2022 - JAMB Accounting Past Questions and Answers - page 5

Transfers from the head office to branches are best carried out at Cost plus mark up, which ensures that the branch covers both the cost and makes a profit.

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.

Under inflationary conditions, the FIFO (First-In-First-Out) method is suitable for stock valuation, as it assumes that the oldest stock is sold first, resulting in a higher valuation of the remaining stock.

A partnership's internal regulations are typically set out in a deed, which outlines the rights, responsibilities, and terms of the partnership among its members.

To find the credit purchases for the period, you need to calculate the change in the purchase ledger control account balance during the period.

1. Start with the opening balance: N45,600 (credit).
2. Add the payments made to credit suppliers during the period: N437,000 (credit).
3. Subtract the discount received on this account: N18,600 (credit).
4. Add the closing balance: N72,600 (credit).

Now, calculate:

N45,600 (opening balance) + N437,000 (payments made) - N18,600 (discount received) + N72,600 (closing balance) = N536,600

So, the total credit purchases for the period were N536,600.

To determine the sales figure, you need to calculate the change in the total debtors balance from the beginning of the period to the end of the period. The formula to calculate sales is:

Sales = Total debtors b/d + Cheques received from debtors - Total debtors c/d

Given the information:

Total debtors b/d (beginning balance) = N25,000
Cheques received from debtors = N255,000
Total debtors c/d (closing balance) = N15,000

Now, plug these values into the formula:

Sales = N25,000 (beginning balance) + N255,000 (cheques received) - N15,000 (closing balance) = N265,000

So, the sales figure is N265,000.