Jamb Accounts - Principles of Accounts 1998 Past Questions and Answers

Question 6:

• JAMB 1998

A business transaction is recorded in the books of account when the?

A. Owner of the business invests his N10,000 in another company
B. Business retains part of ofits profits for future expansion purposes
C. Business invest applies for overdraft facilities from its bankers
D. Owner of the business collects N5,000 from the accountant

Question 7:

• JAMB 1998

When a transaction causes an assets account to increase, there is?

A. A decrease of equal amount inthe owner's equity account
B. An increase in a liability account
C. An increase of equal amonut in another assets account
D. A decrease of equal amount in a liability account

Question 8:

• JAMB 1998

N
Bank account 59,410
Capital account 50,000
Purchase account 20,000
Rent 2,500
Stationery 90
typewriter 6,500
Sales 38,000
In preparing a trial from the list of balances given above, what is the total in debit and credit columns?

A. N147,910
B. N138,500
C. N88,500
D. N85,800

Question 9:

• JAMB 1998

The purchase of two generators by Hassan Electronics Enterprises should be recorded as?

A. An acquistion of fixed assets
B. An expenses in its general office expenses account
C. An acquistion of stock
D. A part of capital in the capital account

Question 10:

• JAMB 1998

If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to?

A. Overstate income this year and understate in next year
B. Understate income this year and overstate in next year
C. Understate this year's income with no effect on the next year's
D. Overstate the income for the two-year period