Jamb Accounts - Principles of Accounts 1995 Past Questions and Answers

Question 36:

• JAMB 1995

A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?

A. N1,000
B. N1,200
C. N4,800
D. N6,000

Question 37:

• JAMB 1995

The measure of a company's ability to pays its debts quickly is called

A. Current ratio
B. Turnover ratio
C. Acid test ratio
D. Return of investment

Question 38:

• JAMB 1995

Departmental accounts re maintained to ascertain the

A. Profits of the entire organization
B. Contribution of each department
C. Expenses of each department
D. Sales of each department

Question 39:

• JAMB 1995

The Asa branch of Emene company Ltd, made a sales of N549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the profit of the branch for the period?

A. N6,500
B. N64,600
C. N85,380
D. N514,600

Question 40:

• JAMB 1995

Which of the following statement is correct about the head office current account and the branch current account?

A. Both always have debit balances
B. Both always have credit balances
C. The head office current account has a credit balance while the branch current account has a debit balance
D. The head office current account has a debit balance while the branch current account has a credit balance