Principles Of Accounts 2017 Jamb Examination

In branch accounting, specifically the stock and debtors system, any shortage or theft of goods must be removed from the branch stock. The 'Branch Adjustment Account' is debited to record the loss (at invoice price), and the 'Branch Stock Account' is credited to reduce the inventory.

Bank Reconciliation Statement

Item	Amount (₦)	Total (₦)
Balance as per cashbook		5,467
Add: Unpresented cheques	19,404
		24,871
Less: Uncredited cheques	(4,410)
Less: Cheques wrongly debited by bank	(1,404)
		(5,814)
Balance as per bank statement		19,057

The Trading Account captures items directly related to the cost of goods sold and gross profit. Sales, opening stock, and carriage inward (cost of bringing goods in) are all included. Carriage outward is a selling and distribution expense and belongs in the Profit and Loss Account.

In partnership accounting, goodwill is usually valued and 'created' in the books when there is a change in the partnership structure, such as the admission of a new partner, to credit the existing partners for the brand value they established.

Sales are determined by reconstructing the Total Debtors Control Account: \[ \text{Sales} = (\text{Closing Debtors} + \text{Cash Received} + \text{Bad Debts} + \text{Discount Allowed}) - \text{Opening Debtors} \] \[ \text{Sales} = (1,500 + 8,500 + 350 + 500) - 4,000 = 6,850 \] Note: Discount Received is excluded as it relates to creditors.

Dissolution of a partnership involves the formal process of closing down the business (cessation of business), selling off the firm's properties (disposal of assets), and using the proceeds to pay off what is owed to outsiders (settlement of debts). Introduction of assets (III) usually happens during formation or admission of a partner, not dissolution.

A three-column cash book contains columns for Cash, Bank, and Discount. The specific addition of the third column is meant to record 'Cash Discounts' (Discount Allowed on the debit side and Discount Received on the credit side) alongside the actual cash and bank movements.

The left-hand side (debit side) of the cash book records receipts. When a debtor pays us and we grant them a discount for prompt payment, it is called a 'Discount Allowed.' This reduction in the amount received is recorded in the debit discount column.

In public sector accounting, the Consolidated Revenue Fund (CRF) is the main treasury account of the government. All federally collected revenues are paid into this fund, and all expenditures for government operations (salaries, projects, etc.) are withdrawn from it, subject to legislative approval.

The Financial Memorandum (FM) is the primary handbook or guide that outlines the administrative and financial procedures specifically for Local Government Councils. It serves as their version of the Financial Regulations used at the State or Federal levels.