2009 - JAMB Accounting Past Questions & Answers - page 2

11
Cash discount is often recorded on?
A
the debit side of the cash book
B
the credit side of the cash book
C
the folio column of the cash book
D
both credit and debit side of the cash book
CORRECT OPTION: d
12
The standing order is a payment instruction given by a?
A
customer to the bank
B
bank to the customer
C
bank to an employee
D
customer to a fellow customer
CORRECT OPTION: a
13
Which of the should not be added or subtracted from the bank statement balance to determine the adjust cash balance?
A
Error by the bank
B
Undercasting of the cash book
C
Overcasting of the cash book
D
Bank service charges
CORRECT OPTION: a
14
Given:

Balance as per cash book...................N20,000
Unpresented cheques........................N5, 200
Direct credit to the bank..................N1, 000
Direct debit from the bank.................N1, 000
Credit in the cash book....................N500

Calculate the balance as bank statement at the end of the year?
A
N24,700
B
N25,200
C
N26,200
D
N27,700
CORRECT OPTION: a
15
Use the information below to answer questions 17 and 18.

Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000

Determine the capital of the business?
A
N9,400
B
N6,000
C
N3,400
D
N3,000
CORRECT OPTION: d
16
What is the net working capital?
A
N2,600
B
N1,800
C
N800
D
N600
CORRECT OPTION: c
17
Which of the following items are current assets?
A
Stock, bills receivable, cash and debtors
B
Stock, bill receivable, cash and debtors
C
Stock, bad debt, bills receivable and cash
D
Stock, work-in-progress, cash and bills payable
CORRECT OPTION: a
18
Use the information below to answer questions 20 and 21.

Jan. 1 Received 1,000 units at N10 each
Jan. 2 Received 2,000 units at N12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at N11 each
Jan. 5 Issued 1,000 units

Using FIFO method, what is the value of the closing stock?
A
N34,000
B
N29,000
C
N17,000
D
N12,000
CORRECT OPTION: c
19
What is the value of closing stock using simple average?
A
N11,500
B
N17,000
C
N17,500
D
N28,500
CORRECT OPTION: d
20
Which of the following methods gives a conservative closing stock value during a period of rising prices?
A
LIFO
B
FIFO
C
Simple average
D
Periodic simple average
CORRECT OPTION: a
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