10 questions from the JAMB 2018 Accounting paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2018Question 1 · Accounting Fundamentals
In dealing with incomplete record, fixed assets are posted to___________-
A.Profit and loss account as brought forward figure
B.Closing balance sheet as carried forward figure
C.Closing balance sheet as brought forward figure
D.Profit and loss as carried forward figure
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Answer: B. Closing balance sheet as carried forward figure
In incomplete records, fixed assets are posted to the closing balance sheet as a carried-forward figure.
JAMB 2018Question 2 · Branch and Control Accounts
Gross profit in the branch adjustment account is transferred to the branch____________
A.Income and expenditure account
B.profit and loss account
C.receipt and payment account
D.trading account
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Answer: B. profit and loss account
Gross profit in the branch adjustment account is transferred to the branch profit and loss account.
JAMB 2018Question 3 · Branch and Control Accounts
Which of the following is a common cause of a discrepancy between head office and branch trial office________
A.Stock and repayment
B.Creditors and cash in transit
C.Stock and cash in transit
D.Debtors and cash in transit
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Answer: C. Stock and cash in transit
Stock and cash in transit commonly cause discrepancies between head office and branch trial balances.
JAMB 2018Question 4 · Cash Book and Bank Reconciliation
A cash book had a opening balance of N15,200, closing balance of N18,400 and total cash received during the period of N36,000. What was the amount of cash paid out during the same period?
A.N29,200
B.N17,800
C.N32,800
D.N19,600
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Answer: C. N32,800
Cash paid = 15,200+36,000-18,400 = N32,800.
JAMB 2018Question 5 · Company and Partnership Accounts
Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?
A.1 : 1
B.3 : 6
C.2 : 1
D.2 : 6
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Answer: C. 2 : 1
New ratio: Tony(2+2)=4, Rose(1+1)=2, giving 4:2 = 2:1.
JAMB 2018Question 6 · Company and Partnership Accounts
In the absence of a partnership deed, the act stipulates that____________
A.An amount should be fixed as salaries for partners
B.Profits and losses should not be shared equally
C.Interest on partner’s loan should be 25%
D.Interest should not be allowed on partners drawings
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Answer: D. Interest should not be allowed on partners drawings
Without a partnership deed, no interest is allowed on partners' drawings.
JAMB 2018Question 7 · Final Accounts and Trial Balance
N N Capital 39,000 Land 20,000 Long Term Loan 15, 000 Building 30,000 Creditors 9,000 Stock 40,000 Debtors 6,000 Accrued wages 5,000 Cash 8, 000 68,000 68,000 Use the information above to answer the question : The acid test ratio in the company is___________
A.1:1
B.2:3
C.1:2
D.3:2
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Answer: A. 1:1
Acid test ratio = (Debtors 6,000+Cash 8,000)/(Creditors 9,000+Accrued wages 5,000) = 1:1.
JAMB 2018Question 8 · Final Accounts and Trial Balance
Determine the current liabilities.
A.N8,553
B.N8,263
C.N7,940
D.N1,228
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Answer: B. N8,263
Current liabilities = 7,940+323 = N8,263.
JAMB 2018Question 9 · Manufacturing and Departmental Accounts
Use the information below to answer the question . Total P Q Total P Q ₦ ₦ ₦ ₦ ₦ ₦ Stock 3,000 2,000 1,000 Sales 10,000 6,000 4,000 Purchase 4,000 2,500 1,500 Closing Stock 2,000 1,500 500 Goods worth #300 was transferred from department Q to P. Similarly, P’s total expenses for the period was #200. Department P’s net profit was
A.#2,500
B.#2,800
C.#3,000
D.#5,200
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Answer: A. #2,500
Dept P net profit = (6,000-(2,000+2,500+300-1,500)) - 200 = N2,500.
JAMB 2018Question 10 · Office Practice, ICT, and Banking
The current growth in the volume of trading and financial dealings in nigerian is helped by?
A.credit as a factor in business
B.payments for goods in cash
C.increased financial activities
D.government intervention
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Answer: A. credit as a factor in business
Credit as a factor in business has helped Nigeria's growth in trading and financial dealings.
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