The Final Accounts of a Sole Trader - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 136:

• JAMB 2013

When goods produced are transferred at cost plus mark-up sale, the difference between the cost and the transferred price is a

A. Discount
B. Sales commission
C. Manufacturing profit
D. Factory reserves

Question 137:

• JAMB 2014

The major focus of the trading account is to show

A. Net profit
B. Gross margin
C. Total purchases
D. Total sales

Question 138:

• JAMB 2014

If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method; depreciation charged for two years will be

A. #700,000
B. #240,000
C. #220,000
D. #202,000

Question 139:

• JAMB 2014

The excess of sales over cost of goods sold is

A. Gross sales
B. Gross profit
C. Net profit
D. Net sales

Question 140:

• JAMB 2014

The formula for calculating depreciation using straight line method is

A. \( \frac{\text{Scrape Value} + \text{Sales}}{Useful life} \)
B. \( \frac{\text{Cost } - \text{Scrape Value}}{Useful life} \)
C. \( \frac{\text{Sales } - \text{Scrape Value}}{Useful life} \)
D. \( \frac{\text{Purchases } + \text{Sales }}{Useful life} \)