Jamb Accounts - Principles of Accounts 1999 Past Questions and Answers

Question 36:

• JAMB 1999

Shares issued to a vendor in payment of business purchased would require a debit to?

A. Cash account and credit to share capital account
B. Share capital account and credit to vendor's account
C. Vendor's account and credit to share capital account
D. Share capital account and credit to cash account

Question 37:

• JAMB 1999

The best method of allocating expenses among departments is to?

A. Allocate expenses to each department in proportion to the sales of that department
B. Charge against each department those costs which are within its control
C. Charge expenses against each department in proportion to the purchases of that department
D. Allocate expenses to each section of the department in relation to the number of people

Question 38:

• JAMB 1999

To record the transfer of stock from one department to another, the correct entry would be to debit?

A. Goods outwards and credit goods inwards
B. Merchandise account and credit department stock account
C. Department transfering and credit department receivving
D. Department receiving and credit department transfering

Question 39:

• JAMB 1999

Use the information below to Answer questions 46 and 47.
Among Limited invoiced goods at a cost of N10,000 to its Ikeja branch at a marginal of 20%. The branch later returned goods worth N1,200 at invoice price to the head office.
The profit marginal should be?

A. Debit to goods sent to branch account
B. Debit to branch stock adjustment account
C. Credit to branch adjustment account
D. Credit to branch stock adjustment account

Question 40:

• JAMB 1999

What is the correct entry in the head office books at the point of initial transfer of the goods?

A. Branch stock account would be credited with
B. Branch stock account would be debited with N12,000
C. Goods sent to branch account would be debited with N10,800
D. Goods sent to branch account would be credited with N12,000