The Final Accounts of a Sole Trader - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 81:

• JAMB 2005

Use the information to answer question .
A piece of equipment costing N120,000 was purchased on 1/1/1996. Depreciation was provided at 20% per annum on a straight-line basis. it was sold on 30/6/1999 for N31,500.
The net book value of the piece of equipment at the time of sale was?

A. N96 000
B. N48 000
C. N36 000
D. N24 000

Question 82:

• JAMB 2005

Musa merchants Trading and profit and Loss Account for the year ended Dec.31st, 2003
Determine the closing stock

A. N20 000
B. N30, 000
C. N40 000
D. N50,000

Question 83:

• JAMB 2006

Use the information below to answer questions .
On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.
Calculate the yearly depreciation expense using the straight line method.

A. N11 000
B. N11 200
C. N11 400
D. N11 300

Question 84:

• JAMB 2006

Use the information below to answer questions .
On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.
the rate of the yearly depreciation expense would be?

A. 50%
B. 40%
C. 30%
D. 20%

Question 85:

• JAMB 2006

The objective of a trading account is to establish the?

A. Cost of goods sold
B. Gross profit
C. Manufacturing profit
D. Net profit