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

Question 41:

• JAMB 1999

A provision for bad debt account had N3,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/2% of annual sales, what was the credit sales for the period?

A. N2,100,000
B. N844,400
C. N840,000
D. N500,000

Question 42:

• JAMB 1999

If a sole proprietorship is purchased for cash, then?

A. The purchaser debits his business purchase account with the consideration he pays
B. All assets and liabilities must be bought
C. Goodwill results where value of assets
D. The vendor debits his business purchase account with the considerstion he receives

Question 43:

• 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 44:

• 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 45:

• 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