The ledger and its classifications - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1995

Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?

A. Cash account was credited with N500,000 and capital account was debited with N500,000
B. Bank account was debited with N500,000 and capital account was credited with N500,000
C. Bank account was accredited with N500,000
D. Mr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000

Question 7:

• JAMB 1995

One major advantage of ledger is that it

A. Is a book of original entry
B. Is only accessible to share holders during liquidation
C. Removes the need for preparing a balance sheet after each transaction
D. Can be used by any type of business

Question 8:

• JAMB 1997

The effect of the payment of liability is that it

A. Increase both assets and liabilities
B. Increase assets and decrease liabilities
C. Decrease assets and increase liabilities
D. Decrease both assets and liabilities

Question 9:

• JAMB 1997

The term 'posting' in Accounting refers to

A. Recording entries in the journal
B. Transferring the balance in the ledger to the trial balance
C. Tracing amounts from the journal to the ledger to find errors
D. Transferring entries to the ledger from the journal

Question 10:

• JAMB 1997

On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?

A. Debit rent account and credited adjustment account
B. Debit prepayment account and credit rent account
C. Debit rent account and credit prepayment account
D. Debit adjustment account and credit prepayment account