Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 221:

• 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 222:

• JAMB 1999

Calls in advance are treated in the balance sheet as?

A. Current asset
B. Current liability
C. Fixed assets
D. Fixed liability

Question 223:

• JAMB 1999

Shares issued to a vendor in payment of business purchased would require a debit to?

A. Cash account and credit to share capital account
B. Share capital account and credit to vendor's account
C. Vendor's account and credit to share capital account
D. Share capital account and credit to cash account

Question 224:

• JAMB 1999

The best method of allocating expenses among departments is to?

A. Allocate expenses to each department in proportion to the sales of that department
B. Charge against each department those costs which are within its control
C. Charge expenses against each department in proportion to the purchases of that department
D. Allocate expenses to each section of the department in relation to the number of people

Question 225:

• 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