Introduction to Company Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 41:

• JAMB 2001

Hauwa Ltd bought 10bags of rice for N500 each.
The company was given 5% AND 12% trade and cash discounts respectively. What will be recorded as discount received in the company's book?

A. N250
B. N570
C. N600
D. N850

Question 42:

• JAMB 2001

If a property developing company sells a completed building to an interested third party, this sale can be treated in the books of the company as?

A. Capital receipt
B. Revenue receipt
C. Windfall receipt
D. Miscellaneous receipt

Question 43:

• JAMB 2001

Bala Ltd acquired the business of Bello Ltd and caused the separate existence of the latter company to terminate. This situation is best described as?

A. Absorption
B. Merger
C. Conversion
D. Dissolution

Question 44:

• JAMB 2001

Where a company acquires controlling shares of another and the consideration is paid in cash, the entries in the books of the purchases are debit?`

A. Investment and credit cash
B. Investment and credit shares
C. Purchases and credit cash
D. Purchases and credit shares

Question 45:

• JAMB 2001

The main difference between the ordinary and preference shareholders is that?

A. The former receive dividends while the latter do not
B. The latter are not members of the company while the former are
C. In the case of winding up, the former are paid first before the latter
D. The former have voting rights while the latter do not