10 questions from the JAMB 2014 Accounting paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2014Question 1 · Accounting Fundamentals
One of the the differences between bookkeeping and accounting is that the former
A.records data while the latter interprets
B.is regarded as the language of the business while the latter ascertains its strenght
C.interprets data while the latter records it
D.summarises information while the latter communicates it
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Answer: A. records data while the latter interprets
Bookkeeping records data while accounting interprets it.
JAMB 2014Question 2 · Branch and Control Accounts
The control account is used in facilitating
A.the location of errors in the various accounts
B.up to date bank transactions
C.the payment of debts and liabilities of the firm
D.assets distribution with respect to income
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Answer: A. the location of errors in the various accounts
Control accounts help locate errors in the various individual accounts.
JAMB 2014Question 3 · Branch and Control Accounts
The profit of a branch is usually credited to the
A.adjustment account
B.head office sales
C.head office goods account
D.head office current account
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Answer: D. head office current account
A branch's profit is usually credited to the head office current account.
JAMB 2014Question 4 · Cash Book and Bank Reconciliation
Petty cash book records transactions on
A.the debit side only
B.the credit side only
C.both credit and debit sides
D.reversed entry
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Answer: C. both credit and debit sides
The petty cash book records transactions on both debit and credit sides.
JAMB 2014Question 5 · Company and Partnership Accounts
Where partnership is converted into a limited liability company, current account balances of partners are transferred to a
A.realization account
B.savings account
C.share capital account
D.capital account
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Answer: D. capital account
Partners' current account balances are transferred to the capital account on conversion to a company.
JAMB 2014Question 6 · Company and Partnership Accounts
Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each. Determine the amount received on application and allotment
A.#224,950
B.#225,000
C.#324,950
D.#325,000
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Answer: B. #225,000
Application and allotment received = 900,000 x N0.25 = N225,000.
JAMB 2014Question 7 · Final Accounts and Trial Balance
Balance sheet (Extract) Creditors #7,940 Prepaid expenses # 290 Accrual expenses # 323 Stock #4,500 Cash balance #4,956 Debtors # 905 The value of the current assets will be
A.#10,361
B.#10,651
C.#17,396
D.#17,848
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Answer: B. #10,651
Current assets = 4,500+4,956+905+290 = N10,651.
JAMB 2014Question 8 · Final Accounts and Trial Balance
The expenses incurred in purchasing a vehicle is a
A.revenue expenditure
B.capital expenditure
C.recurrent expenditure
D.concurrent expenditure
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Answer: B. capital expenditure
Purchasing a vehicle is a capital expenditure.
JAMB 2014Question 9 · Manufacturing and Departmental Accounts
In a departmental account, the expenses to be apportioned on the basis of turnover is
A.carriage inwards
B.returns outwards
C.discount recieved
D.carriage outwards
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Answer: D. carriage outwards
Carriage outwards is apportioned on the basis of turnover.
JAMB 2014Question 10 · Public Sector and Not-for-Profit Accounts
The account of government into which all monies are received and from which all expenditures are disbursed is the
A.Federation account
B.Petroleum Technology Development Fund
C.Central Bank Account
D.Development fund
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Answer: A. Federation account
The Federation Account receives government monies and disburses expenditures.
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