Branch accounts in the head office books - 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 2000

A major benefit derived from the reconciliation of branch and head office books is to?

A. Determine accurate returns by the branch
B. Ascertian the correct profit or loss on branch activities
C. Enable the branch to keep control over stock
D. Enable the branch to ascertain debtor's balance

Question 3:

• JAMB 2002

Use the information below to answer questions
Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.
Stock at branch 1st January at cost............N400
Goods sent to branch at cost...................N8000
Returns to head ...............................N340
Cash sales ....................................N9160
Stock at branch 31st December at cost..........N720
What is the gross profit carried to the profit and loss account?

A. N1820
B. N1640
C. N1530
D. N1870

Question 4:

• JAMB 2002

Use the information below to answer questions Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch. Stock at branch 1st January at cost............N400 Goods sent to branch at cost...................N8000 Returns to head ...............................N340 Cash sales ....................................N9160 Stock at branch 31st December at cost..........N720
Calculate the cost of goods credited to the head office trading account?

A. N7660
B. N7500
C. N7460
D. N7200

Question 5:

• JAMB 2002

Given that 1/3 of the N6000 stock held by a branch is purchased from outsiders. If goods are invoiced to branch at 25% on cost, the provision for unrealized profit is?

A. N1000.00
B. N333.33
C. N666.66
D. N800.00