JAMB Accounting Past Questions & Answers - Page 127

631.

The purchase of mattresses from Freehold enterprises by cheque amounted to #305,150. The correct entries for this transaction in the book of the buyer is to debit

A.

Sales account and credit bank account

B.

Purchases and credit bank account

C.

Cash and credit freehold

D.

Bank and credit freehold

Correct answer is B

In the book of the buyer, we debit stock or purchase account and credit bank

633.

i.) The amount of the imprest is the same from one organization to another
ii.) At the end of a fixed period, the petty cashier received a fixed sum of money.
iii.) At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv The system is a method by which a measure of control is kept on petty cash expenses.

Which of the above is correct about the imprest system?

A.

i, ii and iii

B.

i, iii and iv

C.

i, ii and iv

D.

iii and iv

Correct answer is C

The basic characteristic of an imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

634.

Alaka who owed Saka #15,000, settled his debt after deducting cash discount of 10percent. To record the discount in the book of Saka, debit

A.

Discount recieved account and credit Alaka's account

B.

Alaka's account and credit discount recieved account

C.

Saka's account and credit discount recieved account

D.

Discount allowed account and credit Alaka's account

Correct answer is D

Debit cash account and credit discount allowed account

635.

The corresponding entry of personal accounts found in the debit side of the cash is to

A.

Credit real accounts

B.

Debit real accounts

C.

Credit the ledger

D.

Debit the ledger

Correct answer is C

For every debit entry, there must be a corresponding credit entry. Hence we credit the ledger