JAMB Accounting 2007 Objective — Question 9

Question 9 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

Given: Receipts and Payments Account - Bal. b/f 1,000; Donations 5,000; Subscriptions 7,000; Sales of refreshment 11,000; Entertainment 21,000; Salaries 5,000; Secretariat exp. 5,000; Dance expenses 5,000; Refreshments 15,000; Bal. c/d 15,000. Calculate the surplus income.

A. #45,000
B. #44,000
C. #30,000
D. #14,000Correct

Explanation

Preparing the Income and Expenditure Account: Income (Donations 5,000 + Subscriptions 2,000 + Sales of net 11,000 + Entertainment 21,000) totals #44,000; Expenditure (Salaries 5,000 + Secretariat 5,000 + Dance 5,000 + Refreshments 15,000) totals #30,000. Surplus = 44,000 - 30,000 = #14,000.

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