JAMB Accounting Past Questions & Answers

346.

When the fixed capital method is used, the partners' share of profits and remunerations are credited to the

Current account

Profit and loss account

Profit and loss appropriation account

Capital account

Correct answer is D

The partnership capital account is an equity account in the accounting records of a partnership. It contains the following types of transactions:

Initial and subsequent contributions by partners to the partnership, in the form of either cash or the market value of other types of assets
Profits and losses earned by the business, and allocated to the partners based on the provisions of the partnership agreement
Distributions to the partners

347.

i. The amount of the impurest is the same from one organization to another.
ii. At the end of a fixed period, the petty cashier received a fixed sum of money.
iii. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv. The system is a method by which a measure of control is kept on petty cash expenses.

Which of the following is correct about the impurest system?

II and IV

II, III and IV

I, II and III

III and IV

View answer & explanation

Correct answer is B

The impurest system is a form of financial accounting system. The most common impurest system is the petty cash system. The base characteristic of an impurest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

348.

The major sources of revenue for the state and local governments is

Value added tax

Statutory allocation

Taxes and levies

Recurrent revenue

View answer & explanation

Correct answer is B

Statutory allocation; this is the grant from the federal government to the state and local government.

349.

The income and expenditure account differs from receipts and payments account because it

Accounts for notional charges

Records transactions that relate to the period on cash basis

Records transactions that relate to the period on accrual basis

Accounts for balance of cash at bank

View answer & explanation

Correct answer is B

Receipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account.

350.

When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at

A price above or below the stipulated price

Any price but not below the transfer price

Cost price

A price that is equal to the mark-up

View answer & explanation

Correct answer is B

Cost-plus pricing is a pricing strategy in which the selling price is determined by adding a specific amount markup to a product's unit cost.

Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct materialcost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.