JAMB Accounting Past Questions & Answers - Page 72

356.

Given: N

Drawings 3,500
Net loss 2,500
Capital 1.1,2007 35,000
Additional capital 10,000
The adjusted capital as at 31 : 12 : 2007 is

A.

N45,000

B.

N39, 000

C.

N35,000

D.

N46,000

Correct answer is B

Capital + Additional capital - Drawings - net loss

35,000 +10,000 - 2500 - 3500 = 39,000

 

357.

Which of the following condition would attract credit and debit notes to be used?

A.

When goods are received from supplier

B.

When a trial balance is extracted

C.

When a buyer is under or over charged

D.

When goods are sold to a buyer

Correct answer is C

Debit note is usually issued by the purchaser andcredit note is usually issued by the seller. But debit note can be issued by the seller when the buyer erroneously records more and credit note can also be issued by the buyer when the seller undercharges the buyer.

358.

The effect of overstating revenue expenditure in the profit and loss account is that the

A.

Opening stock will be increased

B.

Net profit will be understand

C.

Net profit will be overstead

D.

Opening stock will be decreased

Correct answer is B

As a general rule, an increase in any type of business expense lowers profit. overstating expenditure would decrease or understate the net profit

 

359.

The documents that provide instant information to firms on their tranactions with banks are

A.

Bank statement and debit note

B.

Cheque book and cashbook

C.

Cheque stub and deposit slip

D.

Payslip and credit invoice

Correct answer is A

Bank statement is a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.

debit note is a document sent by a buyer to seller or in other words a purchaser to a vendor notifying that a debit has been made to their accounts. A debit memo on a company's bank statement refers to a deduction by the bankfrom the company's bank account. In other words, a bank debit memo reduces the bank account balance similar to a check drawn on the bank account.

 

360.

An item in the balance sheet of a limited liability company is

A.

Accrued expenses

B.

Lighting and heating

C.

Salaries and wages

D.

General expenses

Correct answer is A

Accrued expense is expense which has been incurred but not yet paid. Expense must be recorded in the accounting period in which it is incurred. Therefore, accrued expense must be recognized in the accounting period in which it occurs rather than in the following period in which it will be paid.

It can be found on the liabilities part of a balance sheet of a limited liability company