2022 - JAMB Accounting Past Questions and Answers - page 4

The simplest form of single-entry procedure consists of keeping a 'day book' in which transactions are described in chronological order. Therefore, the correct option is 'day book in which transactions are described in chronological order.'

The main features of a single-entry system include the absence of comprehensive double-entry bookkeeping practices.

In a single-entry system, businesses typically maintain limited records, and they rely heavily on bank statements to track their financial transactions. Therefore, Option A accurately describes one of the main features of a single-entry system.

The instruments generated when firms enter into business transactions with others are called 'source documents.' Therefore, the correct option is 'source documents.'

In a partnership business:

(i) There is a business.
(ii) It is run commonly by partners.
(iii) It has profit-making in view.
(iv) Partners' liability is not limited (i.e., they have unlimited liability).

So, the correct options are i, iii, and iv.

The folio in the ledger is used for referencing purposes. It helps in cross-referencing between the ledger and the journal, making it easier to track transactions and locate specific entries.

If Bola sends in a cheque for more than the owed amount, UTC would send him a credit note for the excess amount paid.

Interest on a partner's drawings is a cost to the partnership and is typically debited to the profit and loss appropriation account.

Simultaneously, it is credited to the partner's current account to reflect the interest expense in the partner's individual account. This ensures that the partner's capital is appropriately adjusted to account for the interest charged on their drawings.

A government accounting system must ensure that all applicable legal provisions are complied with. This includes adhering to budget laws, financial regulations, and other relevant legislation. While other options might be desirable outcomes, compliance with laws is the fundamental requirement.

In a double-entry system, every transaction affects at least two accounts. The basic accounting equation is: Assets = Liabilities + Owner's Equity (Capital). * **Assets:** Resources owned by a business. When assets increase, they are debited. * **Capital:** The owner's investment in the business. When capital increases, it is credited. Therefore, an increase in assets and capital will have the following double-entry: * Debit the asset account (to show the increase). * Credit the capital account (to show the increase).

Here's the breakdown of the double-entry bookkeeping for the rent payment: * **Debit Rent Account:** Rent is an expense. Expenses increase with a debit entry. * **Credit Bank Account:** Since the payment was made by cheque, the cash in the bank (an asset) decreases. Assets decrease with a credit entry.