Jamb Accounts - Principles of Accounts 1995 Past Questions and Answers

Question 26:

• JAMB 1995

Subscription in arrears are

A. Credited to the income and expenditure account and shown as a liability in the balance sheet
B. Debited to the income and expenditure account and shown as an asset in the balance sheet
C. Credited to the income and expenditure account and shown as a liability in the balance sheet
D. Debited to the income and expenditure account and shown as a liability in the balance sheet

Question 27:

• JAMB 1995

Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the

A. Appropriation account
B. Balance sheet
C. Income and expenditure account
D. Receipts and payment account

Question 28:

• JAMB 1995

A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as

A. Current asset
B. Current liability
C. Capital
D. Profit

Question 29:

• JAMB 1995

Which of the following is a strong feature of partnership?

A. The life of the partnership is generally assumed to be indefinite
B. The owners are liable personally for all debts of the business
C. The transfer of ownership interest is frequent and easy to accomplish
D. The partnership is complex to form because of many legal and reporting requirements

Question 30:

• JAMB 1995

Interest on a partner's drawings is debited to the

A. Partners current account and credited to the profit and loss appropriation account
B. Profit and loss appropriation account and credited to the partner's current account
C. Profit and loss account and credited to the partner's current account
D. Partner's current account and credited to the profit and loss account