Jamb Accounts - Principles of Accounts 2014 Past Questions and Answers

Question 16:

• JAMB 2014

The major focus of the trading account is to show

A. Net profit
B. Gross margin
C. Total purchases
D. Total sales

Question 17:

• JAMB 2014

If goods were bought from Tanko at a cost price of #9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?

A. #4,500
B. #8,550
C. #9,000
D. #9,450

Question 18:

• JAMB 2014

If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method; depreciation charged for two years will be

A. #700,000
B. #240,000
C. #220,000
D. #202,000

Question 19:

• JAMB 2014

Balance sheet (Extract)
Creditors #7,940
Prepaid expenses # 290
Accrual expenses # 323
Stock #4,500
Cash balance #4,956
Debtors # 905
The value of the current assets will be

A. #10,361
B. #10,651
C. #17,396
D. #17,848

Question 20:

• JAMB 2014

Balance sheet (Extract)
Creditors #7,940
Prepaid expenses # 290
Accrual expenses # 323
Stock #4,500
Cash balance #4,956
Debtors # 905
Determine the current liabilities

A. #8,553
B. #8,263
C. #7,940
D. #1,228