JAMB Accounting Past Questions & Answers - Page 126

626.

The total cash and cheques received from customers in a control account is derived from the

A.

Purchases day book

B.

Cash book

C.

Income and expenditure account

D.

Sales journal

Correct answer is B

No explanation has been provided for this answer.

627.

What type of stock valuation would a vegetable seller adopt in valuing it's product?

A.

LIFO

B.

FIFO

C.

Simple average

D.

Weighted average

Correct answer is B

FIFO is a method of stock valuation that stands for 'First-In, First-Out'. This assumes that the first (oldest) units of stock produced or received are also the first ones that are sold. This is also suitable for perishable items

 

628.

Given:
Opening capital - #1,500
Capital introduced - # 500
Profit for the year - # 800
Cash drawings - # 250

Calculate the closing capital.

A.

#2,550

B.

#2,500

C.

#2,350

D.

#2,250

Correct answer is A

Closing capital = Opening Capital + Additional Capital + Profit - Less Loss - Drawings

1500 + 500 + 800 - 250 = 2550

 

630.

Sales - #232,000
Opening stock - # 28,000
Purchases - #128,000
Carriage inwards - # 4,000
Carriage outwards - # 6,000
Closing stock - # 10,000
Discount received - # 18,000
Expenses - # 20,000

Calculate the gross profit.

A.

#100,000

B.

#86,000

C.

#82,000

D.

#76,000

Correct answer is A

sales                                                             232,000  
Add: disc. received                                        18,000               
opening stock                           28,000
+ purchase                               128,000
cost of gds. avail. for sale        156,000
Less:closing stock                    10,000
Cost of gds sold                       146,000      
Add Carriage inwards                4000            150000   
Gross profit                                                    100,000