Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 116:

• JAMB 1997

Which of the following stock valuation methods is suitable under inflationary conditions?

A. FIFO
B. LIFO
C. Simple average
D. Weighted average

Question 117:

• JAMB 1997

The understatement of closing value of work-in-process would have the effect of?

A. Understating cost of goods manufactured
B. Overstating prime cost of manufactured
C. Overstating cost of goods manufactured
D. Undersating prime cost of goods manufactured

Question 118:

• JAMB 1997

Emeka Manufacturing Company (Extract) Manufacturing Account.
Direct material.....................N5 000
Direct labour.......................N4 500
Direct expenses.....................N3 000
Factory overhead....................N2 500
Selling distribution................N1 500
Calculating the production cost?

A. N16 500
B. N15 000
C. N14 000
D. N12 500

Question 119:

• JAMB 1997

Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.
Calculate the profit for Adamu?

A. N583
B. N1 000
C. N1 167
D. N1 750

Question 120:

• JAMB 1997

Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?

A. Faruk, (N450); Osawe, (N1 050)
B. Faruk, (N3 150); Osawe, (N7350)
C. Faruk, (2 250); Osawe, (N7 350)
D. Faruk, (N450); Osawe, (N1 050)