank statement.
A. ₦10,740
B. ₦11,860
C. ₦16,380
D. ₦17,500

26.   What is the adjusted cash book balance?
A. ₦15 560
B. ₦14 680
C. ₦16 440
D. ₦17 000.

Use the information below to answer question 27 and 28.

Departmental Trading Account (Extract)
JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)
Goods worth ₦300 was transferred from department Q to P. Similarly. P's total expenses for the period was ₦200.

27. What was department Q's gross profit?
A. ₦2,500
B. ₦2,200
C. ₦2,300
D. ₦1,700

28. Department P's net profit was __.
A. ₦2,500
B. ₦2,800
C. ₦3,000
D. ₦5,200

29. Which of the following is a common cause of a discrepancy between head office and branch trial balance?
A. Stock and prepayment
B. Creditors and cash in transit
C. Stock and cash in transit
D. Debtors and cash in transit

30. Sule and Ahmed are in partnership sharing  profits and losses equally. If Khadija is admitted as a new partner to take 1/as her share. What is the new profit or loss sharing?
JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)

31. The prime cost is the total of the __.
A. production cost + selling expenses
B. administrative expenses + selling + distribution expenses
C. direct materials + work overhead expenses
D. direct material + direct labour + direct

32. In the not-for-profit-making organization, the excess of income over expenditure is__.
A. deducted from the capital
B. added to the capital
C. added to the accumulated fund
D. deducted from the accumulated fund

Use the information below to answer question 33 and 34.

Trading account for the year ended 31st December 2009
JAMB/UTME 2018 PRINCIPLES OF ACCOUNT QUESTIONS (TEXT)
33. Find the average stock for the period.
A. ₦20 500
B. ₦23 000
C. ₦28 000
D. ₦27 000

34. Calculate the cost of goods sold.
A. ₦61 000
B. ₦62 000
C. ₦58 000
D.  ₦57 000

35. In the head office ledger, the value of goods sent to the branch are__.
A. debited to the branch current account
B. debited to the head office current account
C. credited to the head office current account
D. credited to the branch current account

36. Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?
A. selling price
B. fixed percentage on cost
C. cost price
D. invoice price

37.   The amount paid by the new partner on admission as a compensation for the reputation built up by old pant is a __.
A. bonus.
B. goodwill
C. premium
D. commission.

38.   A partnership's internal regulations are set out by __.
A. a constitution
B. a law
C. a deed
D. an article

39. In the absence of a partnership deed, the act stipulates that __.
A. an amount should be fixed as salary for partners
B. profits and losses should not be shared equally
C. interest on partners loan should be 25%.
D. interest should not be allowed on partners drawing

40. The profit of a branch is usually credited to the __.
A. branch office goods account
B. head office sales
C. adjustment account.
D. head office current account.


ANSWERS

1. B

2. A

3. C

4. D

5. A

6. C

7. D

8. B

9. C

10. D

11. A

12. B

13. A

14. C

15. D

16. D

17. A

18. C

19. B

20. B

21. B

22. C

23. A

24. D

25. D

26. B

27. C

28. A

29. D

30. B

31. D

32. C

33. A

34. B

35. B

36. C

37. B

38. C

39. B

40. A