JAMB Accounting Past Questions & Answers - Page 152

756.

If goods were returned to branch by the customers, the correct posting for this transaction is to debit?

A.

Branch debtor's account and credit head office account

B.

Head office account and credit branch stock account

C.

Branch stock account and credit branch debtors' account

D.

Branch cash account and credit branch stock account

Correct answer is C

Debit branch stock account (stock have increased by what was returned) and credit branch debtors' account.

758.

The summary of receipts and payments account represent?

A.

Cash at hand

B.

Journal proper

C.

General journal

D.

Ledger accounts

Correct answer is A

 A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period.  It represents the actual cash at hand.

 

759.

The equivalent of a club's receipts and payment account is the?

A.

Trading account

B.

Revenue account

C.

Cash account

D.

Suspense account

Correct answer is C

 A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period.  Its equivalent is a cashbook.

760.

In the not-for-profit-making organization, the excess of income over expenditure is?

A.

Deducted from the capital

B.

Added to the accumulated fund

C.

Added to the capital

D.

Deducted from the the accumulated fund

Correct answer is C

Surplus is the excess of income over expenditure. A credit balance in the Income and expenditure account shows surplus. It is the profit earned and should be added to the capital fund on the liabilities side of the balance sheet