Principles Of Accounts 2008 Jamb Examination

The formation of a company (specifically a limited liability company) follows a legal sequence: first, deciding on the name and objects (Particulars); second, drafting the Memorandum and Articles of Association (Preparation); third, submitting these to the Corporate Affairs Commission (Filing); and finally, the issuance of a Certificate of Incorporation (Registration). All four steps are essential parts of the legal birth of a company.

The Debt Ratio measures the proportion of a company's assets that are financed through debt. It is calculated as:
\( \text{Debt Ratio} = \frac{\text{Total Debt}}{\text{Total Assets}} \times 100 \)

1. Total Debt (Creditors + Debentures) = \( 80,000 + 100,000 = 180,000 \)
2. Total Assets = 430,000
3. Calculation: \( \frac{180,000}{430,000} \times 100 \approx 41.86\% \)

Rounding to the nearest whole number gives us approximately 42%.

To check liquidity, we look at the Current Ratio (Current Assets / Current Liabilities).
1. Current Assets (Stock + Debtors + Bank) = \( 20,000 + 50,000 + 10,000 = 80,000 \)
2. Current Liabilities (Creditors) = 80,000
3. Current Ratio = \( 80,000 : 80,000 = 1:1 \).

While a 1:1 ratio is generally considered tight, the company's Working Capital (Current Assets - Current Liabilities) is exactly \( 80,000 - 80,000 = 0 \). Therefore, option D is the most factually accurate statement derived from the figures.

In departmental accounting, goods transferred *out* of a department are treated like sales for that department.

1. Total Credits for Q: Sales (4,000) + Closing Stock (500) + Transfer to P (300) = 4,800
2. Total Debits for Q: Opening Stock (1,000) + Purchases (1,500) = 2,500
3. Gross Profit: \( 4,800 - 2,500 = 2,300 \)

First, calculate Gross Profit for P. Note that transfers *into* a department are treated like purchases.
1. Cost of Goods Sold (P): Opening Stock (2,000) + Purchases (2,500) + Transfer In (300) - Closing Stock (1,500) = 3,300
2. Gross Profit (P): Sales (6,000) - COGS (3,300) = 2,700
3. Net Profit (P): Gross Profit (2,700) - Expenses (200) = 2,500.
Wait—there's a slight discrepancy with the profit calculation logic used in standard JAMB keys for this specific year, but based on the math provided: \( 2,700 - 200 = 2,500 \).