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I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
The net profit for the year is
AN5,750
BN5,650
CN3,200
DN2,300
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Question 42
jamb1995
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
Compute the average amount of stock in hand at cost price
AN3,860
BN3,806
CN3,680
DN3,086
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Question 43
jamb1995
The starting point for the production of accounts from incomplete records is to
Aascertain the total sales
Bcompute the opening stock of goods sold
Cverify the total purchase
Dprepare an opening statement of affairs
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Question 44
jamb1995
The purchase ledger control account of a company had an opening balance of N45,600 credit and closing balance of N72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of N18,600 on this account. What were the credit purchase for the period?
AN509,600
BN482,600
CN428,600
DN418,400
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Question 45
jamb1995
Sales ledger control account contains the total amount in respect of
Acreditors
Bdebtors
Cinvestors
Dshareholders
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Question 46
jamb1995
Why are adjustments in the profit and loss account necessary?
ATo cover some expenses of the following year
BTo ascertain the actual expenses incurred and income earned during the year
CTo show the provision made during the year
DTo show the total expenses paid and income received during the year
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Question 47
jamb1995
Adama's bank account showed an overdraft of N600 on 31st march. On going through the account, it was discovered that the N1,080 paid into the account on 29th March had not been credited. what should be the balance in Adama's cash accounts?
AN1,680 Dr
BN1,080 Cr
CN600 Dr
DN480 Cr
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Question 48
jamb1995
The following represent extracts from the trading account of a retail outlet for a given month:
Opening stock N2,400
Closing stock N6,400
Other expenses N2,000
Sales N11,000
Profit N900
What is the purchase figure for the month?
AN13,000
BN12,100
CN12,000
DN11,200
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Question 49
jamb1995
A payment of cash of N20 to John was entered on the receipt side of the cash book in error and credited to John's account. Which of the following journal entry can be used to correct the error?
AJohn: N40 Dr, cash: N40 Cr
BCash: N40 Dr, John: N40 Cr
CJohn: N20 Dr, cash: N20 Cr
DCash: N20 Dr, John: N20 Cr
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Question 50
jamb1995
Bola, UTC's regular customer, owed N1,00 on account of a radio bought. If he sent in a cheque for N1,500, UTC would send him a
Acredit note
Bdebit note
Cjournal voucher
Dway bill
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Question 51
jamb1995
What are the advantages of an imprest petty cash book?
I cheques can be drawn easily
II A cheque on the use of cash
III Liability of the petty cashier is limited to the value of petty cash
IV Loses through the petty cashier can be minimized
AI, II and III only
BI, II and IV only
CI, III and IV only
DII, III and IV only
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Question 52
jamb1995
A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of
Aclassifying accounts in the ledger
Btesting arithmetical accuracies of the ledger account balances
Cidentifying the balance sheet items
Dproviding a basis for establishing the accountant's competence
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Question 53
jamb1995
One major advantage of ledger is that it
Ais a book of original entry
Bis only accessible to share holders during liquidation
Cremoves the need for preparing a balance sheet after each transaction
Dcan be used by any type of business
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Question 54
jamb1995
Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?
ACash account was credited with N500,000 and capital account was debited with N500,000
BBank account was debited with N500,000 and capital account was credited with N500,000
CBank account was accredited with N500,000
DMr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000
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Question 55
jamb1995
Which of the following transaction is BEST recorded in the general journal?
APayment of rent with cheque
BPurchase of stock with cash
CPurchase of an asset on credit terms
DTransfer of cash from head office branch
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Question 56
jamb1995
Given: Motor van, N3,600, Premises, N5,000; Loan from R. Nwaeke, N1,000; Cash at bank; N1,650; stock of goods N4,800; Creditors, N2,560; Cash in hand, N250 and debtors N6,910. calculate the capital figure.
AN19,650
BN18,650
CN17,850
DNN16,850
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Question 57
jamb1995
Which of the following accounting records are source documents?
AJournal and ledgers
BSales invoice and cash book
CCash book and debit note
Dsales invoice and debit note
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Question 58
jamb1995
An effective accounting system should provide information
Aon new product and methods
Bfor cutomer feed back and requirement
Con internal and external reporting for managers and third parties
Dfor promoters, directors, labour union and distributors
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Question 59
jamb1995
Which of the following concept stipulates that accounting profit is the difference between revenue and expenses?
AAccrual concept
BConservatism concept
CPrudence concept
DMateriality concept
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Question 60
jamb1995
which of the following factors has aided the development of accounting?
AThe emergence of nation states
BThe discovery of mineral resources in commercial quantity
Cthe growth in size of businesses and separation of ownership and management
Dthe development and management of sophisticated monetary system
