Principles of Double Entry - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 16:

• JAMB 1995

A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of

A. Classifying accounts in the ledger
B. Testing arithmetical accuracies of the ledger account balances
C. Identifying the balance sheet items
D. Providing a basis for establishing the accountant's competence

Question 17:

• JAMB 1995

What are the advantages of an imprest petty cash book?
I cheques can be drawn easily
II A cheque on the use of cash
III Liability of the petty cashier is limited to the value of petty cash
IV Loses through the petty cashier can be minimized

A. I, II and III only
B. I, II and IV only
C. I, III and IV only
D. II, III and IV only

Question 18:

• JAMB 1995

Bola, UTC's regular customer, owed N1,00 on account of a radio bought. If he sent in a cheque for N1,500, UTC would send him a

A. Credit note
B. Debit note
C. Journal voucher
D. Way bill

Question 19:

• JAMB 1995

A payment of cash of N20 to John was entered on the receipt side of the cash book in error and credited to John's account. Which of the following journal entry can be used to correct the error?

A. John: N40 Dr, cash: N40 Cr
B. Cash: N40 Dr, John: N40 Cr
C. John: N20 Dr, cash: N20 Cr
D. Cash: N20 Dr, John: N20 Cr

Question 20:

• JAMB 1995

I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
Compute the average amount of stock in hand at cost price

A. N3,860
B. N3,806
C. N3,680
D. N3,086