Principles Of Accounts 2005 Jamb Examination
Question 41
| N | N | |||
|---|---|---|---|---|
| Stock (1/1/2003) | 60 000 | Sales | 290 000 | |
| Purchases | 90 000 | |||
| Cost of goods available for sale | 150 000 | |||
| Stock 31/12/2003 | ? | |||
| Cost of goods sold | ? | |||
| Gross profit | 180 000 | |||
| 290 000 | 290 000 |
The capital employed is
C. N8 400
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Question 42
| Date | Particulars | Quantity (Units) | Unit Price N |
|---|---|---|---|
| Jan. | Received | 100 | 2.00 |
| Feb. | Received | 110 | 2.50 |
| March | Issued | 80 | |
| April | Received | 200 | 3.00 |
| May | Issued | 100 |
Determine the closing stock under LOFO method
Under LOFO, issues are made from the most recent purchases.
After issuing 80 units in March from February’s batch and 100 units in May from April’s batch, the remaining stock is:
-
100 units @ N2.00
-
30 units @ N2.50
-
100 units @ N3.00
Closing stock value = N200 + N75 + N300 = N575.
Not clear enough?
Question 43
| Date | Particulars | Quantity (Units) | Unit Price N |
|---|---|---|---|
| Jan. | Received | 100 | 2.00 |
| Feb. | Received | 110 | 2.50 |
| March | Issued | 80 | |
| April | Received | 200 | 3.00 |
| May | Issued | 100 |
Calculate the closing stock under FIFO method
Explanation (FIFO): Total units received = 100 (Jan) + 110 (Feb) + 200 (Apr) = 410 units. Total issued = 80 (Mar) + 100 (May) = 180 units. Closing units = 410 − 180 = 230 units.
Under FIFO the oldest units are issued first. After issuing 180 units, remaining stock is: 30 units from Feb @ N2.50 and 200 units from Apr @ N3.00.
Closing stock value = 30×2.50 + 200×3.00 = 75 + 600 = N675.
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Question 44
| Balance Sheet (Extract) | ||
|---|---|---|
| ₦ | ₦ | |
| Capital | 40 000 | Building |
| Net profit | 12 000 | Equipment |
| 52 000 | Stock | |
| Creditors | 8 000 | Debtors |
| Wages owed | 4 000 | Cash |
| Rent owed | 3 000 | |
| 67 000 |
The current ratio is
B. 2:1
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Question 45
| Balance Sheet (Extract) | ||
|---|---|---|
| ₦ | ₦ | |
| Capital | 40 000 | Building |
| Net profit | 12 000 | Equipment |
| 52 000 | Stock | |
| Creditors | 8 000 | Debtors |
| Wages owed | 4 000 | Cash |
| Rent owed | 3 000 | |
| 67 000 |
The quick ratio is
B. 1:3:1
Not clear enough?
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