Adjustments - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 1995

Why are adjustments in the profit and loss account necessary?

A. To cover some expenses of the following year
B. To ascertain the actual expenses incurred and income earned during the year
C. To show the provision made during the year
D. To show the total expenses paid and income received during the year

Question 3:

• JAMB 1995

What was the balance showed wages, N2 500 and a note stated that N 500 wages were due but unpaid when preparing final accounts and loss account with

A. N 3 000 and show wages accrued N 500 in the balance sheet
B. N2 000 and show wages accrued N500 in the balance sheet
C. N 3 000 and show wages perpaid N 500 in the balance sheet
D. N 2000 and show wages paid in advance N500 in the balace sheet

Question 4:

• JAMB 1997

On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
At 31/12/93, what portion of that amount was prepaid?

A. N14,583
B. N25,000
C. N35,417
D. N37,415

Question 5:

• JAMB 1997

On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?

A. Debit rent account and credited adjustment account
B. Debit prepayment account and credit rent account
C. Debit rent account and credit prepayment account
D. Debit adjustment account and credit prepayment account