10 questions from the JAMB 2020 Accounting paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2020Question 1 · Accounting Fundamentals
In preparing accounting records, the owners of a business and the business are treated as
A.separate legal entities
B.partners
C.the same person
D.having business relationship
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Answer: A. separate legal entities
Owners and the business are treated as separate legal entities in accounting.
JAMB 2020Question 2 · Accounting Fundamentals
One of the major features of book keeping is that it
A.is futuristic in nature
B.accepts responsibility for all wrong postings
C.provides permanent records for all financial transactions
D.does not give room for double entry procedure
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Answer: C. provides permanent records for all financial transactions
Bookkeeping's major feature is providing permanent records of financial transactions.
JAMB 2020Question 3 · Branch and Control Accounts
The value of the sales ledger control account is derived from the summation of the
A.total creditors control account
B.total debtors control account
C.all day books
D.both the debtors and creditors accounts
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Answer: C. all day books
The sales ledger control account value is derived from summing all day books.
JAMB 2020Question 4 · Cash Book and Bank Reconciliation
The standing order is a payment instruction given by a
A.customer to a fellow customer
B.bank to an employee
C.customer to the bank
D.bank to the customers
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Answer: C. customer to the bank
A standing order is a payment instruction given by a customer to the bank.
JAMB 2020Question 5 · Company and Partnership Accounts
The major distinguishing element between the final accounts of a partnership and a sole trader is the
A.drawings account
B.appropriation account
C.capital account
D.creditors account
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Answer: B. appropriation account
The appropriation account is the major distinguishing element of a partnership's final accounts.
JAMB 2020Question 6 · Final Accounts and Trial Balance
₦ Bank account 59,410 Capital account 50,000 Purchases account 20,000 Rent 2,500 Stationery 90 Typewriter 6,500 Sales 38,500 In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?
A.₦I38,500
B.₦147,910
C.₦85,800
D.₦88,500
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Answer: D. ₦88,500
Both debit and credit trial balance totals equal N88,500.
JAMB 2020Question 7 · Final Accounts and Trial Balance
Given ₦ Stock (1/4/94) 800 Purchases of flour 2,450 Sales 4,745 Wages of bakery staff 675 Carriage outwards 50 Salary of administrative staff 225 Stock (31/3/95) 940 Capital 1,540 Calculate the cost of goods sold.
A.₦3,925
B.₦3,250
C.₦2,985
D.₦2,575
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Answer: C. ₦2,985
COGS = 800+2,450-940+675(bakery wages) = N2,985.
JAMB 2020Question 8 · Final Accounts and Trial Balance
Fiyinfoluwa Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000 on debiting the vehicle account, the corresponding credit for the purchase will appear in the
A.sales day book
B.cash book
C.sales subsidiary book
D.purchase day book
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Answer: B. cash book
Buying vans for cash: corresponding credit appears in the cash book.
JAMB 2020Question 9 · Ledger, Journal, and Source Documents
The major feature of a journal is that it has
A.five columns, date, particulars, folio, debit and credit
B.three columns, date, particulars, folio and amount
C.Six columns, date. particulars, folio, amount debit and credit
D.four columns, date, particulars, folio and amount
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Answer: A. five columns, date, particulars, folio, debit and credit
A journal has five columns: date, particulars, folio, debit and credit.
JAMB 2020Question 10 · Manufacturing and Departmental Accounts
A company has departments L, M and O. Department L Occupies a space twice that of M while O occupies half the space of M. If the company pays ₦70,000 on rent, what is the amount of rent that should be allocated to M?
A.₦40,000
B.₦20,000
C.₦30,000
D.₦10,000
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Answer: B. ₦20,000
M's rent share = (1/3.5) x 70,000 = N20,000.
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