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

Question 171:

• JAMB 2018

Why are adjustments in the profit and loss account necessary?

A. To cover some expenses of the following year
B. To show the provisions made during the year
C. To show the total expenses paid and income received during the year
D. To ascertain the actual expenses incurred and income earned during the year

Question 172:

• JAMB 2018

Which of the following should not be adjusted for in the profit and loss account?

A. Accruals
B. Inventory
C. Subscription
D. Depreciation

Question 173:

• JAMB 2018

A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.


If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?

A. N4,000
B. N7,000
C. N11,000
D. N24,000

Question 174:

• JAMB 2018

A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.


The yearly depreciation using the straight line method would be

A. N8,800
B. N6,500
C. N5,200
D. N4,400

Question 175:

• JAMB 2018

The excess of sales over cost of goods sold is?

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