Accounts - Principles of Accounts JAMB, WAEC, NECO AND NABTEB Official Past Questions

On 31 December 2016, the bank column of the cash book of Aminata Enterprise showed a debit balance of D48,500. However, the bank statement showed a credit balance of D54,900 on the same date. A detailed comparison of entries revealed the following;

i. customer’s cheques amounting to D8.450 had not been credited by the bank as at 31/12/2016.
ii. Cheques amounting to D8,850 had not been presented for payment as at 31/12/2016
iii. Bank charges of D1,000 and interest on investments of D2,500 collected by the banker appeared only in the bank statement.
iv. On 30/12/2016, there was a wrong credit of D3,000 in the bank statement.
v. Kesse Enterprise, a customer, had paid into the bank directly a sum of D3,000 on 29th December 2016. This had not been recorded in the cash book.
vi. A cheque for D2,000 received from Jallo Enterprises, a customer, which was deposited had been returned unpaid. This had not been entered in the cash book.

You are required to:

(a) Write up the adjusted cash book.

(b) Prepare a bank reconciliation statement as at 31/12/ 2016.

Baako Ltd purchased motor vehicle as follows:
   Date       Quantity        N
01/01/13        1          800,000
01/07/13        1          400,000
 01/04/15       1           600,000

The company adopts a straight-line method of depreciation at the rate of 10% per annum from the date of purchase. A separate account is prepared for provision for depreciation. On 30h June 2014, the motor vehicle which was purchased on 1st July 2013 was sold for N6 240,000

You are required to prepare:
(a) Motor Vehicle Account for the year, 2013, 2014, and 2015.
(b) Provision for Depreciation on Motor Vehicle Account for the years 2013, 2014, and 2015.
(c) Motor Vehicle Disposal Account.

a) List six users of accounting information

(b) State the formula and the use of each of the following accounting ratios:
i. Quick ratio
ii. Net profit margin
iii. Total assets turnover
iv. Creditors payment period (in days)

(a) Which business organizations have the need to prepare departmental accounts?

(b) State two reasons for preparing departmental accounts.

(c) State how the following incomes and expenses are apportioned in departmental accounts:
i. discount allowed
ii. discount received
iii. rent and rates
iv. staff related costs
v depreciation
vi. canteen expenses
vii. electricity
viii. advertising
ix. bad debts

(a) Explain with examples, the following components of cost in a Manufacturing Account:
i. Direct material cost;
ii. Direct labor cost
iii. Factory overhead

(b) Describe the three types of stocks in a manufacturing concern.

(a) Mention three disadvantages to a business that does not keep proper accounting records.

(b) Explain the following characteristics of accounting information
i. Relevance
ii. Comparability 
iii. Consistency
iv. Reliability

(c) State two limitations in the use of accounting information for business decision making.

 ”Below the line” item in public sector accounting means such an item is——–

The authority to incur expenditure in the public sector is————-

Use the following information to amswer the question that follows

Ordinary share———————————-70,000
Retained earnings—————————–31,142
Motor vehicle at cost————————–21,136
Accumulated dep. – motor vehicle———7,109
Furniture and fittings at cost—————-1,334
Accumulated dep. fur & fitts at cost——-1,007
Stock———————————————-32,200
Debtors——————————————-49,380
Bank———————————————–15,953
Creditors——————————————11,329

Net book value of fixed assets is—-

Use the following information to amswer the question that follows

Ordinary share———————————-70,000
Retained earnings—————————–31,142
Motor vehicle at cost————————–21,136
Accumulated dep. – motor vehicle———7,109
Furniture and fittings at cost—————-1,334
Accumulated dep. fur & fitts at cost——-1,007
Stock———————————————-32,200
Debtors——————————————-49,380
Bank———————————————–15,953
Creditors——————————————11,329

Equity holders fund is————-

Under the cost method in branch accounting, branch gross profit is disclosed in the——-

The basis of apportionment of insurance on building in departmental accounts is——–

Interim dividend paid in the year is——–

The process of distributing shares to successful applicants is——.

The accounting entry for cash realized from the sale of assets on the dissolution of a partnership is debit——

Use the following information to answer the question below

N
Net profit ————————-17,460
Capital account: Taiwo——–50,000
                           Obi———-40,000
Drawings Account: Taiwo—-12,000
                              Obi——-10,000
Salary – Obi———————1,500
Interest on capital————–5%
Interest on drawings———-4%
Profit sharing ratio is 3:2 for Taiwo and Obi respectively

Obi’s share of profit is—————

Use the following information to answer the question below

N
Net profit ————————-17,460
Capital account: Taiwo——–50,000
                           Obi———-40,000
Drawings Account: Taiwo—-12,000
                              Obi——-10,000
Salary – Obi———————1,500
Interest on capital————–5%
Interest on drawings———-4%
Profit sharing ratio is 3:2 for Taiwo and Obi respectively

Taiwo’s share of profit is——

Use the following information to answer the question that follows

Receipt and payments: 31st December 2016

Cash at bank——460        New equipment——200
Subscriptions—–520         Cleaner’s wage—–540
Donations——— 500         Stationary———– 140
Sale of stickers—490         Cash at bank——–110
Entrance fee——670

The surplus for the year is———–
 

Use the following information to answer the question that follows

Receipt and payments: 31st December 2016

Cash at bank——460        New equipment——200
Subscriptions—–520         Cleaner’s wage—–540
Donations——— 500         Stationary———– 140
Sale of stickers—490         Cash at bank——–110
Entrance fee——670

The total income received for the year is………..

An event that will not require a change in the profit-sharing ratio of partners in a firm is when

The parties who are paid last in the event of winding-up are