Principles of Double Entry - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1994

The suspense account is used to correct book-keeping error where the

A. Amount involved is quite significant
B. Item involved is not material
C. Item involved is unknown
D. Error does not affect the agreement of the trial balance

Question 7:

• 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 8:

• 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 9:

• JAMB 1994

Goodwill appears in the books of a business only if it has been

A. Purchased at a certain price
B. Raised in connection with the admission of a new partner
C. Raised to account for the true value of a business on the death of a partner
D. Raised in order to prevent the balance sheet showing that the business is insolvent

Question 10:

• JAMB 1994

when shares issued are paid for, accounting entry required is

A. Debit bank or cash account and credit share capital and/or premium account
B. Credit bank or cash account and debit share capital and/or premium account
C. Debit shares account and credit capital account
D. Credit shares account and debit capital account