Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 121:

• JAMB 1997

Share premium can be used to?
i. write off discount on shares
ii. give loans to directors
iii.pay dividends
iv. pay company's formation expenses.

A. I and iv only
B. I and iii only
C. Ii and iii only
D. Iii and iv only

Question 122:

• JAMB 1997

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

A. N125 000
B. N500 000
C. N50 000
D. N25 000

Question 123:

• JAMB 1997

What is the balance of the bank account shown above?

A. N88 500 debit
B. N 88 500 credit
C. N 59 410 credit
D. N 59 410 debit

Question 124:

• JAMB 1997

In analyzing incomplete records, which of the following should be investigated?

A. The general ledger
B. The purchases day book and sales day book
C. The nature of trading activities and the basis on which goods are sold
D. The asset register together with the depreciation schedule

Question 125:

• JAMB 1997

Given: N
Direct material - 10 000
Direct labour - 5000
Direct expenses - 2000
Factory overhead - 4000
What is the prime cost?

A. N21 000
B. N 17 000
C. N 15 000
D. N 6 000