JAMB Accounting Past Questions & Answers - Page 128

636.

Which of the following items is a capital expenditure?

A.

Maintenance of office machine

B.

Purchase of office stationery

C.

Carriage inwards

D.

Purchase of office machinery

Correct answer is D

Capital expenditures are money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

 

637.

The major source document which enables an employer to calculate the employee wages is the

A.

Nominal roll of employees

B.

Record of number of hours worked

C.

Effort of the employee

D.

Record of number of dependants per employee

Correct answer is B

No explanation has been provided for this answer.

638.

The total credit sales for a period can be extracted from the

A.

Cash book

B.

Sales day book

C.

Petty cash book

D.

Returns inwards

Correct answer is B


The sales day book is a manually-maintained ledger in which is recorded the key detailed information for each individual credit sale to a customer, including the following: Customer name. Invoice number. Invoice date. Invoice amount

639.

July 1 - Started business with #10,500
July 31- Paid Agro machine x #6,000 owing them

The double entry for July 31 would be

A.

Debit Agromachinex and credit cash

B.

Debit equipment and credit Agromachinex

C.

Credit capital and debit cash

D.

Credit cash and debit purchases

Correct answer is A

No explanation has been provided for this answer.

640.

July 1 - Started business with #10,500
July 31- Paid Agromachinex #6,000 owing
them

The double entry for July 1 would be

A.

Debit capital and credit cash

B.

Credit cash and debit bank

C.

Debit cash and credit capital

D.

Debit purchases and credit cash

Correct answer is D

Starting a business with 10500 means the business owner must have bought good for resale with that amount of money. Therefore we will debit purchase/stock account and credit cash account

Note; capital (cash in this case) is the money used in started a business
Purchases in accounting are goods bought for resale.