Jamb Accounts - Principles of Accounts 2003 Past Questions and Answers

Question 11:

• JAMB 2003

Given:
Capital ...........N1000
Liabilities........N500
Assets.............N1500
The accounting equation can be expressed as?

A. N1000 + N500 + N1500 = N3000
B. N1000 - N500 + N1500 = N2000
C. N1000 + N500 = N1500
D. N1500 + N500 = N2000

Question 12:

• JAMB 2003

Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?

A. N280,000
B. N289,000
C. N250,000
D. N340,000

Question 13:

• JAMB 2003

Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
What is the actual profit or loss arising from the vehicle disposed of?

A. N250 000 loss
B. N50 000 loss
C. N450 000 profit
D. N575 000 profit

Question 14:

• JAMB 2003

Given:
(i) Order of performance
(ii) Order of liquidity
(iii)Vertical order
(iv) Horizontal order
The order in which a balance assets is arranged are?

A. I and ii
B. I and iv
C. Ii and iii
D. Iii and iv

Question 15:

• JAMB 2003

Provision for discount allowed can be recorded as debit to?

A. The profit and loss account and a credit to provision for discount allowed
B. Provision for discount allowed and a credit to the profit and loss account
C. Discount allowed and a credit to the profit and loss account
D. Expenses and a credit to customers' account