Discounts - 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 1998

The total of the discounts received column in the cash book is posted to the?

A. Credit of the discounts received account
B. Debit of the discounts allowed account
C. Credit of the discounts allowed accoun
D. Debit of the discounts received account

Question 3:

• JAMB 1999

Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?

A. N338.58
B. N342.00
C. N345.42
D. N360,00

Question 4:

• JAMB 2001

A reduction in the catalogue price of an article given by a wholesaler to a retailer is called a?

A. Bad debt
B. Trade discount
C. Premium
D. Cash discount

Question 5:

• JAMB 2008

Abba offers 5% cash discount on goods worth N10 000, The discount allowed account is to be?

A. Debited with N10 000
B. Credited with N10 000
C. Debited with N500
D. Credited with N500