JAMB Accounting Past Questions & Answers - Page 132

657.

Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A.

Cost price

B.

Fixed percentage on cost

C.

Selling price

D.

Invoice price

Correct answer is D

Invoice Price Method Branch Accounting. In branch accounting, head office sends the goods to branch on the invoice price instead of cost price because with this, company can hide his profit margin from branch employees. In the invoice price, there are two prices will be included on is cost price and second is profit %.

658.

In the head office ledger, the value of goods sent to the branch are

A.

Debited to the head office current account

B.

Debited to the branch current account

C.

Credited to the head office current account

D.

Credited to the branch current account

Correct answer is B

Goods sent to branch is recorded at the debit side of the branch stock account. Goods returned to head office and closing stock is shown at the credit side of this account. The excess of debit over credit is shortage. The excess of credit over debit is surplus.

 

659.

Given:
Fixtures-#30,000
Debtors-#7,000
Stock- #8,000
Creditors-#3,000
Goodwill-#10,000

Determine the capital.

A.

#10,000

B.

#42,000

C.

#45,000

D.

#52,000

Correct answer is D

30,000 + 7000 + 8000 +10,000 = 55000

55,000 - 3000 = 52,000

 

660.

The excess revenue over expenditure is charged to

A.

Profit and loss

B.

Revenue account

C.

Accumulated fund

D.

Income and expenditure acccount

Correct answer is C

An accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus.