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

Question 11:

• JAMB 1998

A business transaction is recorded in the books of account when the?

A. Owner of the business invests his N10,000 in another company
B. Business retains part of ofits profits for future expansion purposes
C. Business invest applies for overdraft facilities from its bankers
D. Owner of the business collects N5,000 from the accountant

Question 12:

• JAMB 1999

When a proprietor withdraws cash from the business for private use, he?

A. Debits cash account and credits drawings account
B. Credits cash account and debits bank account
C. Debits bank account and credits drawings account
D. Credits cash account and debits drawings account

Question 13:

• JAMB 1999

If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?

A. Preliminary expenses, credit cash accounts
B. Promoter, credit creditors' accounts
C. Lawyer's credit cash accounts
D. Cash , credit incorporation accounts

Question 14:

• JAMB 1999

To record the transfer of stock from one department to another, the correct entry would be to debit?

A. Goods outwards and credit goods inwards
B. Merchandise account and credit department stock account
C. Department transfering and credit department receivving
D. Department receiving and credit department transfering

Question 15:

• JAMB 2000

To write off bad debt, debt?

A. Debtor's account and credit provision for bad debt
B. Bad debt account and credit debtor's account
C. Debtor's account credit bad debt
D. Provision for bad debt account and credit debtor's account