Jamb Accounts - Principles of Accounts 1998 Past Questions and Answers

Question 16:

• JAMB 1998

Sobande Incorporation acquired a machine that involved the following expenditures and related factors.
N
Gross invoice price 15,000
Sales tax 900
Purchases discount taken 300
Freight 750
Assembly of machine 500
Installation of machine 800
Assorted spare parts for future use 1200
Turing and adjusting machine 700
What is the initial accounting cost of the machine?

A. N19,550
B. N18,950
C. N18,350
D. N17,500

Question 17:

• JAMB 1998

A pottery company had sales of N176,000 during the current period and a gross profit rate of 40%.
The company's cost of merchandize available for sale during the period was N128,000. The company's ending inventory is?

A. N22,400
B. N32,000
C. N51,200
D. N76,800

Question 18:

• JAMB 1998

On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?

A. N10,000 loss
B. N2,000 loss
C. N6,000 gain
D. N8,000 gain

Question 19:

• JAMB 1998

The balance on a purchase ledger control account represents the?

A. Present amount that a business owes its suppliers at date
B. Total credit avaiable to the end of the year to be utilized in future
C. Total credit the business enjoyed for the particular year from its suppliers
D. Total credit owd the business by its customers

Question 20:

• JAMB 1998

A powerful instrument of control over both the sales ledger and the clek whose duty is to post the ledger is the?

A. Total debtors account
B. Purchase day book
C. Sales day book
D. Cash book