Principles Of Accounts 2014 Jamb Examination

To find the closing stock, we work backwards from the Gross Profit and Net Sales. Step 1: Identify Net Sales. \[ \text{Net Sales} = 300,000 - 30,000 = 270,000 \] Step 2: Calculate Cost of Goods Sold (COGS). \[ \text{COGS} = \text{Net Sales} - \text{Gross Profit} = 270,000 - 150,000 = 120,000 \] Step 3: Solve for Closing Stock using the COGS formula. \[ \text{COGS} = \text{Cost of Goods Available for Sale} - \text{Closing Stock} \] \[ 120,000 = 170,000 - \text{Closing Stock} \] \[ \text{Closing Stock} = 170,000 - 120,000 = 50,000 \]

In an Income and Expenditure account, only revenue items that represent income for the current period are recorded.

Note: The opening balance (₦390) from the Receipts and Payments account is not considered income for the Income and Expenditure account. "Total Income" refers to the sum of the income-side entries.

Total Income = Sales of tickets (4,000) + Donations (3,000) + Subscriptions (6,500) = 13,500

The balance carried down (surplus) is the difference between the total side of the income and the total of the expenditures. Step 1: Calculate Total Income Side. \[ 390 + 4,000 + 3,000 + 6,500 = 13,890 \] Step 2: Calculate Total Expenditure. \[ 300 + 510 + 400 + 350 = 1,560 \] Step 3: Find the Balance. \[ 13,890 - 1,560 = 12,330 \]

To solve this, first determine the number of shares from the nominal value, then multiply by the issue price. Step 1: Calculate the number of shares.\[ \text{Shares} = \frac{\#800,000}{0.50} = 1,600,000 \; \text{shares} \]Step 2: Calculate cash received at the issue price of #1.\[ 1,600,000 \times \#1 = \#1,600,000 \]Since the business is receiving cash, the Cash Book must be debited to record the increase in assets.

The amount received is based on the actual number of shares subscribed (900,000) multiplied by the rate per share for that specific stage (25k). \[ \text{Amount} = 900,000 \times 0.25 = 225,000 \]

The book value of share capital is always recorded at its nominal (face) value, regardless of the issue price. \[ \text{Book Value} = \text{Number of Shares Issued} \times \text{Nominal Value} \]\[ 1,300,000 \times 0.75 = 975,000 \]

In government accounting, the Consolidated Revenue Fund (often referred to as the Federation Account in a broader Nigerian context) is the main 'pot' where all government revenue is pooled and from which all authorized public expenditures are withdrawn.

Unlike private accounting, which focuses on the owner's equity (proprietorship), government accounting uses fund accounting. This method treats different activities or restricted pools of money as separate financial entities, each with its own self-balancing set of accounts to ensure resources are used only for their intended legal purposes.

The straight-line method spreads the depreciable cost of an asset (Cost minus its residual/scrap value) evenly over its estimated useful life.