Branch Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• 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 7:

• JAMB 2000

Halal Limited with three departments has a total of N7,200,000 as net debtors for the year ended 31/12/97.
The company's policy provides for 15% bad debt annually. Which of the following represents the total balance of debtors before adjustment?

A. N6,120,000
B. N6,120,300
C. N8,280,000
D. 8,820,000

Question 8:

• JAMB 2001

To account for expenses paid by head office on behalf of the branch, the branch should?

A. Debit head office account and credit cash
B. Debit profit and loss account and credit headoffice account
C. Credit cash and debit profitand loss account
D. Credit profit and loss account and debit head office account

Question 9:

• 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 10:

• 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