Adjustments - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 11:

• JAMB 1998

On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?

A. N10,000 loss
B. N2,000 loss
C. N6,000 gain
D. N8,000 gain

Question 12:

• JAMB 1998

Determine the year''s purchase from the following information relating to a firm.
Total creditor''s b/f N 7,200
Total cash payment to suppliers N 98,800
Total creditors c/f N 8,400

A. N7,200
B. N98,800
C. N100,000
D. N105,800

Question 13:

• JAMB 1998

Derive the total sales figure from the following information extracted from a firm's cash book and other relevant records.
Total debtors b/f N 5,600
Total cash receipts from debtors
and cash sales N 153,000
Total debtors c/f N 6,800

A. N6,800
B. N153,000
C. N154,200
D. N159,800

Question 14:

• JAMB 1998

Use the information below to answer question 28 and 29.
Raw materials inventory at the beginning of a period was N 46,800 and at the close of the period there was a balance of N38,600. From the purchases made during the period, defective materials costing N9,200 were returned. Cost of materials consumed during the period was N448,500.
What was the total purchases made during the period?

A. N497,100
B. N457,700
C. N449,500
D. N440,300

Question 15:

• JAMB 1999

Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?

A. An addition was made to the asset during the sixth year
B. The estimate of salvage value on this equipment was decreased
C. A unit-of-output method of depreciation was used during the sixth year
D. The estimate remaining service life of the assets was increased at the beginning of the sixth year