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Question 1 Principles of Accounting | JAMB/UTME (2018)
A

?7000

 
B

?10000

 
C

?22000

 
D

?15000

 
Explanation.
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Capital Employed is the difference between the total assets and current liabilities of the company


Correct Option:
D
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Question 2 Principles of Accounting | JAMB/UTME (2018)
A
Sales department 
B
Production department 
C
Purchase department 
D
Administration department 
Explanation.
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Advertising expenses are expenses incurred in order to enhance the sales of the company’s product/services


Correct Option:
A
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Question 3 Principles of Accounting | JAMB/UTME (2018)
A
1:1 
B
2:3 
C
1:2 
D
3:2 
Explanation.
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Acid test ratio measures the liquidity position of a company after deduction stock (inventory) from current assets

  Formula: current assets less inventory/current liabilities

  18000 - 4000/14000 = 1 : 1


Correct Option:
A
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Question 4 Principles of Accounting | JAMB/UTME (2018)
A
Price above or below the stipulated price 
B
Any price but not below the transfer price 
C
Cost price 
D
A price that is equal to the mark up 
Explanation.
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Cost plus mark up is a pricing strategy in which the selling price is determined by adding a specific amount mark up to a product unit cost


Correct Option:
A
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Question 5 Principles of Accounting | JAMB/UTME (2018)
A
Accountant general 
B
Finance minister 
C
Auditor general 
D
Permanent secretory. 
Explanation.
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Appropriation is the amount that government reserves for a particular purpose. Public expenditure is the spending made by government of a country on collective needs


Correct Option:
C
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Question 6 Principles of Accounting | JAMB/UTME (2018)
A
#20,500 
B
#23,000 
C
#28,000 
D
#27,000 
Explanation.
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Average stock is the calculating the addition of stock at the beginning and at the end of the financial period and dividing the value by two.

  It is the average value of products kept for sale during an accounting period.

  Therefore:

  Average stock = opening stock + closing stock/2

  = 32000 + 9000/2

  = 41000/2

  =? 20500


Correct Option:
A
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Question 7 Principles of Accounting | JAMB/UTME (2018)
A
#61,000 
B
#62,000 
C
#58,000 
D
#57,000 
Explanation.
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Cost of goods sold is the direct costs attributable to the production of the goods sold in a company.

  Cost of goods available for sale (32000 + 39000) = 71000

  Less closing stock = 9000

  Cost of goods sold = 7100 - 9000

 = 62000


Correct Option:
B
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Question 8 Principles of Accounting | JAMB/UTME (2018)
A
Call in advance 
B
call in arrears 
C
forfeiture 
D
shares 
Explanation.
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is the amount called by the company which is not paid by the shareholders before the due date fixed for payment


Correct Option:
B
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Question 9 Principles of Accounting | JAMB/UTME (2018)
A
Goodwill account and credit partners capital account 
B
Cash account and credit goodwill account 
C
Goodwill account and credit cash account 
D
Partners capital account and credit goodwill account 
Explanation.
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When goodwill is raised in the books at full value, the entry is

  Dr Goodwill Account

  Cr Old partners capital account (old ratio)

  When the raised goodwill is written off, entry will be:

  Dr All partners capital account

  Cr Goodwill accounts

  Note: goodwill written off includes new partners in the new profit sharing ratio


Correct Option:
D
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Question 10 Principles of Accounting | JAMB/UTME (2018)
A
#40,000 
B
#41,500 
C
#41,700 
D
48,500 
Explanation.
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Trading, profit and loss account for the month ended 31/1/95

 

For the month ended 31/1/95

                                                                ?                             ?

Sales                                                                                      8200

Cost of sales:

Purchases                                           15000

Closing stock                                      (10000)                (5000)  

Gross profit                                                                        8200

Gross profit b/d                                                                8200

Sales commission                             500

Rent                                                    1000                     (1500)

Net profit                                                                            1700

WORKINGS:

Rent paid for 12 months                                                   12000

Rent paid for one month

12000 x 1/12                                                                      (1000)

Prepaid rent                                                                       11000

Balance sheet as at 31/1/95                                                                                                                                                                                                                                                       

Noncurrent asset:                                                           

Furnishing                                           10000

Ceiling fan                                           1500                      11500

Current asset:

Cash (see cash account)                     9200

Inventory                                             10000 

Prepaid rent (see above)                    11000                          30200   

                                                                                               41700

Capital                                                                                    40000

Net profit (see p&l)                                                                  1,700                                    

                                                                                                41700


Correct Option:
C
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