JAMB Accounting Past Questions & Answers - Page 136

676.

Cash can be drawn from the bank using

A.

A bank teller

B.

A credit card

C.

A recharge card

D.

ATM card

Correct answer is D

ATM is a machine that dispenses cash or performs other banking services when an account holder inserts a bank card. For one to withdraw money from the machine, you are required to own an ATM card

 

677.

In a three-column cash book, dishonored cheques will be shown on the

A.

Bank column (debit)

B.

Bank column(credit)

C.

Cash column(debit)

D.

Cash column(credit)

Correct answer is B

Dishonoured cheques will be recorded on the credit side, write "By Debtor A/C" with respective amount in the bank column.

678.

Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
The record in Jide's book would be to debit

A.

Purchases #12,000 and credit Ibrahim #12,000

B.

Purchases #12,000 and credit sugar account #12,000

C.

Jide #12,000 and credit purchases

D.

Ibrahim #12,000 and sugar account #12,000

Correct answer is A

Debit purchase account with 12,000 and credit cash paid to ibrahim 12,000

679.

Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit

A.

Sugar account #12,000 and credit Jide #12,000

B.

Jide #12,000 and credit sales account #12,000

C.

Ibrahim #12,000 and credit Jide #12,000

D.

Sugar account #12,000 and credit Ibrahim #12,000

Correct answer is B

Debit cash paid by Jide to the sum of 12,000 and credit stock or sales account

680.

Akirika bought a motor van for his business by cash. The entries are to debit

A.

Motor van and credit Akirika

B.

Sales and credit Akrika

C.

Motor van and credit cash

D.

Cash and credit motor van

Correct answer is C

Since the van is not for resale rather to help in the running of the business, we debit motor van and credit cash account.