Principles Of Accounts 2017 Jamb Examination

This is a contra entry. When you take physical cash and deposit it into the bank, the cash held in the office decreases (credit cash), and the balance held at the bank increases (debit bank).

The fundamental accounting equation states that the resources owned by a business (Assets) are always equal to the claims against those resources by creditors (Liabilities) and owners (Equity). Mathematically: \( \text{Assets} = \text{Liabilities} + \text{Equity} \).

Based on the provided data table, the Carriage Outwards is explicitly listed as ₦500. This is the cost of delivering goods to customers and is recorded in the Profit and Loss account.

The accounting equation represents the balance sheet's core logic: \( \text{Assets} = \text{Liabilities} + \text{Owner's Equity} \). Any change in one part of the equation must be balanced by an equal change in another part.

Subscription in advance is money received from members for a future period. Since the organization owes a service or membership benefits to the person who paid early, it is treated as a liability until the time period it relates to arrives.

In data processing, a master file is a permanent or semi-permanent file that contains comprehensive information about a particular subject (e.g., a Customer Master File or Employee Master File). It serves as the main reference point for an organization's specific records.

A Treasury Receipt is the official document issued to acknowledge that money has been received by the government. It acts as the primary evidence for the revenue collector that the funds have been properly remitted to the treasury.

Dividends are the portion of a company's after-tax profit that the board of directors decides to distribute to its shareholders as a return on their investment in the business.

In a Joint Venture account, all costs and expenses incurred for the venture are debited to the 'Joint Venture Account' to determine the final profit or loss. If a venturer pays cash for an expense, the Joint Venture account is debited, and the Bank (or Cash) account is credited.