JAMB Financial Accounting: practice questions.

Question 1 · Final accounts of a sole trader/proprietor

A debt of ₦18,000 previously written off as bad was recovered in cash. The correct treatment is

1. A.credit sales account with ₦18,000
2. B.debit bad debts account with ₦18,000
3. C.credit the provision for doubtful debts with ₦18,000
4. D.reinstate the debtor, then record the cash received; credit bad debts recovered to profit or loss

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Question 2 · Principles of double entry

The ledger that contains the personal accounts of credit customers is the

1. A.sales ledger
2. B.purchases ledger
3. C.general (nominal) ledger
4. D.private ledger

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Question 3 · Final accounts of a sole trader/proprietor

A delivery van costing ₦2,000,000 is depreciated at 20% per annum on the reducing balance method. The depreciation charge for year 3 is

1. A.₦400,000
2. B.₦204,800
3. C.₦256,000
4. D.₦320,000

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Question 4 · Departmental accounts

The electronics department of a store in Ibadan has sales ₦2,400,000, cost of sales ₦1,680,000, direct expenses ₦250,000 and apportioned general overheads ₦310,000 that would continue even if the department closed. Which conclusion is correct?

1. A.It shows a net profit of ₦160,000 and contributes ₦470,000 to overheads, so it should be kept
2. B.It makes a loss of ₦310,000 and should be closed
3. C.Its gross profit is ₦2,150,000
4. D.It contributes nothing because overheads exceed direct expenses

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Question 5 · Introduction to company accounts

In the published statement of financial position of a company, proposed dividends that have not been declared before the year end are

1. A.shown as a current liability
2. B.added to share capital
3. C.deducted from non-current assets
4. D.disclosed only in the notes

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Question 6 · Branch accounts

In the books of an independent branch, goods received from head office are debited to goods from head office account and credited to

1. A.branch stock account
2. B.purchases ledger control account
3. C.cash book
4. D.head office current account

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Question 7 · Principles of double entry

A trial balance shows debit totals of ₦1,386,000 and credit totals of ₦1,428,000. To make it agree temporarily, a suspense account is opened with

1. A.a credit balance of ₦42,000
2. B.a debit balance of ₦42,000
3. C.a debit balance of ₦2,814,000
4. D.a credit balance of ₦21,000

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Question 8 · Control accounts

Which of the following does NOT appear in the sales ledger control account?

1. A.Bad debts written off
2. B.Returns inwards
3. C.Provision for doubtful debts
4. D.Interest charged on overdue accounts

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Question 9 · Introduction to company accounts

Sales ₦4,500,000; gross profit ₦1,350,000. The gross profit margin is

1. A.42.9%
2. B.30%
3. C.3.3%
4. D.70%

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Question 10 · Cash book

A credit balance on the bank column of a cash book means that

1. A.the business has money in the bank
2. B.the business has an overdraft
3. C.cash in hand is negative
4. D.cheques have not been presented

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Question 11 · Principles of double entry

From the following balances of Uche Ventures, Port Harcourt, calculate the capital that makes the trial balance agree: Purchases ₦1,840,000; Debtors ₦420,000; Premises ₦2,500,000; Wages ₦360,000; Opening inventory ₦290,000; Sales ₦2,960,000; Creditors ₦310,000.

1. A.₦1,560,000
2. B.₦5,410,000
3. C.₦2,760,000
4. D.₦2,140,000

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Question 12 · Partnership accounts

In the dissolution of a partnership, the final balancing figure on each partner's capital account represents

1. A.goodwill
2. B.cash settled with that partner
3. C.the profit on realisation
4. D.interest on capital

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