JAMB Accounting Past Questions & Answers

496.

Which of the following is not a feature of accounting information?

Timeliness

Accuracy

Completeness

Affordability

Correct answer is D

Accounting information and report must be accurate, complete and timely. Money spent to obtain an information is not as important as how useful are those information in taking decisions.

497.

Capital reserves includes the following except

Revaluation surplus

Pre-incoporation profit

Share premium

General reserves

View answer & explanation

Correct answer is D

General reserves is not a form of capital reserves. It is considered as revenue reserves

498.

Income and expenditure account is more detailed than receipts and payments account because it disclosed

Cash

Cheques

Debtors

Stocks

View answer & explanation

Correct answer is C

The income and expenditure account unlike the receipts and payments takes records of accruals and prepayment

499.

Jejelaye Plc stock records for 2009 was given below:

Jan 1 received 100 units at N1.00
Jan 8 received 260 units at N1.05
Jan 20 issued 700units at .........
Feb 3 received 400 units at N1.15

What will be the issued price of 700 units, using simple average method

N1.183

N1.025

N1.00

N1.05

View answer & explanation

Correct answer is B

Simple average method usually add up all receipt prices ahead of the issued material divided by 2

500.

Sai Baba made sales of N10,000 having computed his gross profit % to sales to be 20. His opening stock was N250 and ending stock is N200. Calculate his purchases.

N7950

N8050

N7050

N8950

View answer & explanation

Correct answer is A

The gross profit percentage of sales would be
20% x N 10,000 = N 2000

If cost of sales + gross profit = N 10,000 = N 2000
:. N 8000 + N 2000 = N 10,000
If cost of goods available for sales less closing stock
= cost of sales
:. N8200 + N200 = N8000

Hence; cost of goods available for sale = opening stock + purchases
:. N8200 = N250 + A
= N 8200 – N 250
=N 7950