Principles Of Accounts 2004 Jamb Examination
Question 1
The accounting principle that is applied to check arbitrary actions on the part of accountants is
Correct option: C. Objectivity
The objectivity principle ensures that financial statements are based on verifiable and unbiased evidence, preventing arbitrary or subjective actions by accountants.
Not clear enough?
Question 2
The loss of equipment in a fire disaster results in
Correct option: C. a decrease in assets and capital
The loss of equipment reduces the total assets of the business. Since it is not caused by normal operations, it also leads to a reduction in the owner's capital due to the loss incurred.
Not clear enough?
Question 3
A source document is used for verifying the
Correct option: B. Actual cost of an asset
A source document (like an invoice or receipt) provides verifiable evidence of a transaction, especially the actual cost incurred in acquiring an asset.
Not clear enough?
Question 4
The rule of accounting equation requires that account payable should be placed under
Correct option: A. Liabilities
Accounts payable represents money owed by the business to creditors, and according to the accounting equation, it is classified under liabilities.
Not clear enough?
Question 5
Cashbook
$$
\begin{array}{|l r|l r|}
\hline
\text{Receipts} & \text{₦} & \text{Payments} & \text{₦} \\
\hline
\text{Capital} & 6600 & \text{Purchases} & 3500 \\
\text{Sales} & 3000 & \text{Stationery} & 1300 \\
\text{Debtors} & 2500 & \text{Wages} & 2700 \\
\hline
\end{array}
$$
The owner wishes to maintain an amount equal to 1/3 of capital as drawings
The amount withdrawn is
Correct option: B. ₦ 2,200
The capital is: ₦ 6,600
The amount to be withdrawn is one-third of the capital:
Drawings = 1/3 x 6,600 = ₦ 2,200
Not clear enough?
Question 6
Cashbook
$$
\begin{array}{|l r|l r|}
\hline
\text{Receipts} & \text{₦} & \text{Payments} & \text{₦} \\
\hline
\text{Capital} & 6600 & \text{Purchases} & 3500 \\
\text{Sales} & 3000 & \text{Stationery} & 1300 \\
\text{Debtors} & 2500 & \text{Wages} & 2700 \\
\hline
\end{array}
$$
The cash book closing balance will be
Correct option: C. ₦4,200
Total Receipts:
Capital = ₦6,600
Sales = ₦3,000
Debtors = ₦2,500
Total Receipts = 6,600 + 3,000 + 2,500 = 12,100
Total Payments:
Purchases = ₦3,500
Stationery = ₦1,300
Wages = ₦2,700
Total Payments = 3,500 + 1,300 + 2,700 = 7,500
Closing Balance: 12,100 − 7,500 = ₦4,200
Not clear enough?
Question 7
A debit in the suspense account will appear in the balance sheet as
Correct option: A. A current asset
A debit balance in the suspense account means that the business has recorded more debits than credits temporarily, indicating an asset until the error is corrected.
Not clear enough?
Question 8
The recipient whose name appears on cheque is called a
Correct option: D. Payee
The payee is the person or entity whose name appears on the cheque and who is to receive the payment.
Not clear enough?
Question 9
The imprest account is subsidiary to the
Correct option: D. Petty cash
The imprest account is a system used within the petty cash setup to control and replenish small cash expenses.
Not clear enough?
Question 10
The three-column cash book differs from the two-column cash book in
Correct option: B. Bank column
The three-column cash book includes cash, bank, and discount columns, while the two-column cash book has only cash and discount columns. The bank column is the additional feature.