JAMB Accounting Past Questions & Answers - Page 161

801.

i. Space occupied by each department.
ii. Average value of stock held by each department.
iii. Departmental turnover.
iv. Number of articles sold by each department .

From the information above, the two most logical bases for apportioning expenses that are common to departments are?

i and ii

i and iii

ii and iii

iii and iv

View answer & explanation

Correct answer is B

No explanation has been provided for this answer.

802.

Given:

Furniture and fittings..................N20,000
Equipment...............................N15,000
Bank overdrafts.........................N6, 500
Bar creditors...........................N4,800
Subscription in arrears.................N4,700
Subscription in advance.................N650

What is the accumulated fund?

23,700

27,750

29,650

51,650

View answer & explanation

Correct answer is B

Accumulated fund = Total assets - Liabilities

20,000 + 15,000 +4,700 - (6,500+4800+650)

39,700-11,950 = 27,750

803.

Receipt and payments account is a summary of the?

Budget

Trading account

Cash book

Profit and loss account

View answer & explanation

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. All cash received and paid during the period whether capital or revenue is included in this account. It is the equivalent of a cashbook.

804.

Work-in-progress 1/1........................N1,000
Work-in-progress 31/12......................N2,000
Production cost of goods manufactured.......N20,000
Sales.......................................N50,000
Stock of finished goods 1/1.................N4,000
Stock of finished goods 31/12...............N5,000
Selling and distribution expenses...........N2,000
Administrative expenses.....................N1,000

What is the net profit?

N46,000

N45,000

N28,000

N27,000

View answer & explanation

Correct answer is C

Trading profit and Loss Account

opening stock    4,000
Add: cost of products 20,000   24,000
Less: closing stock    5000
19,000

Gross profit       31,000
   50,000
selling & dis. Exp 2000
Admin. Exp 1,000     3000
Net profit    28,000

31,000