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

To show the evidence of payment to a government ministry, the revenue collector issues a 

When the letter “C” is written in front of an entry in the folio column of a cash book, it shows a 

A quality of accounting information is that it should be
 

On 30th September 2017, Adedeji’s cash book showed a debit balance of N7,600. However, his bank statement showed an overdraft balance of N1,880. On investigation, the following details were discovered:

i. A standing order of N160 had not been entered in the cash book

ii. Bank charges of N40 did not appear in the cash book

iii. Cash paid into the bank for N400 had been entered in the cash book as N360

iv. A cheque of N200 received from a customer was dishonoured

v. The bank received a credit transfer of N400 from a customer

vi. A cheque of N1,360 paid to Dexter Ltd had been entered in the cash book as N1,720

vii. A receipt of N40 shown on the bank statement had not been entered in the cash book;

viii. A cheque drawn amounting to N160 paid is still with the supplier

ix. Receipts of N3,600 paid into the bank on 30th September 2017 did not appear on the bank statement until October 2017

x. A cheque of N1,080 paid into the bank had been Wrongly credited by the bank as GH¢ 600

xi. A transfer of N6,000 to the bank had not been recorded in the cash book.

You are required to prepare

(a) Adjusted Cash Book;

Ubochi and Hassanah started a partnership business on 1st January 2015. They contributed D 300,000 and D 250,000 respectively as capital. Their partnership deed stated that:

i. interest of 8% should be paid on capital per annum

ii. Hassanah would be paid D 10,000 monthly as a salary

iii. interest on drawings is 5%

iv. the profits are to be shared in the ratio 3:2 respectively. At the end of the year, the profit made was D300,000. During the period, Ubochi and Hassanah made drawings of D20,000 and D15,000 respectively.

You are required to prepare:
(a) Profit and Loss Appropriation  Account for the year ended 31st December 2015;

(b) Partners’ Current Accounts.

The following transactions were extracted from the books of Adamu, a sole trader for the month of March 2016.

March 4: Sold 80 bags of maize on credit to Papuk at N255 per bag subject to a trade discount of 5%.
March 10: Sold goods on credit to Abass for N1,170.
March 15: Received a cheque from Papuk for the amount due, less a discount of 10%.
March 20: Received cash of N900 from Abass.

You are required to prepare:

(a) Sales Journal;

(b) Customers’ Accounts in the Sales Ledger;

(c) Sales Ledger Control Account

(a) Outline three reasons for which a cheque would be dishonored.

(b) Explain the following terms:
i. petty cash float.
ii. contra entries.
iii. imprest system

(c) State three advantages of keeping petty cash book using imprest system. 

(a) State three effects of drawings on the business of a sole proprietor.

(b) Explain how the following items are treated in the balance sheet:
i. accrued expenses
ii. prepaid expenses
iii. accrued income.
 

(a) What are closing entries?

(b) Distinguish between a branch and a department.

(c) State four reasons for the preparation of branch accounts.

Explain the following items and outline how they are treated in the final accounts:

(a) increase in provision for doubtful debts

(b) decrease in provision for doubtful debts

(c) provision for discount on debtors

(d) provision for discount on creditors

(e) provision for depreciation

What are the Limitations of ratio analysis

(a) What is a Ledger

(b) List out the uses of an invoice to the seller and the buyer

(c)  Advantages of dividing the ledger into different classes

(a) what are the sources of revenue to a federal government

(b) What are the advantages of cash basis in public sector accounting

(c) Mention five reasons for public sector accounting

(a) Give reasons for including outstanding liabilities in the Balance Sheet

(b) How do you record an income generating activity of a bar in a not-for-profit-making organization: