Books of original entry - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 1994

The discount column of a three column cashbook is not balanced off but periodically transferred to the discount account because discounts

A. Are not important in cashbooks
B. Are cash items only
C. Do not form part of double entry
D. Are used for bank reconciliation

Question 3:

• JAMB 1994

When is a petty cash account debited?

A. When the fund is established and every time money is spent
B. When the fund is established and every time it is replenished
C. When the fund is established and when the size of the float is decreased
D. Every time money is drawn from the petty cash

Question 4:

• JAMB 1995

Which of the following transaction is BEST recorded in the general journal?

A. Payment of rent with cheque
B. Purchase of stock with cash
C. Purchase of an asset on credit terms
D. Transfer of cash from head office branch

Question 5:

• JAMB 1995

What are the advantages of an imprest petty cash book?
I cheques can be drawn easily
II A cheque on the use of cash
III Liability of the petty cashier is limited to the value of petty cash
IV Loses through the petty cashier can be minimized

A. I, II and III only
B. I, II and IV only
C. I, III and IV only
D. II, III and IV only