Principles Of Accounts 2018 Jamb Examination

The 'Sales Day Book' (also known as the Sales Journal) is a book of original entry specifically designed to record all credit sales transactions as they occur. At the end of an accounting period, the total of this book is used to post to the Sales Account in the General Ledger. The Cash Book only records cash sales, and the Petty Cash Book handles small cash disbursements, neither of which would contain information regarding credit extended to customers.

The straight-line method of depreciation spreads the cost of an asset evenly over its useful life. The formula is:\[ \text{Annual Depreciation} = \frac{\text{Cost} - \text{Scrap Value}}{\text{Useful Life}} \]Using the updated scrap value of ₦15,000 provided in the question context:
Cost = ₦35,000
Scrap Value = ₦15,000
Useful Life = 5 years
Calculation:\[ \text{Annual Depreciation} = \frac{35,000 - 15,000}{5} \]\[ \text{Annual Depreciation} = \frac{20,000}{5} = 4,000 \]Therefore, the yearly depreciation charge is ₦4,000.

Occupations are classified into various sectors based on the nature of the work. 'Extractive' occupations involve the direct extraction or collection of natural resources from the earth or sea. Activities such as fishing, crabbing, mining, and farming (primary production) fall under this category because they involve taking raw materials from nature without changing their form through manufacturing. Commercial occupations involve trade, while manufacturing involves processing raw materials into finished goods.

Using the original estimates provided for the machine:
Cost = ₦35,000
Scrap Value = ₦9,000
Useful Life = 5 years
The straight-line depreciation formula is:\[ \text{Annual Depreciation} = \frac{\text{Cost} - \text{Scrap Value}}{\text{Useful Life}} \]Calculation:\[ \text{Annual Depreciation} = \frac{35,000 - 9,000}{5} \]\[ \text{Annual Depreciation} = \frac{26,000}{5} = 5,200 \]The yearly depreciation for the machine based on these parameters is ₦5,200.

When a business issues a cheque, it is making a payment, which reduces the bank balance of the business. According to the rules of double entry, a decrease in an asset (Bank) must be credited. The receiving party (the creditor or 'drawer' of the payment) is the receiver of the value and must be debited. Therefore, the correct entry is to credit the Cash Book (Bank column) and debit the account of the person or entity to whom the cheque was issued.

Government accounting utilizes 'Fund Accounting' to ensure accountability rather than to measure profitability. A 'fund' is a self-balancing set of accounts used to record resources that are restricted for specific activities or objectives in accordance with special regulations or limitations. This differs from private sector accounting, which focuses on the entity as a single proprietorship or corporate body. Virement refers to the transfer of funds between budget heads, not the accounting method itself.

A trial balance only catches errors that cause the total debits to not equal total credits. Most errors (omission, commission, original entry) involve the same wrong amount being debited and credited, so the trial balance still balances. However, an 'error of transposition' occurs when numbers are swapped (e.g., writing 54 instead of 45). If this happens in only one side of an entry, or if the transposition creates a mathematical discrepancy between the ledger total and the trial balance entry, it will cause the trial balance to disagree, thereby alerting the accountant to an inaccuracy.

The imprest system is a method for managing petty cash where a fixed amount (float) is provided to a petty cashier. While it does provide accountability and analysis, its 'major advantage' in a large organizational structure is operational efficiency. By delegating small, frequent payments to a petty cashier, it 'relieves the chief cashier' of the burden of handling numerous minor transactions, allowing them to focus on high-value financial management and control.

Current assets are resources that a business expects to convert into cash or consume within one year. Based on the standard components provided in the calculation context for this question:
1. Closing Stock = ₦4,000
2. Debtors = ₦6,351
3. Cash at Bank = ₦10,000
Calculation:\[ \text{Total Current Assets} = \text{Stock} + \text{Debtors} + \text{Cash at Bank} \]\[ \text{Total Current Assets} = 4,000 + 6,351 + 10,000 = 20,351 \]Note: In the specific JAMB 2018 sequence, if figures from previous tables (like Question 53 or 60's intended source) are used, the sum of Assets (Stock + Debtors + Cash) provides the total. Given the options provided, ₦20,351 is the direct sum of these assets.

Current liabilities are short-term obligations usually settled within one year. From the given list, the items that qualify as current liabilities are Creditors (amounts owed to suppliers) and Accrual Expenses (expenses incurred but not yet paid).

Current Liabilities = Creditors (7,940) + Accrual Expenses (323) = 8,263