Income statement (Trading and profit and loss account) - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 16:

• JAMB 2002

Miscellaneous expense is 10% of revenue Calculate the net income.

A. N583,000
B. N563,000
C. N483,000
D. N581,000

Question 17:

• JAMB 2003

Provision for discount allowed can be recorded as debit to?

A. The profit and loss account and a credit to provision for discount allowed
B. Provision for discount allowed and a credit to the profit and loss account
C. Discount allowed and a credit to the profit and loss account
D. Expenses and a credit to customers' account

Question 18:

• JAMB 2003

Given:
Cost of raw materials issued to production.....N37000
Opening stock of raw material..................N2000
Purchases of raw material......................N3800
Wages .........................................N500
What is the closing stock of raw material?

A. N4000
B. N3000
C. N2000
D. N1000

Question 19:

• JAMB 2004

Use the information below to answer questions 23 and 24.
Beginning inventory............N?
Purchases......................N?
Ending inventory...............N4,800
Sales..........................N12,800
Wages..........................N1,040
Gross profit...................N5,900
The beginning inventory was estimated at 80% of sales.
Determine the amount for the beginning inventory?

A. N20,140
B. N10,240
C. N8,140
D. N7,240

Question 20:

• JAMB 2004

What is the figure for purchases?

A. N2,400
B. N2,500
C. N4,200
D. N5,200
E. No option indicated