Interpretation of accounts using ratios - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 16:

• JAMB 2007

Given:
Shaku Company Ltd.
Stock..........................N3600 000
Cash at hand...................N800 000
Cash at bank...................N2400 000
Debtors........................N580 000
Trade creditors................N920 000
Bank overdraft.................N200 000
Tax liabilities................N600 000
Salary owed to staff...........N180 000
Determine the working capital?

A. N7380 000
B. N8480 000
C. N5480 000
D. N6480 000

Question 17:

• JAMB 2008

Use this information below to answer this question.
Trading Account (Extract)
.................N.............................N......
Opening stock...19500........Sales............96 000..
Add purchases...68700.................................
................88200.................................
Less closing stock..?.................................
Cost of goods sold..?.................................
Gross profit C/D....?.................................
....................?..........................?......
The gross profit margin is 20%
What is the gross profit?

A. N88 200
B. N76 800
C. N 19 200
D. N12 900

Question 18:

• JAMB 2008

Use this information below to answer this question.
Trading Account (Extract)
.................N.............................N......
Opening stock...19500........Sales............96 000..
Add purchases...68700.................................
................88200.................................
Less closing stock..?.................................
Cost of goods sold..?.................................
Gross profit C/D....?.................................
....................?..........................?......
The gross profit margin is 20%
Determine the closing stock

A. N76 800
B. N67 800
C. N14 100
D. N11 400

Question 19:

• JAMB 2008

The debit ratio is approximately

A. 43%
B. 42%
C. 41%
D. 23%

Question 20:

• JAMB 2009

Use the information below to answer questions
Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000
What is the net working capital?

A. N2,600
B. N1,800
C. N800
D. N600