Jamb Accounts - Principles of Accounts 2005 Past Questions and Answers

Question 41:

• JAMB 2005

Use the information below to answer question
Jide and Haruna contribute N12000 each as capital and share profit equally. Jide draws N1500 and Haruna N1700 half-yearly. The profit for the year is N10000. Jide receives a salary of N2000.
The balances of current accounts of Jide and Haruna are respectively?

A. N6000 and N5000
B. N3000 and N3400
C. N4000 and N4000
D. N3000 and N600

Question 42:

• JAMB 2005

When assets are realized during a partnership dissolution, the entries for the proceeds are to debit?

A. Cash account and credit realization account
B. Rassets account and credit realization account
C. Realization account and credit realization account
D. Assets account and credit cash account

Question 43:

• JAMB 2005

A company paid cash in redemption of N10,000 debenture.
The accounting entry to record this will be to debit?

A. Cash and credit debenture
B. Debenture and credit cash
C. Cash and credit capital
D. Capital and debit cash

Question 44:

• JAMB 2005

The accounting method that reports incomes when earned and expenses when incurred is called?

A. Cash accounting
B. Commitment accounting
C. Fund accounting
D. Accrual accounting

Question 45:

• JAMB 2005

The tier of government that uses financial memorandum is the?

A. Federal government
B. State government
C. Local government
D. Municipal government