Jamb Accounts - Principles of Accounts 2010 Past Questions and Answers

Question 16:

• JAMB 2010

Use the information below to answer questions
Sundry debtor..................N20,000
Provision for bad debts........N500
Provision for bad debt at 4% of sundry debtors.
Determine the provision for bad debts to profit and loss account?

A. N500
B. N820
C. N1300
D. N300

Question 17:

• JAMB 2010

Use the information below to answer questions
Sundry debtor..................N20,000
Provision for bad debts........N500
Provision for bad debt at 4% of sundry debtors.

Calculate the provision to be taken to the balance sheet?

A. N780
B. N800
C. 1200
D. N200

Question 18:

• JAMB 2010

If an organization maintains a periodic stock system, the stock quantities are?

A. Updated at the end of the accounting year
B. Not considered in the updating process
C. Updated continuously
D. Updated at the beginning of the accounting year

Question 19:

• JAMB 2010

If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to?

A. Have a higher cost of goods sold
B. Have a higher gross profit
C. Pay higher gross profit
D. Have a higher value for closing stock

Question 20:

• JAMB 2010

Use the information below to answer questions 23 and 24.
............................31/12/07.......31/12/08
Stocks........................N4 200.........N3 900
Rates in advance..............N1 000.........N1 500
Accrued wages.................N1 150.........N1 350
Cost of goods sold was valued at N6 000.
Cash paid for rates and wages during the year was N1 300 and N2 200 respectively.
What is the value of purchases for the year 2008?

A. N6 000
B. N9 900
C. N14 100
D. N5 700