10 questions from the JAMB 2021 Accounting paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2021Question 1 · Accounting Fundamentals
The accounting method that reports incomes when earned and expenses when incurred is called
A.accrual accounting
B.cash accounting
C.fund accounting
D.commitment accounting
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Answer: A. accrual accounting
Accrual accounting reports income when earned and expenses when incurred.
JAMB 2021Question 2 · Branch and Control Accounts
Given: ₦ Total debtors b/d 31/12/99 25,000 Cheques received from debtors 255,000 Total debtors c/d 31/12/00 15,000 Calculate the sales figure
A.₦245,000
B.₦215,000
C.₦295,000
D.₦265,000
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Answer: A. ₦245,000
Sales = 15,000+255,000-25,000 = N245,000.
JAMB 2021Question 3 · Company and Partnership Accounts
Use the information below to answer this question A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis. The share premium account would be
A.credited with application and allotment ₦187,500
B.debited with application and allotment ₦375,000
C.debited with application and allotment ₦187,500
D.credited with application and allotment ₦375,000
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Answer: D. credited with application and allotment ₦375,000
Share premium account is credited with N375,000 (750,000 x N0.50) via application and allotment.
JAMB 2021Question 4 · Company and Partnership Accounts
Use the information below to answer this question Zahki Plc balance sheet (extract) as at 31st December 1997. ₦ ₦ Paid up capital 200,000 Fixed assets 300,000 Share premium 15,000 Profit and loss account 60,000 Investment 180,000 Long-term loan 180,000 Stock 28,000 Debtors 90,000 Creditors 200,000 provision(3000) 87,000 Other current liabilities 100,000 Cash 60,000 Bank 100,000 755,000 755,000 Determine the owner's equity
JAMB 2021Question 5 · Final Accounts and Trial Balance
Use the information below to answer this question: i. cash at bank ii. cash in hand iii. premises iv. land v. creditors vi. loan from friends/bank What are the current assets?
A.i and v
B.i and ii
C.ii and iv
D.iii and v
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Answer: B. i and ii
Cash at bank and cash in hand are current assets.
JAMB 2021Question 6 · Final Accounts and Trial Balance
The principle of double entry system ensures
A.balances at the bank
B.increase in the assets and liabilities
C.balance of cashbook
D.mathematical accuracy in trial balance
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Answer: D. mathematical accuracy in trial balance
Double entry ensures mathematical accuracy in the trial balance.
JAMB 2021Question 7 · Ledger, Journal, and Source Documents
Use the information below to answer this question At the end of a financial period, the trading profit and loss account of a sole trader shows a profit of ₦180,000 it is however discovered that revenue of ₦15,000 is recorded as expenses while expenses of ₦4,000 is recorded as revenue. Determine the adjusted net profit