All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Accounting 2023 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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Which of the following is the main user of accounting records?
The main and first users of accounting information are the management of the company itself.
The major difference between two column cash book and three column cash book is:
The discount column is the major difference between three column cashbook and two column cashbook as it will appear in the former only.
When the trial balance fails to balance which of the following is used to correct the error?
When the Trial Balance fails to balance, the journal entry is used to do the correction as the error unraveled.
The discrepancy between the Cash book and the Bank statement will be corrected using
The Adjusted Cash Book only or Bank reconciliation only or combination of the two is used to correct the disagreement between Cash Book and Bank reconciliation statement.
The prime cost of a manufacturer does not contain a A.
The overhead is an indirect cost. The prime cost only includes direct costs.
Which of the following account will you see in an incomplete record?
In most cases, the only account that is recorded, even in incomplete record is the Cash Book.
Accumulated depreciation appears at the ___ of a trial balance.
Accumulated depreciation will appear in the credit side of the trial balance against its asset on the debit side.
Unclaimed rent income will appear in the balance sheet as
Rent income is an asset to the organization if it is not paid as at when due. It is a current asset because it has short life span.
(Use the following information to answer question 9-11: The following details relate to January activities of Hafeez Ltd. Balance 500; Cash Receipt 7,500; Credit Sales 16,000; Cash Sales 8,000; Discount Allowed 100; Carriage outward 200; Balance ?.) The information above can be used to prepare a A.
The information above is only related to information that is used to prepare Total Debtors control account because it relates sales.
What is the balance at the end of the month? A.
Total Debtors Control Account: Balance b/d 500 + Credit sales 16,000 = 16,500. Less Discount allowed 100, Carriage outward 200 = Balance c/d 8,700.
Which of the details given was not necessary?
Cash sales is not needed in this information because it will not be required to prepare the total debtor control account. (Use the following information to answer question 12-14: Prime -; Factory overhead 70,000; Opening working progress 10,000; Closing working progress 6,000. Goods are transferred to store @ 20% mark up.)
The cost of goods produced is A.
Cost of goods produced: Prime cost + Overhead cost = 70,000+10,000=80,000. Adjust in work-in-progress (#6,000-#3,000)=3,000. Cost of goods produced=83,000.
The manufacturing profit is A.
Manufacturing profit = 20% x #83,000 = #16,600.
The market value of the goods is A.
Market value = cost of goods produced + manufacturing profit = #83,000+#16,600 = #99,600.
Unpresented cheques will A.
Unpresented cheques will make the cash book balance lower. This is because it has been deducted from the bank balance in the cashbook but not yet reflected in the bank.
The accounting entry for money paid on shares A.
For money paid for shares, the accounting entry with the company issuing the share is Dr: cash/bank a/c Cr: shares account.
Which of the following item will not appear in the balance sheet? A.
Sales value will not appear in the balance sheet.
Subscription in arrears is synonymous to A.
Rent income in arrears and subscription in arrears are synonymous to each other because both are current assets.
Profit and loss appropriation account is prepared by A.
Limited liability company and partnership prepare the profit and loss appropriation account to adjust for internal effects.
The first account to be prepared when moving from single entry to double entry is A.
The balance sheet is the first account that is prepared when using from single entry to double entry to ascertain rent capital of the business. (Use the following information to answer question 21-22: Joy enterprise Plant and Machinery at cost 100,000; Estimated useful life 5years; Scrap value 10,000.)
The annual depreciation value is A.
Depreciation = (cost-scrap value)/life span = (#100,000-#10,000)/5 = #18,000.
If the asset is sold at the end of the third year for #50,000, then Joy enterprise made a A.
At the end of third year, accumulated depreciation = #18,000x3=#54,000. Net book value=#100,000-#54,000=#46,000. Profit=#50,000-#46,000=#4,000.
When there is no agreement between partners, partners loan is charged at A.
In the absence of a partnership deed, the loan produced by any partner will be charged at 5% interest.
The accumulated fund is equivalent to A.
The accumulated fund for a not-for-profit making organization is the equivalent of share capital for a limited liability company. (Use the following information to answer Question 25-27: JOHN PLC issued 500,000 of N5 ordinary share at the rate of #12:50 per share as follows: Application 0.50, First Call 5, Final Call 5, Allotment 2, Total #12:50. If Applications for 1,000,000 shares were received.)
This share is said to be issued at A.
When a share is issued above its par value such shares is said to be issued of premium.
The amount received for over application is A.
Monies received on over application = #0.05 x (1,000,000-500,000) = #0.05 x 500,000 = #250,000.
The accounts for recording the allotment payment will be A.
When payment for allotment is made: Dr. Cash account and Cr: allotment account.
Which of the following uses cash basis of accounting for recording most of its transaction? A.
Government accounting is recorded using the cash basis of accounting.
Which of the following is a capital expenditure? A.
Usually, renovation of building comes once in a while thus, the cost of such renovation will be capitalized.
To identify the profit of branch, which of the following accounts is useful? A.
The branch profit and loss account is the account used to identify the profit of the branch. (Use the following information to answer question 31-32: Departments A,B,C: Sales #8,000, #12,000, #30,000; Purchases #6,000, #7,000, #15,000; Space occupied 6msq, 4msq, 10msq. Lighting cost for the whole company is #2,000. #5,000 was paid for salesman as commission on sales for all the departments.)
How much will be apportioned to department B?
Lighting will be shared on the basis of space occupied. B's share = 4/(6+4+10) x #2,000 = 4/20 x #2,000 = #400.
If all the departments share on commission with respect to the departments, how much is C's share?
Salesman's commission will be shared on the basis of sales. C's share = #30,000/(#8,000+#12,000+#30,000) x #5,000 = #3,000.
Cost accounting is more useful than accounting when making A.
Cost accounting gives details about cost implication in terms of production, costs and pricing.
The main objectives of accounting report is to provide information about A.
The major purpose of accounting report is to provide financial position of the organization.
Memorandum of association is applicable to A.
A limited liability company is required to submit its memorandum of association before it can be registered.
When a firm is liquidated, the last holders to be settled will be A.
Founder shareholders bear most of the risks. Thus, they are the last set of people to be settled.
A debit balance on the suspense account will appear in A.
A debit balance on the suspense account shows that the assets and expenses have been understated. Thus, it will appear in the asset side of the balance sheet.
The difference between a cashbook and receipt and payment account is A.
The cashbook is more detailed than the receipt and payment account. (Use the following information to answer question 39-40: Opening 5,000; Purchases 60,000; Sales 100,000.)
Cost of goods available for sales is A.
Cost of goods available for sales = Opening Stock + Purchases = #5,000+#60,000 = #65,000.
Cost of goods sold is A.
Since there is no closing stock, the cost of goods available for sales will be equal to cost of goods sold. Thus; = #65,000.
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